The $8.5m facility is based in the Dogn Nam Economic Zone in the Nghi Loc District of the Nghe An province.
Jorge Becerra, managing direction of Cargill’s feed and nutrition business, in Vietnam told us: “This is our first animal feed mill in the Nghe An province. It will give us the opportunity to work with the farming community in the region and further establish ourselves as an industry leader in the country. [Overall] it increases our production capacity for livestock feed for pork and poultry in Vietnam."
The new feed mill has a total capacity of 66,000 metric tons (MT) a year. An additional focus for the plant will be on maintaining high feed safety and product quality levels as a way of improving food safety in the country, said the Minnesota-based group.
Cargill will source some of the raw materials for that facility locally, said Becerra. However, other components may need to be imported.
Aqua feed capacity
The first quarter of 2016 also saw the completion of a new production line at a Cargill facility in Dong Thap. That US$8m expansion will allow increased production of specialty aqua feed, said the agri-giant.
An additional feed mill, located in Binh Duong, is already planned, said the US company. It is set to be completed in mid-to-late 2017 and the site will have a capacity of 260,000 (MT) a year.
“The new US$30m feed facility in Binh Duong will be our most technology advanced and will bring up our total feed production capacity in Vietnam to more than 1.7 million MT per year,” said Becerra.
In terms of compound animal feed, Vietnam has an estimated yearly production output of 11 million MT.
Like in China and other South East Asian markets, population growth, changing dietary habits and rising income have resulted in a dramatic increase for meat consumption in Vietnam.
According to official Vietnamese data, meat consumption should grow by 2.9% annually until 2022.
It is a livestock market that Cargill has long focused on. “We are constantly looking for opportunities to grow our animal nutrition business in Vietnam,” he added.
The country is in good financial health and Cargill said it aims to capitalize on future growth in the Vietnamese agricultural sector.
“Along with Vietnam’s booming economy comes a growing middle class and their disposable incomes,” said Becerra. “That is bringing about an increase in demand for animal proteins which is fueling the demand for animal feed.”