China’s feed firms see opportunities in Vietnam, Malaysia
Chinese fish feed companies are seeking opportunities overseas to escape “intense” competition at home, according to Chen Xiao Ru, a Tongwei executive who addressed the East China Aquatic Animal Nutrition and Feed Forum in Ningbo on 17 March.
The Thai market is too difficult for Chinese companies to enter, but there are many opportunities in other Southeast Asia countries where feed production capacity is struggling to keep pace with rising aquaculture and seawater production, Chen said.
Chen is especially bullish on Vietnam, where feed prices are on a level with those in China, said Chen. Vietnam, Chen explained, produces only 20,000 tons of seawater fish feed per year, while rising production of higher-value species like barramundi, cobia, goby, and grouper is pushing up demand and prices for feed. Furthermore, Vietnam’s growing dependence on the Chinese market makes it a more welcome market for Chinese feed suppliers.
“Vietnam is attractive as conditions for aquaculture are great and there is strong government support for aquaculture, especially for export products like shrimp,” Chen said.
Chen said Malaysia is also looking attractive, as aquaculture production is also rising there; China exported 10,000 metric tons (MT) of shrimp feed and 10,000 MT of fishmeal to Malaysian grouper and shrimp farms in 2017.
Tongwei isn’t the only Chinese feed firm looking to increase its presence into Southeast Asia – Guangdong Haid opened a feed plant in Vietnam with an annual production capacity of 50,000 metric tons in January 2018.