Dong Nai’s animal feed production obtains competitive advantage

Animal feed agent in Thong Nhat District. Photo: Phan Anh

This is also a great difficulty for the animal feed processing industry. But the good news is that businesses in this sector of Dong Nai are still stable and growing in difficult times.

Stable production

In the past, with the influence of African swine fever (ASF), a series of business agents and feed enterprises fell into debt, even went bankrupt. Along with the recovery of the livestock industry, the animal feed industry has also gradually overcome a difficult period.

According to Dong Nai Statistical Office, in the first 7 months of the year, import of feed and raw materials for animal feed production in the province reached 556.4 million USD, up 39.56 over the same period last year. This is an impressive increase compared to the overall import situation of the country, which decreased by more than 12% over the same period. In the first 7 months of the year, food production and processing increased by 5.2%, mainly due to contracts signed by enterprises in food processing, animal feed production and processing, and product demand is quite stable, so this industry is less affected.

Achieving good growth in the current period is the poultry and aqua feed industry. Up to now, the province's total poultry population has reached over 24.7 million, up nearly 3.8% over the same period. In particular, aquaculture still achieved the highest growth rate with total fishery output in the first 7 months of the year reaching over 34 thousand tons, an increase of over 5.3% over the same period.

The total number of pigs in the province is now over 2 million, down more than 18% over the same period last year. However, pig farmers are organizing re-herds to restore livestock. This is a positive ‘signal’ for the pig feed industry to recover and stabilize production.

Trang Bom district is currently the leading locality in Dong Nai’s poultry farming. Mr. Doan Xuan Truong, Head of Economic Division of Trang Bom district commented that poultry farming is growing strongly. Specifically, the district's total poultry population is now over 4 million heads, an increase of nearly half a million compared to the same period last year. Some households and pig farms are also interested in re-herding. Accordingly, the animal feed industry of many enterprises in the district also gradually recovered after a difficult period.

Creating competitive chain

With the advantage of being the largest pig-farming province, Dong Nai attracts many enterprises and corporations to invest in large-scale animal feed factories with modern technology. The whole province currently has about 40 animal feed factories with a total design of over 3 million tons of products per year; and in top animal feed production provinces in the country. The animal feed processing factories have stable operations, step by step forming and developing industrial clusters of animal feed processing industries in the province.

Mr. Pham Duc Binh, General Director of Thanh Binh Company Limited, Vice Chairman of the Vietnam Animal Feed Association commented that the animal feed processing industry of the whole country has yet to overcome a difficult period. Many factories and businesses have closed because the pig raising has not recovered yet. However, in Dong Nai alone, this industry still maintains its good growth because corporations and enterprises in difficulty may close some processing factories in other provinces, but still prioritizes maintaining operations and developing its processing plant in Dong Nai, as it is the leading province in livestock production in the country.

According to Mr. Binh, thanks to the 'refinement' of the recent difficult period, the animal feed industry has built up a perfect competitive environment with closed production chains from animal feed production to animal husbandry, slaughtering, processing and consumption. Previously, the profitability of the animal feed industry was quite high, but now it is adjusted to a more appropriate level in the face of increasing competition pressure. Large corporations in the animal feed industry are now investing in chains, and they accept to lower profits at each stage for the sake of the whole chain. Currently, the animal feed market is a closed chain. This is a good development orientation because it contributes to bringing Vietnam's animal feed industry to a large, a competitive global scale.

By Phan Anh