Vietnam to spend US$4.5 billion to import feed raw materials in 2014

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Publish time: 20th October, 2014      Source: www.cnchemicals.com
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October 20, 2014

   

   

Vietnam to spend US$4.5 billion to import feed raw materials in 2014

   
   
   
   
Vietstock 2014 in Ho Chi Minh City, held from October 15 to 17, 2014.
   

   

Vietnam will spend up to US$4.5 billion to import animal feed raw materials this year, according to Nguyen Dang Vang, head of the Vietnam Livestock Association.

   


The amount is US$600 million higher than what it spent in 2013 on feed raw materials, mainly corn and soy, Vang said during the three-day (October 15 to 17) Vietstock 2014 feed, livestock and meat industry exhibition in Ho Chi Minh City.

   


He also revealed that combined cattle and poultry meat imports this year will reach US$400 million. Imports of poultry meat and its byproducts also are expected to top US$120 million.

   


For live and slaughtered cattle, Vietnam is projected to import US$250 million worth, with Australia accounting for 80% or US$200 million of shipments, Vang said.

   


Australian beef accounts for 70% of Ho Chi Minh City’s market due to rising demand. On a daily basis, the country consumes around 4,000 mainly imported cows, according to statistics from Vietnam''s Ministry of Industry and Trade.

   


In 2014, cow imports from Australia reached 120,000 in the first seven months. The figure overshadows the 67,000 recorded in the whole of 2013.

   


Vietnam is currently the second largest importer of Australian cattle after Indonesia.

   


"The trend of importing meat and livestock products will continue in the future, especially after Vietnam has joined the Trans-Pacific Partnership (TPP)," he added.

   


The TPP is a proposed regional free-trade agreement (FTA) which seeks to eliminate tariffs and cut down on non-tariff barriers.

   

Vang also noted that Vietnam is more inclined to import meat and livestock products as the country''s cost prices for livestock are the costliest among countries involved in the TPP. "Our livestock breeders offer poor quality produce, and small-scale livestock farms account for up to 60% of the sector," he said.