Vietnam Animal feed Comprehensive Report Q3/2016
Animal feed is an important part in developing the livestock industry which is considered to ensure the global food security. Global animal feed production experiences much volatility, however is still increasing. Poultry feed accounts for the biggest production, followed by forage and pig feed. In total 995 million tons of animal feed produced globally in 2015, Asia took up 1/3 of total production. China still occupies the leading position with 179.93 million tons from 8,550 animal feed factories of the country. Animal feed manufacturing industry in the world is expected to grow in production in 2016 and afterwards.
Value of animal feed exports in the world increased from 2010-2015 in which in 2015, America accounted for the biggest value (16%). Demand for imported food always rises both in value and quantity. CP Group - a Thailand’s animal feed manufacturer continued to lead regarding production (27,650 thousand tons in 2015), followed by Cargill (America) with 19,500 tons.
In Vietnam, the shortage of material for production has been existed for long and the country needs to import a large amount of animal feeds. Meanwhile, animal feed accounts for 60% of the cost and price. Up to now, the number of animal feed manufacturing factories in the country is limited with the restricted the producing capability and Vietnam is still manipulated by foreign companies due to the incapability of possessing technology. FDI companies only own fewer factories but take up 60-65% of the total production output and privately state sector only holds 35-40%.
In 2015, animal feed production slightly increased to 15.8 million tons compared to 2014. Regarding structure by animals, forage occupied up to 59% of production, followed by aqua-feed, pet food is negligible in percentage (less than 1%).
According to the Ministry of Industry and Trade, as compared to regional countries, the price of animal feed in Vietnam is always 15% -20% higher, making products less competitive. Mains causes are that domestic animal feed industry mostly relies on import, hence leads to the high risk of price and exchange rates fluctuation, coupled with the high discount commissions of FDI companies which also pushes the price,…
Currently, there are 2 main distribution methods: Through Level 1, 2 agents, which connecting companies with farms (accounts for 90% of total animal feed produced) and though livestock outsourcing for companies (10% of consumption and only applies in large 3F model companies such as Dabaco, CP, Hung Vuong…). In addition, some companies sell goods directly to farms without agents such as Anco, Hung Vuong, Proconco… to minimize cost and increase competitiveness, especially against FDI companies.
Value of animal feed exports in the world increased from 2010-2015 in which in 2015, America accounted for the biggest value (16%). Demand for imported food always rises both in value and quantity. CP Group - a Thailand’s animal feed manufacturer continued to lead regarding production (27,650 thousand tons in 2015), followed by Cargill (America) with 19,500 tons.
In Vietnam, the shortage of material for production has been existed for long and the country needs to import a large amount of animal feeds. Meanwhile, animal feed accounts for 60% of the cost and price. Up to now, the number of animal feed manufacturing factories in the country is limited with the restricted the producing capability and Vietnam is still manipulated by foreign companies due to the incapability of possessing technology. FDI companies only own fewer factories but take up 60-65% of the total production output and privately state sector only holds 35-40%.
In 2015, animal feed production slightly increased to 15.8 million tons compared to 2014. Regarding structure by animals, forage occupied up to 59% of production, followed by aqua-feed, pet food is negligible in percentage (less than 1%).
According to the Ministry of Industry and Trade, as compared to regional countries, the price of animal feed in Vietnam is always 15% -20% higher, making products less competitive. Mains causes are that domestic animal feed industry mostly relies on import, hence leads to the high risk of price and exchange rates fluctuation, coupled with the high discount commissions of FDI companies which also pushes the price,…
Currently, there are 2 main distribution methods: Through Level 1, 2 agents, which connecting companies with farms (accounts for 90% of total animal feed produced) and though livestock outsourcing for companies (10% of consumption and only applies in large 3F model companies such as Dabaco, CP, Hung Vuong…). In addition, some companies sell goods directly to farms without agents such as Anco, Hung Vuong, Proconco… to minimize cost and increase competitiveness, especially against FDI companies.
Abbreviation
Executive Summary
I. Business environment
1. MACROECONOMIC SITUATION
Figure 1. GDP growth by quarter
Figure 2. The contribution ratio of the livestock feed industry to GDP
Figure 3. Exchange rate of VND/USD
Figure 4. Average interest rate of loan
Figure 5. Foreign direct investment 2013 – Q2/2016
Figure 6. Structure of foreign direct investment by industry
Figure 7. Area of some major crops
Figure 8. Structure of area by crops, 2015
Table 1. Countrywide livestock status 2010-2015
Figure 9. Livestock structure by number
Figure 10. Livestock structure by meal quantity
2. LEGAL FRAMEWORK
3. TRADE AGREEMENTS
II. Global market
1. DEFINITION AND CLASSIFICATION
2. PRODUCTION PROCEDURE
3. TECHNOLOGY
4. INPUT MATERIALS
Figure 11. Market share of feed additives, 2015
Figure 12. Fluctuations in raw material prices
Table 2. Corn Supply-Demand forecast in 2016
Table 3. Wheat Supply-Demand forecast in 2016
Table 4. Soybean Supply-Demand forecast in 2016
5. PRODUCTION
Figure 13. Global production quantity of animal feeds
Figure 14. Feed production by species
Figure 15. Production quantity by animals
6. CONSUMPTION
Figure 16. Global consumption revenue of animal feed
Table 5. Average feed price of some livestock
Figure 17. Consumption by region
7. IMPORT – EXPORT
Figure 18. Global export turnover
Figure 19. Global export quantity
Figure 20. Market share of global animal feed by countries, 2015
8. ACTUAL PRODUCTION AND CONSUMPTION IN THE WORLD BY REGION
Table 6. Production in some regions
Figure 21. Production by region
9. ACTUAL PRODUCTION IN SOME TYPICAL COUNTRIES
Table 7. Top 10 producing livestock feed in the world
Table 8. Top 10 countries with largest crusher, 2015
Table 9. Top 10 countries with the largest production by species 2015
10. KEY PLAYERS IN THE INDUSTRY
Table 10. Largest producers in animal feed industry
Figure 22. Largest producers by region
III. Vietnam market
1. HISTORY OF ESTABLISHMENT AND DEVELOPMENT
2. VALUE CHAIN OF THE INDUSTRY
50 INPUT MATERIALS
Figure 23. Production quantity of some major material feeds
Figure 24. The composition of animal feeds
Figure 25. Revenue of Vietnam’s additives market
Figure 26. Import quantity and value of corn
Figure 27. Import of wheat by season
Figure 28. Import quantity of soybean meal
Figure 29. Top 10 largest importing companies
Figure 30. Fluctuation of livestock feed price
51 PRODUCTION
Figure 31. Number of business and labor
Figure 32. Structure of production, 2015
Figure 33. Number of business by region
Figure 34. Production quantity of livestock feed
Figure 35. Production capacity of feed companies since 2014
Figure 36. Revenue and profit of Vietnam animal feed industry
Figure 37. Capital and fixed asset of Vietnam animal feed industry
52 CONSUMPTION
Figure 38. Consumption value of animal feed
Figure 39. Consumption quantity of livestock feed
Figure 40. Revenue of feed companies in 2014
Figure 41. Market share of Vietnam animal feed by producers, 2014
Table 11. Top companies in each segment
53 FEED PRICE
67 IMPORT – EXPORT
Figure 42. Outputs and import turnover of animal feed and materials
Figure 43. Market structure of imported animal feed and materials 2015
Figure 44. Imported animal feed structure by volume 2015
Figure 45. Export turnover of animal feed and materials
Figure 46. Market structure of exported animal feed and materials 2015
68 DISTRIBUTION SYSTEM
73 COMPETITIVE ANALYSIS
Table 12. Agent discount of some animal feed companies
74 INVENTORIES
Figure 47. Inventory value of Vietnam’s animal feed
IV. Industrial risks
V. Industry’s development plan
1. LIVESTOCK SECTOR DEVELOPMENT PLAN
Table 13. Development plans of poultry and cattle sector until 2020
Figure 48. Aquaculture orientation until 2020
2. VIETNAM ANIMAL FEED SECTOR DEVELOPMENT PLAN
VI. Prospects and forecasts
1. DEVELOPMENT INCENTIVES
Figure 49. Poultry meat consumption per capita in some countries
2. FORECASTS
Figure 50. Market scale of Vietnam animal feed by consumption
VII. Business analysis
1. BUSINESS INTRODUCTION
2. FINANCIAL ANALYSIS
Figure 51. Business situation of enterprises in the period 2014 – 2015
Figure 52. Net profit of enterprises in the period 2014 – 2015
Figure 53. Net profit margin of enterprises in the period 2014 – 2015
Figure 54. Accounts receivable turnover of enterprises 2015
Figure 55. Inventory turnover of enterprises 2015
Figure 56. Gross profit margin of enterprises 2015
Figure 57. Asset utilization rate of enterprises 2015
Figure 58. Repayment capacity of enterprises 2015
Figure 59. Solvency of enterprises 2015
Figure 60. ROA and ROE of enterprises 2014-2015
VIII. Appendix
Executive Summary
I. Business environment
1. MACROECONOMIC SITUATION
Figure 1. GDP growth by quarter
Figure 2. The contribution ratio of the livestock feed industry to GDP
Figure 3. Exchange rate of VND/USD
Figure 4. Average interest rate of loan
Figure 5. Foreign direct investment 2013 – Q2/2016
Figure 6. Structure of foreign direct investment by industry
Figure 7. Area of some major crops
Figure 8. Structure of area by crops, 2015
Table 1. Countrywide livestock status 2010-2015
Figure 9. Livestock structure by number
Figure 10. Livestock structure by meal quantity
2. LEGAL FRAMEWORK
3. TRADE AGREEMENTS
II. Global market
1. DEFINITION AND CLASSIFICATION
2. PRODUCTION PROCEDURE
3. TECHNOLOGY
4. INPUT MATERIALS
Figure 11. Market share of feed additives, 2015
Figure 12. Fluctuations in raw material prices
Table 2. Corn Supply-Demand forecast in 2016
Table 3. Wheat Supply-Demand forecast in 2016
Table 4. Soybean Supply-Demand forecast in 2016
5. PRODUCTION
Figure 13. Global production quantity of animal feeds
Figure 14. Feed production by species
Figure 15. Production quantity by animals
6. CONSUMPTION
Figure 16. Global consumption revenue of animal feed
Table 5. Average feed price of some livestock
Figure 17. Consumption by region
7. IMPORT – EXPORT
Figure 18. Global export turnover
Figure 19. Global export quantity
Figure 20. Market share of global animal feed by countries, 2015
8. ACTUAL PRODUCTION AND CONSUMPTION IN THE WORLD BY REGION
Table 6. Production in some regions
Figure 21. Production by region
9. ACTUAL PRODUCTION IN SOME TYPICAL COUNTRIES
Table 7. Top 10 producing livestock feed in the world
Table 8. Top 10 countries with largest crusher, 2015
Table 9. Top 10 countries with the largest production by species 2015
10. KEY PLAYERS IN THE INDUSTRY
Table 10. Largest producers in animal feed industry
Figure 22. Largest producers by region
III. Vietnam market
1. HISTORY OF ESTABLISHMENT AND DEVELOPMENT
2. VALUE CHAIN OF THE INDUSTRY
50 INPUT MATERIALS
Figure 23. Production quantity of some major material feeds
Figure 24. The composition of animal feeds
Figure 25. Revenue of Vietnam’s additives market
Figure 26. Import quantity and value of corn
Figure 27. Import of wheat by season
Figure 28. Import quantity of soybean meal
Figure 29. Top 10 largest importing companies
Figure 30. Fluctuation of livestock feed price
51 PRODUCTION
Figure 31. Number of business and labor
Figure 32. Structure of production, 2015
Figure 33. Number of business by region
Figure 34. Production quantity of livestock feed
Figure 35. Production capacity of feed companies since 2014
Figure 36. Revenue and profit of Vietnam animal feed industry
Figure 37. Capital and fixed asset of Vietnam animal feed industry
52 CONSUMPTION
Figure 38. Consumption value of animal feed
Figure 39. Consumption quantity of livestock feed
Figure 40. Revenue of feed companies in 2014
Figure 41. Market share of Vietnam animal feed by producers, 2014
Table 11. Top companies in each segment
53 FEED PRICE
67 IMPORT – EXPORT
Figure 42. Outputs and import turnover of animal feed and materials
Figure 43. Market structure of imported animal feed and materials 2015
Figure 44. Imported animal feed structure by volume 2015
Figure 45. Export turnover of animal feed and materials
Figure 46. Market structure of exported animal feed and materials 2015
68 DISTRIBUTION SYSTEM
73 COMPETITIVE ANALYSIS
Table 12. Agent discount of some animal feed companies
74 INVENTORIES
Figure 47. Inventory value of Vietnam’s animal feed
IV. Industrial risks
V. Industry’s development plan
1. LIVESTOCK SECTOR DEVELOPMENT PLAN
Table 13. Development plans of poultry and cattle sector until 2020
Figure 48. Aquaculture orientation until 2020
2. VIETNAM ANIMAL FEED SECTOR DEVELOPMENT PLAN
VI. Prospects and forecasts
1. DEVELOPMENT INCENTIVES
Figure 49. Poultry meat consumption per capita in some countries
2. FORECASTS
Figure 50. Market scale of Vietnam animal feed by consumption
VII. Business analysis
1. BUSINESS INTRODUCTION
2. FINANCIAL ANALYSIS
Figure 51. Business situation of enterprises in the period 2014 – 2015
Figure 52. Net profit of enterprises in the period 2014 – 2015
Figure 53. Net profit margin of enterprises in the period 2014 – 2015
Figure 54. Accounts receivable turnover of enterprises 2015
Figure 55. Inventory turnover of enterprises 2015
Figure 56. Gross profit margin of enterprises 2015
Figure 57. Asset utilization rate of enterprises 2015
Figure 58. Repayment capacity of enterprises 2015
Figure 59. Solvency of enterprises 2015
Figure 60. ROA and ROE of enterprises 2014-2015
VIII. Appendix
