Prices of raw materials drop, why does the price of livestock feed remain 'high'?

Source: tuoitre.vn Importing enterprises of animal feed hope authorities will soon resolve difficulties - Photo: T.M. Exchange rate and logistics costs "erode" raw material price advantage Assessment of enterprises and industry experts in a survey conducted by Vietnam Report in 2025, published on December 12. The core reason lies in the import-dependent structure and exchange rate fluctuations. Currently, over 65% of Vietnam's animal feed raw materials must be imported, causing almost every fluctuation of the USD/VND to directly affect the cost. In 2025, the USD/VND exchange rate maintained an increase of about 3 - 3.5%, while logistics costs, freight rates, and marine insurance continued to remain high due to global trade and geopolitical instability. Therefore, even if global raw material prices decrease, this benefit is largely eliminated at the import stage. As a result, the raw material price upon "arrival at Vietnamese ports" cannot decrease correspondingly with the ...