July 22, 2009

Singapore-based biotech firm Vantarion is preparing to export Primos 25, its swine feed supplement, to Malaysia and China where regulatory approval is imminent.

Vantarion is especially keen on China, which is one of the largest swine feed market in the world. Primos 25 is already being sold in the Philippines, Taiwan and Thailand, and sales in Vietnam are expected to start in the fourth quarter.

China is also the fastest-growing market, given the low base of meat consumption and rising income, said Vantarion founder and CEO Alfred Chua, adding that per capita animal protein consumption in China is much lower than that of the industralised world.

If the company managed to penetrate the Chinese market, Primos 25's market potential there is likely to reach US$400 million, Chua said.

Vantarion is looking to increase production capacity for the Chinese market, and is looking for business partners that have the capital and ambition for entry into China.

Chua said Asia has huge potential for the company, with East Asia alone housing 80 percent of world pork production, 50 percent of poultry products and 90 percent of duck production. The market size of the animal feed business in East Asia alone is estimated at US$30 billion or 100 million tonnes per year, Chua added.

Primos 25, derived from microbial sources, is 100 percent natural, and could significantly cut swine feed costs and improve the average daily weight gain of swine by up to 20 percent.

Chua said Vantarion currently has several products in its R&D pipeline, including a supplement for poultry feed.

With the outlook of expanding sales, the company will have to relook its manufacturing strategy and eventually build its own plants, Chua added.