Biotechnology

The revolution in animal feed production is being led by biotechnology. The use of biological additives such as probiotics, prebiotics, and enzymes is becoming an inevitable trend. These technologies not only help improve gut health and enhance nutrient absorption in livestock, but also provide a sustainable alternative to antibiotics, meeting the increasingly stringent food safety standards for both domestic and export markets. Many companies in Vietnam have successfully applied these products, opening up a vast market for providers of advanced biotechnology solutions. For example, TVOne Vietnam is one of the pioneers in developing plant-extract-based feed additives, replacing antibiotics with probiotics and prebiotics. These products help improve gut health, enhance nutrient absorption, and reduce dependence on antibiotics, while ensuring compliance with strict food safety requirements both locally and internationally.

Self-sufficiency through locally sourced alternative ingredients

With the need to reduce environmental impact and increase sustainability, the animal feed industry is shifting towards using alternative ingredients such as insect protein, algae, and agricultural by-products. This helps reduce dependence on imported materials, lower costs, and open long-term development opportunities for the sector. Insect protein, particularly from companies like Entobel (specializing in black soldier fly) and CricketOne (specializing in crickets), is gaining traction. Insect protein helps replace traditional sources like soy and fishmeal, offering high nutrition while reducing pollution. Additionally, crop by-products are also a rich source of fiber, and Vietnam is known for its diverse agricultural crops. Alternative ingredients not only ensure nutrition but also help reduce pollution by creating a sustainable protein source from recycled agricultural by-products.

Opportunities for investors

The increasing focus on the quality of animal feed presents a significant opportunity for Japanese technology companies. In Japan, livestock farming is closely linked with high-tech solutions and sustainable agriculture, which aligns with Vietnam’s current development trends. Japanese companies, with their expertise in advanced technologies such as automation, data management, and biotechnology, have the potential to collaborate with Vietnam’s livestock sector to improve feed quality, optimize production processes, and enhance sustainability in farming practices.

Conclusion

The future of Vietnam’s animal feed industry is marked by significant growth, driven by increasing domestic demand for livestock products. While the sector faces challenges such as heavy reliance on imported raw materials, innovations in biotechnology and the shift towards locally sourced, sustainable ingredients like insect protein and algae are shaping a more resilient and eco-friendly industry. Vietnam’s livestock sector is poised for long-term development, offering attractive opportunities for investors, to collaborate and introduce high-tech solutions. Ultimately, these trends reflect the industry’s commitment to sustainability, efficiency, and meeting global food safety standards.

[1] Mordor Intelligence, Vietnam compound feed market <Access>

[2] VnEconomy, The Livestock Feed Industry Faces a Trade Deficit of 2.65 Billion USD <Access>

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