At a recent meeting with the delegation of the Ministry of Agriculture and Rural Development on the situation of goods supply on the occasion of the New Year's Day 2021, Mr. Nguyen Nhu So, Chairman of Dabaco Vietnam Group said that as a result of the Covid-19 related break in the global logistics transport supply chain, importing materials for Dabaco's oil pressing factory and animal feed ingredients is in a state of running while waiting for raw materials.
Mr. So said that Dabaco's Coba Vegetable Oil Factory is currently running from only 18 to 20 days per month because imported soybean material does not come in time, even though they have actively stored up to 100,000 tons of raw materials previously.
According to Chairman of Dabaco Vietnam Group Nguyen Nhu So, the 30-35% increase in raw material prices for the animal feed industry such as maize and soybean meal is one of the reasons for the increase in pig prices.
According to Mr. Vo Viet Dung, General Director of the South Hanoi Food Processing Group, in the past one month or so, the prices of raw materials for the animal feed industry have increased dramatically “due to the influence of Covid-19 pandemic.”
Specifically, corn increased by 30% from VND 6,000/kg to VND 7,800-8,000/kg. Soybean meal increased from VND 9,200 - 9,500/kg to approximately VND 15,000/kg. Meat and bone meal also increased by over 30% from VND 9,500/kg to VND 14,500/kg.
Vietnam is currently the country with the largest production of animal feed in Southeast Asia, with about 19 million tons/year. If adding aquatic feed, this figure could be up to 30 million tons.
Although Vietnam is a large animal feed producer in the region, Vietnam still has to depend heavily on imported raw materials for production. The main import markets for Vietnam's animal feed ingredients are the US, South America, EU, Russia ... areas that are heavily affected by the Covid-19 pandemic.
Facing the increase in the cost of exporting and importing goods due to the increase in ship and container rental prices, the Government recently requested the Ministry of Industry & Trade and the Ministry of Transport to coordinate with agencies, associations and related enterprises to tackle difficulties in goods export activities.
The Government also requires ministries, branches and functional units to review, clarify and strictly deal with violations in increasing the rent of ships and containers according to regulations.
Mr. Nguyen Trung Ha, Director of Plant Quarantine Department-Region I (Plant Protection Department, Ministry of Agriculture and Rural Development) said that through monitoring the import and export of agricultural goods through Hai Phong and Quang Ninh ports recently, they noticed that the lack of containers are mainly for export goods. It is not a real problem in import goods.
As a result of the world’s burgeoning demand for cassava import, in February 2021, Thailand re-set the price floor of exported cassava products including starch and chips.
After Tet Holiday, early winter-spring rice in the Mekong Delta is yielding a productive harvest. A lot of traders have deposited with farmers to buy rice particularly early at a high price.
Even though the amount of coffee imported to Japan has the propensity to decrease in 2020, this market still increases the coffee imports from Vietnam.
Cassava exports in the first month of the year grew very strongly, with both volume and value being more than two times the same period in 2020, mainly thanks to changes in the Chinese market.
In the first month of 2021, while exports of many agricultural products faced difficulties due to the shortage of containers, wood exports continued to grow strongly and reached over US$1 billion.