June 29, 2012

Vietnam's Binh Dinh province authorises three animal feed plants

Three companies in Vietnam's central province of Binh Dinh have been licensed by the authorities to build three animal feed plants with a combined annual capacity of 381,000 tonnes, state media reported Thursday (June 28).

The Binh Dinh province-based Long Hai Joint Stock Co. has been approved to build an animal feed plant and warehouse for fertilisers and farm produce with an investment of VND530 billion (US$25.24 million) on a 30.8 hectares in Nhon Hoa commune.

The plant, with an annual capacity of 65,000 tonnes, is slated for completion in the first quarter next year, the Viet Nam newspaper reported.

The second plant belongs to CP Vietnam, with an investment of VND416 billion (US$20 million). The plant, built on a 14.6-hectare area in the Nhon Hoa Industrial Zone, will have a capacity of 216,000 tonnes and will go operational in the third quarter in 2013.

Meanwhile, New Hope Co. Ltd was licensed to build a plant with a capacity of 100,000 tonnes yearly. The VND84 billion (US$4 million) plant will be built on an area of 4.3 hectares on the same IZ and will be completed in the second half of 2013.

Vietnam needs about 24 million tonnes of animal feed every year, however, the local output does not meet the demand. The local animal feed producers heavily depend on the imported materials, which makes prices of animal feed products are around 20% higher than those in the regional countries.

The country currently has a total of 233 animal feed processing plants and only 56 of which are foreign-invested ones which control a combined share of up to 60% of local market and 60% of the country's total animal feed output.

Foreign-invested animal feed producers such as Cargill, CP, Proconco, and New Hope are dominating local market thanks to its profuse capital and effective investment strategies.