Bunge Agribusiness Singapore, American firm Bunge Limited’s primary operating subsidiary in Asia, has reached a 10-year agreement with Phu My Port in Vietnam’s south to ship soybean meal to the local market. Bunge will invest US$3 million in the port in Ba Ria-Vung Tau Province, eyeing Vietnam’s growing animal feel and livestock industry, the company said in a statement
Bunge’s investment in port and storage facilities will not make Bunge a shareholder in the port but port operator Baria Serece will grant Bunge exclusive rights to use the port to ship agricultural commodities to Vietnam. “Vietnam is the fastest growing market for the domestic use of soybean meal and corn in Asean, and is among the fastest growing in the world,” Christopher White, regional general manager for Asia, said in the statement.
Commercial feed production in Vietnam has grown more than 10% annually in the past five years, he said, adding annual per capita growth in meat consumption had surpassed 7%.
A senior Baria Serece official reached made no comment about the deal.
Soybean meal is the primary protein ingredient in commercial animal feed manufacturing. Vietnam needs around one million tonnes of soybean meal imported each year.
Located along the Thi Vai River, about 70 kilometres from HCM City, Phu My Port is close to most commercial feed mill operation, the statement said.
Founded in 1818 and headquartered in White Plains, New York, Bunge Limited is an integrated, global agribusiness and food company operating in the farm to consumer food chain.