Cermaq looks for investment in pangasius farm in Vietnam.

Cermaq could look to invest in pangasius farming in the future, Tore Valderhaug, the Oslo-listed aquaculture group’s chief financial officer said.

In his address at the North Atlantic Seafood Forum on Thursday, Valderhaug said Cermaq has looked at the possibility of investing in Vietnamese pangasius farming, but that will first concentrate on building up its joint venture (JV) feed plant in this country. Read more of this post

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Feed Production Begins In Viet Nam for EWOS

Cermaq has signed a joint venture agreement with the local partner, Anova Corporation, in Viet Nam. Through its feed operations, EWOS, Cermaq is entering operations in the Vietnamese feed market.

 

Through acquisition of shares and a targeted emission, Cermaq has obtained 51 per cent of the shares in the joint venture company. Cermaq will control the Board of Directors and the management team. Mr Rune Vamråk, supply chain director of the Norwegian company EWOS AS, is appointed as general manager for the company.

By this agreement EWOS enters the feed market for farmed Pangasius. The broad competence the company has within salmonids can be successfully transferred to Pangasius, a white fish that has enjoyed a tremendous market growth in Europe and the US over the last decade. Pangasius eats feed made mainly from plants, and can supply significant volumes of animal protein to the global food market.

The venture partner Anova Corporation is established in Vietnam with a plant in the Long Anh province. The plant which will be transferred to the joint venture company as a part of the transaction has an annual capacity of 85,000 tonnes. EWOS Vietnam has considerable ambitions for the Vietnamese market and the goal is to utilize the full capacity of the plant within the first operating year. The company has engaged the highly esteemed Pangasius expert Mr Serene, for the initial phase of market building.

The farming of Pangasius in Viet Nam is around 1.8 million tonnes. The major part of this volume is exported as fillets, reaching around 600,000 – 700,000 tonnes annually. Farming of Pangasius is predicted the highest growth globally of farmed species during the next decades.

“Viet Nam is the fish feed market for the future. We are well prepared, and look forward to employ our competence also outside the scope of salmonids,” says Kjell Bjordal, COO for Cermaq’s feed operations, EWOS.

Through its establishment in the Vietnamese market EWOS can contribute with its competence related to food safety and sustainability. Furthermore EWOS will utilise its research based knowledge within fish nutrition, raw materials and food production to produce a more cost efficient feed than what is currently available in the Vietnamese market.

“We believe that the farming of Pangasisus can be strengthened through optimising the feed, focusing on feed technology, nutrient requirements, and fish health,” Mr Bjordal emphasises.

The agreement that gives Cermaq a limited access to an extensive market represents a first investment close to NOK 6 millions.

Source: The Fish Site

Vietnam: Animal feed industry raise more and more interest for foreign investors

Foreign investors are looking to make the most of Vietnam’s lucrative animal feed industry in 2011.

US-backed Cargill Group is one of many foreign investors doing big animal-feed business in the country. Its branch general director in Vietnam, Nguyen Minh Tri, told VIR that Cargill would build two more large animal feed mills during 2011. One would be in Ha Nam province and another in the country’s southern region, which would raise the company’s total animal feed mills in Vietnam to eight.

“Vietnam is an ideal market. Now is a very good point of time for Cargill to intensify its niche here. Many other foreign investors are also coveting this market,” said Tri, who refused to reveal the total investment capital poured into Vietnam by Cargill.

Thai-backed Charoen Pokphand Group (CP) also told VIR that it would continue investing in many animal feed mills in Vietnam throughout 2011. One will be in southern Binh Duong province and two others in Hue city and southern Ben Tre province. CP will likely invest $150-200 million during 2011-2015 for its new projects. The plan is part of CP’s strategy to intensify its business activities in Vietnam over the next five years. The company has already invested $400 million into Vietnam with 17 factories processing agricultural products, particularly animal feed.

Anova Corporation, located in Binh Duong province’s Vietnam-Singapore Industrial Park inked an agreement with Norway’s EWOS, which is a major supplier of aquafeed for the international aquaculture industry, to established a joint venture to build a $6 million fish feed facility in southern Long An province earlier this month. The firm’s 51 per cent stake is held by the foreign investor.

The facility had an annual capacity of 60,000 tonnes, which may be raised to 250,000 tonnes per year in the next few years. The first products, mainly used for tra fish, which is one of Vietnam’s billions-of-dollar exports, is set to be marketed next month.

The Netherlands’ animal feed maker De Heus also began construction of its third animal feed mill in Dong Nai province’s Thong Nhat district earlier this month. This $15 million project, which covers 52,000 square metres of land, is set to use modern technology to produce 600,000 tonnes of products per year.

The project’s produce will be sold throughout the country’s southeastern region and they will look to soak up to 10 per cent of the domestic animal feed market over the next five years.

Taiwanese-backed Uni-President Enterprises Corporation said it was now completing the first stage of its third plant to annually produce 90,000 tonnes of wheat flour, over 3 million packages of instant noodles and 258,000 tonnes of animal feed. This $140 million, 15-hectare plant in Quang Nam province’s Dien Nam – Dien Ngoc Industrial Park is set to become operational in March 2011.

The Ministry of Agriculture and Rural Development’s Livestock Production Department attributed the influx of foreign investors into the animal feed processing industry to the husbandry sector’s bright future.

It reported that the sector grew by 10 per cent in 2010 and is expected to grow by 15 per cent this year. “We encourage investments in animal feed processing in areas with big raw materials production potential like the central highlands, the southern coastal and the northern midland regions,” said Hoang Kim Giao, head of the department.

At present, 70 per cent of animal feed in Vietnam is produced by foreign companies.

Source: Vietnam Business News

EWOS venture with Anova for aquafeed business in Mekong Delta

Long An-based Anova Corporation, maker of veterinary drugs and animal feed, has set up a joint venture with Norwegian fish feed producer EWOS Group to operate and expand a plant in the Cuu Long (Mekong) Delta Province.

Under an agreement concluded last Friday, the foreign partner will invest US$6 million in Anova’s fish feed plant in Long An, representing 51 per cent of the total value of the joint venture company.

Anova CEO David Serene said the plant will begin operations with the new status as a JV on February 1 with an output of 60,000 tonnes of fish feed, focusing on catfish, which is widely farmed in the Cuu Long (Mekong) Delta.

The company will develop growth models to help customers monitor their fish performance against expectations, he said. Feed management strategies will be worked out with customers to make the feeding regime most effective, he added.

EWOS deputy managing director Einar Wathne said his company will also work with customers to provide information on the feed to fish buyers in the US and Europe, supporting fish sales in high quality markets.

source: Vietnam News

 

Another article From vnbusinessreg.com

Norway’s Cermaq has today signed a joint venture agreement with the local partner, Anova Corporation, in Vietnam. Through its feed operations, EWOS, Cermaq is entering operations in the Vietnamese feed market.

Through acquisition of shares and a share issue, Cermaq has obtained 51 percent of the shares in the joint venture company. Cermaq will control the Board of Directors and the management team. Mr. Rune Vamråk, supply chain director of the Norwegian company EWOS AS, is appointed as general manager for the company.

By this agreement EWOS enters the feed market for farmed Pangasius. The broad competence the company has within salmonids can be successfully transferred to Pangasius, a white fish that has enjoyed a tremendous market growth in Europe and the US over the last decade. Pangasius eats feed which is made mainly from plants, and can supply significant volumes of sustainable marine protein to the global food market.

The venture partner Anova Corporation is established in Vietnam with a plant in the Long Anh province. The plant which will be transferred to the joint venture company as a part of the transaction has an annual capacity of 85,000 tonnes. EWOS Vietnam has considerable ambitions for the Vietnamese market and the goal is to utilize the full capacity of the plant within the first operating year. The company has engaged the highly esteemed Pangasius expert Mr. Serene, for the initial phase of market building.

The farming of Pangasius in Vietnam is around 1.8 million tonnes. The major part of this volume is exported as fillets, reaching around 600,000 – 700,000 tonnes annually. Farming of Pangasius is predicted the highest growth globally of farmed species the next decades.

– Vietnam is the fish feed market for the future. We are well prepared, and look forward to employ our competence also outside the scope of salmonids, says Kjell Bjordal, COO for Cermaq’s feed operations, EWOS.

Through its establishment in the Vietnamese market EWOS can contribute with its competence related to food safety and sustainability. Furthermore EWOS will utilize its research based knowledge within fish nutrition, raw materials and food production to produce a more cost efficient feed than what is currently available in the Vietnamese market.

– We believe that the farming of Pangasisus can be strengthened through optimizing the feed, focusing on feed technology, nutrient requirements, and fish health, Mr. Bjordal emphasizes.

The agreement that gives Cermaq a limited access to an extensive market represents a first investment close to USD 6 millions.

EWOS enter VN aquafeed with a venture with Anova

Ew os, the feed division of Oslo-listed Cermaq, has signed a joint venture agreement with a Vietnamese pangasius feed producer.

The news will see Ewos set up and own 51 percent of a local joint venture for an initial sum of $6 million (€4.5 million).

The remaining stake will be owned by Vietnamese producer Anova Corporation, which produces feed for the pangasius industry at a factory in Long Anh.

Under the agreement, Anova will transfer its plant, which has an annual capacity of 85,000 metric tons, to the new joint venture company.

“Ewos Vietnam has considerable ambitions for the Vietnamese market and the goal is to utilize the full capacity of the plant within the first operating year,” the group said in a statement.

The company said it had hired “pangasius expert Mr. Serene” for the initial phase of market building.  With Asia accounting for more than 90 percent of the world’s total aquaculture production, large feed companies have been looking to expand in the region. In July, Skretting acquired Vietnam’s fourth largest feed producer Tomboy Aquafeed while in October, Ewos said it was looking to expand in Vietnam.

Within the aquaculture sector, low-value whitefish such as pangasius acccount for the biggest volumes, with production in Asia topping 8.7 million metric tons in 2008 — compared to 4 million for shrimp, 2.8 million for salmonoids and 3.1 million for high-value whitefish. It also has the strongest growth rate, growing by 10 percent a year, far above the other sectors’ growth rates of 3 to 5 percent.

Vietnam itself produces an estimated 1.8 million metric tons of pangasius a year, according to Ewos. Most of this is exported as fillets, reaching around 600,000 – 700,000 metric tons a year.

“Vietnam is the fish feed market for the future. We are well prepared, and look forward to employ our competence also outside the scope of salmonids,” Ewos Chief Operating Officer Kjell Bjordal said in a statement.

Using its experience, Ewos aims to make the production of feed in Vietnam “more cost efficient” than it currently is, the group said.

“We believe that the farming of pangasisus can be strengthened through optimizing the feed, focusing on feed technology, nutrient requirements, and fish health,” Bjordal said.

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