Science - Technique

IFC invests US$ 52 million in Mavin Group’s closed-loop livestock chain

(VAN) US$ 52 million will be invested by the International Finance Corporation ('IFC') in the form of ordinary shares to help Mavin Group develop a closed-loop livestock chain "From Farm To Table".

The Ceremony of Strategic Partner Announcement and Signing of Share Subscription Agreement was held on 12th May 2022 at Melia Hotel Hanoi. Photo: Mavin.

On May 12, in Hanoi, the Ceremony of Strategic Partner Announcement and Signing of Share Subscription Agreement between Mavin Group and the International Finance Corporation (‘IFC’) was held with the witness of Deputy Minister of Agriculture and Rural Development Phung Duc Tien and Australian Ambassador to Vietnam, Mrs. Robyn Mudie.

Accordingly, the International Finance Corporation and the IFC Emerging Asia Fund under IFC Asset Management will invest US$ 52 million in the form of ordinary shares in Mavin Group Joint Stock Company.

As part of IFC’s crisis response to the highly contagious African Swine Fever (ASF) impacts on the regional pork industry, the funding will support the expansion of Mavin’s genetic pig breeding stock and breeding farms in Vietnam.

This investment will support Mavin Group in developing high-quality breeding pigs and expanding pig production capacity in Vietnam.

In addition to financial support, IFC will also advise and support the pioneering Mavin Group to improve animal welfare conditions, including implementing and applying the pig farming model in groups, helping to strengthen raising standards in Vietnam, and meeting and matching European criteria on animal welfare.

Mr. David John Whitehead, Mavin Group’s Chairman. Photo: Mavin.

Mr. David John Whitehead, Chairman of the Board of Directors of Mavin Group, shared: “Our goal is to become a safe, quality, and nutritious food manufacturer.

That’s why Mavin Group wishes to attract resources to help quickly increase production capacity and improve the quality of finished meat best to meet the market’s demand for safe food products and to are traceable.

IFC’s support of financial resources, expertise, and experience will help Mavin Group become a leader in safe pork food processing, following the “From Farm To Table” value chain in Vietnam, helping our Mavin Group meet the world’s best pig production practices.

At the signing ceremony, Deputy Minister Phung Duc Tien emphasized that the Government and the Ministry of Agriculture and Rural Development are very interested in livestock production enterprises in a closed-loop chain “From Farm To Table”.

The livestock products in the closed chain always bring high value, meet the standards of food safety and origin, meet the increased consumer demand of the domestic market and aim for export.

In addition, the Deputy Minister also noted that livestock enterprises, especially industry leaders like Mavin, must meet animal welfare standards when this concept is still not popular in the livestock industry in Vietnam.

Enterprises that want to export to many complex markets need to pay attention to this standard because this is an essential element in the sustainable production chain.

Mr. Phung Duc Tien – Deputy Minister of Agriculture and Rural Development at the Ceremony. Photo: T.L.

IFC’s investment will support Mavin in developing three pig farms in 3 provinces: Nghe An, Gia Lai, and Dong Thap.

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.

By 2025, it is expected that the breeding herd of Mavin Group will increase to 7,500 pigs (GGP) and grandparents (GP), reaching a total of 15,600 heads; The size of the broodstock (PS) herd will increase to 72,000 pigs, reaching a total of 87,400 pigs. The increase in the number of breeding herds as above will increase the scale of commercial pig farms three times, reaching about 150 farms, increasing Mavin Group’s supply capacity to the market to about 900,000 heads per year.

“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.

Mavin Group was founded in 2004 from a Joint Venture project with foreign investment, producing animal feed. The Group is proud of being one of the very limited enterprises that manage to successfully implemented the “From Farm To Table” supply chain. The Group supply to the farmers feed, piglets, and veterinary medicine, and takes care of their output as input for its European standard certified meat processing factory.

Mavin Group is also the first enterprise in Vietnam to implement the highly automated system in all the production processes to increase productivity and limit the negative effects on the environment, giving Mavin’s products competitive edge compared to international products.

Source
According to Quang Linh - Thanh Thuy/Vietnamagriculture.nongnghiep.vn

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