The shortage of processing material, causing price increases of most kinds of materials, has become common worry among local animal feed factories during the past time.
Le Ba Lich, chairman of Vietnam’s Animal Feed Association, said import prices of most kinds of animal feeds and animal feed materials soared by 15-20 per cent.
Corn price is standing at VND4,000 per kilo, cassava at VND1,700-1,800 per kilo, dry soybean cake at US$310 per ton, dry palm cake at US$117-220 per ton, and mash at US$144 per ton.
Local processors blamed both the scarcity and price hikes of animal feed materials on the fact that more and more countries are boosting the use of plants in producing bio-diesel and ethanol, in a bid to reduce dependence on oil, and under Kyoto protocol commitments.
Meanwhile, animal feed products and animal feed materials account for as much as 65-70 per cent of total product value in Vietnam. Worse, the country’s animal feed material supply can meet only 68-70 per cent of total demand.
In the first quarter of 2007, Vietnam imported US$229 million worth of animal feed and materials, up 63.2 per cent from the same period of last year. India, the US and Indonesia are now the three biggest animal feed suppliers of Vietnam.
Vietnam is now home to more than 17,000 animal breeding farms, which contribute around 25 per cent of agricultural sector GDP.
The country, as of late 2006, had more than 203 feed producing plants, 32 are foreign-invested plants and account for a big market share.
Demand for feed this year will reach more than 4.6 million tons of processed feed and 75 million tons of fresh grass