April 27, 2009

Vietnam's soy production continues to fall below expectations as high production costs, low yields and lack of commercial crushing capabilities retard growth, reports the US Department of Agriculture.

Vietnam's soy production continues to be small and falls far short of its needs. Local soy production in 2008 was 268.4 thousand tonnes which is almost 3 percent less than the previous year. The 2009 crop is expected to increase to 273 thousand tonnes in response to efforts to expand the growing area and improve yields.

Soy imports increased 161 percent in 2008 as import tariff were reduced to zero and demand from food processing sector soared. Soymeal imports experienced a small decline in 2008 as credit tightened due to global financial crisis. Imports are expected to increase this year due to strong demand and foreseen improved financial conditions.

For more of the USDA report, please click here.