Vietnam has purchased U.S. corn - a first time ever event - marking increased demand for feed grains in that country.
The 5,000 metric ton (196,840 bushels) purchase was made by Lai Thieu, a private company with three feed mills in Vietnam. The company currently imports U.S. distiller's dried grains with solubles (DDGS) and U.S. soybean meal and has sales volumes topping 30,000 tons monthly.
"We were very excited to see the contract for the July-August delivery purchase," says Davis Anderson, USGC chairman. "U.S. corn is quite competitive right now and there is no Chinese corn available for import. Additionally, the owner told us that she was looking to diversify her supply sources and naturally looked to the United States due in part to the work done by the U.S. Grains Council."
Vietnam currently produces about 4.5 million tons of commercial feed annually, with the potential to reach 10 million tons as the livestock sector continues to commercialize. Domestic corn production is 3 million tons, of which virtually 100% is finding its way into feed. An additional 200,000-250,000 tons (7.9-9.8 million bushels) of corn is being imported for feed
Kim Rameker, U.S. Grains Council's regional director for Southeast Asia, explains if this first shipment of corn goes well, Rameker thinks Lai Thieu will continue to look to the United States for their future corn needs.
The U.S. Grains Council estimates that Vietnam's demand for corn imports could grow by 8% annually.