Indonesia's Japfa opens feed mill, slaughterhouse in Binh Phuoc province

Japfa Comfeed Vietnam Ltd. Co. inaugurated a feed mill and poultry slaughterhouse, with a registered capital of VND400 billion ($17.04 million) each, in the southern province of Binh Phuoc on Wednesday.

The two state-of-the-art facilities in Minh Hung-Sikico Industrial Park demonstrated the Indonesia-invested firm’s commitment to sustainable growth in Vietnam, after two years of construction.

The feed mill has an annual capacity of 240,000 tons in the first phase and is set to double to 480,000 in the second, providing animal feed for the southeastern region and Central Highlands of Vietnam.

The 15-hectare slaughterhouse has a daily capacity of 60,000 poultry, catering to restaurants, hotels, fast food chains, and others.

With the latest investments, Japfa Vietnam aims to augment its output to 1.5 million tons of products in 2023 and finalize its feed-farm-food chain in the country, said Arif Widjaja, country head of Japfa Vietnam.

The two projects underscored the province’s allure in attracting foreign investment, said Binh Phuoc Chairwoman Tran Tue Hien. She praised Japfa for its pledge in 2020 to invest $230 million in the province’s husbandry sector.

Indonesian Ambassador to Vietnam Denny Abdi said that Japfa’s activities would entice other Indonesian investors to Vietnam, amid the two countries’ target of elevating bilateral trade to $15 billion in 2028. So far, over 30 Indonesian businesses operate in Vietnam with a total registered capital of $638.8 million.

Japfa Vietnam, part of Indonesia’s Java Pelletizing Factory (Japfa), started operations in 1996 and became a 100%-foreign-invested firm in 1999. Prior to the two above-mentioned projects, it operated four poultry hatcheries, seven animal feed factories, and 30 chicken farms, and supplied over 100 million chicks to the market annually.

In March 2022, Japfa Vietnam inaugurated a pig farm in Binh Phuoc province with a registered capital of VND400 billion ($17.04 million). The 40-hectare facility can provide 100,000 pigs to the market annually, equivalent to 11,000 tons of pork.

Last year, Japfa Vietnam initiated the construction of a $30-million animal vaccine factory in the northern province of Hung Yen, the largest of its kind in Vietnam.

In December 2022, Japfa Vietnam put into operation a poultry hatchery in Krong Buk district in the Central Highlands province of Dak Lak, its fourth facility in Vietnam. The state-of-the-art hatchery covers 2.2 hectares and has a designed capacity of up to 40 million chicks per year.