Cargill, one of the leading animal feed producers in the U.S., exits from the aquafeed business in Vietnam, said Maxime Hilbert, interim general manager for aqua nutrition at Cargill Thailand & Vietnam.
The exit is part of Cargill’s efforts to direct resources toward the markets and species with the strongest long-term growth potential, Hilbert was quoted by Vietnam Livestock magazine as saying.
The U.S. giant is actively exploring potential next steps for the aquafeed business in Vietnam, including the related assets, he added.
Cargill’s animal feed plant in Binh Duong province, southern Vietnam. Photo courtesy of the firm.
Following its decision, Cargill exits two aquafeed plants in the southern provinces of Dong Thap and Long An, as well as the aqua technical application center (TAC) in the neighnoring province of Tien Giang, Vietnam.
This move does not impact Cargill’s broader animal nutrition and health business in Vietnam, the executive stressed, noting that the country remains an important market for the corporation.
Last December, Cargill announced a 5% global workforce cut as part of a long-term strategy.
Cargill had invested around $160 million in Vietnam, operating 12 feed mills for livestock and aquaculture with a combined annual capacity of 1.6 million tons.
S&P Global noted that Cargill’s aquafeed business in Vietnam had underperformed over the past two years, citing intense market competition.
Cargill entered Vietnam in February 1995 and employed over 1,500 staff. Its operations in the country spanned animal nutrition and health, food and beverage ingredients, farm produce, feed ingredients, and food products.
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