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Vietnam Livestock and Products Annual - September 2005

by 5m Editor
1 September 2005, at 12:00am

Vietnam Poultry and Products Annual Overview - September 2005 - By the USDA, Foreign Agricultural Service - This article provides the poultry industry data from the USDA FAS Poultry and Products Annual 2005 report for Vietnam. A link to the full report is also provided. The full report includes all the tabular data which we have ommited from this article.

Vietnam Poultry and Products Annual Overview - September 2005 - By the USDA, Foreign Agricultural Service - This article provides the poultry industry data from the USDA FAS Poultry and Products Annual 2005 report for Vietnam. A link to the full report is also provided. The full report includes all the tabular data which we have ommited from this article.

Report Highlights:

Vietnam's livestock in 2004 had a growth rate of 2.3%. This was significantly lower than in 2003 due to highly pathogenic avian influenza outbreaks. However, Vietnam has been trying the best to recover the poultry sector from this outbreak. Post estimates that Vietnam's livestock sector will still grow at a 4% growth rate in 2005.

Summary: Production

The Ministry of Agricultural and Rural Development (MARD) reported that Vietnam’s livestock production value as a proportion of the total value of Vietnam Agriculture production increased from 17% in 2001 to 22.4% in 2004. MARD hopes the country can raise this livestock proportion livestock to 30% by 2010.

Vietnam’s livestock in 2004 had a growth rate of 2.3% (See table 1). This was significantly lower than in 2003 due to highly pathogenic avian influenza outbreaks.

MARD estimates Vietnam’s 2005 animal meat production (live weight) at 2,800 thousand metric tons (TMT), about 11.7% higher than 2004’s production (see table 2). Pork plays a dominant role in total livestock production. Currently, about 80% of the meat production is pork while the share of poultry meat is about 12.8% and other kinds of meat including beef, buffalo, and goat meat occupy only 7.2%.

In Vietnam, per capita meat consumption is increasing. Annual per capita meat consumption (live weight) in Vietnam increased to 31.3 kg in 2004 as the income levels of Vietnamese people are improving. MARD estimates that 2005 per capita consumption will be about 35 kg/head/year, up significantly from 23 kg in 2000.

Prices

Post estimates prices of livestock in domestic market in 2005 will increase significantly because of high demand and the continued impact of the bird flu in 2004 and 2005. The supply of poultry meat decreased sharply in 2004, which made chicken meat prices increased 20%-30% compared with 2003.

Annual average price of pork (live weight) in 2004 was VND 14,800/kg (live weight). The average pork price in southern Vietnam was VND 15,550 per kg, equivalent to US$ 1.00, and in northern Vietnam was VND 14,000/kg equivalent to US$ 0.9.

Vietnam’s Department of Animal Health (DAH), breaks down the two-year old outbreak of highly pathogenic avian influenza (HPAI) into three periods.) .

First period from late December 2003 to March 2004

The HPAI spread throughout Vietnam hitting 57 of 64 of the country’s provinces and cities. The DAH estimated the number of suspected infected and culled poultry at 58.66 million head, 30.4 million were chicken, 13.5 million were waterfowls, and 14.76 million were domesticated quail.

Second period from April 2004 to November 2004

The outbreak during this period was mainly confined to the Mekong River Delta. The total number of culled poultry in this period was far less than in the first outbreak, only 80,078 head, of which there were 55,999 chicken, 8,132 waterfowls, and 19,947 quail. By November 2004, in the whole country there was only one commune affected and the number of destroyed poultry was only 20 heads.

Third period from December 2004 to present

The avian influenza outbreak became more severe again in December 2004 when 12 provinces were affected and 43,139 poultry culled. The peak of the outbreak during this period was in January, during which 1,080,190 thousand birds were destroyed in 31 provinces.

MARD reports that the total number of culled poultry from December 2004 to Aug. 8th, 2005 was 2,158, 526 heads, of which 475,841 were chicken, 831,656 were waterfowls and 851,029 quails.

This last period has been characterized by outbreaks occurring mostly on small household farms. No large farm has been affected. In all periods, disease occurrence has tended to be associated with areas where waterfowls populations are significant. Most of the provinces with high risks of infection are in the Mekong River Delta, where 70% of waterfowl have tested positive with the bird flu virus strain H5N1.

Vietnam plans to use vaccination as a control measure for HPAI. Several types of bird flu vaccines were tested on a limited scale in early 2004, and pilot vaccinations for the northern Nam Dinh and southern Tien Giang provinces started in August 2005. DAH intends to vaccinate nationwide before December when the next increase in infections is inspected.

Vietnam is using vaccines imported from China and the Netherlands to inoculate chickens, ducks and quails against the H5N1 virus. The National Epidemic and Hygiene Institute is also developing a bird flu vaccine for production. This vaccine is expected to be available in Vietnam towards the end of this year.

Vietnam’s government has said they will pay farmers VND 15,000-18,000 ($US 1= $15,868) for each diseased chicken, duck or geese culled. MARD and Ministry of Health (MOH) are taking strict measures to protect poultry breeding farms from the bird flu outbreak. These include setting up checkpoints and mobile quarantine teams and preventing the illegal transportation of poultry. Because of the bird flu, MARD has designed a project to restructure the domestic poultry breeding system to encourage sustainable development. The poultry-breeding sector must make detailed plans for developing concentrated breeding sites taking advantage of industrial breeding and production. However, MARD decided not to allow any waterfowl hatchings until February 2006 since waterfowls are so frequently associated with the disease.

Production

Due to the HPAI outbreak Vietnam’s 2004 poultry population dropped 14% to 218 million as compared to 254 million in 2003 (See table 5&6). MARD hopes the country can increase the total poultry population by 12% to 245 million by 2005 and to 350 million by 2010. However total meat production will decrease as inventories are rebuilt. However, post believes Vietnam will not be able to reach the 2005 goal in poultry population due to the HPAI outbreaks.

Animal Feed

Vietnam’s 2003 commercial animal feed production was up by 14% but due to the avian influenza outbreak, the 2004 increased only slightly compared with 2003’s total commercial feed production, of which 73% is compound feed and 30% is concentrate.

Post estimates that Vietnam must have about 11 – 12 million tons of animal feed to produce over 2,600 thousand tons of livestock production by 2005 and 13-15 million tons by the end of 2010.

Vietnam’s domestic price of animal feed has remained high

Reportedly, the price of animal feed in April 2005 increased by 20% in comparison with the same period of last year due to higher soybean and corn import prices. Corn prices increased by 30%, from VND 1,900/kg to VND 2,700/kg in northern provinces and to VND 2,500/kg in southern provinces. Lysine import prices also increase by 5-10%.

Furthermore, bad management and distribution systems in Vietnam’s markets are also to the causes of high prices of animal feed. Normally, first sales agencies add 10-12% to the original prices and second sales agencies also add 10-12%. Therefore livestock farmers face a 20-24 % increase in the price of animal feed, leading to higher production cost.

Vietnam continues to import animal feed and materials

The Vietnamese animal feed production sector in Vietnam is now relying heavily on imported feed ingredients. Vietnam imports 60% of the materials, including maize, soybean meal, fish meal, meat & bone meal, rice bran, wheat bran, pre-mixes and vitamins needed to produce animal feed locally. In total, the whole sector annually imports 40% of maize, 80% of soybean meal and 50% of fish meal required for feed production.

In 2004 Vietnam spent US$ 478 million on imports of animal feed and materials. In the first six months of 2005, Vietnam spent US$ 319 million a 54% increase compared with the same period of 2004.

Vietnam’s 2004 imports of soybean meal are estimated at 890 TMT, a decrease of 11% from 990 tmt imported in 2003 due to the impacts of the avian influenza outbreak. However, the imports of soybean meal are expected to continue to increase in the future due to limited local production of soybeans and continued expansion in the livestock and fish sector. With no commercial crushing facility in Vietnam, soybean meal imports will continue to be a necessity. There is no import duty for soybean meal.

Vietnam imports animal feed and materials from different countries including China, Thailand, the Netherlands, England, France and the United States.

Animal feed processing industry

As of May 2004 according to MARD’s data, there are 196 animal feed and premix manufacturers operating in Vietnam, of which there are 44 animal feed mills producing premix animal feed and 138-152 mills (to produce both compound and concentrate feed). Among 196 animal feed mills, there are 65 mills that belong to the Vietnam Animal Feed Association. The total capacity of Vietnam’s animal feed mills is estimated at 5.4 million metric tons (MMT). The most animal feed mills are located in southeastern Vietnam These account for 42.8% of all meals in the country and nearly 40% of total animal feed production. The Red River Delta in the north of Vietnam accounts for 26.1% of mills and 35.4% of production.

Key feed milling companies include foreign invested companies such as CP Group (Thailand); Proconco (France); Cargill (USA); TTC (Taiwan); New Hope (China) and Cheil Jedang group (South Korean) along with a number of Vietnamese companies such as DABACO (Bac Ninh), VINA, Thanh Binh, Long Chau (Dong Nai), VIC (Hai Phong), Hoan Duong (Hanoi), NOPICO An Khanh, Ngoc Hoi Animal Feed Mill, and AFIMEX (An Giang).

Further Information

To read the full report please click here

Source: USDA Foreign Agricultural Service - September 2005