December 01, 2003

Feed Milling & Pig Farming Markets in Vietnam Offer Attractive Investment Opportunities
 

According to figures from the Vietnam Ministry of Planning and Investment (MPI), local poultry and cattle farmers need more than 10 million tons of feed per year, but only one-third of the demand is satisfied, leaving much room for local and foreign businesses.

Statistics from the Vietnam Animal Feed Production Association reveal that there are 130 animal feed mills with an annual output of three million tons in Vietnam. More than half of the mills are located in the southeastern region, especially Dong Nai Province.

There are 15 foreign-invested companies and joint ventures with foreign involvement in animal feed production, holding a 50% share of the local market. Key players are Cargill (U.S.), CP (Thailand), Proconco and Guyomarch (France), TTC (Taiwan), New Hope (China) and Cheil Jedang (South Korea).

Investors are also keen on the pig farming and meat market. More than 1,000 private businesses and four foreign investors, including CP, Dai Viet, TTCV Investment and Hybrides, are also involved in the sector. San Miguel recently spent US$35.5 million to acquire TTCV.