|
Vietnam to start soy processing, boost bean buys
Vietnam's soybean imports are likely to climb five-fold next year as the country starts first domestic bean processing facilities to feed its rapidly expanding demand, a U.S. soy industry official said on Monday.
Vietnam – with one of the fastest growing animal feed business in the world – is expected to buy soybeans from the United States and South America, which will come at the expense of soymeal being bought mainly from India and South America.
"It is going to change the country's import profile completely," John Lindblom, East Asia regional director of ASA International Marketing, told the Reuters Global Food and Agriculture Summit.
"I don't know how long it will take the plants to get to full capacity but they represent 40 to 45 percent of the meal consumption in Vietnam."
Agricultural Processor Bunge Ltd is setting up a 3,000-tonne-per-day soybean crushing plant in the country, while domestic players are investing in a unit which will have a capacity of 1,000 tonnes a day.
Both facilities are expected to start operations later this year, Lindblom said in Singapore on Monday.
Vietnam's move to start soybean processing facilities comes as grain buyers rush to boost imports to ensure ample supplies in the face of higher food costs.
U.S. soybean and corn have climbed to multi-year highs in recent weeks, lifted by shrinking global supplies, although the grain markets have lost some ground on economic concerns arising from Middle East unrest and Japan’s devastating earthquake.
Vietnam, which buys soymeal for feeding pigs, fish and chickens mainly from India and South America has seen its annual feed production double to 8 million tonnes in 5 years.
"It is one of the most exciting markets. It is not the magnitude of China but the growth is faster than China," he said, referring to Vietnam's giant neighbor China, which is the world's biggest importer of soybeans.
"The business will be split between U.S. and South American beans. We will export around half and the rest will come from South America."
ASA International Marketing is working toward the promotion of U.S. soybeans and its members include farmers, soybean handlers, oilseed crushers, feed manufacturers, seed suppliers and government officials.
Lindblom said investors in Vietnam's soy processing business are also likely to benefit from prospects of an increase in vegetable oil consumption.
"In Vietnam per capita consumption of vegoils is still very low compared to other countries around," he said. "So investors definitely see a growth in vegoil consumption. Vietnam is importing all of their edible oil and refining it locally."
tuoitrenews, Reuters
|
