In the past few months, breeders have been selling pigs for less than the cost of production, and this has also made cattle feed companies and agents difficult to sell and recover.

Nguyen Hoang Van, a cattle feed dealer in Thong Nhat District, Dong Nai Province, said that his desire now is to make the pigs recover quickly so that the end of the year the livestock can pay their debts.

“We bought pillows from feed companies, some of which were sold in the form of consignment to these companies, so we fed the stockholders with a pillow. At present, because the farmers can not pay, we also have to pay debts to companies, “Van said.

As feed dealers find it difficult to collect debt from farmers, the business of feed companies is not easy.

According to the separate financial report of the Vietnam Livestock Corporation (Vilico), in the first quarter of 2017, sales and services of only VND 56.6 billion; During the same period last year, the figure was nearly VND 96.3 billion. Revenues decreased by 39.7 billion dong, which means that the company’s profit also decreased.

In the official letter 76CN / TCKT sent to the State Securities Commission, Vilico explained that the reason is because production activities in pigs in the first quarter of 2017 difficult due to the influence from the market.

Vilico has announced that it will reduce the price of breeding pigs to support livestock farmers; As such, it is likely that revenue in the next few quarters of the company will be affected, especially when pig prices are not yet known when to recover to the same level as before, so it is difficult for livestock producers to re-stock.

According to the Dong Nai Animal Husbandry Association, big companies still have difficulty in selling their products due to the difficulty of the pig market, and the first and second level dealers selling animal feeds and veterinary drugs Dangers are unavoidable.

The association said that long time, between the raisers and dealers usually buy in the first pillow type, buy the next batch will pay the first batch, or buy until the sale of pigs, chicken will finish payment. Therefore, over time, when the breeder sells pigs slightly lower than the cost, the agents who are affected are unavoidable.

The purchase price of steam at the farm is currently around 22,000-30,000 VND / kg.

Pham Duc Binh, vice chairman of the Vietnam Animal Feed Association, said that although there are no comprehensive statistics on the difficulties of feed mills, Also affected by falling sales.

The reason, according to Mr. Binh, several months, many livestock farmers only for pigs to eat in moderation, pig feed to keep the pigs do not continue to gain weight. In the long run, Mr. Binh said that food producers will be affected more but more or less will depend on the ability of pig farmers to recover pigs.

“If the livestock breeders can not be reared, it will affect the feed mills … and may pose a risk to the whole chain,” Binh said.

Although the pig industry is difficult, the value of imported feeds this year increased over the same period. Specifically, according to the Ministry of Agriculture and Rural Development, total import value of animal feed and raw materials in the first four months of this year reached 1.19 billion US dollars, up nearly 30% over the same period . That means that although domestic sales are declining, businesses are still importing large quantities of commodities for feed production in the coming months.