Meal, Soybean

Production:

Vietnam's domestic soybean meal (SBM) production rebounded in 2014, reaching a record 889 TMT in MY 2013/14, an increase of 21 percent. Local SBM production is projected to continue to grow in the coming years until the capacity of the existing crush facilities is reached. The demand for soy oil continues to serve as the limiting factor for crush, and soybean meal production in the long term. Post estimates MY 2014/15 SBM production at 950 TMT, which will capture 24 percent of the domestic market. Soybean meal production will increase in MY 2015/16 to about 990 TMT on increased domestic crush.

Vietnam's soybean meal production

2012

2013

2014

2015*

2016*

Total SBM production (TMT)

780

732

889

950

990

Consumption:

Almost all SBM, both domestically produced and imported, is used in the animal and aquaculture feed industries to meet surging demand for animal and aquaculture protein. Vietnam also imports a growing amount of soy flour (367 TMT), which is used in both the food and feed industries. Vietnam's SBM consumption was estimated at 3.55 MMT in MY 2012/13 and at 4.45 MMT in MY2013/14, a year-on-year increase of 25 percent. Post estimates MY2014/15 SBM consumption at 4.6 MMT. Post's initial MY 2015/16 SBM consumption forecast is 4.75 MMT, reflecting the steady, continued growth in the livestock and aquaculture sectors.

Trade:

Imports

Vietnam continues to import increasing amounts of SBM to offset the protein shortage in the country and meet the growing demand of the animal and aquaculture feed industries. In MY 2013/14, Vietnam imported about 3.64 MMT of total SBM and soy flour, an increase of about 14 percent over the previous year (3.19 MMT).

Post estimates total SBM, including SBM and soy flour, imports in MY 2014/15 will slightly increase to 3.75 MMT, and in MY 2015/16 will continue to increase to 3.85 MMT due to strong demand from feed sector.

In 2014, Argentina remained the largest supplier of SBM to Vietnam, accounting for about 65 percent of the import market, up from 58 percent in 2013. Brazil, the other main supplier of SBM to Vietnam, accounted for 10 percent of the import market. China's market share also increased to 7 percent in MY 2013/14, from 3 percent in the previous year. India's market share plummeted to 1.4 percent from 13 percent in the previous year due to price competitiveness and the perception that Indian SBM is lower in protein compared to sources from Argentina, Brazil, and the United States. In MY 2013/14, U.S. SBM exports to Vietnam were 368 TMT, accounting for 10 percent market share. This is a drop of 2.5 percent from the previous year (378 TMT). In MY 2013/14, approximately 96 percent of U.S. SBM exports to Vietnam were soybean flour (HS Code: 120810).

Post estimates MY2014/15 U.S. SBM exports to increase to 380 TMT. Post forecasts U.S. SBM exports to grow in MY2015/16 to 390 TMT as the overall size of the Vietnamese feed market continues to grow to keep pace with the livestock sector.

Soybean meal imports by source in the period 2010-2014

2010

2011

2012

2013

2014

S/N

Total Imports: (TMT)

2,737

2,993

2,457

2,918.6

3,276

1

Argentina

1,137

1,326

1,275

1,842

2,376

2

Brazil

273

401

296.4

444

305

3

China

45

27

265.8

90

254

4

India

804

1,119

462.7

400

50

5

USA

429

66

115.6

131

13

6

Other countries

49

54

42.2

11.6

278

Source: GCO, BICO, GTA data. *Note: Soybean meal (HS code: 2304), and other residues from soybeans (HS Code: 230250)

In 2014, Vietnam also imported about 367 TMT of soybean flour, mainly from the United States, India, and Taiwan, which was used for both feed and food industries. This is a record level and is due, in part, to the lower import duty for soybean flour (HS code: 120810), which dropped to 8 percent from 12 percent since 2013. Post projects soy flour imports will continue to increase in 2015 and in coming years as demand continues to grow due to population growth and rising incomes, as well as growing food industry.

Soybean flour imports by sources

Country

2012

2013

2014

Quantity (MT)

Quantity (MT)

Quantity (MT)

Total Imports:

37,396

267,130

366,624

USA

30,135

246,793

355,267

India

10

11,813

4,057

Taiwan

3,275

3,105

5,699

Argentina

n/a

n/a

1,244

Malaysia

3,926

5,136

280

China

n/a

217

67

Others

50

66

10

Source: GCO; BICO data; GTA *Note: Soybean flour HS code: 120810

Exports

According to local traders, Vietnam exported about 81 TMT of soybean meal (HS Code: 230400), soy flour (HS Code: 120810), and other residues from soybeans (HS Code: 230250) in 2014 (MY 2013/14), valued at $46 million. Major export markets for Vietnamese SBM were Cambodia, Taiwan, Philippines, Malaysia, Myanmar, South Korea, Laos and Japan. Post anticipates this trend to continue in future years as larger domestic crush will increase the availability of SBM for export. Although Vietnam will remain a large importer of SBM, occasional market dynamics in Vietnam and in neighboring countries will allow for small amounts of SBM exports from Vietnam. Post forecasts Vietnam's SBM exports at 85 TMT in MY2014/15, and at 90 TMT in MY2015/16.

Prices

Vietnam's average SBM import price in 2014 was $563 per metric ton, about a 3 percent increase over the previous year ($547). Currently, import prices are quoted at around $510-$513/MT CFR Haiphong, and $508-$509/MT CFR Ho Chi Minh City for shipments in April 2015. These prices are lower than the average prices in the same period of the previous year ($565). According to local importers, the import prices could be volatile, but will likely remain at this level or lower than $600/MT for the entire year of 2015 due to growing global soybean meal production and global supply availability.

Table 17 shows a comparison of local prices of common feed ingredients in Vietnam. An increasingly large segment of the industry recognizes the value in using high-protein SBM, however, to lower production costs, local feed mills are flexible and switch to a variety of feed ingredients if SBM is difficult to acquire.

Import Tariffs

The 2015 tax rates applied to SBM, full fat soybean flour, and soybean hulls imported from countries having Most Favored Nation (MFN) status with Vietnam are stated in Table:

  • Import duty for soybean flour (HS code: 120810): 8 percent
  • Import duty for soybean hulls (HS code: 230250): 0 percent
  • Import duty for soybean meal (HS code: 230400): 0 percent

Meal import tariffs (%)

HS code

Description

MFN

ATIGA

AANZFTA

AIFTA

AKFTA

VJEPA

AJCEP

ACFTA

VCFTA

1208

Flours and meals of oil seeds or oleaginous fruits, other than those of mustard

1208.10.00

- Of soya beans

8

0

10

15

0

14

17

0

12

1208.90.00

- Other

25

0

10

15

0

19

17

0

22

230120

Flours, meals and pellets, of meat or meat offal, of fish or of crustaceans, mollusks or other aquatic invertebrates

230120.10

--Of fish, with a protein content of less than 60% by weight

0

5

5

5

5

4

3

5

0

230120.20

--Of fish, with a protein content of 60% or more by weight

0

5

5

5

5

4

3

5

0

230120.90

--Other

0

5

5

5

5

4

3

5

0

2302

Bran, sharps and other residues, whether or not in the form of pellets, derived from the sifting, milling or other working of cereals or of leguminous plants.

2302.10.00

- Of maize (corn)

0

0

5

5

0

4.5

4

5

5

2302.30.00

- Of wheat

0

0

5

5

0

2

5

0

5

2302.40

- Of other cereals

2302.40.10

-- Of rice

0

0

5

8

0

4.5

4

0

5

2302.40.90

-- Of other cereals

0

0

5

5

0

4.5

4

0

5

2302.50.00

- Of leguminous plants

0

0

5

5

0

4.5

4

0

5

2303

Residues of starch manufacture and similar residues, beet-pulp, bagasse and other waste of sugar manufacture, brewing or distilling dregs and waste, whether or not in the form of pellets.

2303.10.10

- - Of manioc (cassava) or sago

0

0

5

5

0

4.5

4

5

5

2303.10.90

- - Other

0

0

5

7

0

2

5

5

3

2303.20.00

- Beet-pulp, bagasse and other waste of sugar manufacture

0

0

5

5

0

4.5

4

0

0

2303.30.00

- Brewing or distilling dregs and waste

0

0

5

5

0

2

5

0

3

2304

Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya-bean oil.

2304.00.10

-Defatted soya bean flour, fit for human consumption

0

0

0

3

0

0

0

0

0

2304.00.90

-Other

0

0

0

3

0

0

0

0

0

2305.00.00

Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of

ground-nut oil.

0

0

0

3

0

0

0

0

0

2306

Oil cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of vegetable fats or oils, other than those of heading 23.04 or 23.05

2306.10.00

- Of cotton seeds

0

0

0

3

0

0

0

0

0

2306.20.00

- Of linseed

0

0

0

3

0

0

0

0

0

2306.30.00

- Of sunflower seeds

0

0

0

3

0

0

0

0

0

2306.41

--Rape seeds or Colza seeds of low erucic acid rape or colza seeds

2306.41.10

---Rape seeds or colza seeds of low erucic acid rape or colza seeds

0

0

0

3

0

0

0

0

0

2306.41.20

---Colza seeds of low erucic acid colza seeds

0

0

0

3

0

0

0

0

0

2306.49

- - Other

2306.49.10

--- Rape seeds of other rape seeds

0

0

0

3

0

0

0

0

0

2306.49.20

---Colza seeds of other colza seeds

0

0

0

3

0

0

0

0

0

2306.50.00

- Of coconut or copra

0

0

0

3

0

0

0

0

0

2306.60.00

- Of palm nuts or kernels

0

0

0

3

0

0

0

0

0

2306.90

- Of others

2306.90.10

-- Of maize (corn) germ

0

0

0

3

0

0

0

0

0

2306.90.90

- - Other

0

0

0

3

0

0

0

0

0

2307.00.00

Wine lees; argol.

0

0

10

5

0

4.5

4

0

5

2308.00.00

Vegetable materials and vegetable waste, residues &by-products, whether or not in the form of pellets, of a kind used in animal feeding, not elsewhere specified or included.

0

0

5

5

0

4.5

4

0

5

Vietnam's Production, Supply & Demand Table for Soybean Meal*

Meal, Soybean

2013/2014

2014/2015

2015/2016

Market Begin Year

Jan 2014

Jan 2015

Jan 2016

Vietnam

USDA Official

New post

USDA Official

New post

USDA Official

New post

Crush

1,310

1,235

0

1,300

0

1,350

Extr. Rate, 999.9999

1

1

0

1

0

1

Beginning Stocks

134

134

0

135

0

150

Production

1,015

889

0

950

0

990

MY Imports

3,500

3,643

0

3,750

0

3,850

MY Imp. from U.S.

75

368

0

380

0

390

MY Imp. from EU

0

0

0

0

0

0

Total Supply

4,649

4,666

0

4,835

0

4,990

MY Exports

25

81

0

85

0

90

MY Exp. to EU

0

0

0

0

0

0

Industrial Dom. Cons.

0

0

0

0

0

0

Food Use Dom. Cons.

0

50

0

50

0

50

Feed Waste Dom. Cons.

4,460

4,400

0

4,550

0

4,700

Total Dom. Cons.

4,460

4,450

0

4,600

0

4,750

Ending Stocks

164

135

0

150

0

150

Total Distribution

4,649

4,666

0

4,835

0

4,990

1000 MT, PERCENT

Source: GCO, GTA, Post estimates; *Note: Soybean meal includes soybean meal and cake

(HS Code: 230400); Soy flour (HS Code: 120810); and other residues from soybeans (HS Code: 230250)

Vietnam's Soybean Meal*Import Matrix

Country

Vietnam

Commodity

Soybean meal

Time Period

Jan-Dec

Units:

MT

Imports for:

2013

2014

U.S.

377,451

U.S.

368,068

Others

Others

Argentina

1,842,092

Argentina

2,377,511

Brazil

444,193

Brazil

304,817

India

412,162

China

253,740

China

90,539

Singapore

189,130

India

54,453

Total for Others

2,788,986

3,179,651

Others not Listed

19,923

95,421

Grand Total

3,186,360

3,643,140

Source: GCO, GTA, BICO data

*Note: Soybean meal (HS code: 2304), Soy flour (HS Code: 120810), and other residues from soybeans (HS Code: 230250)

Other Meal

Production:

Vietnam produces a negligible volume of other oilseed meals, such as peanut meal, copra meal, etc.

Production of fishmeal, mainly from the south of Vietnam, depends on the production of caught saltwater and freshwater fish and the volume of caught trash fish. Fishmeal production is estimated to be around 400-450 TMT in 2014, of which about 300-350 TMT is saltwater fishmeal and about 100 TMT is freshwater fishmeal, according to local traders.

Consumption:

Other imported oil meals and feed ingredients including fishmeal are used as substitutes for SBM and for other segments of livestock production and aquaculture feed, which require a more diverse combination of feed ingredients.

Trade:

In 2014, Vietnam imported about 648 TMT of other oilseed meals, a drop of 14 percent from the previous year (753 TMT) due to larger imported SBM. In 2014, according to GTA, Vietnam imported about 97 TMT of fishmeal, of which 41 percent imported from Peru and the rest was imported from Thailand, South Korea, Chile, and other countries. Total various oil meals, distillers dried grains with solubles, corn gluten meal, and fishmeal imports were about 1.5 MMT in 2014, accounting for about 10 percent of commercial feed production.

According to local traders, Vietnam exports low-protein fishmeal, while it imports high protein fishmeal to meet growing demand of animal feed and aquaculture feed industries. Vietnam annually exports about 140-150 TMT fishmeal to many countries. In 2014, Vietnam exported 157 TMT of fishmeal to many countries, of which China is the largest export market.

The tax rate applied to other oilseed meals and fishmeal imported from countries having Most Favored Nation (MFN) status with Vietnam remains 0 percent.

Other oil meal imports 2010-2014

2010

2011

2012

2013

2014

Total import volume (TMT)

572

663

697

753

648

Other oilseed and protein meal imports by commodity in 2010-2014

Commodities

2010

2011

2012

2013

2014

HS Code

Total(Unit: MT)

1,415,343

1,525,222

1,564,236

1,554,886

1,492,647

230120

Fishmeal

100,016

89,534

91,836

81,351

97,606

230210/

230310

DDGS/Corn gluten meal

430,236

494,599

491,846

356,900

621,100

230230

Wheat bran

248,136

213,295

251,691

319,924

69,116

230240

Bran and other residues, rice bran

44,884

26,702

7,761

23,398

57,237

230500

Peanut meal

6,419

5,498

3,051

3,200

3,415

230610

Cotton seed meal

n/a

n/a

47

978

3,211

230630

Sunflower meal

1,216

516

13,933

279

4,762

230641

Canola, rape seed meals

255,800

271,700

359,000

396,000

373,400

230650

Copra meal

151,878

138,000

178,933

196,315

87,300

230660

Palm Kernel meal

168,200

141,870

159,800

176,541

175,500

Vietnam fish meal imports by source (2010-2014)

2010

2011

2012

2013

2014

Total in MT

100,016

89,534

91,835

81,351

97,606

Peru

38,294

46,339

54,123

19,336

39,842

Thailand

26,447

26,422

11,352

43,000

28,499

South Korea

14,144

11,079

11,604

11,862

12,478

Chile

9,777

1,807

2,073

2,260

9,980

India

505

740

249

1,301

3,340

Others

10,848

3,147

12,434

3,593

3,467

Vietnam's fish meal exports by destination (2012-2014)

2012

2013

2014

Total in TMT

97

111

157

China

50

67

73

Japan

5

10

25

Taiwan

14

14

25

Thailand

10

3

8

Indonesia

12

10

8

Malaysia

3

2

6

Cambodia

n/a

n/a

5

South Korea

2

3

3

Others

1

2

4