Animal feed businesses in the context of constantly fluctuating raw material prices in Vietnam

Market & Price Trends
Published Feb 17, 2024

Tridge summary

Vietnam's animal feed industry, heavily reliant on imported raw materials like corn from American countries, is vulnerable to high shipping costs and long shipping times. Experts suggest increasing domestic production of food raw materials, such as genetically modified corn, to reduce this reliance. However, domestic corn is currently twice as expensive as imported corn. Vietnam's challenges mirror China's recent strategic move to increase corn production for national food security and reduce dependence on foreign imports, despite less than 1% of the total corn planted area and challenges such as high seed prices and concerns over genetically modified corn.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Source: Import sources are mainly from American countries, so shipping time is long and shipping costs are high. Due to 65 - 70% dependence on foreign raw materials, production costs and selling prices of domestic animal feed are vulnerable. Many experts believe that it is time for Vietnam to have a systematic and fundamental strategy to develop domestic food raw materials. One of the important solutions is to develop crops using biotechnology as animal feed materials with high productivity and output to supplement domestic supply and reduce imports. Meanwhile, corn is the item with the highest proportion in the group of imported agricultural raw materials of Vietnam. Therefore, introducing genetically modified corn varieties (GMO) with high yield and better resistance, and expanding corn cultivation areas will be basic solutions to increase corn production in the future. water. The price of "domestic corn" is twice as high as "foreign corn". According to the ...
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