The International Finance Corporation (IFC) and the investment fund managed by IFC Asset Management Company - IFC Emerging Asia Fund - will be investing US$52 million in common equity in Mavin Group Joint Stock Company (Mavin). As part of IFC’s crisis response to the impacts of the highly contagious African Swine Fever (ASF) on the regional pork industry, the funding will support the expansion of Mavin’s genetic pig breeding stock and breeding farms in Vietnam.
The Ceremony of Strategic Partner Announcement and Signing of Share Subscription Agreement was held on 12th May 2022 at Melia Hotel Hanoi
In addition to financing, IFC will also support the company to pioneer improved animal welfare conditions including group sow housing in Vietnam in line with European animal welfare standards.
"Our target is to become a safe, nutritional and hygienic food producer. That's why we need sufficient resources to quickly increase farming capacity and improve the quality of our pork to meet the market demand for safe and traceable products. IFC’s support in financing and their knowledge and expertise can help us become the leader in safe food production under the "From Farm to Table" supply chain in Vietnam and assist Mavin to meet international best practices in pig farming", Mr. David John Whitehead, Mavin Group's Chairman, said. "In addition, to satisfy the ever-increasing need to address animal welfare issues in farming, we will gradually transition to group sow housing in line with international animal welfare best practices. With IFC’s support, we believe that Mavin will be one of the first pork integrated producers in Vietnam to implement group sow housing in pig farming that will be progressively replicated across the industry".
Mr. David John Whitehead, Mavin Group's Chairman
Specifically, three pig breeding farms of Mavin will be supported by this Project:
i) A breeding farm of 62 hectares in K'Bang District, Gia Lai Province;
ii) A breeding farm of 100 hectares in Anh Son District, Nghe An Province;
iii) A breeding farm of 45 hectares in Cao Lanh District, Dong Thap Province.
With IFC's financial support, by 2025, Mavin's pig farm expansion is anticipated to increase the Company's genetic herd by 7,500 head (total great-grand (GGP) and grandparent (GP) stock of 15,600) and parent (PS) raising capacity by 72,000 head (to a new total of 87,400 head). The increase in breeding stock will result in a threefold increase in contracted Porker farms to an anticipated 150 operating units, or around 900,000 head.
“The investment in Mavin is part of IFC’s overall crisis response to the highly contagious and deadly African Swine Fever, which poses a serious risk to food security, particularly in a country like Vietnam, where pork is a primary source of protein”, said Darryl Dong, IFC Acting Country Manager for Vietnam, Cambodia and Lao PDR. “This investment will help strengthen the resilience of the Vietnam’s pig farming sector by promoting integrated production with high biosecurity standards and increasing the production of safe pork. By supporting a leading player in the pork-based food value chain in Vietnam such as Mavin, we aim to help improve the country’s pork production capacity in a more sustainable manner and in line with global industry best practices, boosting resilience, productivity and competitiveness”.
Mr Darryl Dong, IFC Acting Country Manager for Vietnam, Cambodia and Lao PDR
Mavin Group has received great support from PwC (Vietnam) Limited, who acted as the exclusive financial advisor and have worked closely with Mavin Group in discussions and negotiations with IFC to ensure the investment meets all due diligence and corporate governance requirements.
Mr. Phung Duc Tien - Deputy Minister of Agriculture and Rural Development
The Signing Ceremony
Further information about Mavin Group and its "From Farm to Table" supply chain:
Established in 2004, Mavin Group operates in feed production, farming activities, food processing, and veterinary medicine production. The Company's operations are mainly in Vietnam. Mavin is among the largest locally built integrated players in the agribusiness sector. Mavin's vertically integrated operations provide the Company with a competitive edge with its lower cost of production and strong biosecurity.
Mavin Feed is one of the top 10 feed manufacturers producing animal and aqua feeds. Mavin Feed operates five feed mills across Vietnam with a capacity of 1.24 million tons per annum.
Mavin Farm JSC (Mavin Farm) is one of the top five swine producers with a herd of 3,950 GGP and GP heads distributed across six breeding centers; 20,300 PS heads in 19 PS farms under direct control; and a total production capacity of 370,000 porkers from 52 rental & contracted porker farms.
Mavin Foods, established in 2013, has one operating meat processing plant in Northern Vietnam with a production capacity of 10,000 tons per annum. Products include sausages, bacon, and hams for the Vietnam market using high-tech equipment with automated production lines.
Cai Lay Veterinary Pharmaceutical JSC (Mavin Vet) was founded in 1990 and acquired by Mavin in 2013, based in Tien Giang, in the south of Vietnam. The Company is considered one of the largest veterinary producers in Vietnam, with 400 distributors nationwide. The WHO GMP-certified plant produces various animal health products in its seven production lines.