Vietnam's imports of raw materials for processing animal feed in the first seven months of this year surged to US$3.1 billion as domestic supply only met about one-third of local demand.
Experts have pointed out that the distribution of benefits in the livestock production chain has become unreasonable. Farmers who make products only earn a modest profit, while most of the money goes to merchants’ pockets.
The Vietnam Poultry Breeders Association has said the Government should have a strategy to develop feed ingredients domestically to reduce their imports.
Masan Group billionaire Nguyen Dang Quang is considering a billion-dollar deal in an area that is Vietnam's strength but has been controlled by large foreign corporations for the past decade.
Husbandry companies are being squeezed on two fronts, with prices for poultry and cattle stagnating and falling in some cases while animal feed material prices have been surging, pushing many to halt production or even declare bankruptcy.
The import staples include cow, wheat, fruit, corn, soy, and animal feed which will be purchased in the next two to three years.
Policies on planning, science-technology, finance, commerce and training human resources, have contributed to turning the country’s livestock industry into a strong commodity production sector.
The Vietnamese animal feed market is considered very promising with the value of $6 billion a year. However, feed producers have faced difficulties because of African Swine Fever (ASF).
Vietnam has increased pork imports in the last six months amid the African swine fever epidemic. However, the quality of imports is questionable as Vietnam’s agencies are still weak at quarantine work.