Golden opportunity for Hai Duong animal feed producers
Animal feed producers in Hai Duong province are seizing a "golden" opportunity with the appearance of many favorable factors to accelerate production and expand markets for further growth.
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Hai Duong is considered the “capital” of animal feed producers. The province is home to 96 large-scale animal feed producers and 46 animal feed factories of businesses outside the locality, according to the Sub-department of Animal Husbandry and Veterinary Medicine under the provincial Department of Agriculture and Rural Development.
Animal feed production is the main contributor to the growth of Hai Duong’s food production and processing industry.
The growth of animal feed production in the first five months of 2024 reached 12.1%, according to the provincial Statistics Office. This is a positive growth rate, marking the recovery of animal feed production in particular and the livestock industry in general.
Q&T Animal Feed JSC. in Hai Duong city continuously increased production capacity in the first months of 2024. The company monthly provided the market with more than 5,000 tons of animal feed, sometimes up to 8,000 tons, 2,000 - 5,000 tons/month higher than at the beginning of 2023.
Khuc Van Vuong, Head of the company's Technical Department, said the prices of raw materials bottomed out at the end of 2023, helping to lower the costs of animal feed products.
Besides, after epidemics and market fluctuations, breeders began to pay attention to research, selection of suitable livestock, and scale stabilization and expansion. These favorable conditions created a push for animal feed businesses to develop.
As a well-known animal feed producer with two factories in Hai Duong city, CNC International Nutrition JSC. is also seizing favorable opportunities to develop production and business. The enterprise enjoyed a growth rate of more than 10% in the first five months of 2024.
The firm mainly imports raw materials for animal feed production; therefore, when raw material prices tended to decrease, it immediately worked out a long-term purchase strategy.
Moreover, the company attaches special importance to applying new technology to improve production efficiency and reduce product costs to build agency and customer networks.
“This is a golden time for animal feed producers since both raw material and consumption markets are changing positively. Every company is concentrating resources on production and market development,” said Nguyen Duy Hoang, Deputy Director of CNC International Nutrition JSC.
Animal feed producers have also invested in association models aside from agency development to develop production and expand markets. They directly connect large farms and provide technical support to unify livestock farming and food supply.
Once connections are formed, breeders less worry about diseases and create safe and quality products, and animal feed producers have stable consumption channels, thereby creating a foundation for sustainable development of the livestock industry.
DUNG CUONG