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Cargill breaks ground for new feed mill

Published on 1 August, 2006, Last updated at 09:06 GMT

1st Aug, 2006: HCMC, VIETNAM - Cargill Vietnam Ltd., a leading manufacturer of swine and poultry feed in Vietnam, yesterday broke ground for an animal feed mill in Tuy Phuoc District in the south central province of Binh Dinh, bringing the total number of its plants nationwide to seventeen.

The 60,000 tons per year factory is located in the Long My Industrial Park, and covers 50,000 square meters, and requires a total capital investment of US$6 million during the initial stage. Full production is expected by the end of the year. When developed and fully operational, the company will commence construction on the second phase, scheduled for later next year.

The capacity will expand to meet market demands, but will gives Cargill Vietnam a potential maximum national production output of over 700,000 tons per year from mills in Dong Nai, Hung Yen, Long An, and two factories in Can Tho in pig, poultry, fresh water fish and shrimp feed.

“When completed, it will be the company’s fifth mill in Vietnam but the first foreign invested animal nutrition company in Binh Dinh province,” stated Scott Ainslie, general manager of Cargill Vietnam, in a news release. “This new investment further demonstrates Cargill’s on-going commitment to providing Vietnamese livestock growers with reliable animal food products”.

“This mill gives us the additional capacity required to enable us to grow faster,” he said. “It will allow Cargill to more effectively deliver the best and latest animal feed technologies and services to Vietnamese dealers and farmers in the central areas. We will continue to promote and invest in the Cargill brand, which will give us the flexibility to offer new products and expand production into other product lines.”

In the 1990s, foreign investors like Cargill, C.P and Proconco mostly chose the southern provinces of Dong Nai and Binh Duong to set up animal feed mills. However, since 2000 they have started to expand operations into the Mekong Delta and Central Highlands with networks of factories fighting over control of market sectors.

Chanh Truong, chairman of Cargill Vietnam, said that the factory would produce feed for pigs and poultry in the Central Areas, but would also distribute fish feed manufactured in the company’s other factories to the local markets.

The company is preparing to build another factory in Dong Thap Province in the Mekong Delta.


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