Livestock sector may struggle to conquer $1.5 billion next year

Although overseas market room is large and export turnover this year saw an increase on-year, the export value of 2024 is still equal to one-third compared to the goal set up for 2025. In addition, enterprises see that several barriers need to be resolved so that Vietnam can unlock its full potential in the global livestock export market and achieve its target of $1-1.5 billion in export turnover.

Schemes to boost livestock development have been slow in impact, photo Le Toan

Vietnam’s livestock products face strict import regulations and sanitary and phytosanitary requirements in many countries, limiting market access and export potential. Frequent outbreaks of animal diseases like African swine fever and avian influenza also pose significant challenges to Vietnam’s livestock sector, hindering exports due to concerns over food safety and quality.

That’s according to a representative of a Dutch livestock company who talked to VIR. “Besides that, Vietnam’s livestock products face stiff competition from other major livestock exporters like Brazil, China, and the US, which have established strong market positions and competitive advantages,” he said.

Another barrier is the absence of sufficient processing facilities with international standards, hindering Vietnam’s ability to produce high-quality, value-added products that meet global demand.

“Furthermore, Vietnam’s livestock sector is characterised by small-scale, fragmented production systems with low productivity and limited access to modern technologies and inputs. This affects the competitiveness of livestock products in international markets,” he added.

Several livestock companies have set an export development strategy, but they have yet to execute it well. Companies’ products approached some markets like Singapore, Australia, South Korea, Russia, and North America, but these did not make up big volumes.

Very few livestock industry products are being shipped to potential markets like Russia, the US, and Australia. So far, it has only sent grilled pork paste and lean port paste to these countries.

At the end of 2023, Vietnam approved prioritised schemes to implement the Strategy for Livestock Development for 2030 with a vision to 2045. In these three schemes, the authorities also offer solutions to resolve pending issues to unlock the international market, such as development of the livestock feed processing industry, the slaughtering and processing market, and the livestock breeding industry.

“Despite the decisions for these schemes that were issued one year ago, there are no specific and detailed roadmaps for implementations. The livestock companies have yet to establish coalitions to together exploit new export markets,” the Dutch company representative said.

Nevertheless, according to the Ministry of Agriculture and Rural Development (MARD), in the first 11 months of 2024, livestock product exports were estimated to come in at $475.7 million, marking an on-year 4.4 per cent increase. Processed meat products rank first ($147.3 million), followed by milk and milk products ($113.2 million).

Vietnam’s processed chicken meat has already made inroads into Japan, Hong Kong, five countries within the Eurasian Economic Union, and Mongolia.

The country has secured significant wins, including export licences for dairy and bird’s nest products to China. Now, the MARD’s Department of Animal Health is actively pursuing expanded market access for these and other livestock products, and engaging in negotiations with the South Korea, Singapore, the EU, the UK, and the Middle East.

The department’s general director Nguyen Van Long revealed ongoing talks with the South Korea’s Ministry of Food and Drug Safety to finalise food safety conditions for poultry products.

Major industry players like Masan, C.P. Vietnam, Koyu & Unitek, Japfa, De Heus, and GreenFeed are also investing heavily in disease-free zones and state-of-the-art processing facilities.

“The livestock industry in Vietnam holds immense potential and offers outstanding growth opportunities. Japfa targets to explore potential opportunities in the Middle East, Asia and other markets. In Southeast Asia, we have the opportunity to export to Singapore, a market to which our parent company in Indonesia is also striving to export Japfa products,” said Clemens Tan, general director of Japfa Comfeed Vietnam.

“This potential is clearly reflected in the Vietnamese government’s commitment to developing a sustainable and disease-free livestock industry, and its substantial support for export activities,” he said.

Seminars on livestock biosecurity to be held in Can Tho and Hanoi Seminars on sustainable production methods and biosecurity in the livestock industry, supported by the Embassy of Ireland in Vietnam, will be held in Can Tho on July 24 and in Hanoi on July 26.

Sustainable livestock the focus for Vietstock 2024 The international livestock, feed, fisheries, and meat processing exhibition Vietstock will this year take place on October 9-11 in Ho Chi Minh City.

Japfa Vietnam aids livestock farmers in disease prevention Japfa Comfeed Vietnam Co., Ltd. (Japfa Vietnam), in early November, initiated a programme to donate 10,000 litres of disinfectant to Animal Husbandry and Veterinary Departments, households, and industrial farmers.