Vietnam’s BAF partners with China’s Muyuan to take up high-tech livestock farming

BAF Vietnam Agricultural JSC has struck a partnership with China’s Muyuan Foods Co. Ltd. on technology transfer and application of artificial intelligence throughout the livestock chain.

At the partnership launching ceremony in Ho Chi Minh City on Monday, Truong Sy Ba, chairman of the board of directors of BAF Vietnam Agricultural JSC, said it would accelerate his company’s efforts to become a leading livestock group in Vietnam by 2030.

The partnership was a key step towards enhancing both commercial value and brand recognition, both domestically and globally, he said.

With more than 30 years of experience, Muyuan was a top livestock industry player within and outside China, he noted.

“Today’s signing marks the culmination of previous collaborative efforts between BAF and Muyuan and the beginning of a new chapter. We aim not only to transfer technology related to housing, biosecurity and environmental solutions but also to expand our cooperation into other areas, fostering modern and innovative growth in the livestock sector,” Ba said.

The agreement covers technology transfer for housing equipment for cattle and the application of AI throughout the livestock chain to ensure biosecurity and environmental sustainability.

The integration of cutting-edge technologies, automation, digital transformation and AI in livestock farming is expected to enhance production efficiency, optimize resources and ensure global standards for biosafety and environmental protection.

Gao Tong, chief financial officer of Muyuan Group, expressed confidence in supporting BAF’s expansion goals.

“Muyuan is committed to helping BAF achieve its target of 100 farms with 450,000 sows and 10 million pigs by 2030. Through this partnership, we aim to provide Vietnamese consumers with clean, fresh and safe food while promoting the growth of the pig farming industry in Vietnam. We envision creating a greener, healthier environment and contributing to societal prosperity.”

Founded in 1992, Muyuan operates a closed-loop farming chain encompassing animal feed processing, pig farming, slaughtering, and pork processing. The group’s operations in China span 25 provinces and 108 cities with a workforce of approximately 140,000.

Four years after it received funding from the World Bank’s private sector funding arm, the International Finance Corporation (IFC), Muyuan’s shares (002714.SZ) began trading on the Shenzhen Stock Exchange in 2014. Five years later, it had become the second-largest pork producer in China behind Wens Foodstuff Group.

The African swine fever outbreak in 2020 led to a surge in global pork prices, resulting in a 1,413% increase in Muyuan’s profits for the first nine months of 2020. This financial boost enabled the company to invest in a new generation of large-scale farms.

In 2021, Muyuan emerged as the world’s leading sow breeding and production company. It now operates 1,125 breeding farms and 10 slaughterhouses, ranking first globally in pig slaughter volume.

BAF shares, listed on the Ho Chi Minh Stock Exchange (HoSE), closed Monday at VND19,600 ($0.8) apiece.