Vietnam's corn imports drop 49% on year in Feb: customs

New Delhi — Vietnam's corn imports in February plunged 49% year-on-year to 354,750 mt, according to data released Wednesday by the country's customs department.

For the first two months of this year imports dropped to 1.1 million mt from 1.6 million mt a year ago.

Argentina and Brazil accounted for most of the imports, the data showed.

Feed demand from the pork industry, which accounts for bulk of corn consumption, has taken a hit due to African swine fever.

According to Rabobank estimates, Vietnam lost nearly 7.5 million pigs, or 27% of the total herd, to African swine fever during February-November 2019, impacting corn demand -- a major feed ingredient.

Vietnam's corn demand is seen falling 13.2% year-on-year in 2020, while corn imports are seen dropping sharply by 17.9% from 2019, Rabobank said in a report.

Vietnam is one of the largest corn buyers in the world. The country imported 11.5 million mt of corn in 2019, up almost 14% year-on-year, according to the customs data.

"Despite the slower spread of ASF, we expect a further 12% year on year decline in 2020 total herd," Rabobank said in the report.

There is a reluctance among the growers to re-populate hogs due to fear of fresh contagion and working capital constraints, it said.