The project of raising 1 million pigs is a handshake between TSC, an enterprise with strong financial potential and DABACO, a “giant” in the livestock industry, to create a supply of high-quality pork.
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| Representatives of TSC Joint Stock Company and DABACO signed the cooperation agreement to implement a project to develop a herd of 1 one million pigs in the southern provinces |
Bringing TSC to the goal of billion-dollar businessThe signing ceremony of cooperation between Can Tho Agricultural Technical Supplies Joint Stock Company (TSC) and Dabaco Vietnam Group Joint Stock Company (DABACO) to develop pig raising with the goal of 1 million pigs in provinces from Da Nang to the south took place on January 20th in Hanoi.
The project has a total investment of more than VND 3,000 billion, of which TSC contributes 55% and DABACO has 45%. DABACO is responsible for the supply of breeds, feed, veterinary medicines, and techniques; meanwhile, TSC is responsible for finding locations, building barns, and providing livestock equipment.
Addressing at the ceremony, Mr. Nguyen Van Sang, Chairman of FIT Group, the parent company of TSC, emphasized that this is a “special event” to mark TSC’s start in a new field with many potentials and development opportunities.
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Mr. Sang said that TSC has strengths in financial resources and the decision to cooperate with DABACO has been set in the goal of revenue and profit growth of the business strategy in the next 5-10 years. Explaining the decision for TSC to “join hands” with DABACO, Mr. Sang said that, in the livestock industry, DABACO is the No. 1 enterprise in the North and has ambitions to reach the southern market. In particular, the recent African swine fever has severely devastated the livestock industry of Vietnam and the world, but DABACO is almost not affected as it has successfully researched a vaccine, which is an advantage to minimize risks.
“If TSC searches for the breeds and builds pig barns from itself from the beginning, it will take a lot of time, effort, and money, and the business is very difficult and totally risky. As for cooperating with DABACO, a large enterprise with strengths in technology and technology, the risk decreases sharply”, said Mr. Sang.
Mr. Sang also affirmed that “Choosing TSC to invest in pig breeding is part of the expansion development strategy to optimize financial resource advantages and also the ambition for TSC to develop into a billion-dollar company. To achieve this goal, TSC must engage in large-scale industry. For the pig breeding industry in Vietnam, we assess an average annual growth rate of 10-15%, and there is still a lot of room for growth.”
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Supplying high-quality pork and aiming at export |
DABACO currently has a total herd of over 1 million pigs and aims to reach 2.5 million pigs by 2025. In particular, the TSC and DABACO projects aim to reach 1 million pigs in the southern provinces by 2028, which will require about 40,000 sows.
Chairman of DABACO Group, Nguyen Nhu So, said that, in 2021, DABACO is the leading enterprise in the country in terms of technology and livestock productivity. The sow herd reaches a peak of producing 28.5 breeding pigs per year, on par with European countries. Meanwhile, the average productivity of the whole country is 22.5 – 23 pigs/ year.
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The Chairmen of FIT Group and DABACO affirmed that the project will aim to create a high-quality pork supply for Vietnamese consumers and export to foreign markets According to Mr. So, TSC is an agricultural enterprise with good organizational ability and strong financial potential, so this cooperation decision is to shorten the time to complete the target of 2.5 million pigs, providing pork production accounting for 10-11% of the total market share”. |
The Chairman of FIT Group said that DABACO already has a land fund in Binh Phuoc and the parties are carrying out procedures to build barns. The first livestock facility of the project in Binh Phuoc will be put into operation in early 2023.
TSC is one of the leading agricultural enterprises supplying to the market a variety of products ranging from seeds, fertilizers, agro-pharmaceuticals, and agricultural products to food. Notably, TSC owns 80% of shares of Khanh Hoa Mineral Water Joint Stock Company (Vikoda). Currently, Vikoda is likened to TSC’s “diamond mine” in terms of the rarity of mineral water with pH 9.0. In addition, the enterprise also owns Westfood Processing Export Joint Stock Company – Westfood which is building MD2 pineapple raw material area up to hundreds of hectares. At the same time, Westfood also focuses on investing in machinery, equipment, modern infrastructure, R&D activities, and product diversification, helping Westfood’s long-term cooperation with major partners in the world such as Korea, Japan, Europe, USA …
