Raw materials for animal feed increased, why?

2 min read
The supply of raw materials for animal feed decreased.

The price of raw materials for animal feed has shown signs of going up since mid-2020 and the closer to the end of the year, the stronger the price increase. Up to now, the prices of many grains such as corn and soybeans have not shown any signs of going down, as demonstrated in the past month, prices have continued to increase.

Animal feed businesses are considered the first to be affected when most are in a state of supply shortage, both in production and waiting for raw materials. Next are farmers, who are the hardest hit, especially small and medium-sized farmers.

The General Statistics Office pointed out the reason for the increase in feed fuel.

Firstly, due to the decrease in the supply of animal feed ingredients in the world, the cost of transporting imported materials has increased due to the lack of ships and containers affected by the Covid-19 epidemic, climate change causing crop failure.

Second, a number of countries diverted investment in agricultural products and China increased the purchase of raw materials for animal feed, causing the world price of animal feed to increase.

Third, in Vietnam, the source of animal feed materials is mainly imported (accounting for about 80%-85%), the import price of animal feed in the first 4 months of 2021 increased by 6.66% over the same period last year. 2020 should affect domestic animal feed prices.

Specifically, the price of animal feed products for the processing industry in April 2021 increased by 2.48% compared to the previous month and increased by 13.49% over the same period in 2020, up 8.79% in the first 4 months of this year. The price of animal feed raw materials for agricultural households increased by 1.26% and increased by 5.09%, overall 4 months increased by 3.6%.

The General Statistics Office also proposed three options to overcome the current difficulties caused by the rising price of feed ingredients.

Firstly, businesses need to actively increase raw material reserves for production, avoiding shortages when prices are high.

Secondly, businesses and production households need to actively make the most of available raw materials for domestic animal feed to replace imported sources such as dried cashews, cashew bran, cassava residues, rice bran.

Third, management agencies need to study to reduce import taxes as well as reduce transportation and warehousing costs to reduce costs, ensure supply, and stabilize domestic production.

Source: ndh.vn – Translated by fintel.vn