PRESS RELEASE: IFC HELPS GREENFEED VIETNAM CORPORATION EXPAND SUSTAINABLE LIVESTOCK PRODUCTION IN VIETNAM
To support the country’s growing livestock industry, IFC is helping GREENFEED Vietnam Corporation increase its pig breeding and farming capacity, which will help ensure a reliable supply of safe and quality pork while enhancing livestock production practices in Vietnam.
IFC’s investment of VND 1,000 billion (approximately $43 million)—through a seven-year bond—will allow GREENFEED to expand its pork production activities in Vietnam. The company’s fattening pig production capacity is expected to increase by 750,000 pigs by 2023. This translates to supply of over 125,000 metric tons of pork every year, which IFC estimates will benefit around 385,000 additional pork consumers.
Pork is a staple and a vital source of protein for Vietnamese consumers, accounting for up to 70 percent of the total meat consumption in the country. About half of the nation’s pork is currently supplied by small-scale pig farms with low biosecurity standards. Over the past two years, the spread of African Swine Fever (ASF)—a fatal and highly contagious viral disease affecting pigs globally—in Vietnam has dramatically reduced supply, causing a sharp rise in pork prices. Live hog prices are now about 50 percent higher than pre-ASF prices, after having doubled during 2019–2020.
IFC’s investment, in alignment with the government’s target of producing 70 percent of the nation’s pork in modern and more biosecure industrial farms, will help address the severe pork supply shortage and price volatility triggered by the ASF.
“IFC’s financing will help GREENFEED scale up its pig farming capacity, providing traceable and safe pork to meet the rising demand for animal-based food in Vietnam,” said Ly Anh Dung, GREENFEED Vietnam Corporation’s Chairman. “IFC’s support will also help us continue working toward becoming a leading player in the pork-based food value chain in Vietnam and globally, while adhering to Vietnam and global industry best practices.”
Established in 2003, GREENFEED gradually expanded from animal feed production to pig breeding, and is now focusing on growing its commercial pig farming operations. GREENFEED has demonstrated its strong biosecurity capabilities throughout the ASF pandemic, with none of its pig farms being affected by ASF. With IFC’s support, the company will also be pioneering improved animal welfare conditions in Vietnam in line with European animal welfare standards.
“Adopting biosecure and sustainable production practices will help improve the resilience of Vietnam’s livestock sector, ensuring a stable supply of vital animal protein products in the country,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia, and Lao PDR. “By supporting companies like GREENFEED, we are promoting the development of more efficient and sustainable local private enterprises along the agribusiness supply chain. This will help boost competition and improve farming standards, supporting the sector’s continued modernization and implementation of international best practices”