Vietnam consumes about 28-30 million tons of raw materials for animal feed each year

In 2020, the value of imported domestic animal feed and raw materials increased by 3.75%. Only in the first 6 months of this year, this rate has risen by 36.6% over the same period last year. It was caused by the decrease in the world supply of raw materials due to 3 factors: The impact of climate change and, high transportation costs (as an impact of Covid-19) and limited domestic supply.

In order to reduce the pressure, Ms. Dinh Thi Thuy Phuong, Deputy Director of the Price Statistics Department, Vietnam General Statistics Office said that fluctuations in domestic animal feed prices are influenced by global prices, since Vietnam still mainly imports feeds from other countries. 

“The development of the fishery industry has created a large amount of by-products. However, they have not been fully exploited. This is also a source of feed materials that need to be paid more attention in the near future, in order to reduce dependence on imported supplies. Enterprises need to maximize domestic materials and consider using them as replacements of imported ones; diminish production costs to reduce and stabilize the cost of animal feed prices; and last but not least make the full use of raw materials supplied from localities," said Ms. Dinh Thi Thuy Phuong.

According to Mr. Nguyen Thanh Son, Chairman of Vietnam Poultry Association, in the next 5 years, Vietnam's demand for raw materials of feed production would be about  28-30 million tons per year, worth about 13 billion USD, with an average growth rate of 11 - 12% per year. More than half of the output will be used for the poultry industry. However, it is difficult to forecast the supply and price of feed ingredients in the world, especially in the context of Covid-19 pandemic that may further disrupt the production chain, export and supply.

“Vietnam needs a strategy to develop domestic feed ingredients in the most basic and methodical way. Accordingly, it is necessary to have many synchronous solutions, one of them is to develop plant varieties applied biotechnologically and use them as animal feeds with high yield and output. It will contribute to minimizing the import of biotechnological products and nutritious raw materials such as corn and protein-rich soybeans, reducing the cost of domestically produced animal feed.", shared Mr. Nguyen Thanh Son.

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