March 15, 2011

 

Vietnam to increase imports to fuel domestic soy processing

 

 

Vietnam's soy imports seem likely to increase five-fold next year as the country begins pioneer local bean processing facilities to meet its rapidly increasing demand, a US soy industry official stated on Monday (Mar 14).

 

Vietnam, with one of the quickest expanding animal feed business in the world, is predicted to buy soy from the US and South America, sacrificing soymeal purchased mostly from India and South America.

 

"It is going to change the country's import profile completely," John Lindblom, East Asia regional director of ASA International Marketing, told the Reuters Global Food and Agriculture Summit. "I don't know how long it will take the plants to get to full capacity but they represent 40-45% of the meal consumption in Vietnam."

 

Agricultural processor Bunge Ltd is setting up a 3,000 tonne/day soy crushing plant in the country, while local players are investing in a unit which will have a capacity of 1,000 tonnes/day.

 

Both facilities are predicted to begin operating later on the year, Lindblom said in Singapore on Monday (14 Mar).

 

Vietnam's action to begin soy processing facilities comes as grain purchasers rush to raise imports to ensure plentiful supplies in the face of higher food costs.

 

US soy and corn have risen to multi-year highs in recent weeks, raised by dwindling worldwide supplies, although the grain markets have lost some ground due to economic concerns arising from Middle East unrest and Japan's destructive earthquake.

 

Vietnam, which buys soymeal for feeding pigs, fish and chickens mainly from India and South America, has seen its yearly feed production double to eight million tonnes within five years.

 

"It is one of the most exciting markets. It is not the magnitude of China but the growth is faster than China," he said, referring to Vietnam's giant neighbour China, the biggest importer of soy in the world. "The business will be split between US and South American beans. We will export around half and the rest will come from South America."