HCM CITY — Japan's Marubeni Corporation has tied up with a food company based in Dong Nai Province near HCM City to set up an integrated food production and supply system centred on meat distribution in Viet Nam.
It has signed a Memorandum of Understanding with the Dong Nai Food Industrial Corporation (DOFICO) to manufacture feed, raise cattle, process meat, and set up distribution networks at a cost of JPY50 billion (US$630 million).
Marubeni will build a large cold warehouse in Phu My Port in neighbouring Ba Ria – Vung Tau Province in 2012 for storing imported feed ingredients like sweet corn and soybean from Brazil.
DOFICO will build an integrated livestock complex, including a large livestock farm and a meat processing plant in Dong Nai Province's key economic zone.
Marubeni Nisshin Feed, a subsidiary of Marubeni, will provide expertise for feed production and quality control.
Marubeni has interests in many areas, including food materials and products, energy, metals and mineral resources, machinery and logistics.
DOFICO has meat processing facilities and a nationwide distribution network. It also has a 25 per cent stake in the country's largest feed producer, Proconco, which plans to expand production to 3.5 million tonnes by 2020.
Marubeni estimates meat and poultry demand in Viet Nam to grow by 50 per cent in the next five years due to the country's rapid economic development. — VNS