ADM acquires Vietnamese premix player, strengthens its industrial and commercial coverage in a key feed market
In terms of the Vietnamese firm’s portfolio, a spokesperson told us: "Golden Farm produces a complete range of vitamins and minerals premixes for swine, poultry, ruminants, fish, shrimp, frog and pets. Formulations are standard or customized. There also is a comprehensive range of natural, nutritional solutions to improve animal performance. Combined with the offerings of ADM’s Wisium brand in Vietnam, producers will gain a complete offering of macro and micro premix, nutritional specialties, WEAN UP piglet feed, and science-backed services such as laboratory analysis.”
Through this deal, Wisium also obtains a facility in Long Khanh – Dong Nai; ADM said that the manufacturing plant, which opened in 2019, is quality controlled, the factory meets international standards. It gives the premix provider additional capabilities to improve its coverage in Vietnam.
“Following launch of Wisium’s line of products and services in Vietnam two years ago, this strategic step widens our range of value-added premix products and services across the country,” said François Fernandez, vice president, Wisium Premix and Services. “We’ve been expanding Wisium’s capabilities around the globe, and we’re excited to continue to invest across Southeast Asia.”
Vietnam has the fifth largest feed market in the region. It is also one of the world’s top pork consuming countries.
It was through the Neovia acquisition that ADM expanded its animal nutrition business in Vietnam. Looking at ADM’s manufacturing base in that country now, it counts five production sites: two in Binh Duong Province, one in Ha Nam Province, one in Dong Thap Province, and now one in Dong Nai among those assets. These factories are producing feed for livestock, poultry, pet and aqua. "We also have research and development centers for innovation in aqua and livestock feed, as well as a few warehouses throughout the country."
Typically, which end users are the principal targets for feed premixes when it comes to this particular market?
“Vietnam is one of the biggest markets for the animal industry in South East Asia, open to all variety of species. It has experienced a tremendous volume growth over the last 20 years and will continue to grow while becoming a more integrated market, more mature and competitive. Now is the right time for ADM to expand in the market through our Wisium premix brand with strong technical know-how and services to support our customers: feed producers, including feed millers, integrators and home mixers.”
Impact of ASF
How robust is the Vietnamese market considering the challenges that have arisen from African swine fever (ASF)?
“Vietnam’s economy has performed consistently for the last 20 years as its people are seeing improved purchasing power year after year and, subsequently, increasing consumption of meat and seafood.
“ASF has been a serious challenge for more than two years, and is reshaping the whole sector, which is transitioning more and more to large scale farming, with those bigger operations better able to apply biosecurity measures. Smaller farms are having a very difficult time, as many of them have suspended or stopped their activity.
“The Vietnam market is very resilient though. We strongly believe in the capacity of farmers and feed producers there to react quickly and positively to the challenges they regularly face. Professionalism and performance are the key to their success, and this is where Wisium can bring all its technical added value by supporting them to produce quality feed at the best possible cost.”
Wisium also has a strong presence in China where it runs six premix plants along with providing consulting services to the Chinese compound feed industry.
