News from the livestock sector

Vinacapital Opportunity Fund (VOF) and Daiwa PI Partners Co (DPIP, from Japan) have co-invested 45 million US$ (80.0% from VOF) in International Dairy Products Joint Stock Company (IDP). This makes them the largest shareholders of the company, with a combined 70% ownership stake in IDP. Mr. Tran Bao Minh is the new CEO of the company.

China is growing thirsty for milk. Dairy production is industrialized to meet domestic demand and the government actively support the shift towards to mega-farms. Production is increasing and product quality is standardized. But after 2008 melamine scadal, trust in Chinese milk products remains lows, make a good chance for foreign brands increase their market share. Besides, farm management and environmental pollution are still big challenges for domestic manufacture.  

MARD has held conference assess the status of the livestock sector and orientation solution livestock development in the 2013-2015 period and the midland region northern mountains. The main solution, proposed by MARD, is built to restructure the organization of production methods towards increasing the proportion of large-scale farm animal production.

In urban areas, much vacant land are not yet under construction. Many fat buffalo are grazing on the "precious" land for urban planning. Most of those lands were previously cultivated fields and was planned for construction. Over a long period the land is not built yet, the idea of "borrowing" the land for cattle grazing began rekindled.

 

Domestic poultry farmers are struggling after news of the A/H7N9 bird flu virus in China and the H5N1 strain in some localities hit local demand. According to farmers in several northern provinces, demand for poultry had shown signs of decreasing in April instead of May or June as in previous years.

When the demand soars, the supply cannot meet and when the supply escalates, price plummets. Hence, this situation would continue unless the animal husbandry sector could outline a sustainable development strategy. 

The Ministry of Agriculture and Rural Development has for the first time introduced a draft decree on fines for animal feed, breeder and veterinary medicine violations. The kicker is foreign feed animal violators could be expelled from Vietnam if they fail to obey the country's animal feed regulations. Vietnam has 57 foreign feed suppliers, 41 of which are wholly owned and the remaining 16 are joint ventures with local partners.

Vietnam's soybean imports in 2012 reached a record 1.29 million MT, showing a 26% increase over the previous year, as demand increased from the emergence of domestic crushers

A ministerial inspection tour was organized in Bac Giang province to control the illegal flow of poultry meat from China. The border is difficult to control. The arrival of the H7N9 flu is considered a significant risk. An inter-ministerial meeting was held in Hanoi yesterday. A program for the prevention of H7N9 avian flu will be implemented in 33 cities and regions in Vietnam.

Recently, in the suburban districts of Hanoi, hog prices plummeted. If this situation continues, the risk of herd reduction can be prolonged and supply shortages would be inevitable. During Tet, traders buy pork from 45,000 to 47.000d/kg. According to the survey, the price of pork in Son Tay town is now between 38.000d and 42.000d/kg. Pork price fell, while the price of animal feed has increased. Difficult situation for farmers.

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