The subject is a member of the Cargill Group, which is a large private corporation in the United States. The Group's brands include Cargill, Diamond V, Ewos, Nutrena, Purina, Provimi, other feed ingredients, etc. The Cargill group's global operations are food ingredients, animal nutrition & health, protein & salt, agricultural supply chain and financial services & metals. In Vietnam, the subject engages in producing feed for cattle, poultry and aquaculture. Now, it currently has 11 feed processing plants in Hung Yen, Ha Nam, Nghe An, Binh Dinh, Dong Nai, Binh Duong, Long An, Tien Giang, Dong Thap and Can Tho. In 2018, the Cargill group planned to build a new factory in Que Vo IP, Bac Ninh Province. This factory was expected to have a total investment of USD 60 million with a capacity of 70,000 tons per month. However, this one closed in 2021 because of facing obstacles from the possibility of oversupply. The strategic factory system located in most of the provinces with strengths in agriculture and animal husbandry helps Cargill bring to its customers two great competitive advantages in business, namely speed in delivery and cutting shipping costs. Its major competitors in Vietnam consist of C.P Corporation (Thailand), CJ (South Korea), De Heus (Netherlands), Haid (Singapore), Emivest (Malaysia), etc. Vietnam is considered to have great potential for developing the animal feed market. However, due to limited domestic supply and large import of raw materials, businesses are highly dependent on price fluctuations and the supply of the world market. In addition, enterprises in this industry are also affected by fluctuations in energy prices, risk factors from supply chains and pressures from exchange rate, inflation increases and political instability in the world. However, for the domestic market, experts say that the prospect of the animal feed industry in 2023 is positive, slightly better and has a high growth rate in the next 5 years. In the first 11 months of 2023, the total import turnover of animal feed ingredients (wheat, corn, soybeans, animal feed) was about USD 9.5 billion, down by 9.5% over the same period in 2022. According to data from the Vietnam Commodity Exchange (MXV), after peaking last year, prices of animal feed ingredients are now falling sharply. In particular, the prices of corn, soybeans and wheat have decreased by about 15 - 30% compared to the beginning of the year. World raw material prices tend to cool down, besides transportation costs also recorded a decrease, which help reduce the burden of production costs for businesses in the animal feed industry. This affects the output prices of companies in the industry. Until now, big players in this industry have adjusted decrease prices 5 times. Forecasting animal feed prices in the last months of 2023, many businesses said the unexpected increase in supply in the USA and improved output in Ukraine and South Africa are important information. Over the next few months, the market will shift its focus to production in South America. The fact that the US Department of Agriculture - USDA maintains the view of bumper harvests in Brazil and Argentina will likely keep the decrease price of raw materials for animal feed production at least until the end of this year.
Headquarters
Lot 29, Bien Hoa 2 Industrial Park, Long Binh Ward
Bien Hoa; South Eastern Vietnam;
Postal Code: 76000
Contact Details: Purchase the Cargill Vietnam Company Limited report to view the information.
Website: https://cargillfeed.com.vn/
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