A farmer distributes feed to pigs in a farm in the southern province of Dong Nai. (Photo: VNA)In recent decades, the overreliance on imported raw materials has beenidentified as a major shortcoming of the industry. The country'sfast-expanding livestock sector has a huge demand for feed, one thatdomestic producers could only meet just over 40%.
The Southeast Asian country imported 22.3 million tonnes of raw materials, witha large part made up of corn and soybean oil, worth of 10 billion USD in2021 alone.
Increasing domestic supply, however, will likely prove to be a tall order,which requires solid groundwork and meticulous plans from both the Governmentand producers.
Vo Quang Nhan, head of the marketing department at Woosung Vietnam JSC., alarge producer in southern Vietnam with an extended distribution network in theMekong Delta, said the industry has been struggling with rising prices andon-and-off supply of raw materials as a result of disruption in the globalmarket.
In the last few years, Woosung has been working around the clock to finddomestic suppliers among the country's many agricultural hubs as a way tocompensate and lessen the reliance on imported raw materials.
However, Nhan said a key priority for major feed makers was a stable supply ofstandardised input, which remains a challenging task for small-and-medium-sizedsuppliers to pull off.
Similarly, CP Vietnam, the country's leading livestock supplier, said they havebeen in talks with over 300 domestic suppliers across the country. A CP Vietnamspokesperson said the country views domestic suppliers as a key component ofand the cornerstone for a sustainable supply chain.
In a recent meeting with the local authority of southern Dong Nai province,Dutch feed maker De Heus said the corporation considered the development ofVietnamese suppliers a must-do to ensure a sustainable supply chain.
Industry experts have long voiced concerns over the industry's overreliance onimported materials, which renders it particularly vulnerable to market shocks.
Dr Che Minh Tung from HCM City University of Agriculture and Forestry saidfeed alone could account for up to 80% of livestock costs yet thecountry has not been able to produce many key components that made up itsanimal feed portfolio.
In order to reduce reliance on imported raw materials and develop a sustainablesupply chain, the country must start planning, with significant support fromthe Government, for production centres. Measures must also be taken to boostinvestment, both from domestic and international businesses, in the industry./.
VNA
