Vietnam’s feed exports on a downward track
Vietnam, a significant player in the Southeast Asian feed export market, experienced a noticeable decrease in sales to international clients in 2024.
During the first 8 months of 2024, Vietnam’s animal feed and feedstuff exports reached $ 672.8 million, down 15.1% compared with the previous year. The negative dynamics have gained steam in the last few months, the general department of customs reported.
In July 2024, exports stood at $90.6 million, 30% less than in July 2023. In August 2024, exports amounted to $87.9 million, reflecting a 37% decline in year-to-year comparison.
Exports to China problematic
China is historically the largest sales market for Vietnam’s feed and seems like the most problematic export direction in 2024.
In the first 8 months of 2024, Vietnam exported feed to China worth $270.66 million, down 30.6% from the previous year. In August 2024, exports reached $31.21 million, 59.7% less than in August 2023.
Exports of animal feed and raw materials to the Southeast Asian market reached over $205.9 million, 18% below the previous year.
US: Promising market
The US, emerging as a promising market, was the second largest sales destination, with sales totalling $88 million. Vietnam’s feed exports to the US surged by 67% compared to the previous year, offering a glimmer of hope amidst the overall decline in sales.
Vietnam now has 269 facilities producing animal feed, with a total capacity of 43.2 million tons, including 90 foreign-owned facilities, the authorities reported at the end of 2023.
A Chinese factor
Vietnam experienced a drop in feed exports to China, even though the demand in that market is on the rise this year.
The total feed demand is expected to reach 286.5 million tonnes in 2024, an increase from 284.7 million tonnes in the previous year, USDA said.
The feed industry in China showed a slight downward trend in the first half of 2024. Specifically, China’s total industrial feed output was 145.39 million tons, a year-on-year decrease of 4.1%.
This downward trend is mainly influenced by factors such as the optimisation and adjustment of pig production capacity and the failure of livestock product consumption to recover to the expected level. In terms of specific breeds, pig feed production has fallen from a high level, with a year-on-year decrease of 7.3%. The demand for egg and poultry feed has slightly decreased, with a year-on-year reduction of 4.4%.
