Cargill continues to grow its business in Vietnam and reveals plans for a new US$30 million animal feed mill in Binh Duong province and a US$10 million agreement with Saigon International Terminals Vietnam (SITV) for dedicated grain and oilseeds warehousing facilities in Phu My.
The company is also committing to building 25 more schools across rural Vietnam by 2020 after having fulfilled its initial goal of building 75 schools by 2015. The latest school located in Phu Xuyen district – the 75th school opened by Cargill in its 20 years in Vietnam – was inaugurated by Cargill Chairman and CEO David MacLennan yesterday.
MacLennan said: “Vietnam represents a very important market for us globally and presents clear growth opportunities. This year, we celebrate 20 years in the country during which we have leveraged our access to global markets and 150-year industry expertise to help contribute to the development of the agriculture sector here. These new investments and the extension of our school building program only reinforce our commitment to the Vietnamese market and its people.”
Growth of animal nutrition business
The US$30 million new animal feed mill in Binh Duong will have a total capacity of 260,000 metric tons per year and will become operational in the first half of 2017. It will incorporate the latest technologies currently available in the industry. The feed mill will bring Cargill’s total number of animal nutrition production facilities in Vietnam to 12.
This investment comes at the back of an announcement made by Cargill in October 2015 of the construction of an animal feed mill in Nghe An which begins operations in the first half of 2016 and a US$7 million expansion of its existing animal feed mill in Dong Thap.
In Vietnam, Cargill currently has 10 animal feed mills that produce compound feed for both livestock and aquatic species, and one facility in Dong Nai which provides premix animal nutrition ingredients to feed manufacturers and vertically integrated producers. The company has made strong headway in the animal nutrition business in Vietnam over the past 20 years and now stands as one of the most trusted leaders in that industry.
An integrated supply chain for grains and oilseeds
As one of the leading suppliers of grain and oil seeds in Vietnam, Cargill prides itself in delivering an integrated supply chain solution to its customers. The company has entered into a US$10 million agreement with SITV for 80,000 metric ton of warehousing facilities at the SITV port in Phu My. This will facilitate the storing and distribution of grains and oilseeds for Cargill’s customers and give them a distinct competitive advantage.
The main grain and oilseeds products Cargill supplies to its customers in the country are soy bean meal, wheat, and sugar, as well as supply corn, copra meal and canola meal. Customers include animal feed producers, integrated fish processors, food and beverage manufacturers as well as flour millers.
Commitment to improve farmers’ livelihoods
Cargill is extending its school building program to build 25 additional schools by 2020. The employee-led volunteering program aims at providing better education to less privileged children in rural Vietnam. Cargill has raised more than USUS$3.8 million for the program and has achieved its goal of building 75 schools by 2015. More than 13,000 children have benefitted from the program so far.
‘Giving back to the communities we live and work in is in our company’s DNA. Every child deserves an education and what our Vietnam team has achieved with their school building initiative is nothing short of remarkable. It makes me proud to be part of the Cargill family and I am sure my 155,000 colleagues worldwide will agree,” said MacLennan.
MacLennan is in Vietnam from 16 to 19 November 2015 to celebrate with the company’s more than 1,500 employees, its customers, dealers and partners Cargill’s 150th anniversary and 20 years in the country. During his visit, he inaugurated a school in Phu Xuyen province – the 75th school that Cargill has built across Vietnam. He also visited customer pig farms and spent some time at our animal feed mill in Ha Nam.
About Cargill
Cargill provides food, agriculture, financial and industrial products and services to the world. Together with farmers, customers, governments and communities, we help people thrive by applying our insights and nearly 150 years of experience. We have 155,000 employees in 68 countries who are committed to feeding the world in a responsible way, reducing environmental impact and improving the communities where we live and work. For more information, visit Cargill.com and our News Center.
Johahn Bhurrut, +65 6393 8179, Johahn_bhurrut@cargill.com
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