August 25, 2010

Large corn imports forecast for Vietnam this year

The USDA has forecast Vietnam will import 1.6 million tonnes of corn this year, up by 28% from last year, said the Vietnamese Market Analysis and Forecast Joint Stock Company.

Pham Duc Binh, deputy chairman of the Vietnam Animal Feed Association, however, said the nation would import around 1.25 million tonnes, equivalent to last year's figure.

He added that the department had gauged corn demand this year based on Vietnam's growth rate and pork demand. "Pig farming in the country is in trouble due to blue-ear disease which has led consumers to shift to alternative foods like chicken and seafood," Binh said.

The world corn price formerly stood at around US$230 per tonne but then increased to US$260 after Russia decided to ban wheat export. The price along with 5% import tariff from outside the ASEAN region disallows imports to compete with local products, he added.

According to the association, world corn and wheat prices are fluctuating strongly. As a result, animal feed factories in Vietnam use materials in stock before deciding what materials they have to import.

Wheat and corn demand in the country is expected to surge sharply in the future to serve animal feed production as a large amount of cassava will be used for growing ethanol production.

Vietnam is the fifth largest corn importer in Asia after Japan, South Korea, Taiwan and Malaysia.