The price of animal feed increased sharply in the first 6 months of 2022
According to Mr. Tong Xuan Chinh – Deputy Director of the Department of Livestock Production (Ministry of Agriculture and Rural Development), raw materials for the production of imported animal feed increased in price from March to May.
Information from some livestock farms and agents providing animal feed, in the first 6 months of 2022, the price of animal feed has been adjusted 5 times. Starting from July 1, 2022, the price of animal feed will continue to be increased from 240 to 400 VND/kg. The continuous increase in prices has pushed farmers who are in a difficult situation even more difficult because feed costs account for about 65-70% of the cost of livestock.
Why did the price of animal feed increase sharply?
In general, the prices of animal feed ingredients in the first 6 months of 2022 have increased compared to the same period in 2021 because the world agricultural product prices have been established with a new price level; The Covid-19 epidemic disrupted the global supply chain, including the supply chain of imported animal feed.
Along with that, a number of large investment funds in the world switched to trading agricultural products, hoarding goods, pushing up agricultural product prices. The United States, one of the major corn producing countries, has increased production of bioethanol (ethanol) from corn, reducing the amount of corn exported. Especially, the increase in gasoline prices in February 2022 also pushed up corn prices.
In addition, according to VIRAC‘s report, some major corn and soybean producing countries in South America (Argentina, Brazil) have reduced maize and soybean production due to the drought situation. Specifically, according to the United States Department of Agriculture, Argentina’s corn production in the 2021/2022 season is expected to fall to less than 48 million tons (previous calculation is 54 million tons), Brazil is less than 110 million tons (according to previous calculations). this is 114 million tons).
Moreover, the political crisis between Russia and Ukraine (the world’s largest and fourth largest wheat exporter) is having a great impact on global food supply and prices, directly affecting the price of corn and other agricultural products on the world and Vietnamese markets.
In the domestic market, due to the dependence on imported raw materials, the increase in the price of raw materials for animal feed production in the world causes the price of raw materials for animal feed production in the first 6 months of 2022 to increase compared to that of the domestic market. with the same period in 2021.
“Cool down” with domestic ingredients
The domestic animal feed production sector depends on imported raw materials, so it is directly affected by fluctuations in world raw material prices. The reason that the source of raw materials is still dependent is because the domestic production capacity of animal feed ingredients is still limited, the production technology and feed management are not synchronized, many small-scale production facilities are retail, handmade.
A representative of the Institute of Livestock Production (Ministry of Agriculture and Rural Development) said that the use of locally available feed sources such as coconut bran, rice bran, etc. in the pig raising model in Tien Giang and Lao Cai has helped reduce the product cost about 3,000-5,000 VND/kg.
Feed prices account for 65-70% of the cost of livestock. Therefore, in the context of the high price of imported raw materials, the application of technology to build animal feed from domestic materials will be a solution to help reduce the cost of animal feed products.
