Potential of the animal feed market
According to data from the General Department of Vietnam Customs, in the first 10 months of 2022, Vietnam spent nearly $8.1 billion importing animal feed and raw materials for animal feed production. The reason is that the domestic supply is insufficient to meet the market's demand. Accordingly, the total demand for refined feed for livestock is about 33 million tons/year, the domestic supply is about 13 million tons/year. Therefore, the animal feed market still has a lot of room for domestic and foreign businesses.
In addition, the increasing proportion of livestock households converting from small-scale livestock production to organized farming according to farm size is expected to continue to drive growth opportunities in the animal feed market in the coming years.
Foreign enterprises lead the race
C.P Vietnam is one of the major FDI companies with billions of dollars in revenue today and one of the first foreign "giants" to attack the Vietnamese animal feed market. In 1993, this company built the first animal feed factory in Vietnam. Up to now, C.P has become the enterprise with the largest market share, leading the animal feed market in Vietnam with 9 factories nationwide.
C.P. Vietnam entered a period of remarkable growth, by the end of 2021, this company's revenue increased by 1.8 times compared to 2017. 2020 is a particularly successful year for C.P. Vietnam with revenue of nearly 81 trillion Dongs and profit after tax of more than 18.5 trillion Dongs.
By 2021, the revenue of this foreign enterprise will slow down and profit after tax will also decrease, but still at a higher level than in the previous period. C.P Vietnam is one of the best profitable businesses in Vietnam.
Cargill is a leading American corporation in the fields of agriculture, food, industrial products, and financial services. Entering the Vietnamese market in 1995, up to now, Cargill has 11 feed processing factories. Cargill Vietnam has grown strongly and continuously, rapidly, and sustainably to become a leading company in the field of animal feed and aquaculture with high-quality product lines, produced by advanced technology, and modern techniques to meet the needs of the market.
Cargill's business results recovered in 2020, after 3 consecutive years of decline thanks to improved sales, Cargill's revenue in 2021 reached more than VND 26 trillion, an increase of more than 55% compared to 2020. Profit after tax also increased by 15% compared to 2020.
CJ Vina Agri
CJ Vina Agri Co., Ltd. belongs to CJ Group of Korea, operating under a closed 3F (Feed-Farm-Food) model. In 2001, CJ Vina Agri established its first factory in Long An. Up to now, CJ Vina Agri has completed the closed breeding process and expanded its scale to 7 feed mills spread across Vietnam with a capacity of more than 1 million tons/year.
According to data from the report, CJ Vina Agri's revenue also increased continuously over the years and reached VND 17.5 trillion in 2021, up 10% over the same period in 2020.
In the past 2 years, the outbreak of the Covid-19 epidemic has severely affected all aspects of socio-economic life, causing many businesses to lose money and face many difficulties. CJ Vina Agri Company is also not outside of the fierce devastation of the epidemic when the profit after tax in 2021 will decrease by nearly 40% compared to 2020.
Japfa Comfeed Vietnam
Japfa Comfeed Vietnam Limited Company is a 100% Indonesian-owned company licensed in 1999 with an investment capital of more than 20 million USD specializing in the production of animal feed, organizing a poultry processing network, livestock, and processing livestock products for export.
Japfa Vietnam is constantly expanding its network of operations and currently, the company has 4 central hatcheries, 7 feed mills, 40 Japfa Best food stores, and 1,500 farms nationwide.
Japfa Vietnam's business situation is quite positive, as revenue increases continuously in the period of 2017 - 2021 and reaches VND 16 trillion in 2021.
2020 is also a quite successful year for this foreign enterprise when revenue increased by 33% compared to 2019, and profit after tax also increased sharply, 3.4 times higher than in 2019.
De Heus Vietnam
De Heus Vietnam was established in 2008, under the Royal De Heus Group (Netherlands) operating in the field of agriculture on a global scale. At the end of 2021, De Heus acquired the entire MNS Feed production segment of Masan Group, bringing the total number of animal feed factories across Vietnam to 23.
De Heus Vietnam is currently the largest enterprise in Vietnam in the independent market feed business in terms of scale, output, and revenue. When the Covid-19 epidemic still had complicated outbreaks, many productions, and business activities were limited and stalled, De Heus Vietnam was still busy with receiving 14 purchased feed factories from Masan. It is known that the total capacity of these feed mills is up to nearly 4 million tons per year.
According to reported data, in 2021 De Heus Vietnam's revenue reached nearly VND 18.5 trillion, up 44% over the same period in 2020. After a decline in 2018, his profit after tax in this foreign country has also increased again in recent years. Specifically, in 2021, De Heus Vietnam brings to the parent company nearly VND 970 billion in profit after tax.
Domestic enterprises are overwhelmed
GreenFeed Vietnam Joint Stock Company, formerly known as GreenFeed Vietnam Co., Ltd., is one of the leading companies in the field of animal feed and breeding stock. GreenFeed is gradually closing the clean food value chain through the Feed - Farm - Food model.
Owning a system of 10 modern feed mills in Vietnam, Laos, Cambodia, and Myanmar, GreenFeed is capable of supplying millions of tons of animal feed to the market every year.
Revenue growth has been positive in recent years, especially in 2021, the company's net revenue will increase by 36% compared to 2020. This business has a profit after tax of more than VND 635 billion in 2021, an increase of over 10% compared to 2020. with the previous year.
Dabaco is a multi-industry group, in which the main fields are the production of animal feed, livestock and poultry breeds, and food processing. Dabaco is one of the 10 largest animal feed manufacturers in the country with 7 feed mills spread over many provinces.
Currently, the Group has 6 animal feed brands including Dabaco, Topfeeds, Kinh Bac, Khangti Vina, Nasaco, and Growfeeds.
In the midst of the epidemic of both human and livestock diseases (African swine fever), Dabaco Group rose as a bright spot, marking a new milestone in 25 years of adulthood with the most impressive numbers ever. By the end of 2021, total assets reached over VND 10,862 billion, the charter capital of VND 1,152 billion, equity of VND 4,685 billion, net revenue of over VND 10.8 trillion, and profit after tax of VND 829 billion.
Vietnamese - France Cattle Feed Joint Stock Company (PROCONCO) was established in 1991, formerly the first joint venture company producing animal feed between France and Vietnam. Proconco owns the brand "Con Co" which is the oldest and most premium animal feed brand in Vietnam with 7 modern factories and closed production processes.
Proconco's revenue has decreased gradually since 2017, revenue in 2020 reached about 2.8 trillion Dongs, down nearly 5%, and profit after tax decreased by nearly 28% compared to the previous year. But by 2021, Proconco's business situation seems to be better when revenue increased by 32%, and profit after tax increased by 96% compared to 2020.
Mavin Group Joint Stock Company was established in 2004, is a joint venture project between Vietnam and Australia, starting from an animal feed factory located in Hung Yen province.
From a foreign-invested joint venture project, producing animal feed products, until now, Mavin owns 5 modern animal feed processing factories with a designed capacity of 1.2 million USD. tons per year.
In 2021, Mavin's revenue reached the lowest level in the last 5 years, VND 1,680 billion, down 32.7%, and profit after tax reached VND 119 billion, down 29.2% compared to the previous year.
According to estimates from Mavin group companies in Vietnam (except for joint venture companies), Mavin's total revenue in 2021 is about VND 5.8 trillion, up 20% over the same period in 2020. However, the profit after tax of this enterprise slowed down compared to the same period in 2020.
Hong Ha Nutrition Joint Stock Company
Hong Ha Nutrition Joint Stock Company is a company specializing in the production of high-quality animal feed products for cattle, poultry, and aquatic products. Hong Ha has two factories in Ha Nam and Binh Dinh, and a system of transshipment warehouses that distribute products across the country.
Despite its smaller scale compared to other competitors, Hong Ha's business situation is quite positive as revenue has increased continuously over the years, and profit after tax has also improved. Specifically, in 2021, this business recorded revenue of nearly 2.9 trillion VND, a slight increase of 5% compared to 2020.
Although domestic enterprises own a larger number of production plants than foreign ones, the animal feed market is still the main playground of foreign giants such as C.P., Cargill, De Heus, CJ., Japfa Comfeed…. Vietnamese businesses currently only having Dabaco, Greenfeed has enough financial potential to break into this billion-dollar market.
Source: Vietdata's 2022 Animal Feed Industry Report