Vietnam’s corn consumption growing

Corn consumption in Vietnam is expected to grow with an uptick in feed demand during marketing year 2024-25, following lackluster demand from Europe and the United States for Vietnamese aquaculture products in 2023, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

The Global Agricultural Information Network (GAIN) report, released April 11, said total corn consumption is forecast to reach 14.1 million tonnes, including 12.7 million tonnes for feed and residual use and in line with total feed demand forecasts.

The FAS lowered its 2023-24 forecast for corn consumption to 13 million tonnes, including 11.5 million tonnes for feed and residual due to higher imports of feed wheat.

Feed demand for 2024 is forecast at 26.5 million tonnes, up from 25.9 million tonnes year-on-year due to projected higher aquafeed demand after a demand dip in 2023. Continued growth in animal feed and aquafeed demand are seen pushing total feed demand to 27 million tonnes in 2025.

“Approximately 75% of feed ingredients in Vietnam are imported,” the FAS said. “Vietnam is a price sensitive market for feed ingredients, including corn and feed wheat.”

Corn production in 2024-25 is projected to be 3.65 million tonnes, down from 3.76 million tonnes the previous marketing year. As domestic corn production remains uncompetitive with imports, corn imports are forecast to grow.

Imports are seen at 11 million tonnes for 2024-25, up from 10 million in 2023-24. Brazil became the largest corn supplier to Vietnam in calendar year 2023, with 44% of total market share. Argentina was the second with 33%, followed by India with 12%.

Vietnam imports all of its wheat to meet its total consumption needs. The FAS projects imports to be 4.5 million tonnes in 2024-25, down from 5.1 million tonnes the previous marketing year.

Wheat demand is forecast at 4.25 million tonnes in 2024-25, while the FAS revised its 2023-24 outlook to 4.55 million tonnes due to higher wheat consumption for both feed and milling.

At 27 million tonnes, milled rice production will be higher than anticipated in 2024-25, the same as the previous year, due to favorable weather, however, the FAS anticipates flat production the coming years due to government plans to not expand production area.

Rice consumption at 21.85 million in 2024-25 is projected to be up slightly from 21.8 million tonnes year on year, based on increased demand for feed use as well as population and tourism growth, the FAS said.

Tags: Vietnam, corn