Despite the pandemic, the prolonged tension between Russia and Ukraine, and global inflation led to an increase in the raw material price, Vietnamese livestock feed production increased last year.
According to the Department of Livestock Production, total output of animal feed in 2022 amounted to over 20 million tonnes. Swine feed made up about 65% of total production, while poultry feed accounted for approximately 30%, said the Department.
Also, according to Alltech’s Agri-Food Outlook 2023 report, Vietnam is the eighth largest feed producer in the world. It supplied approximately 26.72 million tonnes of feed in 2022, up 27.72% year-on-year. Aqua feed production grew 2.7%. Vietnam was also in the top 5 aquaculture feed countries, along with China, India, Norway, and Indonesia.
40% of feed mill companies and experts surveyed by Vietnam Report said that the feed industry outlook in 2023 is slightly improved and may grow significantly in the next five years.
By category, livestock feed is expected to see the fastest growth due to the increase in animal production volumes and modernisation of production. The swine feed sector is predicted to lead the market in terms of revenue by 2028, Vietnam Report indicated.
However, experts also warned that Vietnamese feed prices will continue to be impacted by the tensions between Russia and Ukraine. This is due to Vietnam being heavily dependent on supplies.
Self-sufficiency in feed materials has still been a dilemma for feed enterprises for many years.
Mr. Pham Thanh Duong, Deputy General Director of MXV said: “Although Vietnam is an agricultural country, our country has to import most of its agricultural products as raw materials for feed production. These materials account for over 60% of the completed feed price. So, as long as the world agricultural market fluctuates, it will impact the entire domestic livestock production chain.”
In 2023, the biggest supplier of soybean meal to Vietnam - Argentina - is suffering from a severe drought which has resulted in a high price for the ingredient compared to other materials.
To tackle this issue, the Government Office has delivered a notice to the Ministry of Finance regarding the proposal of the Vietnam Animal Feed Association to reduce the import tax on soybean meal from 2% to 0% to support the industry this March.