Tension from the prices of animal feed engulfs the whole region

The price of imported materials increased strongly

According to the Vietnam Industry and Trade Information Centre (VITIC - Ministry of Industry and Trade), during the first few months of this year, the price of imported meat and bone meal into Vietnam has considerably increased compared to the same period in 2020 and next month tends to be higher than last month.

In particular, in February 2021, imports of meat and bone meal to Vietnam only increased by 0.2% in volume, but by 5.1% in value compared to January 2021. In comparison to February 2020, the amount of meat and bone meal imported in February 2021 increased by 32.2%, but the value increased by 85.4%. Generally, for the first two months of 2021, the import volume of meat and bone meal increased by 34.5% in volume and 83.5% in value over the same period in 2020.

Also according to VITIC, as of March 2021, the price index of animal feed and imported raw materials has increased for the sixth consecutive month.

Compared to February 2021, the price index of animal feed and imported materials in March 2021 increased in most groups, fluctuating from 0.74% (peanut meal) to 9.64% (soybean meal). In contrast, there was only the group of bran, plate and other scraps that has a very modest decrease of 0.13%.

Compared to March 2020, the price index of animal feed and imported raw materials in March 2021 increased in 5 commodity groups. To be specific, soybean meal price index increased the highest by 36.33%; meat and bone meal, fish meal, and shrimp meal increased by 26.68%; groups of waste from the production of starch and similar waste, beet pulp, bagasse and other scraps from the production of sugar, residues and waste from the aging or distillation process, in the form of powder tablets or not in pellets increased by at least 10.07%...

The sharp increase in the price and imports of animal feed has made the domestic animal feed prices continuously increase over the past several months. According to an information source, in recent March, animal feed manufacturers have increased the feed prices by about US$ 13 - 22/ton compared to February.

Tension engulfs countries in the regions

Not only Vietnam, the countries with large livestock industries in the ASEAN and Asia regions are also facing tension on prices of animal feed and imported raw materials. The main reason is that the supply is limited, the Covid-19 epidemic has impacted greatly on the loading and unloading of goods in many seaports, and the cost of sea transportation has increased globally...

Prices of animal feed and imported materials are also a current issue in ASEAN countries such as Thailand, Indonesia ... Because like Vietnam, these countries still have to depend more or less on maize and soybean import sources ... As stated by an information source, Indonesia had to suspend corn exports to ensure supply in the domestic market. The amount of soybeans and palm kernel meal imported to Indonesia for animal feed in 2021/22 is expected to increase significantly from the low rate in the previous season. Thailand will also have to increase imports of wheat and maize for animal feed.

China's boost in the global purchase of grains and feed ingredients to meet the country's recovering livestock demand has also significantly impacted the prices of animal feed and ingredients worldwide. Information from the US Department of Agriculture shows that in the 2020/21 crop, China has imported up to 99 million tons of soybeans and is expected to import 100 million tons in the next season.

Recently, upon the situation of corn prices rising to a record level, China had to plan to sell out millions of tons of reserved rice to make animal feed.