Vietnam feed industry market situation
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Vietnam feed industry market situation

Posted by | December 5, 2014 |

The demand of animal feed in VN always increase of 13-15% per year, It’s forecasted to reach 18-20 million tons of feed in 2015, with annual sales up to USD6 billion. Obviously this is a lucrative market, but local companies are completely overshadowed.

According to the livestock husbandry, Vietnam currently has 239 feed mills, including 180 local feed mills and 69 feed mills with 100% foreign investments. But foreign companies make up very large proportion of output, accounting for 60-65% of the total feed production.

CP Vietnam Livestock JSC now occupies the highest market share with 19.42% of the total production in the market; the next is the Cargill Vietnam Co. Ltd with 8.11% and other foreign companies.

Specifically, CP currently holds 40% market share for the chicken industry sectors; 50% market share in the egg industry and 18-20% market share in feed industry, as well as holding 5% of the total output of pig production in Vietnam. The largest source of revenue of CP is from feed production (accounting for 62.2% of total revenue). Although CP currently has approximately 3,000 dealers provide food all over the country, however, CP is expected to open additional 10,000 retail stores nationwide and build six feed mills in VN in 2014.

Along with CP, Cargill had 6 processing feed mills, bringing the capacity up to 1 million tons per year. The feed mills are located in Hung Yen, Dong Nai, Long An, Ha Nam, Binh Dinh.
According to Vice President of the Poultry Association of Southeast delta, Mr Au Thanh Phong said: “The price of feed in VN is higher 20% than in neighboring countries such as Indonesia, Thailand. With this price, feed companies can get 11-15% of profit after 5% VAT, while prescribed profit for this item in Thailand is only about 5%”.

Michael Boddington from Asian Agribusiness Recruitment Training Development (AARTD) has been involved in agribusiness in Asia since 2000. AARTD has office both in Vietnam Ho Chi Minh City and China Beijing. So AARTD has a thorough understanding of the Vietnam and China agribusiness industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email: