September 6, 2011

Two Japanese companies are set to jointly launch a livestock feed business in Vietnam.

Sojitz Corp and feed producer Kyodo Shiryo Co aim to aim to meet growing demand for feed in the Southeast Asian country at a time when pork consumption is expanding there.

The new company, Kyodo Sojitz Feed Co. plans to start production of mixed feed based on corn, soy and wheat in April 2013.

The new company will be owned 51% by Sojitz and 49% by Kyodo Shiryo. Sojitz will expand its sales network, while Kyodo Shiryo will provide its know-how in stock feed production to the new company.

Initially, Kyodo Sojitz Feed will produce 200,000 tonnes a year, for sale mainly in Southern Vietnam, where many hog farmers are based. By 2020, it plans to make and sell 2 million tonnes annually, aiming to win a 10% market share.