Some associations have voiced concern over the potential impact on poultry farmers if the Ministry of Finance's proposal to reduce import tariffs for chicken, pork and their by-products is approved, VietnamPlus news site reported.
Some associations have voiced concern over the potential impact on poultry farmers if the Ministry of Finance’s proposal to reduce import tariffs for chicken, pork and their by-products is approved, VietnamPlus news site reported.
With the levels of proposed reductions, where the Finance Ministry proposed lowering the import duty of chicken meat and chicken by-products from 20% to 18% and tariffs on fresh or frozen pork to 22% from 25%, Nguyen Tat Thang, general secretary of the Vietnam Animal Husbandry Association, stated that the drop in pork tariffs will not have a deep impact, but chicken farmers are forecast to run into trouble.
Since Vietnam’s plan to enhance the consumption of beef, poultry and fish as alternatives to pork was launched, many farmers and households have upsized their chicken flocks, resulting in the rise in supply of poultry, he explained, adding that as such, the reduction in import tariffs for chicken will negatively affect farmers and make them suffer losses.
Thang pointed out that ministries and agencies should impose technical barriers to control low-quality goods, prevent negative effects from the reductions and protect production and processing activities in the country.
Also, he noted that meat import duties are expected to continue to drop, potentially piling pressure on local chicken farmers.
Nguyen Thanh Son, chairman of the Vietnam Poultry Association, said the ministry’s proposal had caused concern for poultry farmers and the association.
As prices of chicken on the local market were low this year, sometimes dropping to half the production cost at VND15,000 per kilogram, the reductions in import tariffs for chicken will negatively affect local production activities, Son added.
The prices of chicken remain high in Vietnam due to small-scale production, limited high-tech applications and high costs. As a result, domestic chicken has difficulty competing with imports from the United States and Brazil, he remarked.
Son stated that producers had proposed reconsidering the planned reductions to import tariffs to protect local production as chicken is a sensitive product affecting the livelihoods of millions of farming households.
Meanwhile, Nguyen Cong Tri, chairman of the Dong Nai Livestock Association, indicated that domestic chicken in Vietnam, which has a strong advantage of low-cost manpower, will be able to compete if the prices of materials are low and technology is applied efficiently.
(Source:SGT)
