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Competition heats up for animal husbandry sector

Vietnam's animal husbandry industry is expected to face serious challenges under new and future Free Trade Agreements (FTAs) because of low productivity, high production costs and small scale of production.
Vietnam's animal husbandry industry is expected to face seriouschallenges under new and future Free Trade Agreements (FTAs) because oflow productivity, high production costs and small scale of production.

Speakingat a conference held in HCM City on June 22, Doan Xuan Truc, DeputyChairman cum General Secretary of the Animal Husbandry Association ofVietnam, said that FTAs would adversely affect the industry more thanany other agricultural industry.

But he noted that FTAs wouldalso help the industry access new technology, products, and animalbreeds as well as production methods.

Ho Xuan Hung, Chairman ofthe General Association of Agriculture and Rural Development, said thatlower import tariffs under new FTAs would lead to fierce competitionwith foreign producers.

The domestic industry is plagued withsmall-scale breeding, poor animal breed quality, poor breedingtechnology, low labour productivity, regular threats of disease and poorlinkages in the production chain.

Phuc said that high bank loan interest rates had increased breeding costs, reducing the sector's competitiveness.

Production costs have also gone up because of dependence on imports for raw materials used to produce animal feed and vaccines.

In addition, technologies for processing and preservation are not advanced, limiting management of food quality.

Phucsaid the domestic animal husbandry sector had been able to meet demandfor 100 percent of pork meat, 95 percent of poultry meat and 75-80percent for beef.

"If the sector does not lower production costs, cheaper imported meat will enter the market," he said.

LeBa Lich, Chairman of the Vietnam Animal Feed Association, said tocompete with imported meat, locally made meat must be competitive inprice, quality, and hygiene and food safety.

He said the sectorshould develop a closed production chain to reduce costs and improvequality. In addition, the Government should offer support to enterprisesthat want to invest in concentrated breeding areas and modernslaughterhouses.

Training of human resources should also bepromoted, as well as investment in environmental treatment and modernprocessing and preservation facilities.

Nguyen Xuan Duong, DeputyHead of the Animal Husbandry Department, said in 2013 pork accountedfor 74.2 percent of total meat output, poultry 17.3 percent, cattle 8.5percent.

The country targets raising the ratio of poultry andcattle meat to 28 percent and 10 percent, respectively, while reducingthe ratio of pork meat to 62 percent, Duong said.

The conferencewas organised by the General Association of Agriculture and RuralDevelopment and the Animal Husbandry Association of Vietnam.-VNA

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