January 2, 2024
Vietnam imported 10.5 million tonnes of feed last year
Vietnam imported approximately 10.5 million tonnes of animal feed and raw materials worth US$5.1 billion in 2023, while exports were only around $1.2 billion, according to estimations provided by the country's Ministry of Agriculture and Rural Development.
Thus, the trade deficit in the Vietnamese animal feed sector would amount to $3.9 billion.
The country's livestock industry consumes over 33 million tonnes of feed annually, mostly for the production of poultry and pigs. Vietnam needs a significant amount of refined feed ingredients to meet this need, but it can only produce roughly 35% of the total, or 13 million tonnes, annually, with the remaining portion being imported.
Masan Group, which accounts for 6% of Vietnam's animal feed output, has sold its entire animal feed segment to De Heus, negativelyly impacted domestic supply.
The number of products and by-products from the processing of seafood, cattle and poultry that are utilised as animal feed is not high. Vietnam can only manufacture a limited amount of mineral supplements, microbiological products and herbs, and it lacks production equipment.
The Việt Nam Poultry Association forecast that the country's demand for feed raw materials would reach about 28-30 million tonnes per year in the next five years, worth US$12-13 billion, and with an average growth rate of 11-12% annually.
Last month, Vietnamese Deputy Prime Minister Trần Lưu Quang signed a decision approving a project to further develop the animal feed processing industry until 2030.
The project encourages the strong development of the raw material and food supplement production industries to meet the need for biological products to replace antibiotics and chemicals used in livestock farming. It also calls for expanding farmed land for intensive grass and animal feed production. The total area is expected to reach 0.5 to 1 million hectares, enhancing domestic animal feed production by growing corn and specialised crops for animal feed.
— VNS
