Vietnam returns to frozen meat imports

The volume of imported frozen meat has now reached ten thousands tons a month. As a result, dirty meat has reappeared.

Vietnamese importers stopped importing meat in the last months of 2008 and in 2009 due to discoveries of dirty meat. Now they have resumed the practice

According to the Livestock Breeding Department under the Ministry of Agriculture and Rural Development (MARD), in the first five months of 2010, frozen meat imports (poultry and meats) increased by three times over the last months of 2009. Pork imports alone have reached 50,000 tons.

According to the Animal Health Agency Zone 4, the agency receives quality inspection requests for 4000-5000 tons of imported meat every month. The figure soared to 7000 tons in April and May.

Meat traders say that, in HCM City, some 500 containers of meat (20-30 tons per container) are arriving at ports nationwide carrying poultry, pork, beef and lamb.

Nguoi Lao Dong reported that imported meat prices are not very low. Chicken legs are 20,000 dong per kilo, allowing importers to make fat profits if they sell at 22,000-24,000 dong per kilo (lower by ten thousand dong than domestic products).

Wholesale frozen pork imports run 35,000-40,000 dong per kilo, 50 percent cheaper than domestic prices. The low rates explain why imports are selling very well. Previously, domestic food processors made products from domestic pork, but now they are using imports to reduce production costs.

The trend is worrisome. Enterprises import products that are nearly out of date and accept the risks. If products obtain customs clearance, they will get fat profit from the low import prices. If the products cannot be cleared because of hygiene problems, they can accept the loss because they only pay a deposit of 20 percent of the consignment’s value to the exporter

Nguyen Xuan Binh, Director of Animal Health Agency Zone 6, admitted that his agency finds one or two containers of meat each month that cannot meet food hygiene requirements. In the first days of June alone, three containers were turned away for containing “dirty meat.”

Why import so much meat? Government agencies believe that Vietnamese enterprises stepped up imports to offset the meat shortage caused by the blue ear epidemic. Food traders assert that it is the cheap prices. Poultry in the world market, for example, declined from $1000 to $800 per ton.

Other analysts argue that the massive imports have been caused by a new MARD document on required food hygiene, which will take effect July 1. Businesses think that they need to import meat beforehand to avoid the stricter examinations.

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Posted by VBN on Jun 24 2010. Filed under Food & Beverage. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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