Companies relying on up to 70% imports for products
A shortage of raw materials in Vietnam has led to domestic animal feed manufacturers depending on imports for up to 70% of their materials, according to the Ministry of Industry and Trade.
Vietnam businesses depend mainly on the U.S., India and Argentina for the imports of raw materials used to produce the country’s animal feed. Domestic corn meets roughly 70% of Vietnam’s demand, while the local soybean supply can satisfy only 5% to 10% of demand, according to the Ministry.
The Vietnam Animal Feed Association is suggesting that the government push the development of local raw materials. Currently, the country has 233 feed manufacturers, of which 50 are foreign-invested and 11 are joint-ventures. The remaining firms are domestic, but 60% of the market share is held by the foreign companies, according to the association.