August 27, 2010

Vietnam's corn imports to soar 28% in 2010

USDA data shows that Vietnam will import 1.6 million tonnes of corn in 2010, up 28% on-year, said the Vietnam Market Analysis and Forecast Joint Stock Company.

However, deputy chairman of the Vietnam Animal Feed Association, Pham Duc Binh, said that the nation would import around the same volume as last year's which is nearly 1.25 million tonnes.

Regarding the USDA's forecast, Binh said 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. The world corn price formerly stood at around US$230 per ton 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 disenables imports to compete with local products," Binh said.

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.

The country's wheat and corn demand 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.