Cargill has announced its exit from the aquafeed business in Vietnam. This is in line with the company’s overall strategy to focus resources on markets and species with long-term growth potential, said Maxime Hilbert, General Manager for aqua nutrition, to Vietnam Livestock Magazine.
As a result of the move, the company will close two aquafeed plants located in Dong Thap and Long An provinces, along with an aqua technical application center in Tien Giang province. However, the company will maintain its broader animal nutrition and health business in Vietnam, which remains crucial for its operations, the Cargill manager added.
The US-based company is evaluating possible future actions for its aquafeed business in Vietnam, including its assets, according to Hilbert.
It might be relevant to note here that last December, Cargill revealed plans to reduce its global workforce by 5% as part of a long-term strategy.
According to S&P Global, Cargill’s aquafeed business in Vietnam has struggled due to intense competition over recent years. The company had previously invested around $160 million in the country, operating 12 feed mills with a total capacity of 1.6 million tonnes annually.
Since its entry into Vietnam in February 1995, Cargill has grown to employ over 1500 people, with its operations extending across various sectors, including animal nutrition, food and beverage ingredients, and farm produce.
