Unlocking Acceleration for Private Enterprises

Livestock farming is one of the three main pillars of Vietnam’s agricultural sector, with an increasing contribution to the country’s overall agriculture GDP. In 2024, livestock accounted for approximately 26% of total agricultural GDP. Vietnamese consumers are estimated to consume around 8.1 million tons of pork annually, ranking fourth in the world in pork consumption, while the industry also employs millions. The development of this sector drives growth across a wide range of supporting industries, including animal feed, veterinary services, food processing, and logistics—helping to complete the agricultural value chain.

However, data from 2022–2023 show that FDI enterprises dominate approximately 43% of the pork supply, while domestic businesses hold only 19%. In the industrial animal feed segment, FDI enterprises account for over 60% of the total output.

In this context, Resolution 68/NQ-CP—which aims to reform mechanisms and policies to support private sector growth—acts as a “regulatory breakthrough”, focusing on core challenges faced by domestic businesses: simplifying investment procedures, removing administrative bottlenecks, improving access to resources, and creating a fair and competitive business environment.

Taking his own company as an example, Mr. Trương Sỹ Bá – Chairman of the Board of Directors at BAF Vietnam Agriculture JSC (HOSE: BAF) shared that in the past, it could take up to three years to build a new farm. Thanks to Resolution 68, this timeframe could now be reduced to just one year, greatly accelerating expansion and herd development.

This demonstrates that once barriers are removed, Vietnamese enterprises—equipped with strong foundations and ambition—can thrive and compete head-on with foreign-invested companies. The resolution not only paves the way for domestic businesses to “scale up,” but also plays a crucial role in rebalancing the market share in the livestock sector, driving fairer and more sustainable economic growth for Vietnam.

Laying the Groundwork for Major Goals

At this year’s Annual General Meeting, BAF announced its strategic shift: starting from 2025, the company will dedicate its entire revenue structure to livestock operations, targeting 450,000 sows and 10 million commercial pigs by 2030. In tandem, BAF has set priorities including strengthening biosecurity, tackling environmental challenges, optimizing production costs, and ensuring a stable supply of clean pork for consumers. With a more transparent regulatory environment and policies that encourage innovation — the key challenge for businesses now lies in turning these opportunities into concrete results.

According to the Chairman of BAF, one of the company’s most critical recent moves has been to closely collaborate with the International Finance Corporation (IFC) and Muyuan Group to adopt international livestock standards and apply advanced technologies aligned with environmental protection. Notably, BAF has implemented four-layer air filtration technology, capable of blocking viruses. Additionally, waste from pig farming is treated and collected so that no odor is released into the environment. For example, a farm with 5,000 sows and 60,000 pigs, totaling around VND 500 billion in investment, dedicates nearly VND 50 billion solely to wastewater treatment systems.

Sharing further about theВ multi-story pig farming project, Mr. Ba noted that onВ June 29, theВ Tay Ninh Provincial People’s Committee officially approved the investment policyВ for a High-Tech Multi-Story Livestock Complex consisting of four projects: two multi-story pig farms with air filtration and odor control technology (Tay Ninh 1 and 2), a livestock feed factory, and a slaughtering and pork processing plant. Following approval, BAF is continuing to work withВ provincial authorities, the Ministry of Agriculture, and the Ministry of EnvironmentВ to complete procedures related toВ Environmental Impact Assessments (EIA)В and land-use planning, in order to meet the construction conditions. Currently,В BAF has all the necessary resources ready to implement the project.

Perspective of BAF’s High-Tech Multi-Storey Pig Farming Complex Project Approved for Investment Policy by Tay Ninh Province

In addition, BAF’s entire Feed – Farm – Food livestock value chain adheres to international standards; it has been independently assessed and certified by globally recognized organizations. From day one, BAF has been steadfast in its investment in building a complete farming chain—an approach that enables the company to optimize long-term business costs. Currently, BAF is self-sufficient in animal feed supply (which accounts for about 60% of pig farming cost), and it protects its herds through stringent biosecurity solutions. At the same time, having a self-operated value chain allows the company to control the quality of both input materials and finished products before delivering meat to consumers.

Additional Information:В 

BAF is currently one of the leading livestock companies listed on the stock exchange (HOSE: BAF). In May alone, BAF reported sales of 74,000 pigs, generating VND 550 billion in revenue. Cumulatively for April and May 2025, the company sold 134,000 pigs, earning approximately VND 1 trillion—nearly equal to the total revenue for the entire year 2023.

Also in May, BAF Vietnam signed a strategic cooperation program with the Ministry of Agriculture and Environment to jointly implement scientific and technological applications aimed at promoting the circular economy in modern livestock farming. This activity was part of the Conference on the Implementation Plan of Resolution No. 57-NQ/TW by the Politburo regarding the development of science, technology, innovation, and national digital transformation.

Minh TГ i

FILI

– 09:45 18/07/2025

The post OPPORTUNITIES FOR VIETNAMESE ENTERPRISES IN THE “ERA OF RISE” appeared first on Công ty Cổ phần Nông nghiệp BAF Việt Nam.

Specifically, BAF purchased a 95% stake in Khuyen Nam Tien in Dak Lak for VND 47.5 billion (the company has a charter capital of VND 50 billion).

On the same day, BAF acquired 49% of the shares in five other companies in Quang Tri, including Toan Thang HT, Hoang Kim QT, Viet Thai HT, Hoang Kim HT-QT, and Thanh Sen HT-QT. Each acquisition involved 171,500 shares, representing 49% of the charter capital.

During an investor meeting on November 7, BAF’s CFO, Mr. Ngo Cao Cuong, shared that the company intends to acquire full ownership of all these six companies. For the five companies where BAF acquired 49%, it clarified that these companies have land reserves, are completing legal formalities, and BAF plans to acquire the remaining shares after these processes are finalized.

“BAF’s plan is rapid and large-scale expansion. By 2025, we aim to invest around VND 3 trillion to build approximately 15 farms. If construction falls behind, we will lease or seek investors with land and capital to build according to BAF’s model, which we would then lease back.”

BAF is reportedly speeding up farm construction and leasing as demand exceeds production. If the company cannot keep up, it will sell piglets to farmers to optimize costs and profit.

Pig Supply decrease

BAF disclosed that October 2024 saw a dip in pig prices due to a market surplus caused by companies and farmers selling pigs in response to disease outbreaks and damage from Typhoon Yagi, which left many farms without facilities. Additionally, the Livestock Law, effective January 1, 2025, will require many small farms to relocate, potentially reducing herd numbers. Setting up new farms to meet biosecurity and veterinary standards is challenging, meaning the displaced stock will not easily be replaced.

The company indicated that many units imported Great Grand Parent pigs in 2024, but seeding them to market hog weight will take nearly three years. Therefore, in 2025 there will not be many market hogs from these units, and it will not be until 2026.

Pork production in 2024 expected to decrease by 20% compared to 2023. A potential shortage could persist in the first half of 2025.

“Pig prices have recently hit a low but are rebounding. We expect a price increase toward year-end, maintaining high pricein the first half of 2025. In October, BAF sold 46,000 pigs, generating revenue of VND 337 billion. Year-to-date, we’ve sold 486,000 pigs, doubling last year’s figures with revenue nearing VND 2.7 trillion. Given the limited supply, BAF will increase pig sales in the coming months.”

The post BAF’S PLAN TO M&A SIX LIVESTOCK COMPANIES appeared first on CГґng ty Cб»• phбє§n NГґng nghiệp BAF Việt Nam.

One of the critical aspects of the cooperation agreement between BAF and Muyuan is the transfer of intelligent livestock technology. The company stated that in the 4.0 era, applying advanced technologies, automation, digital transformation, and artificial intelligence in livestock farming enhances production efficiency, optimizes resources and ensures biosecurity and environmental safety in line with global standards.

In collaboration with Muyuan, BAF aims to comprehensively improve its closed-loop system, from animal feed factories to livestock farming models. With Muyuan’s extensive experience and successful implementation of biosecurity management measures in China, BAF will learn and apply these practices effectively in Vietnam. This will help minimize the risk of disease outbreaks, protect the health of the pig herd, increase business efficiency, and ensure a stable supply for the market.

In addition,the livestock industry’s development has significantly impacted the environment, from water resource usage to greenhouse gas emissions. However, according to BAF, the advanced technologies transferred from Muyuan will enhance livestock waste management, enabling effective recycling and resource utilization. This will help reduce negative environmental impacts, develop a circular economy chain, and lay a solid foundation for sustainable development – an objective that is increasingly prioritized by businesses and organizations worldwide.

“Muyuan is confident in its ability to support BAF in achieving its goal of expanding the scale to 450,000 sows and 10 million market hogs by 2030. We believe that through this collaboration, both parties can provide Vietnamese consumers with clean, fresh, and safe food while jointly promoting the prosperity and development of the livestock industry in Vietnam. Together, we aim to create a greener, healthier environment and a more prosperous society,” said Mr. Gao Tong, CFO of Muyuan Group.

Mr. Truong Sy Ba, Chairman of the Board of Directors at BAF, also stated: “The partnership between BAF and Muyuan marks the beginning of a new journey for the future. We aim to stop the transfer of farming technology, biosecurity, and environmental solutions and expand our collaboration into many other areas. Together, we will continue to drive the modernization and innovation of the livestock industry.”

The new farming technology enables the goal of raising 10 million market hogs by 2030

According to the published information, Multi-storey Pig Farming Pattern is one of the most critical technologies that Muyuan will transfer to BAF.

Mr. Gao Tong explained that this model has been in China for a long time, with each floor serving a specific purpose. A typical facility consists of 6 floor: floor 5 and 6 are used for breeding sows; floor 3 and 4 are for newly newborn piglets and feeder pigs; and the bottom 2 are for market hogs. This scale allows for efficient management, especially in terms of biosecurity.

Muyuan’s farm also employ advanced waste gas treatment technology. According to a group representative, the system features 4 layers of filtration to ensure the air meets ICU standards before it enters the barn. The airflow is carefully calculated to deliver the precise amount needed inside. Once inside, the gases are accumulated and passed through a separate treatment system, where they are sanitized to a specific standard before being released outside.

Multi-storey Pig Farming Pattern

“Muyuan has numerous farms spread out, and our odor control technology always meets standards, whether in residential areas or more remote locations,” said by Muyuan representative.

More importantly, the Multi-storey Pig Farming Pattern offers many advantages, allowing Mr. Truong Sy Ba to envision even more ambitious goals. At the event, Mr. Ba mentioned that BAF’s target for 2030 increased from 6 million to 10 million market hogs and 450,000 sows.

“This is an ambitious and extremely challenging goal. However, in the context of the African swine fever outbreak, it poses a significant threat to food security. Without companies like ours expanding and managing operations, if the pig population cannot control the disease, there will be a supply shortage, and pork prices could rise to VND100,000/kilogram.”

“We are determined to turn the African swine fever crisis into an opportunity. In reality, no one wants an outbreak. But now that it’s here, we must act,” Mr. Ba shared.

He explained that this goal was set higher following the collaboration with Muyuan.

“Muyuan’s technology offers many advantages. Firstly, it significantly reduces production costs. Secondly, it addresses land use. Compared to conventional methods, Muyuan’s farming technology reduces land costs by 50-70% compared to traditional single-story buildings and even more with multi-story structures. Additionally, filtration systems are in place to ensure biosecurity. Muyuan representatives shared that the odor is filtered to ensure no smell.

Based on this determination, the partnership is a strategic move and a turning point for BAF’s next development steps. It represents a competitive advantage – being a pioneer and staying ahead will significantly enhance competitiveness. Currently, the major competitors in the market are not the large corporations but the small-scale operations. As these smaller players decrease, we aim to capture the market share they leave behind.”

According to Mr. Ba, to achieve the goal, BAF will need to build barns each year to accommodate approximately 1.5 to 1.8 million pigs, which will be introduced in the following years. This figure is equivalent to constructing 12 farms like the Hai Dang complex in Tay Ninh, which has a capacity of 5,000 sows and 60,000 market hogs.

“Currently, BAF operates several large-scale farms such as Hai Dang (Tay Ninh, already operational), Hai Ha (Quang Ninh, soon to be operational), and Giai Xuan (under construction, set to be completed by the end of 2024). Each of these farms supplies 130,000 to 150,000 market hogs annually. This means we must build 11 to 12 farms similar to Hai Dang.”

A complex like Hai Dang is built on about 50 ha. However, the multilayer barn design uses only 25 ha of the area. This means that the land area of Hai Dang can accommodate 2 such farms, resulting in double the production capacity.

“At first, there was some hesitation in protecting the herd, but Muyuan’s livestock technology includes stringent protective processes, ensuring optimal cost-efficiency. Therefore, BAF is fully confident in expanding to a scale of 10 million market hogs. Additionally, the savings on land and support from financial institutions and international banks provide us with the strong financial resources needed to achieve this vision.”

Muyuan Group is located in Nanyang city, Henan province. After over 30В years of development since its establishment in 1992, it has formed a pork industrial chain that integrates feed processing, pig breeding, pig raising, pig slaughtering, and meat processing. Its main products include commercial pigs, breeding pigs, piglets, and pork

Muyuan Group owns a total asset of 210 billion yuan (USD 29.4 billion) and has 140 thousand employees to date. One of its subsidiary Muyuan Foods Co., Ltd. went public in 2014 with its pig farms distributed in 218 counties/districts in 104 cities of 24 provinces/autonomous regions across China. In 2023, Muyuan has supplied about 63.82 million pigs to the market, ranking first in the world

The post BAF collaborates with the world’s largest livestock group, raising the target herd size to 10 million pigs appeared first on CГґng ty Cб»• phбє§n NГґng nghiệp BAF Việt Nam.

Disease Challenge Puts Smallholders in Deep Trouble

In assessing the overall situation, Chairman Truong Sy Ba noted that the total pig population in Vietnam is large, around 25-26 million pigs, supplying approximately 45 million pigs to the market each year. Meanwhile, Vietnamese people consume up to 70% of their dietary protein from pork.

African Swine Fever (ASF) has been present in Vietnam since 2019, according to Mr. Ba, posing a significant challenge, especially for small-scale livestock farmers. This observation is based on the reality that small-scale farming groups’ biosecurity and disease control conditions are weaker, leading to substantial negative impacts and even being perceived as “deep trouble.”

Nevertheless, opportunities still exist within adversity, particularly for the industrial livestock farming sector amidst the challenges.

Chairman of the “Vegetarian Pig” brand shares that, before the ASF outbreak, small-scale livestock accounted for the majority of the market, up to 80% of Vietnam’s total pig population. However, when the disease emerged, the market share of small-scale farming decreased to below 60%. This presents an opportunity for the industrial pig farming sector, which receives more systematic investment and better management control.

“Nobody wants the ASF outbreak, but when it happens, it is both a significant challenge for Vietnam’s livestock industry and an opportunity for businesses that have comprehensive and systematic investments in farms with good biosecurity management,” quotes the Chairman of BAF.

“In the next 10 years, small-scale live stock will continue to decrease, from 30% to 40%. This is a very fertile ground, an opportunity for industrial pig farming to develop and secure consumer food security,” said by Mr.Truong Sy Ba.

He believes the Vietnamese livestock industry must acknowledge and “coexist with the disease.” According to him, there is still no perfect vaccine – a type that has been confirmed and proven effective for pig herds – even though ASF has been present worldwide for over 100 years. Coexistence is necessary until a vaccine is developed to solve the problem.

“From small-scale to industrial pig farming, everyone must focus on managing disease safety, especially biosecurity, to protect their pig herds. It is due to the spirit of ‘coexistence’ that everyone is trying to control the situation.”

“However, this process is more controlled in industrial pig farming, while small-scale farming is heavily affected and not well-controlled. In the future, small-scale farming will gradually decrease, making room for industrial farming,” Mr. Sy Ba concludes.

In addition, the disease situation has become more complex since 2019 due to unpredictable strains of the virus. In this context, the industrial farming group will have an additional advantage due to higher control standards.

“Some pigs do not show disease symptoms, but they die within 3-5 days. It’s very difficult to detect and gets more complicated over time. The awareness of biosecurity among the public and businesses has increased, so the outbreak has reduced compared to 2019. However, it cannot be said that the outbreak has been fully controlled, and there are still many hidden risks.”

“I believe that modern farming is more affected by climate change because of investments in cool and enclosed pens, with temperature control systems through fans, ensuring a stable microclimate for the pig herd,” said Mr. Ba.

Is the price pressure from imported and smuggled pigs negligible?

Diseases cause price pressure on the livestock industry as there is an influx of disease-avoiding pigs from farmers into the market. In fact, the price of live pigs has sharply declined over the past few months from the peak above 60,000 VND/kg recorded in July 2023.

In addition to pressure from the disease, the influx of smuggled pigs through border gates into Vietnam is believed to be a reason for the decline in the domestic pig price. However, Mr. Ba thinks that this is not the main reason.

“The root cause is deep, stemming from the overall decrease in economic demand. Another reason is the supply, mainly still from domestic sources. This source has increased significantly as farmers sell pigs due to the disease. Although smuggled pigs have an impact, they are not the main cause. Recently, the Prime Minister issued a directive to tighten control on this issue at border gates. I think this situation will improve in the future,” according to Mr. Ba.

A number of smuggled pigs were caught in An Giang – Photo: Can Tho Newspaper

Similarly, Mr. Ba has a relatively positive view on the impact of imported frozen pork. This source accounts for about 2.1% of the total meat production in the country for the first ten months of 2023, according to data from the General Department of Customs. The reason is that the consumption habits of the Vietnamese people still prefer “hot meat, fresh meat,” so this segment is not affected.

Moreover, the 2% proportion is insufficient to regulate market prices; it would have to be around 50% – a level that Chairman Ba is confident Vietnam will not reach regarding pork imports.

“This source (imported meat) does not have much impact. The nature of imported meat accounts for only about 2%, mainly frozen meat. It is only suitable for the market segments of collective kitchens, restaurants, hotels, and tourist areas. Our people still go to the market to buy hot and fresh meat, as frozen meat is not as tasty,” he states.

 “However, this market segment cannot be hindered when integrating internationally, and we still have to accept it. Because foreign frozen meat is very cheap, when it comes to Vietnam, it also affects the collective kitchen market (Horeca market). As for the hot meat market, in my opinion, it will not be affected,” Mr. Ba said.

Supply is not too abundant; pig price may increase to 55,000 VND/kg after Tet

Regarding the supply and price of pork in the short term, Mr. Ba said that with a total pig herd of 27 million in the country (producing 45-50 million pork/year on the market) along with other foods, it is Ensuring supply during the upcoming Tet holidays, when consumer demand increases.

However, he believes that pig prices will increase at the end of the year because risks from ASF make the supply less abundant.

However, he believes that pig prices will increase at the end of the year because risks from ASF make the supply less abundant.

 “The total population statistics in Vietnam are not clear, but fully meet the needs of Tet when consumption increases. However, there are still challenges and risks from ASF reducing supply. Meanwhile, demand for pigs during Tet will increase by 10% – 20%. Therefore, although the supply is sufficient, it is not too abundant, which will cause pork prices to increase at the end of the year,” Mr. Ba shared.

As for pork prices, BAF Chairman said the current price is at the bottom. However, the impact on industrial livestock farming is actually not too great.

“This price range is the bottom, it must be understood that if this level is breached, it will be a loss. For small-scale livestock farming, which depends entirely on the purchase of breeds and feed, if the biosecurity of herd protection is not good, it is very risky. This price for them is approaching the cost price; even for farmers who do not control their herds well, they are at a loss.”

 “The story of industrial pig farming is different. The price of input materials accounts for 65%-70% of the animal feed of this group. Recently, the price of raw materials has decreased by 15% – 30%, thereby pulling the cost of industrial livestock farming down.”

“At BAF, the cost price is only about 40,000 VND/kg. At this price, it will be profitable if the herd is well-protected and free from ASF or other diseases. BAF is the best disease control company in the Vietnamese livestock industry, the disease rate in the total herd is very small and insignificant. In general, livestock enterprises with good control.

 “We also hope prices will continue to increase at the end of the year, and after the Lunar New Year. In my opinion, the price of live pigs during Tet will increase from 48,000 – 51,000 VND/kg to 53,000 – 55,000 VND/kg after Tet.”

The post CHAIRMAN TRUONG SY BA (BAF): AFRICAN SWINE FEVER (ASF) IS A CHALLENGE FOR VIETNAM’S LIVESTOCK INDUSTRY BUT ALSO A GREAT OPPORTUNITY appeared first on CГґng ty Cб»• phбє§n NГґng nghiệp BAF Việt Nam.

В BAF Vietnam Agricultural Joint Stock Company (BAF, Company) released its Consolidated Financial Report for Q2 2023, showing stable growth in business operations. Consolidated Net Revenue in Q2 2023 reached VND1,638 billion, a 14% increase compared to the same period. Gross Profit in Q2 2023 reached VND102 billion, a 54% increase compared to the same period, with a gross profit of VND63 billion from the livestock sector, an 82% increase. The gross profit margin from the livestock sector was 26%.

Cumulatively for the first 6 months of 2023, Consolidated Net Revenue reached VND2,455 billion, slightly lower than the same period, mainly due to decreased Revenue from agricultural merchandise and livestock business operations. Net Revenue from agricultural merchandise decreased by 21% due to a strategic reduction in this activity, which had a low gross profit margin and was subject to significant risks influenced by the Russia-Ukraine war. Besides, the company retained Feeder Pig for meat production, resulting in pork sales not matching the overall herd scale. Therefore, Livestock Revenue reached nearly VND600 billion.

Due to proactive sourcing of livestock feed from 3 “vegetarian” feed mills meeting GLOBAL GAP and FSSC 21000 standards, the cost of goods sold reached VND2,289 billion, a 17% decrease compared to the same period. GP reached VN166 billion, with a gross profit margin of 7%, a one percentage point increase compared to the same period. Enterprise Management Costs, Sales Costs, and Interest Expenses increased during the farm scale and distribution chain expansion. Pre-tax profit reached nearly VND18 billion.

As of the end of June 2023, the company’s Total Assets reached VND6,380 billion, a 35% increase compared to the beginning of the year. Short-term and long-term assets increased by 38% and 31%, respectively. Inventory was recorded at VND1,216 billion, a 38% increase, including pigs expected to be released to the market when pork prices were trading around 62,000 – 65,000 VND/kg from Q3 2023 onwards. Long-term assets in progress reached nearly VND1,000 billion, a 174% increase as the company rapidly put additional farms into operation in the year’s final months. Short-term and long-term loans amounted to VND1,603 billion, including convertible bonds issued to the International Finance Corporation (IFC) with an interest rate of 5.25% per annum for a 7-year term. BAF’s financial indicators reflect a state of stable finances, with a current ratio and quick ratio of 1.1 and 0.8 times, respectively.

The financial indicators of BAF reflect a stable financial condition, with a current ratio and quick ratio reaching 1.1 and 0.8 times respectively.

From 2020 to the present, BAF has implemented a closed livestock chain model under the 3F framework (FEED-FARM-FOOD) and has observed rapid growth in scale. The operation of 3 animal feed plants has achieved FSSC22000 and GLOBAL GAP standards. The number of modern farms has tripled to 23. The distribution chain has expanded to 60 Sibafoods and over 400 MeatShops. After a period of scaling up, the company has reviewed and adjusted its business operations toward sustainable development for the next phase. It has strengthened control activities, reduced expenses, and optimized the livestock process in line with the strategy to become one of the top 3 leading livestock companies in Vietnam.

As a result, business operations have not met expectations in the first 6 months of 2023. The company’s total herd has reached over 230,000 pigs, corresponding to about 570,000 market-ready pigs expected to sell from Q3 2023 onwards. Given the context of pork prices fluctuating around 62,000-65,000 VND/kg at present and projected to increase to 70,000 VND/kg in the final months of the year, the business results of BAF are anticipated to show positive outcomes in the upcoming period.В 

Expected Sustained High Pork Prices

In the past 3 months, pork prices have witnessed a 21% increase, rising from 51,000 VND/kg to 62,000 VND/kg due to reduced supply due to disease outbreaks and farmers not restocking.

Former Deputy Director of the Livestock Department (Ministry of Agriculture and Rural Development), predicts that pork prices are expected to stabilize around the lunar month of July (mid-August to mid-September in the Gregorian calendar). Demand could recover as schools reopen for the new academic year, increasing demand for institutional kitchens.

KBSV Securities Company anticipates that in the second half of 2023, pork prices will continue to recover and fluctuate around 65,000 – 68,000 VND/kg, nearly an 8% increase compared to the same period, driven by the removal of pork from stabilization goods and the ongoing downward trend in supply since the beginning of the year.

This favorable condition is expected to greatly benefit BAF, which currently holds a significant inventory of pigs, enabling it to make a breakthrough and achieve positive business results in the coming months.

The post BAF – SUSTAINED BUSINESS OPERATIONS STABILITY IN THE FIRST 6 MONTHS OF 2023 appeared first on CГґng ty Cб»• phбє§n NГґng nghiệp BAF Việt Nam.

Nam An Khanh High-tech Sow Farm (Nam An Khanh), specializing in pig breeding, was constructed in Tan Chau District, Tay Ninh Province. With an area of 15 hectares, a capacity of 5,000 sows, producing approximately 150,000 Feeder pigs annually. The farm employs the world’s most advanced underground pit technology, ensuring a conducive environment for the animals. Modern equipment, automated management systems, and wastewater treatment imported from Europe and the United States, such as AP, Cristal, Skiold, Big Dutchman, etc.

Nam An Khanh High-tech Sow Farm

Applying strict “biosecurity belt” measures according to the world’s leading modern farming standards to achieve “biosecurity” goals. Conducting disinfection and isolation for workers for 48 to 72 hours before entering the farm to minimize the risk of disease outbreaks. The entire pig farm is divided into three functional zones: Office, production, and water supply & wastewater treatment zone. The production area includes separate pens for semen collection, sow housing, gestation pens, and farrowing pens.

The automatic feeding system, controlled by a centralized system, minimizes contact between humans and animals to reduce disease spread and labor costs. Additionally, the central cooling system maintains a stable temperature of 25-26 degrees Celsius to ensure a suitable environment for animal development.

Nam An Khanh Green Farm invests in a modern wastewater treatment system that meets Grade A standards set by the Ministry of Health and can be used for domestic purposes. It also employs advanced treatment techniques to meet the highest standards of the Ministry of Natural Resources and Environment. Pig manure is processed through three settling ponds Г  a water filtration plant Г  clean water treatment before being collected for fertilizer, contributing to environmental protection and sustainable development.

On the same day, BAF held the inauguration ceremony for Trang Trai Xanh 2 High-tech Pig Farm (Trang Trai Xanh 2) in Tan Bien District, Tay Ninh Province. Trang Trai Xanh 2 located on an area of 10.2 hectares, with a capacity of up to 30,000 pigs. Like Nam An Khanh Farm and other operational farms of BAF, Trang Trai Xanh 2 is considered a modern design, construction, and operation model applied in Vietnam.

Trang Trai Xanh 2 High-tech Pig Farm

Trang Trai Xanh 2 is invested in modern technology and equipment imported from Europe and the United States. It applies a “biosecurity belt” with three separate zones and an automated feeding system to minimize contact between humans and animals, strictly following biosecurity regulations. The advanced wastewater treatment system meets the highest standards of the Ministry of Natural Resources and Environment and the Ministry of Health, with a water circulation rate of approximately 95%.

Considering the overall factors such as the farm’s location, modern equipment and automated management imported from major European corporations, wastewater treatment processes, and high standards of water reuse set by the Ministry of Natural Resources and Environment, Nam An Khanh Farm and Trang Trai Xanh 2 can be considered the highest standard farms in Vietnam.

These are the 19^th modern farms of BAF put into operation after meeting BAF and IFC’s stringent selection criteria, marking an important step in their strategy to become a leading company in the integrated modern livestock industry 3F (Feed-Farm-Food). Currently, BAF owns a system of 28 farms (19 operational and 9 under development) for breeding sows and market pigs across the country. The herd size exceeds 230,000 pigs, supplying over 550,000 market pigs annually.

The number of operational farms is expected to increase to 35-40 nationwide in the near future to expand the total herd size and proactively respond to the anticipated increase in pork prices.

The post BAF INAUGURATES TWO MODERN GREEN FARMS SIMULTANEOUSLY appeared first on Công ty Cổ phần Nông nghiệp BAF Việt Nam.

Mr. Truong Sy Ba – Chairman of BAF (on the left) and Mr. Samuel Dzotefe – IFC Senior Manager for Manufacturing, Agribusiness and Services in Asia singed Investment Agreements

IFC – a member of the World Bank Group – is the largest global development institution focused on the private sector in emerging markets. Supporting the livestock sector is a key focus of IFC’s engagement in Vietnam, in response to the African Swine Fever (ASF) outbreak which significantly reduced pig numbers in the country and disrupted the supply of pork – a primary source of protein – to consumers.

IFC aims to invest in modern livestock farming enterprises that pursue integrated production with high biosecurity and production standards to promote an increase in the supply of safe pork. In Vietnam, BAF is a leading livestock producer applying a clean food ecosystem – the 3F FEED-FARM-FOOD model. BAF has completed the 3F chain by owning 23 Modern Farms with a total herd of 200,000 pigs; 2 Animal Feed factories with a capacity of 260,000 tons/year, and has obtained GLOBALG.A.P. CFM 3.0 and FSSC 22000 V5.1 food safety management system certifications. The company also has a food distribution chain with about 60 Sibafood stores and 300 Meat Shops.

On February 20, 2023, the State Securities Commission approved BAF’s private convertible bond offering. This is one of the final procedures to complete the IFC’s investment in BAF.

IFC will provide an investment package of up to VND600 billion in convertible bonds and VND300 billion in bonds issued by BAF, totaling approximately US$39 million equivalent. The proceeds collected from the offering will be used to support the growth of modern livestock farms with high quality genetic breeds, animal feed factories, clean meat processing facilities and slaughterhouses.

Ms. Bui Huong Giang – Member of BOD cum CEO, said: “The collaborative efforts between BAF and IFC aim to support the growth of BAF’s livestock farming, animal feed factories, and food processing which under construction and future development in Vietnam, through a financial package that has been agreed upon. With the guidance and support of IFC, BAF will gradually transition from individual animal breeding to group breeding, ensuring compliance with requirements for health and biosecurity, В animal welfare, efficient use of resources, and protection of natural biodiversity and food safety. Other activities within the complete livestock supply chain, such as feed production, transportation, slaughter, and distribution, are also ensured to comply with the highest global standards of IFC.”

Mr. Samuel Dzotefe, IFC Senior Manager for Manufacturing, Agribusiness and Services in Asia said: “By supporting companies like BAF, 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 food sector’s continued modernization and implementation of international best practices.” 

IFC’s funding and technical assistance will help BAF improve its implementation of environmental and social В standards in business operations towards sustainable development goals through ensuring environmentally friendly conditions and safe working conditions for employees; setting up and implementing animal welfare practices in line with В international standards such as group sow farming, using antibiotics responsibly as recommended by the World Health Organization and other policies; efficiently using natural resources and minimizing the impact of project activities on the environment, and providing consumers with clean, high-quality, and safe “Vegetarian-fed Pork” products. In addition, BAF will enhance its corporate governance by adopting international standards. These improvements will contribute to the realization of BAF’s strategy to become one of the Top 3 leading livestock companies in Vietnam.

The post IFC AND BAF SIGN INVESTMENT AGREEMENTS appeared first on Công ty Cổ phần Nông nghiệp BAF Việt Nam.

Profit in Q3/2022 reached VND 182 billion, 3.5 times higher than the same period last year. Accumulated in the first 9M 2022, revenue from livestock has doubled, boosting pre-tax profit to 83% of the 2022 plan.

BAF Vietnam Agriculture Joint Stock Company (BAF, Company) has just released its Consolidated Financial Statements for Q3/2022 with outstanding growth in revenue and sustainable profit from the livestock segment. The success of the modern breeding model under the 3F model (FEED – FARM – FOOD) and the methodical investment have contributed to the rapid development of the total herd recently. As a result, the all kinds of pork products sold in the first 9 months of the year reached nearly 228,000 heads, a sharp increase over the same period in which pork accounted for more than 52%.

Consolidated net revenue in the first months of the year reached VND4,889 billion, coming from livestock sales and sales of agricultural products. Notably, Sales from the livestock segment reached nearly VND955 billion, double the number of y-o-y sales. Revenue structure illustrated aВ  strong shift towards revenue from the livestock segment which increased by 20% in the revenue structure compared to 5% in the same period, identifying the transformation in the strategy to become a modern livestock corporation with leading 3F model in Vietnam.

The reduction in the proportion from the agribusiness segment boosted the Gross profit growth of 21% YoY to VND 423 billion. Gross Profit Margin (GPM) reached 9%, increasing sharply from 4% in the same period of the same period, in which GPM from the livestock segment reached 49%. Selling & administration expenses recorded an increase over the same period to keep up with the operation of 20 modern pig farms and expand the distribution chain network to 60 Siba Food Stores and 250 Meat Shops. The results from the methodical investment are gradually bringing the “Vegetarian Pig” BAF the growth in Profit. Profit before tax (PBT) in Q3 2022 reached VND182 billion, 3.5 times higher than in Q3 2021. Accumulated in the first 9 months of 2022, the Company’s EBIT reached VND337 billion, completing 83% of the year plan. Net profit margin reached 6%, higher than 3% in the same period. EBIT and EBITDA margins increased slightly to 7% and 8% respectively, demonstrating efficient operation and good control of operating costs.

As of September 30, 2022, BAF’s total assets recorded VND5,199 billion, a slight decrease compared to the beginning of the period due to the collection of receivables. Short-term receivables continued to plummet by 50% to only VND 1,444 billion when BAF actively collected debts and concentrated resources to start the construction of 4 more modern and discreet farms applying modern European technology, scaling up the total number of farms to 20. Inventories reached VND 1,504 billion, up 38% compared to the beginning of the period, mainly sows and pork that will be launched in the last months of the year. Fixed assets recorded VND881 billion, up 63% when BAF put into operation a series of modern farms last year. Short-term and long-term debt increased to VND940 billion to meet the increase in herd size, development of stables and distribution system. However, BAF’s financial ratios reflect sound financial health, with the current ratio and quick ratio reaching 1.2 and 0.7 times respectively.

Affirm the quality and brand “Vegetarian Pork”

With the motto of providing the market with high-quality, delicious pork products without preservatives, BAF has paid great attention to each stage in the 3F chain. With the strength of rice production, BAF’s team of nutritionists has researched and created vegetarian bran using plant-based protein ingredients. BAF’s running bran formula completely eliminates ingredients containing animal protein; is researched, rigorously screened from fresh raw materials and produced in the system of bran factories with 2 certificates of GLOBAL G.A.P. CFM 3.0 & FSSC 22000 V5.1 by BAF. Combined with breeds imported from Genesus (Canada), a modern closed breeding process, BAFlesh pork is committed to CLEAN criteria, food safety and distinct delicious quality.

Pork prices are expected to continue to increase in the last months of the year under the impact of ASF, which has severely affected supply and increased demand in the run-up to the Lunar New Year. With the rapid growth of total herd and outstanding quality, it is expected that BAF’s pork products will continue to be widely accepted and contribute to the growth of the Company’s business results in the last months of the year.

The post GROWTH FROM LIVESTOCK SEGMENT Q3 PROFIT INCREASED BY 3.5 TIMES appeared first on Công ty Cổ phần Nông nghiệp BAF Việt Nam.

Owning the first 2 modern Animal Feed factories in Vietnam that reach Global GAP CFM 3.0 and FSSC 22000 v5.1 standards, BAF Vietnam Agriculture Joint Stock Company (BAF, Company) proactively reserves green feed sources with low production costs. Thereby contributing to the rapid development of the total herd and providing CLEAN and high quality pork products to the market.

BAF currently owns 2 modern Feed factories in Phu My and Tay Ninh with total capacity of up to 240,000 tons/year. The factories are fully automated and applying modern technology with international standards. In particular, Tay Ninh feed factory is the first factory in Vietnam to be granted the Global GAP CFM 3.0 – Global Good Agricultural Practices Certificate, FSSC 22000 В­v5.1 Food Management System certification by Bureau Veritas (BV) В – the long-standing reputable organization for testing and certification established in Belgium and headquartered in France. Global GAP CFM 3.0 is a set of standards on Good agricultural practice developed to apply to agricultural production on a global scale.

The FSSC 22000 v5.1 standard is the most advanced international standard for food safety systems recognized by GFSI – the Global Food Safety Initiative, which recognizes continuous improvement in performance as well as food safety system and is widely recognized around the world. This is a proud achievement when BAF has passed 3 evaluations, 229 strict criteria on feed production and business activities, 10 ISO 2200 provisions (food safety management) and 7 HACCP principles (A system that identifies, assesses and controls hazards that are significantly important to ensure food safety). These shows the professional and methodically approached investment in the production of feed – the first link in the 3F chain (FEED-FARM-FOOD) which determines the growth of the total herd as well as the quality of the pork products. Along with a team of nutritionists, the Feed factories has produced “Green Bran”, which does not contain ingredients from animal protein sources (such as bone meal, blood meal, feather meal, fish meal,…) and does not contain lean substances, colorants, weight gainers. This special formulation is strictly regulated in terms of quality and is applied to all BAF bran products from piglets, mature pigs to sows. The optimization of feed has significantly saved production costs, eliminated microbiological risks affecting animal health to В ensure nutrition for pigs and provide high quality CLEAN and flavoring pork products that good for the health of consumers. Combined with an operation of a closed modern breeding process, it can be affirmed that BAF’s pork source can be considered a genuine “Green Pork” – a completely different salient point of BAF in the livestock and distribution market.

For early 2023, BAF will expect to put into operation one more Nghe An feed factory with a capacity of 180,000 tons/year which applies the most modern technology and operation management system in Vietnam. This is the next factory that meets Global Gap CFM 3.0 and FSSC 22000 v5.1 standards for the whole system. This operation will increase the total capacity to more than 420,000 tons/year to ensure adequate source of high-quality feed for the rapid growth of the total herd.

The total herd reached 200,000 pigs, almost doubling the size over the same period last year

The success from applying the modern 3F (Feed-Farm-Food) model over the past 3 years has helped BAF make strong progress when it reached the Top 5 of Vietnam’s live pig market. BAF is most proactive in the source of green feed, ensuring nutrition for the total herd by owning 2 feed mills with a capacity of 260,000 tons/year; 20 modern closed farms across the country with modern 4.0 model meeting international standards; barn technology applying modern standards in the world and being transferred from large corporations from Europe and America such as: AP, Cristal, Skiold and Big Dutchman. For those reasons, the total herd of pigs of all kinds have been increased rapidly when reaching over 200,000 pigs, almost doubling the size over the same period last year. Besides, the put into operation of more than 60 Siba Food stores and 250 Meat Shop has completed the closed 3F chain according to the strategy of becoming Top 3 leading livestock companies in Vietnam.

BAF has been honored at the Asia Pacific Enterprise Award 2022 by Enterprise Asia

On 7^th October 2022, at the Asia Pacific Enterprise Awards 2022 (APEA) BAF was honored for the first time “Corporate Excellence” Category. BAF is the only livestock company to be awarded this noble award. Organized by Asia Pacific’s leading non-governmental organization – Enterprise Asia which includes together 8,000+ Entrepreneurs, Enterprises operating in 24 Sectors of 24 Asia Pacific Countries with accumulated Net worth of Membership in the Organization of more than USD 50 billion.

The Awards are evaluated for both Financial and Non-Financial criteria. Marking a 16-year journey – APEA 2022 with the theme “Connect – Convergence – Honor”, honoring enterprises and entrepreneurs with outstanding achievements and qualities that form an engine of growth towards sustainable and progressive economic and social development in Vietnam and across Asia. The APEA Award once again affirms BAF’s position in the livestock sector, recognizes the efforts and achievements that BAF has achieved in 2022 and is also a great motivation for BAF to continuously striving to become one of the leading livestock producers in Vietnam.

The post BAF – EXCELLENT QUALITY MEAT THANKS TO A SPECIAL FEED FORMULA appeared first on Công ty Cổ phần Nông nghiệp BAF Việt Nam.

International Finance Corporation (IFC) is expected to invest VND 600 billion in BAF Vietnam Agriculture Joint Stock Company (BAF, Company) through convertible bonds. Expanding modern livestock farming under the closed 3F model, raising the herd size to nearly 1.5 million with a production output of nearly 4 million sows and pigs by 2025.

According to BAF’s proposal to collect shareholders’ written opinions dated July 27, 2022, BAF submitted to the General Meeting of Shareholders the offering plan, plan on the use of proceeds from the convertible bond private placement of VND 600 billion for IFC.

IFC – a member of the World Bank (World Bank) is one of the global financial institutions that operate toward Sustainable Development focusing on developing economies by investing in Private Enterprises. With the mission to promote economic development by encouraging the development of Private Enterprises, IFC has invested more than USD 321 billion over the past 60 years. IFC has invested in the Vietnam market for nearly 10 years including the investment in Techcombank, Masan, GEC, etc.

To support the regional pork industry in Asia to overcome the consequences of African swine fever (ASF) as well as to secure the demand for clean and safe food, IFC aims to invest in livestock modern farming enterprises that apply the 3F model (FEED-FARM-FOOD) in Vietnam, of which BAF has been a typical company. Up to now, BAF has completed the 3F chain by owning 2 feed mills – 260,000 tons/year; 16 modern farms with a total herd of up to 200,000 heads; and a food distribution system of more than 50 stores and 250 Meat Shop counters.

The investment will be made in form of convertible bonds, without warrants and without collateral. The total number of bonds offered is 600 bonds (with a par value of VND 1 billion), a term of 84 months. The coupon rate is competitive at around 5.25%/year to 5.5%/year. This is considered a very competitive interest rate for bonds without collateral. The Proceeds collected from the offering will be used for expanding the farm, raising the herd size to nearly 1.5 million pigs aiming toward a production output of nearly 4 million sows and pigs by 2025.

Additionally, IFC will potentially support BAF in enhancing Corporate Governance (CG) towards implementing best corporate governance practices to increase transparency and ensure shareholders’ interests. Integrating sustainable development indicators such as GRI standards into the development strategy of the Company, evaluating E&S (social environment) of farming operation towards sustainable development. This will enhance BAF’s image and create opportunities for attracting competitive offshore funding in the future.

Revenue from livestock has increased nearly tripled in the first 6 months of 2022

BAF has just released its Consolidated Financial Statements for 2Q of 2022 with sustainable growth in Revenue and Profit from the livestock segment. Output and revenue from livestock production have continuously increased in recent times.

Consolidated net revenue in the first 6 months reached VND 3,164 billion, coming mainly from livestock and agricultural trading. The sharp increase in sales of pigs in Q2 2022 has boosted the revenue from livestock to reach over VND 800 billion, rising 2.4 times compared to the same period last year. Revenue structure had positive movement when the revenue from livestock accounted for 25% of total revenue, much higher than the level of 6% in the same period last year, this has shown a shift in the strategy of the company to become a leading modern livestock company operated under 3F model in Vietnam.

The reduction in weight from the agriculture segment has boosted the growth of Gross Profit Margin to 7%, which rose sharply from 5% in the same period last year. General and administrative expenses and Selling expenses recorded an increasing trend compared to first haft last year, this is to spend for the development of modern pig farms and the expansion of Siba Food stores and Meat Shop counters. Profit before tax and profit after tax in the first 6 months of the year recorded VND 155 billion and VND 128 billion, respectively. Net profit margin reached 4%, higher than 3% last year. EBIT and EBITDA margins increased slightly to 5% and 6% respectively, showing efficient operation and good control of operating costs.

As of June 30, 2022, BAF’s total assets recorded VND 4,856 billion which decreased 11% compared to the beginning of the period mainly due to the completed receivables collection. Short-term receivables dropped sharply by 45% to only VND1,582 billion when BAF actively collected debts to invest and expand their farming system. Inventories reached VND 1,449 billion, which rose 33% compared to the beginning of the year, the sows and pork raising currently will be sold to the market in the coming months with expected increasing prices due to supply shortages in recent months. Fixed assets recorded VND 733 billion, up 35% when BAF put into operation many modern farms last year. Short-term and long-term loans increased to VND 420 billion, a slight increase compared to the beginning of the period to meet the increase in herd size and to invest in equipment and modern barns. Even with the above, BAF’s financial ratios show good financial health with the current ratio and quick ratio being 1.13 and 0.6 times respectively. The deb/equity ratio is good at 0.27 times.

The impact of ASF has severely affected the total supply of pork, the purchase price of live pigs continued to increase by 21% from the beginning of 3Q of 2022. The purchase price of live hogs is fluctuating strongly at around VND69,000/kg and is expected to remain high until the end of the year. This will greatly contribute to BAF’s revenue and profit in the last months of the year. Besides, the timely access to the fund from IFC will help BAF to expand its development and to increase the total herd to ensure the strategy of becoming Top 3 livestock companies in Vietnam.

The post BAF PLANS TO ISSUE VND 600 BILLION CONVERTIBLE BONDS TO IFC appeared first on Công ty Cổ phần Nông nghiệp BAF Việt Nam.