Livestock assoc prepares dumping suit against U.S. chicken

02:08, 18/08/2015

The Southeast Livestock Association said it is preparing to file a dumping lawsuit against U.S. frozen chicken.

The Southeast Livestock Association said it is preparing to file a dumping lawsuit against U.S. frozen chicken.

The association said in a statement that it had met the Vietnam Competition Authority to prepare necessary procedures for the suit. It claimed that U.S. chicken legs imported into Vietnam were sold at VND27,000-28,000 per kilogram in 2013 but the prices in the first half this year fell to VND17,000-20,000 per kilogram.

As calculated by chicken farms, if a kilogram of U.S. chicken is sold at VND20,000 in Vietnam, the price of live chicken would be VND15,200 per kilogram. With import and distribution costs deducted, the live chicken price should be less than VND10,000 per kilogram.

Farming cost in Vietnam is equivalent to other regional countries and not much higher than that in the U.S. Meanwhile, U.S. chicken shipped to Vietnam bears multiple fees but the selling price is equivalent to 25% of the price in the U.S., which the association said is beyond imagination.

Nguyen Van Ngoc, vice chairman of the association, told the Daily on the phone that to protect local livestock farmers and producers, the association would seek anti-dumping tariffs of 50-100% against chicken imports from the U.S.

Ngoc said the Vietnam Competition Authority has aided the association in preparing necessary procedures.

As reported by the Daily late last month, the association sent a petition to the ministries of industry-trade and agriculture-rural development asking for a probe into the possibility of U.S. frozen chicken being dumped on the domestic market following the request of farm and livestock enterprise members of the association.

Some days later, the USA Poultry and Egg Export Council (USAPEEC) released a statement denying U.S. chicken was being dumped on the Vietnamese market. However, the association said it would push on with the case against U.S. chicken imports.

(Source:SGT)