Import dependency raises prices in Vietnam
Animal feed manufacturers in Vietnam imported around VND9.3tril (US$580mil) worth of raw materials for producing animal feed. This includes energy and protein additives, spices, fish powder and mineral salts that could not be produced locally, according to the Vietnam Feed Association.
Domestic feed suppliers have been forced to import large volume of materials,
with expenditure on imports peaking at nearly US$500 million last year. The
existing 250 feed production plants in Vietnam (with a capacity of 5 million
tonnes per year) can only satisfy only 70% of the domestic demand, said the
deputy director of the Livestock Production Department, Hoang Kim Giao.
High feed costs
Money
spent on feed accounts for up to 70% of Vietnamese farmers’ total production
costs. The figure is between 10 and 20% higher than other regional countries and
20 and 25% higher than the global average.Giao said that the domestic animal
feed industry needs to take full advantage of available raw materials, as well
as minimise inland transportation costs to minimise further rise of feed
costs.
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