The political instability in the Middle East and tight monetary policy of China has affected negatively on the world grain market. In Vietnam, fighting inflation is the top priority of the Government with the disease has pushed the market of animal feed (feed) that farmers or known as the "bran" difficult.
The world may be faced with rising oil prices due to political crisis in Libya. Once prices have risen, production costs of all goods and cereals increased by not beyond the law.
In addition, the supply and world grain reserves 2010/11 crop year was U.S. Department of Agriculture (USDA) forecast is very tense should consider the long term, prices are still the main trend.
In Vietnam, the Government has approved a plan to increase electricity prices up 15.28% was applied on 01/03/2011. Thus, the increase in electricity prices this large effect to the production costs of enterprises in the feed.
In addition, oil prices also continued to cause more difficulties for enterprises, especially small businesses when their financial resources are not abundant. Government is placing priority on reducing inflation, leading, in other words, using monetary tightening measures. Meanwhile, access to credit from banks is becoming more difficult.
As reflected by many businesses, lending rates of banks present in excessively high levels that many businesses do not dare think about borrowing money to invest in the context of the current chaos.
Furthermore, in recent times, the complicated diseases, especially foot and mouth epidemic in cattle feed that demand will fall quite manh.Nhu so, the difficulties from both the first two in and out in recent times constantly creating difficult problem for feed businesses, especially small and medium enterprises.
These enterprises in the future will have to face more problems with cost and profit in the context of low demand and high costs have risen.