Animal feed is an important part in developing the  livestock  industry  which  is considered  to  ensure  the  global  food  security.  Global animal feed production experiences much volatility, however is still increasing.  Poultry feed  accounts for  the  biggest  production,  followed  by  forage  and  pig  feed.  In total of  animal  feed  produced  globally  in  2015,  Asia  took  up  1/3  of total production.  China still occupies the  leading  position  with  179.93 million  tons  from  8,550  animal  feed  factories  of  the  country.  Animal  feed  manufacturing  industry  in  the  world  is  expected  to  grow  in production  in  2016  and  afterwards.

Value  of  animal  feed  exports  in  the  world  increased  from  2010-2015  in  which in 2015, America accounted for the biggest value (16%). Demand for imported food always rises both in value and quantity.  CP  Group  –  a  Thailand’s  animal feed  manufacturer continued to lead regarding production, followed by Cargill (America).

In Vietnam, the shortage of material for production has been existed for long and the country needs to import a large amount of animal feeds. Meanwhile, animal feed accounts for 60% of the cost and price. Up to now, the number of animal feed manufacturing factories in the country is limited with the restricted the producing capability and Vietnam is still manipulated by foreign companies due to the incapability of possessing technology. FDI companies only own fewer factories but take up 60-65% of the total production output and privately state sector only holds 35-40%.

In  2015,  animal  feed  production  slightly  increased compared  to  2014.  Regarding structure by animals, forage occupied up to 59% of production, followed by aqua-feed, pet food is negligible in percentage (less than 1%).

According  to  the  Ministry  of  Industry  and  Trade,  as  compared  to regional  countries,  the  price  of  animal  feed  in  Vietnam  is  always  15%  -20%  higher,  making  products  less  competitive.  Mains  causes  are  that domestic  animal  feed  industry  mostly  relies  on  import,  hence  leads  to  the high  risk  of  price and exchange rates fluctuation, coupled with the high discount commissions of  FDI companies which also pushes the price,…

Currently, there are 2 main distribution methods: Through Level 1, 2 agents, which connecting companies with  farms (accounts for 90% of total animal feed  produced) and though livestock outsourcing for companies (10% of consumption and only applies in large 3F model companies such as Dabaco, CP, Hung Vuong…). In addition, some companies sell goods directly to farms without agents such as Anco, Hung Vuong, Proconco… to minimize cost and increase competitiveness, especially against FDI companies.

– CP Vietnam Livestock Corporation (CPV)

– Cargill Vietnam Limited

– Dabaco Group Joint Stock Company

– Vietnamese – French Cattle Feed Joint Stock Company (Proconco)

– Vietnam UNI – PRESIDENT Company Limited

– Grobest Industrial (Vietnam) Company Limited

– Emivest Feedmill Vietnam Company Limited

– Asia Nutrition Technologies Company Limited