Vietnam

Vietnam is heading for large-scale poultry enterprises

Poultry

The SE Asian country is saying goodbye to small-scale domestic husbandry and the wet market in favor of professional farming and industrial processing.

Posted on Apr 09 ,09:42

Vietnam is heading for large-scale poultry enterprises

The Vietnamese poultry sector is rapidly reshaping its image and heads from small&medium enterprises to large-scale companies with the help of foreign investors included in joint ventures with local firms.
"There’s a clear trend for companies to enter into joint ventures to establish a vertically integrated production chain. Investors who have recently entered the market are developing large-scale projects using modern professional technology. Some Vietnamese projects are joint ventures with foreign companies such as De Heus. Other mostly large companies such as CP Vietnam already have poultry integrations in Vietnam but don’t yet have a processing plant," mentions Marel Poultry in a radiography of the Vietnamese poultry market.
De Heus Vietnam is one of the pioneering companies developing safe food value chains in Vietnam. De Heus and Vinh Anh have joined up to form the Green Chicken LLC company and are building a completely new broiler and duck processing plant. This facility is located in Ha Binh Phuong Industrial Park, Hanoi, and will employ more than 500 workers.
CP Vietnam is to establish a green-field poultry processing plant in the Binh Phuoc Province. It will feature two identical parallel processing lines with a capacity of 2x 6.000 bph [2x 100 bpm], which can be increased to 2 x 9.000 bph [2x 150 bpm].
For decades the domestic husbandry industry has produced poultry products mainly for the local market. Both units will be equipped with Marel technology

The market is, however, changing, as consumers now want better food safety. The Ministry of Agriculture and Rural Development (MARD) has released a national plan for monitoring food safety for processed chicken. Minister of Agriculture Nguyen Xuan Cuong will help enterprises build processing facilities, which ensure veterinary hygiene and food safety. Target markets for Vietnamese firms exporting chicken meat include Japan, China, and the Philippines. Potential markets include Saudi Arabia, South Africa, and UAE. Poultry export figures reached more than $18 million in 2018. Today, both productivity and profits are increasing, turning poultry farming from a secondary occupation into the main job in agricultural production. Poultry numbers have increased by an average of more than 6% annually. In 2018, output exceeded 1.1 million tons of poultry meat.

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