National Review of the feed sector in

Vietnam
Xavier Bocquillet

Agriculture in Vietnam

Vietnam Production
Rice: 42 million tons (1st exporter in 2013)
Fish: 4.3 million tons
Meat:

3.1 million tons pig meat (No1 in Asean)

0.6 million tons poultry (chicken and duck)
0.3 million tons beef and buffalo
350 million litters milk

Livestock Industry
27.1 million pigs
5.4 million beef & 2.7 million buffalo
1.3 million sheep and goat
226 million chicken & 97 million ducks

Vietnam
Exports : 18.2 billion usd (20% of
VN exports)
Imports : 9 billion usd
Balance : + 9.2 billon usd
France
Exports : 47 billion usd
Imports : 39.4 billion usd
Balance: + 7.6 billion usd

Agriculture is a highly priority sector for

Vietnamese Government

70% of
electors are
involved in
agriculture
sector

Agriculture
ensure
settlement of
population in
rural area

Agriculture
represent
19% of GDP

19% of
National
budget
dedicated to
agriculture

Agri export =
19 billion usd
Agri Import
= 9 billion
usd

Vietnamese are meat lovers!

Production and consumption of
poultry in Vietnam

Production and consumption of

beef and veal in Vietnam

1000

900

900

800

800

700

600

600

'000 tons

'000 tons

700
500
400

500
400

300

300

200

200

100

100

2010

2011f

2012f

2013f

2014f

2015f

2010

40kg meat per year per hab

2011f

2012f

2013f

2014f

2015f

Source: USDA, BMI, 2013

For pork meat, production cover almost the demand.

in 2015 : production 2,168,000 tons

VS

consumption 2,213,000 tons

400

14 000

350

12 000

300

10 000

250
8 000
200
6 000
150
4 000

100
50

2 000

Asia

Europe

North
America

Latin America Middle East &

Africa

Number of feed mills

Millions

The feed industry in the world

Others

Source: Alltech, Global Feed Summary, 2013

Millions

Annual animal feed production per country

250

200

150

100

50

Source: Alltech, Global Feed Summary, 2013

Animal feed industry in Vietnam

30 000 000
25 000 000

25 000 000

TONS

20 000 000

18 000 000

15 000 000
10 600 000

10 000 000

5 000 000

7 567 000
3 940 000

5 118 000

11 500 000

12 700 000

13 500 000

8 852 000

6 125 000

2005

2006

2007

2008

2009

2010

2011

2012

2013 (f)

2015 (f)

2020 (f)

Source: MARD 2013

Vietnam Feed industry in figures

In 2013

230 feed mill companies in operation in Vietnam

60 foreign owned companies

44 companies are100% Foreign owned

These 60 controls 60% of market share (against 40% in 2011)

13.5 million tons produced in 2013 (5.7 million in North, 7.8 million in South)

Annual average growth of 17% in the last 5 years

Production Capacity utilization: approx 66%

Supply VS demand of industrial feed

during 2010's in million tons

Source: Adapted
from MARD

Ratio of industrial and self-made feed and

import feed during the 2010's

Millions USD

Import of raw materials

Vietnam's import of feed and feed ingredient
4 500

4 000
3 500
3 000
2 500
2 000

1 500
1 000
500
2005

2006

2007

2008

2009

2010

2011

2012

2013

Source: GSO

For 2013,Vietnam had imported 5.84 million tones of animal feed and
ingredients, representing 48% of the raw material needed to satisfy the demand

Focus on Corn and soya in 2013

Millions tons

7
6

2.26

5
4

Import
Production

3
2

4.9

1.4

0.263

Corn

Soya
Source: MARD & USDA

Presentation of main actors

Market Shares in 2012

CP Vietnam, 18.80%
Others; 36,70%
Proconco; 10,80%

ANT; 4,70%

Anco; 2,20%
Lai Thieu; 2,80%

Cargill VN; 6,70%

East Hope VN; 5,10%

Vina; 3,30%
Greenfeed; 4,40%

Japfa Comfeed
VN; 4,50%

Case Study: CP

Established in 1993 in Vietnam

5 animal feed plants + 3 aqua feed mills
Total capacity of 3.8 million tons per year

2.3 million tons livestock feed

1.5 million tons aquafeed

19% market share

Over 1300 distributors
Integrated company

22% of white feather chicken market (4.5 million

chicken)
7% of pig market (250,000 sows)
16% of egg market ( 3.8 million hens)

CP Integration

Marketing system of feed companies

10 to 20%

FEEDMILL

60 to 70%

DISTRIBUTORS
LEVEL 1

DISTRIBUTORS

10 to 30%
FARMERS

LEVEL 2

Pig: A dealer industry, feed sold through distributors

But more and more feeder are take back control
Credit is more and more common.

Historical reasons for

distributors
Distribution is done at
several levels.
Feed mills often work
with distributors that can
be exclusive
Level 1 and Level 2
Margin for distributors
around 10 to 15%

Chicken: A captive market controlled by integrated companies.

CP, Japfa, Emivest control over 60% of the market

Contract farming system

Today more and more animals are produced under

contract farming system in Vietnam

CP, Japfa, Emivest are historical players.

CP have over 2,000 farms under contract farming

(shrimp, fish, livestock)

Technical support + inputs (DOC/piglet + feed + vet)

Get back the finish product with agreed price calculation
Trends : buying the farm to have better control

Sustainability of the animal feed industry

Foreign owned companies are taking lead of the feed

business
Investment, R&D and field presence
Financial capacity, contract farming and long term strategy
Integration of value chain: control of input & output

Finally they are in position to control price of meat !

What would be the future of the industry ?

How Vietnamese companies would be able to fill the gap?
What role should have government of Vietnam?

Thanks for your attention