Vietnam Animal Feed Industry Standard Report Q1 - 2018

The production and consumption of animal feed in 2017 had a sharp decline compared to 2016 with decreasing rates of 40% and 44% respectively. This is mainly due to the decrease in production and consumption of pig feed when pork consumption is in difficult and its prices had been falling sharply. According to a report by the Ministry of Finance's Department of Price Management, over the same period in 2016, the price of pork meat in 2017 is 48- 52% lower. Due to over-supply in the country while consumption is not market-oriented, much depends on the Chinese market, causing serious losses to livestock farmers, leading to small-scale farmers have to stop livestock and do not invest much for the next period.

In addition to livestock producers, livestock feed producers, especially cattle and poultry feeds also suffered a great loss, reflecting a decrease in the business results of feed mills. Dabaco's animal feed sales are down 16.5% compared to the same period last year, while Masan Nutri - Science (parent company of two subsidiaries, Anco and Proconco) has reduced sales 9.8% compared to 2016 while profit dropped to 51.5%.