Vietnam’s feed industry faces costs, disease, and opportunity

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Vietnam’s feed industry is expected to expand steadily in the coming years, supported by rising livestock and aquaculture production. According to a GAIN report by the USDA-Foreign Agricultural Service, feed demand is forecast to reach 30.45 million tons in 2026 and 31.2 million tons in 2027.

Imports of corn and wheat will play a larger role, as domestic supplies decline and ethanol blending reshapes ingredient use. Rising industrial demand, coupled with strong aquaculture exports, positions the feed sector for growth, though disease risks and food safety concerns remain.

Livestock growth and price pressures

Vietnam’s pig herd rose 2.2% year-on-year, with pork output reaching 2.86 million tons, up 4.8%. Poultry flocks expanded 3.1%, producing 1.3 million tons of meat, while egg output reached 10.8 billion units. Buffalo and cattle herds, however, continued to decline.

Animal diseases such as African swine fever and Foot-and-Mouth Disease remain present but less severe than in past years. Outbreaks are now dispersed rather than concentrated, reducing systemic risk. Despite this, food safety violations have dampened consumer confidence in meat products.

Prices reflected these dynamics. Live hog prices fell 20% in early 2026 due to surplus production and competition from poultry. Broiler chicken prices also dropped sharply, as expanded flocks and export difficulties left excess supply in domestic markets. Local contacts expect recovery in the second half of the year.

Aquaculture expansion and export momentum

Aquaculture output reached 3 million tons in the first six months of 2026, up 5.7% year-on-year. Pangasius production rose 5%, while white-leg shrimp grew 9.5%. Tilapia emerged as a new export-oriented commodity, shifting from domestic consumption to international markets.

Exports reflected this growth. Vietnam’s seafood exports reached nearly USD 5.8 billion in the first half of 2026, up 13% year-on-year. Shrimp led with USD 2.3 billion, accounting for over 40% of total value. Pangasius followed at USD 1.1 billion, while tilapia exports surged 101% to USD 76 million.

Challenges remain. Farmers face rising biosecurity costs due to antibiotic resistance and stricter traceability requirements. Vibrio outbreaks continue to affect shrimp production, raising concerns about sustainability.

Rising feed demand and ingredient shifts

Animal feed production reached 12.43 million tons in the first half of 2026, up 7.5% year-on-year. Exports of feed products also expanded, surpassing USD 1 billion, a 67% increase. Cassava exports rose 19% in volume and 43% in value.

Imports of feed ingredients are increasing, while local supplies decline. Corn imports are projected at 13.5 million tons in 2025/26, rising to 15 million in 2026/27. Wheat imports are also significant, reaching 7.28 million tons in 2025/26 before easing to 6.2 million in 2026/27.

Domestic corn production continues to fall as farmers shift to more profitable crops. High input costs and competitive imports further erode margins. Ethanol blending mandates have intensified demand for corn and cassava, reshaping feed ingredient sourcing. Feed millers increasingly substitute imported wheat for corn in rations, particularly low-cost feed wheat.

Structural changes ahead

Vietnam’s feed sector is undergoing structural transformation. Rising industrial demand for bioethanol is reshaping ingredient use, while exports of cassava and rice bran reduce local feed availability. Imports of corn and wheat are filling the gap, supported by competitive global prices.

Livestock and aquaculture growth will continue to drive feed demand, though disease risks and food safety concerns remain. Export opportunities in seafood and feed products are expanding, but sustainability challenges persist. The country’s feed industry is positioned for growth, yet dependent on global market dynamics and domestic policy shifts.