January 25, 2008 

Highlights

Vietnam's feed deficit 3.7 million tonnes last year, up 52 percent by value   Near doubling of corn acreage to 1.2 million  hectares by 2010   Animal husbandry sector targeted to grow 8-9 percent from now to 2010

 

Vietnam's feed imports to grow as production fails to catch up

 

 

Vietnam will have to import more animal feeds to meet rising feed demand from now to 2020, an official from the Animal Husbandry Department said.

 

The official was speaking after Prime Minister Nguyen Tan Dung ratified the animal husbandry development strategy until 2020, which focuses on increasing areas under  agriculture and applying industrial breeding models.

 

Under the strategy, the animal husbandry sector is targeted to grow between 8 percent and 9 percent from now to 2010, and to account for 42 percent of the agriculture's total production value.

 

The official said Vietnam will have to import around 672,000 tonnes of corn this year as the country needs nearly 4.5 million tonnes of corn for its animal husbandry sector, but domestic output can supply only 3.8 million tonnes.

 

Vietnam's corn import is forecast to increase 15.4 percent to 741,000 tonnes by 2010.

 

By 2015, volumes would be 35.9 percent over current imports, reaching 912 ,000 tonnes and by 2020, it would be 50 percent more, reaching 912,000 tonnes.

 

Meanwhile, the Husbandry Department also forecast Vietnam's soy and oil-cake imports will rise to nearly three million tonnes by 2020, from 1.8 million tonnes expected this year.

 

Vietnam's animal feed production failed to meet the 17-million  tonnes in local demand last year, managing to produce only 13.3 million  tonnes, or 3.7 million  tonnes short.

 

As a result, the country had to spend US$1.1 billion importing the deficit. The feed deficit was also up 52.6 percent on year in value and 20 percent in volume.

 

The deficit was in spite of an 8.2-percent increase in corn output last year.

 

The country intends to nearly-double corn planting area from the current 630,000 hectares to 1.2 million hectares by 2010, with yields hopefully rising from 3.9 tonnes per hectare to 4.5 tonnes per hectare.

 

The increased area and yields would then boost corn production to 5.4 million tonnes, up 31 percent from the present 4.1 million tonnes.

 

However, even at this impressive rate of growth, production would still be likely to lag behind demand.

 

Vietnam's demand for animal feeds is expected to jump 41 percent to 27.4 million tonnes from 19.8 million tonnes in the 2010-2020 period.

 

Prime Minister Nguyen Tan Dung recently urged the Agriculture and Rural Development Ministry to overhaul its policies so as to raise agricultural productivity, quality and production and transform rural Vietnam through a new economic system.

 

Despite earning billions for the country, the agricultural sector still had many shortcomings, despite its numerous achievements, he said.

 

Its agro-produce was not competitive and the transformation of the agricultural economy was too slow.

 

Deputy Agriculture and Rural Development Minister Vu Van Tam said Viet Nam would work to earn export revenue of US$13.6 billion from agriculture, forestry and fisheries this year - US$ 1.1billion higher than last year, according to the Vietnam News Agency.