Market Trends of Vietnam Feed Concentrate and Basemix Industry
Demand - Supply Gap in Protein Sources for Animal Feed is Restraining the Market
Amino acid, a form of protein, is an important ingredient of base mix and is also an important component added to feed concentrates. Presently, Vietnam imports a large amount of input materials, like protein for feed processing. In the future, the demand for animal feed and feedstuffs may continue to increase, due to the growth of livestock production, particularly by large-scale commercial farms. The domestic demand for protein in the manufacturing of base mix may increase the import of amino acids in the country, which is expected to increase the price of base mix and feed concentrates in the country. The major sources of protein for base mix are soymeal, fishmeal, and synthetic amino acid. Vietnam is not self-sufficient to meet the domestic demand for protein. As a result, the country is primarily dependent on the import of these products, which in turn, increases the price of the final product, base mix, and feed concentrates.
The Poultry and Swine Segments Dominate the Vietnam Feed Concentrate and Base Mix Market
The consumption of animal feed in Vietnam is directly proportional to the development of the livestock sector. Home-made feed is popular in the country, owing to the slightly decreasing prices of feed ingredients, while the price of commercially-made feed remains constant. While preparing home-made feed, Vietnamese farmers depend upon their experience and make use of premixes, base mixes, and concentrates, in order to achieve a good feed conversion ratio. However, the switch from backyard farming to intensive/industrial farming, consisting of suitable machinery and equipment, is driving the demand for commercially-prepared feed in the country. The demand for poultry and swine feed accounts for 97% of the total feed consumption in Vietnam. Only 3% of the feed is used for livestock other than poultry and swine. The Vietnamese cattle segment is small. The country’s poultry segment consists of chicken, duck, and goose.
