IFC helps GreenFeed Vietnam expand sustainable livestock production

The primary aim of the move is to help ensure a reliable supply of safe and quality pork, while simultaneously enhancing livestock production practices and supporting the Vietnamese growing livestock industry.

IFC's investment is set to come through a seven-year bond and will allow GreenFeed to expand its pork production activities in Vietnam. The company's fattening pig production capacity is anticipated to increase by 750,000 pigs by 2023 and supply over 125,000 metric tonnes of pork annually, which the IFC estimates will benefit roughly 385,000 additional pork consumers.

Pork remains a staple and a vital source of protein for Vietnamese consumers, accounting for up to 70% of the total meat consumption in the country. At present, about half of Vietnam’s pork is supplied by small-scale pig farms which typically have 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, within Vietnam has dramatically reduced supply, thereby causing a sharp rise in pork prices. Indeed, live hog prices are now some 50% higher than pre-ASF prices, after doubling since 2019.

IFC's investment comes in alignment with the Government's target of producing 70% of the nation's pork in industrial farms which are both modern and biosecure. It is thought that this will serve to help address the severe pork supply shortage and the 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, chairman of GreenFeed Vietnam Corporation.

"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,” Dung noted.

"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," added Kyle Kelhofer, country manager for Vietnam, Cambodia, and Laos of IFC.

"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," Kelhofer stated.