Vietnam: Short-term solution on the road to self-reliance in raw materials for animal feed

Published May 11, 2023

Tridge summary

The article highlights the challenges faced by Vietnam's livestock industry due to its heavy reliance on imported agricultural supplies, especially corn. This dependence has been exacerbated by the COVID-19 pandemic, crop failures, and political tensions, leading to high agricultural prices and profit margins. The industry's profits have been further hit by the outbreak of African swine fever and the low pork prices. To mitigate these challenges, the article suggests that the industry could seek alternative, cheaper supplies in the short term and focus on sustainable, long-term solutions like domestic production and industry transition. The article also mentions the decrease in imported broken rice and increased import of cassava blocks in 2022 due to high corn prices and supply interruptions from Eastern Europe.

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Original content

Although the orientation to increase domestic production to reduce dependence on imported raw materials has been proposed and implemented since 2016, it has not been until the last 3 years that this issue has really been addressed by enterprises. livestock in our country. The turnaround process also requires the industry's flexibility and improvisation to short-term challenges. The supply of agricultural products mostly comes from South America. About 75% of our country's animal feed ingredients come from foreign markets. Experiencing the "super-price increase" cycle of goods after the Covid pandemic, crop failure in major producing countries and political tensions between Russia and Ukraine causing disruption to the supply chain, the livestock industry has revealed its weaknesses even more. due to dependence on imported supplies. Although it has cooled down compared to the same period last year, agricultural prices are still high compared to the average in the past decade. ...

Source: Vinanet