Food market situation in 12/2013 and forecast in 2014
The Vietnam food market have been eventful when the price of pigs continuous keep at high level, while the prices of chicken and eggs decreased deeply, and the price of beef decreased due to compete with beef import.
The price of live pigs declined to VND 38,000-39,000 per kg in the middle of 2013, and then increased to VND 55,000 per kg in 12/2013.
The price of beef reached VND 230,000-245,000 per kg, a 2-3% decreasing compared with the previous months. Vietnam imported 60,000 cows in 2013, averaging 5,000 cows per month. Forecast, Vietnam will import 60,000 cows from Australia in 2014.
The price of chicken declined from VND 48,000 per kg in the beginning of 2013 down to VND 23,000-24,000 per kg in 12/2013. Forecast, this price will continuous decline to VND 20,000 per kg, the farmers was loss VND 10,000-12,000 per kg of profit.
Forecast, the demand of food will increase 15-18% in Tet festival.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.
http://vinanet.com.vn/tin-thi-truong-hang-hoa-viet-nam.gplist.290.gpopen.222570.gpside.1.gpnewtitle.thi-truong-thuc-pham-thang-12-nam-2013-va-du-bao-nam-2014.asmx
Mengniu develops nutrition products market tie-up with US company White Wave
China Mengniu Dairy Co Monday announced that it has signed an agreement with leading US consumer food and beverage company White Wave Foods Co to jointly expand into the Chinese nutrition market. In order to produce and sell nutrition products in China, a joint venture will be set up with the Chinese dairy producer holding a 51 percent stake and 49 percent to be held by White Wave, according to a statement filed by Mengniu on Hong Kong Stock Exchange on Monday. The venture formation is expected to obtain approval from Chinese authorities in the first half of this year.
Meanwhile, the venture has agreed to offer 376.7 million yuan ($62.2 million) to purchase Chinese infant formula maker Yashili's nutrition plant, which is still under construction currently in Zhengzhou, Central China's Henan Province, said the statement. Mengniu is Yashili's majority owner. Mengniu has to diversify its product range, as the company's core business - liquid milk - does not have much room for growth amid fierce competition from imported brands, Chen Lianfang, an analyst from Beijing Orient Agribusiness Consultant Ltd, told the Global Times Monday.
"China has seen a fast annual growth rate of more than 100 percent in imported liquid milk amounts in the past two years, as domestic consumers tend to prefer foreign dairy brands in the wake of the powdered milk scandal in 2008," Chen said. The latest financial information about Mengniu's operation is not available to the public on the company website, but its mid-term financial results ending June 30, 2013 showed that the company gained CNY 20.7 billion , while its major rival Yili raked in more money over the same period, totaling CNY 24 billion.
According to the two companies' mid-term financial reports, the sales of liquid milk products contributed to 88.3 percent of Mengniu's overall revenues, with the rest mainly coming from ice cream, while Yili got about 75 percent of its revenue from liquid milk, but also makes money from products such as ice cream, milk powder and mixed animal feeds. Mengniu also has been in the domestic milk powder market since 2006, but the company does not have a fairly satisfactory performance in this segment, resulting in its embrace of the country's nutrition market this time, Yan Qiang, a researcher from Beijing-based Hejun Consulting, told the Global Times Monday.
An April report by Shenzhen-based market research firm China Competition Information stated that sales in the domestic nutrition industry reached CNY 113 billion in 2012, 32 percent growth year-on-year, forecasting the amount will surpass CNY 430 billion in 2018. As China's aging population is getting larger and the central government will implement the new second-child policy announced last November around the country in the near future, the demands for high-quality, especially foreign-branded or -invested, nutrition products will spike, said Yan.
Gregg Engles, CEO of White Wave, also sensed the potential boom in China's nutrition market, as he expects that the tie-up with Mengniu could help his company access China, a promising market "with a rapidly growing, multi-billion dollar nutritious products segment," according to a press release issued Sunday. Mengniu could benefit a lot from the cooperation with White Wave in terms of technology as well as establishing its brand in the nutrition sector, Yan noted, WhiteWave sells various goods such as plant-based foods and beverage as well as dairy products throughout North America and Europe. However, Chen held a wait-and-see attitude toward the prospect of Mengniu's nutrition operation, as the sector in China is faced with loose regulations and fairly chaotic competition, "Mengniu, widely known as a liquid milk giant, will have to spend a fairly long time and lots of vigor in gaining consumers' trust in the nutrition market." Chen said.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
http://stock.sohu.com/20140107/n393043573.shtml
Shrimp accounts for over 60 pct of Vietnamese seafood exports to China
Vietnam's shrimp accounted for a large proportion of over 60 percent in Vietnamese seafood export turnover to China in 2013, according to Vietnam Association of Seafood Exporters and Producers (VASEP). The association said on its website on Monday that in the first 11 months of 2013, Vietnam exported some 517 million US dollars worth of seafood products to China, an increase of 38.7 percent over the same period in 2012. Among the seafood products exported to China, shrimp accounted for some 68 percent, worth over 349 million US dollars, up 53.7 percent year-on-year.
VASEP said the price of shrimp exported to China remained quite stable in recent years. During 2000-2006 period, shrimp export price increased from $ 6.53 to a peak of $ 8.68 per kilogram in 2002, then declined. During 2006-2012, price of shrimp exported to China ranged from $7.5-8.5 per kilogram, and is expected to increase in the coming years, said VASEP. Shrimp export to China is forecast to continue the increasing trend as changing lifestyle and higher income have helped boosting demand for seafood consumption in the country, especially high- quality products, assessed VASEP.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.ecns.cn/business/2014/01-07/95792.shtml
2013 - A booming year for Vietnamese exports to US
A senior trade official has hailed 2013 as a successful year for Vietnamese exporters in general. Especially those ship goods to the US.
Dao Tran Nhan, Minister Counselor for Trade and head of the Vietnam Trade Office in the US, said on the fringes of the recent trade counselors’ conference that Vietnam will run a trade surplus of US$20 billion with the US when its export is estimated to surpass the US$25-billion mark.
He forecast that Vietnam’s export to the US will grow by some 10% in 2014.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email michael@boddingtonconsulting.com
http://english.vov.vn/Economy/2013-a-booming-year-for-Vietnamese-exports-to-US/271648.vov