August 19, 2011 (Vietnamica.net) — Vietnamica‘s previous articles, such as on Aug 18, 2011 – on animal feed are by no means complete. Critical industry data is missing in some places. This update brings some more information and data in hope for improving our understanding and gaining more insights.
Market players: A few names should be mentioned since we learn from the previous post that about 20 foreign makers already account for 70 percent of total supply and market share.
- CP Vietnam (Thai).
- Uni-President Vietnam (Taiwanese firm).
- Cargill (American).
- Green Feed (Vietnam).
- New Hope (Chinese).
- CJ Vina Agri (S. Korean).
- Anco (Malay-Vietnamese)
- Tomboy (French).
These firms altogether account for 50 percent of total animal feed supply in Vietnam.
Insights: CP Vietnam appears to have been a predominant player with total revenues from feed, breeds and agro-products reaching US$1.1 billion in 2010. CP Vietnam plans to add one or two animal feed manufacturing plants each year to its network in Vietnam. CP Vietnam has strong advantages in producing shrimp feed, and is going to move on to export shrimps as well.
Uni-President Vietnam currently operates 3 feed factories for raising shrimp and fish, with total capacity of 300,000 tons/year. It is now constructing a new $20 million factory in the central province of Quang Nam supplying 100,000 tons of shrimp feed per year upon completion. Uni-President VN will shortly boost its capacity of also supplying up to 3 billion baby shrimps each year to Vietnamese farmers.
Green Feed Vietnam also operates 4 factories producing animal feed (Long An, Hung Yen, Quy Nhon and KongpongCham Cambodia), of which 2 with total capacity of 2 million tons per year are dedicated to shrimps and fish. It started investing in Vietnam in 2006 with an initial capex of $25 million. But the figure was growing to $80 million at the end of 2010.
CJ Vina Agri has factories in Long An, Hanoi. Starting with Long Anh factory in 2001, CJ Vina supplied 120,000 tons mixed feed for animal production. In 2003, the firm produced feed for prawn and fish aquaculture too, with annual supply of 30,000 tons.
New Hope Vietnam operates 3 feed mills in HCMC, Hanoi and Dinh Vu IZ Hai Phong. In DHVP’s estimate, New Hope total annual output should reach 800,000-1,000,000 tons.
Anco Feed also saw its business miracle happening in Vietnam, with 1,000 workers and annual sales of VND 4,000 billion ($200 million) in 2010, compared to a mere VND 1 billion ($70,000) in 2001 when it started business in Vietnam.
In terms of day-old-chicks supply, CP Vietnam, Japfa (Indonesia) and Emivest hold almost 100 percent of market share, with 6.5 million DOC each month for the Southern provinces of Vietnam. They have a monopolistic power to fix the market prices of DOC.
Vietnam’s Veterinarian medicines industry has also been predominated by foreign manufacturers and suppliers, with their market share standing at around 90 percent.
* Update by DHVP Research Hanoi; firstname.lastname@example.org