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The role of crisis in reshaping businesses: the Vietnamese livestock sector

22 Jun 2017 -
  • Events
thierry rocaboy manager techna nutrition vietnam livestock crisis

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.

M. Rocaboy, can you give us an overview of the livestock sector in Vietnam ?

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.

What are the consequences of the livestock crisis on the Vietnamese market?

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.

Could the livestock crisis in Vietnam lead to a positive outcome?

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.

How do you think we could manage to decrease the feed cost in Vietnam?

 Focusing on decreasing the feed costs, the industry is entitled to explore further three main axis in order to lower the feed costs:

  1. Back to the basics in fulfilling each animal needs: following the needs of each animal thanks to technology is possible using precision farming methods.
  2. The right nutrient level at the right stage, avoiding overuse and waste.
  3. Improve the knowledge and supply of raw material.

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.

For more details, contact us.

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