May 11, 2022

 

Tongwei experiences steady path of expansion and growth

 
An eFeedLink Hot Topic
 
 


   Tongwei's aquaculture solar farm project in Tangshan, Hebei, China.

 
Since 2001, Tongwei, one of the largest aquafeed producers in China, has started to expand from feed production and seedling cultivation to aquatic product breeding, processing and forming a vertically integrated agricultural industry chain.

 

Integrating photovoltaic power generation with modern fishery, the company intends to create a new 'aquaculture solar farm' model. It aims to establish this model to become the world's leading supplier of green agriculture and green energy.

 

Nevertheless, feed business (particularly, aqua feed) remains an important part of Tongwei's future strategic development, as it continues to utilise its cost advantage in the aquatic feed sector.

 

In July 2020, Tongwei acquired Tianbang's aquatic feed and pig feed businesses — the latter transferred all its assets and businesses of its aquatic feed segment to Tongwei (including a 100% equity of Ningbo Tianbang Feed, Qingdao Qihao Biological and Ningbo Tianbang Biological, and a 65% equity of Vietnam Tianbang Feed).

 

Tianbang also transferred all its pig feed assets and a 51% equity of its pig feed business to Tongwei (including Anhui Tianbang Feed Technology, which produces core ingredients, and a 49% equity of Anhui Tianbang Biotechnology, which produces fermentation ingredients). Additionally, Tongwei will supply Tianbang with cost-effective feed.

 

As Tongwei expands further by acquiring Tianbang's main feed assets and business, it has strengthened its foothold in the feed industry.

 

In 2020, Tongwei's feed sales were 5.25 million tonnes, up by 7.12% compared with 2019. Despite the pandemic, the company managed to maintain growth in the sales of aquatic feed — among which the sales of high value-added products continued to expand, with those of extruded feed increasing by 11.37% year-on-year and the sales of special feed up by 18.81% year-on-year.

 

By the end of 2020, Tongwei has more than 70 subsidiaries involved in the feed business, as it provides farmers with technical and support services. The company's production and sales network cover most parts of China, Southeast Asian countries and Bangladesh.

 

In the first half of 2021, Tongwei's feed and industrial chain business achieved an operating income of ¥9.895 billion (US$157.1 million), a year-on-year increase of 16.59%, and feed sales of 2.1656 million tonnes (albeit a year-on-year decrease of 7.17%).

 

- David Lin, eFeedLink

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