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PIC, GreenFeed Set Sights on Market Leadership in Viet Nam

27 August 2012, at 11:03am

VIET NAM - A year on from reporting its tie-up with local agribusiness powerhouse, GreenFeed, for the production and distribution of genetically advanced swine semen in Vietnam, PIC announces that the scope of the cooperation has been expanded to embrace the development of a complete breeding pyramid.

. A new company, GreenFarm, has been registered and the project will produce a full portfolio of male and female PIC genetics for nationwide distribution under the PIC brand. Its scale is designed to capture 18 per cent of the projected commercial market in 2017.

Parent gilt production will be jump-started with the stocking of three multiplication farms, one in Hung Yen province in the north of the country and the other two in Binh Thuan and Dong Nai provinces in the south. These farms will be populated by import of grandparents from PIC North America in late 2012 and early 2013, ahead of the stocking of the first 1,200 nucleus facility in mid-2013. Strategic locations for subsequent development of eight multiplication units have been identified. In addition to the genetic seed stock, PIC will provide technical management and a complete suite of support services.

Commenting on the deal Andrew Bateson, Business Development Director for PIC in Asia, said: "The new agreement builds on the success of PIC semen sales from GreenFeed's 500-boar stud in Dong Nai. PIC-sired slaughter pigs have exceeded the market's expectations in growth rate, feed conversion, carcass yield and pork quality. By putting the female side of the equation in place, our partnership with GreenFeed will also set new standards for sow productivity. We are delighted to be working with GreenFeed, which has all the attributes you look for in a strong local partner. In a few short years the business has become the 4th largest animal feed supplier in the country, recording sales of 700,000 MT in 2011. The exceptional growth has been driven and led by a dynamic and professional team with a clear vision and innovative strategy."

Viet Nam's national herd is estimated at around 3.5m sows, which puts it second only to China in the regional rankings. Supported by government policy, pig production is modernising and moving away from the traditional backyard base to specialized semi-industrial and industrial farms. In spite of modest per capita GDP, pork is extremely popular and average annual consumption is 23kg per head. All these factors converge to make it a very attractive emerging market for PIC's signature genetics.