Developments and issues relating to livestock production, protein supplies and the feed industries of Vietnam - Dr. Bui Thi Oanh

Dr. Bui Thi Oanh
Department of Agricultural and Forestry extension
Ministry of Agriculture and Rural Development, Vietnam

THE LIVESTOCK INDUSTRY IN VIETNAM - AN OVERVIEW

With the open policies, developed economy and forward looking marketing system in Vietnam, the annual average economic growth rate is 7 percent and the average annual income per capita is also increasing significantly (Table 1).

TABLE 1
Human population and income/person/year in Vietnam

In the period 1990-2000, income/person/year increased by 9.7 times and the population growth was 1.7%/year.

Because the average income increased, the demand for foodstuffs in general and animal products in particular, also rose. This increased demand was exacerbated by a population growth rate in Vietnam of 1.7 percent/year.

To meet this rising demand, the livestock sector has been developed significantly both in terms of number of head and animal products (Tables 2 and 3)

TABLE 2
Livestock numbers in Vietnam (million head).

The growth rate of the buffalo herd in the period 1990-1995 was 2.1 percent/year, from 1995 to 2000 1.3 percent/year and with an average growth rate in the period from 1990 to 2000 of 1.76 percent/year. The growth rate of the pig herd over the same periods was 6.6, 4.8 and 6.5 percent/year respectively. The growth rate of poultry stock in the period 1990-1995 was 6.9 percent/year, from 1995 to 2000 8.0 percent/year giving an average growth rate of 8.8 percent/year over the whole period from 1990-2000.

TABLE 3
Livestock products (1000 tonnes)

The growth in total meat production in the period 1990-1995 was 6.8 percent/year and from 1995-2000 7.6 percent/year, with an average growth rate in the period 1990-2000 of 8.4 percent/year. Of this production, pork occupied 75 percent, poultry about 15 percent, buffalo and beef 8 percent and ‘others’ about 2 percent (Table 4).

TABLE 4
The average growth rate of animal products per year (%)

The growth rate of pork and poultry meat was much higher than that of beef and buffalo meat. In the period 1990-2000, the average growth rate of pork was 9.5 percent/year and poultry meat 8.1 percent/year, compared with only 2.3 percent/year for buffalo meat and beef. The production of meat, eggs and milk per capita have increased (Table 5). The average live weight meat production per capita/year in 1990 was 15.2 kg rising to 18.8 kg in 1995 and 23 kg in 2000, giving a 5.1 percent average growth rate per year from 1990-2000. Within these data it can be seen that pork had the highest growth (6.0 percent/year), followed by poultry meat (4.8 percent/year). Buffalo meat and beef seem to have remained static at 1.7 kg/capita/year. Production of eggs increased by 6.4 percent/capita/year over the ten year period from 1990-2000. Fresh milk production in Vietnam is still very low, rising from only 0.14 kg/capita/year in 1990 to 0.65 kg/capita/year in 2000, meeting only 5 percent of the requirement (95 percent from importation). Production is however increasing rapidly (36.4 percent/capita/year).

TABLE 5
Animal products/capita/year from 1990 to 2000

In Vietnam, the average arable land area per capita is low (0.1 ha) and as a result it is difficult to develop the ruminant industry. Pigs and poultry on the other hand have increased significantly and as a result, the demand for cereal and processed feed has developed rapidly. In 1990 there were only 0.51 million tonnes of processed feed (equivalent to a complete feed); in 2000 that had increased to 2.7 million tonnes representing a 53 fold expansion in demand (Table 6).

TABLE 6
Utilization of animal feed (1000 tonnes)

DEVELOPMENT OF THE FEED INDUSTRY

Because of a high demand for animal and poultry feed (Table 7) as well as the open and market-orientated policies of the Government of Vietnam, feed mills established very quickly. To date there are 110 feed mills with a total capacity of 3.5 million tonnes/year. Included in these are some foreign companies and joint ventures with mill capacities ranging from 200 000 - 400 000 tonnes/year (CP Group; Vietnam/French joint venture; Proconco; Cheljidang; Uni-President; New Hope; Cargill etc.). Vietnamese enterprises participating in animal feed production have also increased significantly during the last ten years, but their individual capacities are still small, the highest producing 100 000 tonnes/year, but most falling within 1000-5000 tonnes/year.

The number of cattle in Vietnam is still small, and they can use the non protein nitrogen feeds and forage currently available. This allows us to focus on the calculation of protein needs for the pig and poultry industry only.

On average, there is 12 percent protein in a pig feeding diet and 15 percent in a feed for poultry. Cereal grain, together with its by-products, contains around 8 percent protein. Thus, for a properly balanced pig feed, the amount of protein that needs to be derived from rich protein feed resources is 4 percent (33.3 percent total protein in the ration); for poultry it is 7 percent (46.7 percent total).

TABLE 7
Feed consumption by different kinds of animal (million tonnes)

Notes: The crude protein in cattle feed, pig feed and poultry feed is 8%, 12%, and 15% respectively

According to the Development criteria (Table 8), over 11 million tonnes of feed grain will be needed in 2005, and 15.5 million tonnes by the year 2010. Of this, it is estimated that four million tonnes and six million tonnes respectively will need to be processed feed (complete feed equivalent). Thus by 2005, Vietnam will need 0.233 million tonnes of protein derived from rich protein feed, and 0.314 million tonnes by 2010. This is equivalent to 0.53 million tonnes of soybean meal with a 44 percent crude protein content (Table 9).

Calculations suggest that the domestic demand for protein from protein rich feed ingredients will be 1.18 million tonnes by the year 2005 and 1.36 million tonnes by 2010 (equivalent to SBM 44 percent protein). Even with Government plans to increase area and gross output of soybean, and that the share of the soybean meal for animal feed will grow by up to 50 percent between 2005 and 2010, Vietnam will still be short of about 0.6 million tonnes (44 percent protein SBM equivalent) of protein rich feed ingredients (Tables 10, 11 and 12).

TABLE 8
Development criteria of animal, poultry and animal products in Vietnam in 2005 and 2010

TABLE 9
Estimated requirement of protein and rich protein feed for pig and poultry in Vietnam in 2005 and 2010 (million tonnes)

TABLE 10
Domestic production of soybean and fish meal

Source: Vietnam Statistic Year book 1996; 2000; Ministry of Fishery; Department of Agr. and Forestry Extension - MARD

TABLE 11
Importation of rich protein feed ingredients (1 000 tonnes)

TABLE 12
Demand and protein supplies in the future (million tonnes)