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HCM City: Chicken imports flooding markets
Frozen chicken imports have been selling everywhere in retail markets in HCM City since August 20 for 15,000-20,000 dong per kilo cheaper than previously. However, sales have been slow since the decision was released to tighten control of imported meat.
Super-cheap meat going to poor markets
In Binh Duong and Linh Trung Industrial Zone areas, there are many ‘workers’ markets’ like Linh Trung, Tam Binh and Binh Duong Markets, where dirt-cheap imported chicken has been flocking. In the last few days, imported chicken wings and legs have been selling in bundles displayed on plastic trays.
Previously, in the markets, only poultry stalls sold frozen chicken. However, now vegetable and meat stalls are also selling imported chicken. Workers who are working in the factories in nearby industrial zones have been purchasing chicken in big quantities. While urbanites have been afraid of meat imports since local newspapers reported on the discovery of contaminated meat imports, it seems that these workers have not.
A young woman selling chicken legs and wings at Linh Trung Market related that she purchased some meat to retail from trucks bringing chicken to the area. “As the chicken is very cheap, workers have purchased a lot. One month ago, imported chicken was 52-58,000 dong per kilo, while it is now only 40,000 dong.”
While fresh chicken is being sold at supermarkets at 57,000 dong per kilo, at small retail markets, chicken legs are selling at 35-38,000 dong per kilo only. If one purchases big volumes of chicken, sellers will sell at 28,000 dong. Meanwhile, sources say that the wholesale price is 22,500 dong per kilo only.
Nguyen Ngoc Tho, Director of Agri-Business, an imported meat trader, said that since local newspapers reported on ‘dirty meat imports’, meat importers have been facing big difficulties. Therefore, the company has been trying to sell imported products at low prices. Tho said that his company is selling meat imported from Brazil and the US at prices 15,000 dong per kilo lower in comparison with import prices.
Meat prices to increase?
Director of region 4’s animal health agency has confirmed that the volume of frozen meat arriving at HCM City ports has been decreasing sharply. Previously, 50-60 consignments of meat were quarantined for customs clearance, while only one consignment leaves the ports per day these days.
While Vietnam imported 7,000 tonnes of poultry meat in July, it imported only 3,000 tonnes in the first 20 days of August.
Tho has revealed that some 100 containers of frozen meat were scheduled to arrive in Vietnam in August. However, many importers have shipped imports to other countries as they fear the imports will be unsalable as domestic consumers have been hearing about contaminated food.
Truong Thanh Thien, Deputy Director Loc Thinh Phat Company, which still has 25 tonnes of unsold frozen chicken imported from Argentina, said that the company has cancelled a plan to import more meat.
Thien said that several years ago, business went smoothly as there were only some 10 traders. However, everything has become different since many other businesses jumped on the bandwagon.
“Prices have been lowered to boost sales. In order to have low prices, businesses have to find supply sources with low prices and import low-quality products,” he said.
As many traders have announced that they will not import meat anymore, analysts have warned that meat prices may increase in October and November when importers sell out all their products.
There are some 50 imported meat traders in Vietnam. In HCM City, meat imports meet 1/3 of the demand, or 500 tonnes per day.
vietnamnet, sgtt
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