StockPlus is pleased to introduce Vietnam Animal Feed Market 2017 Report, the second issue of this industry. This report presents a broad range of topics, both sector-specific and cross-cutting market issues.
We have completed the review of Vietnam animal feed industry landscape covering market size and growth, competition dynamics, analysis of potential demand from end-used markets, profiles of key players. One of the focuses of this report is the emergence of Vietnamese giant companies in this sector and its sale strategies to get more market share from current players in the market. Ultimately, we assessed the feasibility of the market potentials as well as notable common issues that animal feed players and investors should be aware of when operating in Vietnam.
Below are the most critical findings in our issue:
1) 16.8 million tones of industrial animal feed were consumed in 2016: The consumption of feed has grown in line with the development of livestock sector, 23.5 million tones of animal feed are needed for the growing of livestock in Vietnam. Of which, there are 16.8 million tones of industrial feed and 6.7 million tones of self-made feed.
2) The consumption of industrial animal feed is expected to remain at 17 million tones in 2020: There are three main sources of animal feed demands in Vietnam including pig, poultry and cattle (beef/buffalo/sheep/goat). All segments pose potential opportunities for animal feed providers. Each segment poses particular formula of animal feed for animal feed providers to fulfill the market potentials.
3) Total supply of Vietnam animal feed reached 18.07 million tones in 2016: Vietnam animal feed is planned to reach 19.21 million tones in 2020 not only for the domestic consumption but also for export purpose. In general, Vietnam animal feed could meet domestic demand and a small amount for export. However, the production of feed in Vietnam still heavily depends on imported raw materials.
4) Majority of main materials for producing animal feed is imported from others countries: Vietnam imported 16.6 million tones of feed materials worth about US$3.46 billion in last year. Raw materials are imported from countries with developed agricultural industry such as Argentina, US, Brazil, China, Australia, etc.
5) Vietnam received US$586mn from exporting animal feed and its materials in 2016: The total export value in 2016 showed an increase of 69% compared to the number in 2013. Asia is the main market to export local products.
6) In terms of competition dynamics, there are two main groups in Vietnam animal feed market, namely foreign-owned and local companies. Foreign and JV companies dominate the market in terms of market share, designed capacity and distribution system. Foreign and JV companies account for only 30% total number of animal feed companies but up to 60% total market share.
7) Rise of local animal feed companies: Vietnam animal feed market witnessed some signs of change in 2015-2016. Local giant groups such as Masan, Hung Vuong Cor. and Hoa Phat Group are showing their interest in animal feed sector. It is expected to change the foreign-dominated situation in Vietnam animal feed currently. After joining the market, the three companies are trying their best to get more market share from other competitors.
Beside traditional method such as expanding distribution agency system, marketing & advertising, high commission, etc., direct sales from plant to farmers is a new trend of sale strategy being applied by animal feed companies.
This is news from Safimex Joint Stock Company
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