Wednesday, 11/03/2009 16:08

MOF and MARD to sit together to discuss feed prices

The Director of the Livestock Husbandry Department under the Ministry of Agriculture and Rural Development (MARD), Hoang Kim Giao, said that the ministry will discuss with the Ministry of Finance (MOF) on solutions to deal with the sharp price increase of input materials for animal feed.

Feed producers have begun raising feed prices, thus putting big difficulties for livestock farms. Does MARD know about this?

We have not gotten any information about the feed finished products. We have also heard about the price increases of between 10-15% of input materials for feed.

Feed sales agents in the south confirmed that the feed finished products have increased by VND 5,000-6,000/kg for the last several days.

I do not have the information. Maybe sales agents have spontaneously raised the sale prices. However, as the input materials for making feed have risen by 15%, the feed finished products’ price increase proves to be possible. Import materials account for 45% of the total feed production cost. Therefore, MARD and MOF will have to sit together to discuss the solution to the problem.

Regarding the sales agents, which have spontaneously raised the feed sale prices, will they be punished for their move?

The market control agency will inspect and punish violators in accordance with the current laws.

People said that the feed market in Vietnam is now being controlled by some big producers. What is your viewpoint about that?

We have several times discussed with the Vietnam Feed Association about the issue. We have suggested setting feed trading floors in order to make information transparent about the input material prices, production cost, and sales prices of finished products.

The Government is applying the measures to stimulate demand and reduce production costs. Do you think that the feed price increase would go contrary to the policies?

State management agencies cannot interfere in the pricing of enterprises. However, feed producers need to share the difficulties with farmers in that difficult period, and should keep the sale prices stable. Feed producers have been living on farming and they should well understand this.

Feed prices have always been increasing, while producers have always been reasoning the input material price increases. Can MARD and relevant ministries control the input materials for feed?

MARD has always been keeping a close watch over the world’s market in order to provide farmers with updated information about the market. MARD has also begun joining forces with MOF to take strict control over the issue.

VietNamNet, NLD

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