Sojitz and Vinamilk Group Hold Groundbreaking Ceremony for One of Vietnam’s Largest Cattle Farm and Beef Processing Complexes
– Delivering High-quality Chilled Beef through Introduction of Japan’s Management Methods –
Mar. 8, 2023
Japan Vietnam Livestock Co., Ltd. (“JVL”)—a joint venture company established in September 2021 by Sojitz Corporation (“Sojitz”) and Vietnam Livestock Corporation JSC (“VILICO”), which is an affiliated company of Vietnam’s largest diary manufacturer Vietnam Dairy Products JSC (“Vinamilk”)—held a groundbreaking ceremony for construction on one of Vietnam’s largest cattle farm and beef processing complexes in Vĩnh Phúc province. The complex is scheduled to begin operations in June 2024.
Many of Vietnam’s beef distribution networks currently handle meat at room temperature, but demand for cold chain systems to deliver chilled meat is expanding as the country’s distribution and retail market has become more diversified*¹. Based on these circumstances, safe and high-quality beef production and quality management is a pressing issue, and there is demand to establish quality management systems for all processes from farming to beef production, processing, and sales.
The new farm and processing complex will be built on a 75-hectare property in Tam Dao, Vĩnh Phúc province. The farm will have the capacity to breed a maximum of 10,000 cattle and will be adjacent to a neighboring slaughterhouse with the ability to annually process approximately 30,000 cattle as well as a processing facility with the ability to annually produce approximately 10,000 tons of beef products. An integrated production system will be realized for all processes from breeding cattle to the shipment of beef products. Additionally, similar processing equipment and sanitation and quality management methods used in Japan will be introduced to raise production efficiency and create a stable distribution system for high-quality chilled beef.
This project will focus on rigorous quality management and product proposals*³ that address consumer needs and create Vietnam-brand beef. In the future, the business plans to expand to pork, poultry, and so on with the aim of developing Vietnam’s largest integrated meat business.
Sojitz strives to promote talent exchange between Japan and Vietnam through this project and other projects in various industries to foster industrial human resource development and contribute to the sustainable development of Vietnam.
*1: Vietnam’s annual beef consumption is currently approximately 500,000 tons. (Japan’s annual beef consumption is close to 1 million tons.) Future demand in Vietnam is expected to expand based on the country’s population growth (approximately 99 million as of 2022) and rising income levels.
*2: The groundbreaking ceremony held for the start of construction on the VINABEEF Tam Dao farm and beef processing complex gathered approximately 350 attendees, including Vietnam’s Deputy Prime Minister Tran Luu Quang as well as government officials from Vietnam’s central government, Vĩnh Phúc’s provincial government, and Japan.
*3: Through the provision of chilled beef products, JVL seeks to introduce new dishes and food preparation methods to Vietnam to increase beef related options and to offer new food lifestyles in Vietnam.
[Related News Releases]
◆“Sojitz and Vietnam’s Largest Dairy Manufacturer Vinamilk Group Establish Sales Company for Beef Products.” Sojitz Corp. Press release, 9 March 2021.
Company Overview – Vietnam Dairy Products JSC (Vinamilk)
10 Tan Trao Street, Tan Phu Ward, District 7, Ho Chi Minh City, Vietnam
Ho Chi Minh City Stock Exchange
|Representative Director||Mai Kieu Lien|
|Sales||JPY 335.8 billion (as of December 2022)|
|Main Business||Manufacture, sale, import, and export of dairy products and other processed foods|
Company Overview – Vietnam Livestock Corporation JSC (VILICO)
519 Minh Khai Street, Vinh Tuy Ward, Hai Ba Trung District, Ha Noi, Vietnam
UPCoM Stock Board (Vietnam)
|Representative Director||Trinh Quoc Dung|
|Sales||JPY 17.5 billion (as of December 2022)|
|Main Business||Wholesale of livestock and livestock products|
Company Overview – Japan Vietnam Livestock Co., Ltd. (JVL)
Sojitz Corporation – 49%
|Main Business||Cattle farming and the manufacture, processing, and sale of beef products in Vietnam|
Overview – VINABEEF Tam Dao Farm and Beef Processing Complex
|Site Area||Approx. 75 hectares|
Maximum 10,000 heads of cattle
30,000 heads of cattle per year
Approximately 10,000 tons per year
|Completion Date||June 2024|
[For questions, contact:]
Sojitz Corporation Public Relations Dept. +81－3－6871－3404