Animal feed prices decrease, many localities in Nghe An actively restore herds

Since the beginning of 2023, animal feed prices have undergone three consecutive downward adjustments. Photo: Thanh Phuc

With a scale of raising 500 breeding sows, 8,000 pigs, 7,000 chickens and 2 hectares of freshwater fish, each month, Mr. Pham Viet Duc's farm in Hamlet 6, Thanh Huong Commune (Thanh Chuong) has to use 150 tons of feed, costing about 2 billion VND.

In 2020-2022, the price of animal feed increased by 40% compared to before 2020, so large farm owners like him encountered many difficulties. From March 2023 to now, after 3 adjustments, the price of animal feed has decreased by an average of 1,000 VND/kg, making Mr. Duc very excited.

“In livestock farming, feed costs account for 65% of the product cost. Therefore, when the cost remains unchanged, feed prices increase, profits decrease and vice versa. There was a time when feed prices increased too much, many farms lost more and more money, forcing them to reduce their herds. Now that feed prices have decreased, although not as expected, it has helped farmers save a large part of their input costs and make more profit. When livestock farming is profitable, they will actively raise and restore their herds,” said Mr. Duc.

Input material prices have decreased, so animal feed companies have adjusted downwards. Photo: CSCC

Not only pig feed but also poultry feed has been adjusted down, so large-scale chicken and duck farm owners save tens of millions of VND/month. The reduced feed price means lower input costs, so farmers have higher profits.

Ms. Cao Thi Loan, a chicken farmer in Dien Trung commune (Dien Chau) said: "The price of chicken feed has decreased by about 1,000 VND/kg after 3 adjustments, equivalent to a decrease of 25,000 VND per bag of feed. Although the price is still high compared to before, at this rate, farmers will have less difficulty."

Not only farmers are excited, but distributors and animal feed businesses are also happy when the price of bran has decreased, people are raising more livestock and are bold in restocking, so the amount of goods sold has also increased compared to before.

Mr. Nguyen Tuan, owner of an animal feed dealer in Dinh Son commune, Anh Son, said: “Previously, I supplied about 10 tons of various animal feed to the market in Anh Son and Con Cuong every month. In the past two years, the price of feed has increased, livestock farming has suffered losses, so people have reduced their herds, many households have suspended their cages, so the output has also decreased sharply, to 50% compared to before, mainly selling bird feed for poultry. Now that the price of animal feed has decreased, the business situation has improved more than before.”

Feed prices have dropped by 300 VND - 1,000 VND/kg, and Nghe An farmers are actively restocking their herds. Photo: Thanh Phuc

In the first 6 months of the year, the price of animal feed ingredients also decreased. Of which, the price of corn kernels decreased the most (5.7%), the price of dried distillers grains decreased by 3.8%. Accordingly, the price of finished animal feed products of all kinds decreased by 300 to 1,200 VND/kg. According to forecasts, the price of animal feed will decrease slightly at the end of 2023 and continue until early 2024.

According to experts, animal feed accounts for 65-70% of production costs. The downward adjustment by animal feed companies, combined with the good price of livestock and poultry, will create favorable conditions for farmers to recover production after a difficult period. Especially, this is the time to herd and re-herd to serve the year-end market.

However, currently, dangerous infectious diseases in animals are still occurring in some provinces and cities across the country; therefore, livestock farmers need to continue to synchronously implement biosafety and disease-safe livestock farming solutions to protect the health of livestock and calculate and consider the appropriate time to restock to avoid oversupply.

Source: https://baonghean.vn/gia-thuc-an-chan-nuoi-giam-nhieu-dia-phuong-o-nghe-an-tich-cuc-tai-dan-post274399.html