Localization of feed ingredients is still a big issue

​Every year, Vietnam needs tens of millions tons of raw materials to serve the production of animal feed at factories and enterprises throughout the country, but only less than 40% is supplied, the rest is imported. Depending too much on imported raw materials, many production units have been calculating solutions to increase the localization of raw material supply for production.

Animal feed production still depends on imported raw materials

The localization of raw materials is very suitable for the livestock strategy that Vietnam is aiming for, but according to manufacturers, this is not an easy job, requiring long-term preparation from both Government and enterprise.

Find solution to localize ingredients

Woosung Vietnam Co., Ltd (100% Korean investment capital) has invested in Dong Nai for 19 years in the field of animal feed, poultry and aquatic products. The factory of this enterprise is located in Bau Xeo Industrial Park (Trang Bom District) and has a wide dealer network throughout the South. According to Mr. Vo Quang Nhan, in charge of the company's marketing department, in order to be more proactive in production, the company has been implementing solutions for the past 2 years to find domestic raw material suppliers, especially in localities with the development of raw materials and agricultural products.

Similarly, in May and June, C.P. Viet Nam Livestock Corporation held a conference to meet more than 300 suppliers in regions throughout the country. As a producer of animal feed as well as a key supplier of livestock products in the market, according to a representative of CP Vietnam, enterprises are aware that "suppliers" are a very important link in the supply chain. response. CP promotes cooperation towards sustainable development of raw materials, especially domestic raw materials.

Another big company is De Heus Group from the Netherlands, which currently has a factory in Dau Giay Industrial Park. After acquiring Masan's MNS Feed segment, this group is in great demand for raw materials. At the meeting with the Provincial People's Committee in May, the group's leaders wished to cooperate with breeders, small and medium enterprises and some large enterprises in Vietnam to develop together sustainably. To localize raw materials, De Heus is cooperating with a Vietnamese unit, Hung Nhon Group, to invest heavily in the Central Highlands region, thereby being more proactive in the production process.
Still a difficult problem

According to experts, despite being an important economic sector, Vietnam's livestock industry still has many weaknesses. In particular, in the field of production and supply of animal feed, have not been able to proactively source raw materials, making the units vulnerable to damage, thereby leading to market fluctuations. The reason is that there is no solid foundation, our livestock is still not self-sufficient in terms of seeds and feed materials. These are the elements that make up 70-80% of the cost of livestock. In particular, in the structure of food ingredients, there are ingredients that Vietnam has not yet been able to produce. For sustainable development, Government needs to have a policy of autonomy in seed sources, building material areas, and at the same time have policies to support and encourage domestic corporations and enterprises to invest strongly in livestock, reduce dependence on world corporations.

In addition, manufacturers said that although the source of raw materials in Vietnam is available, it is not easy to cooperate, the important thing is the stability and quality of the product. Enterprises have a great demand for raw materials, but suppliers must have stability, the quality of agricultural products must ensure input factors, nutritional content ...