Balance between meat imports and domestic products

Beef on sale inside a supermarket in Ha Noi. Prices of domestic meat products are becoming cheaper to better compete with imported meat products. — Photo dantri.com.vn

Meat product imports into the Vietnamese market have long been common practice done in accordance with world regulations. However, imports could affect domestic prices and market stability if not taken under full control, said Hoang Thanh Van, Director of the Department of Livestock (DoL), Ministry of Agriculture and Rural Development (MARD) yesterday.

To gain better quality control over imported products and to stabilise the domestic market, relevant management agencies must improve the technical barriers imposed on meat products upon entering the Viet Nam, Van said.

Simultaneously, the national meat and livestock industry must advance technologically to reduce costs and increase product quality.

Van also noted that there are businesses in the South East region of Viet Nam currently producing livestock, meat and poultry products at relatively low prices.

In particular, white chicken is currently priced at VND20,000 (US$0.9) per kilogramme, but the DoL had been making efforts to reduce it to VND19,000 ($0.85) per kilogramme. This would make the Vietnamese price for chicken even with the US price. Viet Nam has a relative advantage in this area, and a lower price would mean better competitiveness on the world market.

The domestic price of pork has been moving between VND38,000 and VND40,000 ($1.7 to $1.8) per kilogramme. However, thanks to the use of vertical integration chain, the price has been reduced to VND35,000 to VND36,000 ($1.57 to $1.62) per kilogramme.

In the near future, the DoL expects to construct better vertical chains in order to reduce pork price down to near VND30,000 ($1.35) per kilogramme. This shift would greatly benefit both Vietnamese farmers and consumers and allow domestic products to compete with imported ones.

By the end of 2016, total imported amount of chicken products in Viet Nam will amount to around 30,000 to 40,000 tonnes, imported beef 90,000 tonnes, imported pork 100,000 tonnes. Compared to the total domestic product of 6 to 7 million tonne, total imported value would not be considered significant. —VNS