September 1, 2008

Vietnam may spend US$3 billion on animal feed and raw materials in 2008, up from US$1.1 billion in 2007, due to high prices, according to a forecast by the Animal Husbandry Department.

The department said prices of animal feeds this year have surged by 14.3-142.3 percent.

From January to August 2008, Vietnam imported US$1.341 billion worth of animal feeds and feed materials, up 70.4 percent on-year. In January to June, Vietnam imported 2 million tonnes of oil cake, 400,000 tonnes of corn, and 200,000 tonnes of supplemented feed.

Vietnam sourced most of its feed and feed materials from India, with an import value of US$583.3 million. US is the second largest supplier with US$74.9 million, followed by China and Argentina, with US$67.7 million and US$64.7 million respectively.

Currently, Vietnam's animal feed supply can meet only 70 percent of domestic demand. Vietnam have to import 20-30 percent of starch feeds like corn and cassava, and up to 70-80 percent of protein feeds like fishmeal and bone meal.