December 16, 2011


Sojitz enters feed business in Cambodia



Japan-based Sojitz Corporation has entered the feed business in Cambodia by acquiring a 10% interest in Sichuan New Hope Agribusiness (Cambodia).


New Hope Cambodia (NH Cambodia) is located in the Phnom Penh Special Economic Zone in Phnom Penh, and with a starting capital of US$6 million, invested in a production capacity of 200,000 tonnes of compound feed annually, and began production in May 2011.


By investing US$600,000, Sojitz is taking a 10% stake in NH Cambodia. It is the first time that a Japanese company has entered the livestock compound feed production and sales business in Cambodia.


Demand for feed in Cambodia is growing steadily in conjunction with higher demand for meat, and is expected to double from approximately 1.2 million tonnes in 2008 to 2.5 million tonnes in 2014.


NH Cambodia is considering an expansion of its plant to boost production capacity even further in the future and aims to become one of the Cambodia's top makers of compound feeds.


Sojitz earlier established a 51% interest in Vietnam-based Kyodo Sojitz Feed Co. jointly with Kyodo Shiryo Co., and a plant is currently under construction with production scheduled to begin in 2013.


Sojitz is supplying cost-competitive feed in the Mekong district with a focus on Cambodia and Vietnam through these feed companies and by making use of the Cai Mep Agriculture Port.


This is Asean's largest special-purpose grain port, which is owned by Interflour Vietnam Limited and in which Sojitz holds a 20% interest.


Panamax-class vessels (approximately 70,000 tonnes) can dock in the port, making it possible to supply cost-competitive grains through large-scale transport.


Through Sojitz Logistics Corporation, the company is able to provide reliable and efficient international integrated transport in Thailand, Vietnam and Cambodia and establish a grain value chain based at the Cai Mep Agriculture Port.

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