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Competition between Vietnam livestock industry with imported meat

Currently, the total of cattle in Vietnam was 5.1 billion cows and 200,000 hectares land for beef cattle farming. The beef production does not meet the demand of domestic consumption. Each year, Vietnam import about 180,000 cows and 600,000 tonnes of meat, a value at USD 120 million from Thailand, Laos and Australia.
Although the meat products imported taxable quite high, but the price of import meat was still lower than the same products in domestic, such as the price of import chicken was VND 22,000-25,000 per kg while the cost of production in Vietnam was VND 28,000-30,000 per kilogram.
According to the president of Vietnam Livestock Husbandry, Mr. Nguyen Dang Vang said, Vietnam will participated Agreement Trans-Pacific Partnership in 2015, theretofore, the import duties will be 0%, Vietnam livestock industry will be faced with many challenges in competition with imported products.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China livestock industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.
 http://thitruongtaichinh.vn/index.php?r=public/index&news_id=51455


China MOA revised Feed Materials Catalog

On Dec. 19th, MOA revised Feed Materials Catalog.

For details:

1.       Adding "soy lecithin oil powder", "palm fat powder", "guar soybean", "chili oil", "humic acid sodium,""beet molasses yeast concentrate", "food yeast powder," and "yeast hydrolyate " to the catalog.

2.       Revising names of “bean cake”, “bean meal” and “bean dreg” and adding “soybean cake”, “soybean meal” and “soybean dreg” . Revising character description of “puffed soybean meal” and “cotton seed protein”,; revising names, character description and mandatory labeling requirements of "acidification bone meal [bone calcium hydrogen phosphate]";

3.       revising definition of “other natural plant for feed” and revising names and mandatory labeling requirements of "glucose amine (glucosamine) " ;

4.       Moving saccharomyces cerevisiae culture, saccharomyces cerevisiae extract and saccharomyces cerevisiae cell wall from Feed Additive Catalog to Feed Materials Catalog.

5.       Adding humic acid sodium, beet molasses yeast concentrate, yeast powder for food, yeast hydrolyate, saccharomyces cerevisiae culture, saccharomyces cerevisiae extract and saccharomyces cerevisiae cell wall and glucose amine hydrochloride to Part 4 of the catalog.

Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.

 http://www.zhuwang.cc/xinwen/201401/142818.html


China Bright Food plans to acquire its 2nd Australian firm:

Bright Food Group plans to list its newly acquired assets in foreign countries, including Manassen Foods in Australia and cereal maker Weetabix in Britain.  

Bright Food Group Co Ltd, China's second-largest food producer, acquired a midsized Australian dairy company following the purchase of Manassen Foods in the same country. Manassen, in which Bright Food has a 75 percent stake, has signed a deal to buy Mundella Foods, a four-decade-old company in Western Australia, according to Bright Food spokesman Pan Jianjun. The deal will make Mundella a wholly owned subsidiary of Manassen, a supplier and distributor of local and international foods, Pan told China Daily on Monday. Financial details were not disclosed. Records filed with the Australian Securities and Investments Commission showed that significant management changes occurred at Mundella last month, including the appointment of directors from Manassen to the smaller dairy company. Pan confirmed that Manassen's senior employees will take managerial roles in Mundella and oversee its operations.

Bright Food paid $516 million in 2011 for its majority stake in Manassen, which has a strong presence in West Australia through its ownership of Margaret River Dairy Co and gourmet olive group Don Vica. Mundella, which is also based in West Australia, was founded in 1972, when the Hector family usedsurplus milk to make dairy products and supply local shops. The company does not publish financial reports. The recently acquired company owns one of West Australia's best-known dairy brands and has secured broad distribution of its products, such as yogurts and cheeses, through local supermarkets and specialty food stores, Pan added. The move will help enrich Manassen's product line.

The State-backed Bright Food plans to expand its major business areas - dairy products, wines, sugar and branded food products - overseas. Prioritizing targets in Australia, New Zealand and Europe, Bright Food has taken bites of foreign assets to boost overseas sales.

Apart from Manassen, it bought French wine merchant Diva Bordeaux and British cereal maker Weetabix, and it's also in talks with Tnuva Food Industries Ltd, Israel's biggest food manufacturer and distributor. The Shanghai-based firm is contemplating listing some of its foreign assets. Bright Food said it's also mapping out an aggressive plan to place its products in new channels. "We're creating a genuine global network by allowing, for instance, British customers to access Mundella's cheese, or Australian consumers to have a taste of French wine," Pan said. Bright Food holds a 5.7 percent share of China's CNY 174 billion ($28.54 billion) dairy market, ranking fourth in the domestic market, according to Euromonitor International. It has a market share of 1.4 percent in terms of packaged foods and 1.6 percent in the ice cream market, said the London-based firm. In 2013, Chinese companies launched overseas M&A deals worth about $56.2 billion, and overall M&A activity will likely stay buoyant in 2014, said a Deloitte Touche Tohmatsu report.

 http://cn.reuters.com/article/chinaNews/idCNCNE84208Q20120503

 http://cn.reuters.com/article/mergersNews/idCNnCN190776120110818

 http://www.ce.cn/cysc/sp/info/201401/13/t20140113_2107330.shtml


Muyang Group sales increased by 20-30% attributing to its new plant latter of 2013

On 1st, May of 2013 Muyang Group opened its new factory which is stated to be the world's largest feed machinery production and research base spending CNY 1.3 billion , located close to its current headquarters and production plant in Jiangsu, China. Muyang Group Senior Engineer, Group Vice President Wang, said that construction of the new factory was in strict accordance with world-class standards. And state of the art processing machinery was importing from countries such as Germany and Japan. Reporter said that latter half 2013, sales of feed machines increased by 20-30% attributing to the new plant and the group’s sales are expected to reach more than CNY 7 billion. The company estimates that production capacity will reach CNY 8-10 billion.

At present, China has 10,000 feed mills with the number increasing quickly. With the new research and production facilities Muyang Group hope to be better positioning to meet the needs of the feed industry with advanced production equipment, and enhance the overall level of equipment in the feed industry. Muyang hopes that the construction of the new plant is a major step in the globalization of the Muyang Group, and are a solid foundation in the company reaching its target of CNY 20 billion by 2015.

Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.

 http://spzx.foods1.com/show_2459653.htm


CPF to expand Five Star brand in Vietnam, India

Thailand’s Charoen Pokphand Foods (CPF) plans to expand its Five Star brand of chicken products in Vietnam and India, with a view to raise the number of outlets to 1000 branches in each market in five years. The company is estimating an annual growth target of 25-30%, according to Senior Vice President of branded food business Sanjeev Pant. In 2014, CPF hopes to raise the number of Five Star outlets in India to 250 from 75 at present while in Vietnam outlets are expected to total 350 from 200 currently. CPF’s Five Star brand maintains a Quick Service restaurant model. Around 75% of the branches are franchises while the rest are operated directly by CPF.

 http://www.asian-agribiz.com/display.aspx?PageID=0&MemberID=0&screenheight=900&screenwidth=1600#


Yearly summary of Viet France Join Stock Company Production Animal Feed Proconco

Viet France Join Stock Company Production Animal Feed Proconco had reached 1,250 million tonnes in volume in 2013.

In 2013, Proconco was polled in the rank 68 in the largest animal feed company in the world by Feed International Journal, was ranked 63 of top 500 largest Vietnam businesses and was voted as Vietnamese high-quality goods by consumer.

Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China livestock industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.

 http://nongnghiep.vn/nongnghiepvn/72/1/15/119925/Proconco-dat-san-luong-1250-trieu-tan.aspx


Developing of Vietnam Milk industry by 2020

In 2013, the liquid milk production reached 670,000 tonnes and it estimate to reach over 1,000,000 tonnes, equivalent VND 34,000 billion by 2017. The milk powder production reached 70,000 tonnes in 2013, it will gain 90,000 tonnes, equivalent VND 48,000 billion by 2017.

In 2014, TH True Milk will operated whole of Mega Plant, with a total capacity of 1,700 tons/day (equivalent to 500 million liters/year) to achieve the target of reaching VND 15,000 billion in 2015, and VND23,000 billion in 2017.

In 2014, Vinamilk will open new milk processing factory in Phnom Penh capital (Cambodia), they expected to hit USD 3 billion of revenue.

In the near future, Vinamilk will invest 4 new dairy farms with VND 3,000 billion and 3,000 cows. TH True Milk will boost the total of cows to 147,000 cows in 2017.

According to the president of Vietnam livestock association, Mr. Nguyen Dang Vang said, the total of cow in Vietnam will reach 400,000 cows, the milk production will reach 1 billion tonnes in 2020, but that just meet 35% of demand in domestic.

Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.

 http://www.thanhnien.com.vn/pages/20140112/nganh-sua-canh-tranh-khoc-liet.aspx


China Dairy import to grow strongly in 2014

China's whole milk powder imports, whose soaring growth this year has been key to supporting dairy prices near record levels, are to grow nearly as fast in 2014, with purchases of skim milk powder and whey to prove strong too. China's whole milk powder buy-ins, which jumped 28% to a record 520,000 tons this year, will surge 25% in 2014 too, driven by demand from manufacturers of the likes of infant formula and yoghurt, the US Department of Agriculture's Beijing bureau said.

Underlying market trends of "strong population growth, continued urbanization, higher incomes and nutritional concerns" are driving the popularity of whole milk powder, the bureau said. However, China's own production is being squeezed by a dearth of capacity, besides domestic milk output growth which is struggling to keep up with consumption expected to rise 6.8% to 38.6m tons next year. "With a growing population and changing dietary demands from increasingly urban dwellers, China's milk demand will likely continue to outpace its local milk production, resulting in additional dairy imports in 2013 and 2014," the bureau said.

Indeed, Chinese imports of skim milk powder will rise by 15.0% to 230,000 tons in 2014, accelerating a little from the 14% rise this year. "Non-fat dairy milk is normally substituted for whole milk powder when prices are too high," the bureau said, noting that in 2013, "the non-fat dairy milk import price increased by 14% to an average of $3,834 per tons, making it higher than the whole milk powder price for the first time since 2008". Whole milk powder, containing extra fat, should in theory be more expensive that skim milk powder.
Furthermore, cheese imports will rise by 18% to nearly 45,000 tons, and why purchases by 20% to 442,000 tons.

Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.

 http://www.chinastock.com.cn/yhwz_about.do?methodCall=getDetailInfo&docId=3888828


Tientsin Baoti Group Plans to establish a 400,000 pig breeding project in Qichun Town Wuhan

Tientsin Baoti Group held the opening ceremony on 26th, Dec, 2013 in Qichuan Modern Agricultural Demonstration Garden. This project will be invested CNY 0.88 billion and covering about 4 thousand acres of land, plans took 3 years to accomplish.

After establishment will include one 100 thousands swine breeding base, 300 thousands commercial pig breeding base, one feed mill with 150 thousand tons capacity, etc.

Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.

 http://www.sdpig.gov.cn/art/2014/1/9/art_1065_68737.html


Investment building pig farm herd size 10,000 pigs at Ba Ria Vung Tau province in the South of Vietnam

Bao Huy Swine Husbandry Company Limited was accepted investment building pig farm herd size 10,000 pigs in the area 92,000 meter square by People’s committee of Ba Ria Vung Tau province at Rung Bieng commune, Xuyen Moc district, Ba Ria Vung Tau province.

Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China livestock industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.

 http://vietlinh.vn/library/news/2014/agriculture_livestock_news_show_2014.asp?ID=40


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At Asian Agribusiness Consulting our mission is the promotion and development of agribusiness across Asia. We provide specialist research and consulting services for our clients who have intentions of ratcheting up their presence in Asia be they start-ups companies to blue-chip companies.

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