Could the lingering livestock crisis be an opportunity to reshape the agro business dynamic in Vietnam? Thierry Rocaboy, Managing Director at TECHNA NUTRITION VIETNAM tends to think so. In this interview, he provides some perspective on the current state of the livestock industry in Vietnam and why he thinks decreasing feed costs could work as an interesting alternative to end the livestock crisis.
Despite the huge progress that has been achieved during the past 30 years, the Vietnamese livestock sector suffers from many challenges such as high input costs, output price volatility, diseases, overuse of banned substances and antibiotics but also dependence on foreign raw material.
Since late 2016 domestic prices of live pork have halved to reach less than 1$/kg following China's decision to stop imports across its border with Vietnam. Vietnam's pig herd reaches around 30 millions heads at the end of 2016 and was still on the rise in early 2017, leading to a huge oversupply on the domestic market estimated to more than 200,000 tons by the Trade Ministry. The current livestock crisis is a big havoc for many of the stakeholders involved, especially farmers and livestock producers but also consequently their suppliers.
Yes indeed. This difficult situation may also be an opportunity to reshape the way animals are produced. One way of doing this is to focus on feed which represents the main part of the production costs. Feed millers and farmers, together with their suppliers may implement strategies to decrease the feed cost, in order to overcome the current crisis but also to be able to be part in the next years of a sustainable food sector in Vietnam. This collaborative work could transform the sector and allow it to attain the international standard leading to safe products for the domestic market. And eventually, once we have mastered that stage, we will be able to export these products.
Focusing on decreasing the feed costs, the industry is entitled to explore further three main axis in order to lower the feed costs:
To do this requires changing not just regulation, but also mindsets. As as a feed expertise company, TECHNA NUTRITION VIETNAM is committed to working together hand in hand with our customers, farmers, livestock producers and others stakeholders in order to build a win-win cooperation leading to a safe and sustainable Vietnamese livestock production sector. We also help feed millers and farmers interested in precision farming and sustainable feeding strategies to change their methods: optimizing feed use, costs, and limiting environmental wastage.
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