Feed demand set to increase in Vietnam as country recovers from pandemic

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Ho Chi Minh city, Southern Vietnam © GettyImages/Pham Hung (Getty Images)

As Vietnam looks to rebound from the COVID-19 pandemic through economic recovery packages and loosening of restrictions, total animal feed demand is forecast to increase to meet animal production demands, finds a publication.

Soybean imports are forecast to increase, driven by both demand for crush and food consumption, according to a USDA FAS report.

The swine herd in Vietnam has increased to 28.1 million head, up 7.1% in 2021, compared to 2020, noted a progress report from the country’s Ministry of Agriculture and Rural Development’s (MARD).

The same review recorded that the sow herd increased to 3.1 million head in 2021, which was 5% higher than the level the prior year. MARD expects the sow population to grow further this year, with it potentially reaching up to 3.2 million head in 2022.

Vietnam’s poultry flock and egg production will increase by about 5% this year, while the country’s total aquaculture production will reach 4.95 million tons, up 3% compared to 2021.

The USDA team thus forecast that the overall feed demand in the Southeast Asian market will jump to 27 million metric tons in MY2021/22 from 26.2 million tons in MY2020/21, with that rising to 28 million tons in the subsequent year. 

Soybean meal demand

Total soybean crush and soybean meal (SBM) for feed use are forecast to increase to 1.4 million tons and 6.2 million tons respectively in MY2022/23. Soybean meal accounts for the largest share of oilseed meal used for aqua and animal feed, said the authors.

Vietnam has two industrial soybean crushing facilities, one located in the south and the other in the north of the country. The demand for soybean crush is driven both by the need for meal for animal feed and the demand for soy oil.