Vietnam assesses risks of rising feed prices amid geopolitical tensions

Vietnamese authorities are stepping up monitoring of the feed market amid geopolitical instability. According to the Department of Animal Husbandry and Veterinary Affairs under the Ministry of Agriculture and Environment, an escalation of the conflict in the Middle East could lead to a rise in feed prices in the country of up to 10%.

Partial disruptions to shipping through the Strait of Hormuz have already impacted global feed markets: corn prices have risen by 2-4%, soybeans by 1-2%, while wheat has reached an eight-month high.

Vietnam imports approximately 60-70% of its feed components, amounting to approximately 22-24 million tons per year, making the industry vulnerable to rising external prices.

The department is considering two scenarios. If the conflict deescalates in March 2026, feed prices could decline by 3-5% by the end of that month. However, if tensions persist until April, prices could rise by 7-10%, leading to increased production costs and reduced farm profitability.

As a response, authorities recommend improving logistics efficiency, diversifying import sources, and expanding domestic production of forage crops to reduce risks to the industry.

Tags: corn, Vietnam, soybean, compound feed