July 30, 2010

 

Vietnam's feed imports surge over 60%

 

 

Import of livestock feed and other ingredients into Vietnam has amounted to US$937 million this year, an on-year increase of over 60% despite slack demand from cattle, poultry and seafood farmers.

 

Feed processors have been grappling with many difficulties after importing a large volume of feed and ingredients while farmers are discouraged from keeping their business due to diseases affecting livestock and thus leading to falling prices.

 

The blue-ear disease that has been spreading across pig farms since February has added to the price drop that discourages pig farmers. While the Mekong Delta's tra fish also saw its prices plunge a few months ago due to low demand from European markets.

 

Meanwhile, prices of ingredients for processing feed have inched up, especially bran and corn, by 50% compared to the same period last year. Other grains and beans have also edged up nearly 26%.

 

Vietnam Animal Feed Association chairman Le Ba Lich said the price upsurge was partly due to local enterprises increasing their purchase months ago, as feed prices on the world market have gone down by some US$80 per tonne.

 

Lich is expecting that livestock feed prices from now till December will not climb anymore as supply enormously exceeds demand.

 

According to association, prices will continue to go down in the second half of the year thanks to a drop in import prices. Fish feed like powder has their price shrink US$90 per tonne from May, while corn and bean prices are also on the downtrend and expected to reach a three-year low thanks to abundant global supply.

 

Vietnam imports livestock feed mostly from Argentina, the US, Brazil and India.