Animal feed distributors were able to reduce feed imports in the first two months of the year due to high domestic supply, said Vietnam Animal Feed Association vice chair Pham Duc Binh.
The import value of animal feed fell to $359 million in the first two months of the year, 17.5 per cent lower than in the same period last year, according to association figures. Feed imports from India fell 18.2 per cent even as imports from Italy and the United Arab Emirates edged up somewhat.
High domestic supplies have also pushed down feed prices, Binh said, noting that the price has dropped by VND160-250/kilogram from last year.
With the winter-spring crop of rice and cassave successfully harvested, the price of rice was also low, allowing feed processors to rely on these supplies for production, Binh said.
Foreign-invested feed companies continue to meet most of the domestic demand, including Thailand’s CP Group and US agricultural giant Cargill, according to the Ministry of Industry and Trade.
The ministry is therefore urging greater domestic investment in the feed industry and suggesting the development of a long-term strategy to promote domestic investment in the industry, particularly in the production of raw materials such as corn and soybeans.
Last month, a new domestic supplier for the feed market, the Hong Ha Nutrition Joint Stock Co, commenced operations.