News last update:6 Aug 2012

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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