Vietnam: Solutions for the livestock industry to sustain growth in 2024

Vietnam's total meat production in the first quarter of 2024 reached over 2 million tons live, an increase of 4.5% over the same period in 2023. Pig farming accounts for 64% of meat production from domestically produced livestock.

The price of live pigs for slaughter increased, reaching 70,000 VND/kg, the highest level in the past 5 years. Pig prices are expected to remain high in the medium term, reinforcing the optimistic outlook of the livestock industry in 2024.

Vietnam has 265 animal feed factories, 85 of which belong to foreign enterprises, accounting for 32% but holding 65% of the market share. Domestic animal feed production enterprises are less competitive due in part to their heavy dependence on imported raw materials. In the first four months of the year, Vietnam spent nearly 1.69 billion USD to import animal feed and raw materials, an increase of 9.8% compared to the first 4 months of 2023.

According to Mr. Pham Quang Anh, Director of Vietnam Commodity News Center, to cope with the rising cost of animal feed ingredients, businesses should:

• Seek new supply sources and use alternative products when raw material prices increase.
• Increase investment in oil pressing plants to be proactive in the supply chain of soybean meal, a high-value and difficult-to-replace raw material.
• Use price hedging tools to import raw materials to help stabilize input costs against fluctuations in the international market.