Vietnamese - French Cattle Feed Joint Stock Company (Vietnam)

Established in 1991, Proconco is the first joint venture company in the field of animal feed production, with a combination between Vietnam and the French SCPA Group. In 2008, Proconco turned to a new page with the program "Feed - Farm - Food" to cooperate with DONATABA (today known as DOFICO); converting the operating model to a joint stock company. 2015 is a memorable year when Masan Nutri-Science invested 51% stake in Proconco, bringing strong development support steps. Proconco's factories have a closed production process, and a network of more than 1,000 distributors across the country. In December 2021, Proconco's feed mills with the famous "Con Co" brand were officially acquired by De Heus Group (Netherlands) from Masan Group. Sharing with the press - a representative of De Heus LLC said that after the merger with De Heus Vietnam, Proconco's staff remained mostly unchanged. However, De Heus LLC will invest heavily in innovating animal feed production lines, applying modern technologies. De Heus LLC manages these companies in the form of branches. For example, CONCO BINH DINH CO.,LTD is undergoing dissolution procedures and branch in Binh Dinh province is opened at the same operating address. In addition, PROCONCO CAN THO ONE MEMBER COMPANY LIMITED has merged into the subject and stopped its operation. Branch in Can Tho province is opened at the same operating address.Vietnam is considered to have great potential for developing the animal feed market. However, due to limited domestic supply and large import of raw materials, businesses are highly dependent on price fluctuations and the supply of the world market. In addition, enterprises in this industry are also affected by fluctuations in energy prices, risk factors from supply chains and pressures from exchange rate, inflation increases and political instability in the world. However, for the domestic market, experts say that the prospect of the animal feed industry in 2023 is positive, slightly better and has a high growth rate in the next 5 years. In the first 11 months of 2023, the total import turnover of animal feed ingredients (wheat, corn, soybeans, animal feed) was about USD 9.5 billion, down by 9.5% over the same period in 2022. According to data from the Vietnam Commodity Exchange (MXV), after peaking last year, prices of animal feed ingredients are now falling sharply. In particular, the prices of corn, soybeans and wheat have decreased by about 15 - 30% compared to the beginning of the year. World raw material prices tend to cool down, besides transportation costs also recorded a decrease, which help reduce the burden of production costs for businesses in the animal feed industry. This affects the output prices of companies in the industry. Until now, big players in this industry have adjusted decreased prices 5 times. Forecasting animal feed prices in the last months of 2023, many businesses said the unexpected increase in supply in the USA and improved output in Ukraine and South Africa are important information. Over the next few months, the market will shift its focus to production in South America. The fact that the US Department of Agriculture - USDA maintains the view of bumper harvests in Brazil and Argentina will likely keep the decreased price of raw materials for animal feed production at least until the end of this year. This positively affects the business results of the company in particular and the industry in general.