Anova Feed JSC receives IFC support to expand sustainable livestock production

IFC, a member of the World Bank Group, has provided VND340 billion ($15.25 million) through five year convertible bonds to support Anova Corporation’s subsidiary Anova Feed Joint Stock Company to expand animal feed production. The investment will help the feed producer construct two additional mills in the southern province of Dong Nai and the northern province of Hung Yen and a warehouse in the southern province of Long An over the next two years. Once the new feed mills and warehouse come online, more than 500 new jobs will be created to supply products to nearly 40,000 farmers across Vietnam.

Anova Corporation has been a leading force in veterinary medicine in Vietnam since 1992. Originally known as Thanh Nhon Co.Ltd, Anova Corporation has nine subsidiaries that support animal health, feed production, and farming. The company specialises in the distribution of raw materials and additives for the veterinary industry.

Anova Feed, meanwhile, was established in 2012 as part of Anova Corporation to supply animal feed with higher performance metrics. The company applies scientific advancements afforded by a close working relationship with the world’s leading nutrition experts.

The domestic demand for meat has been on the rise, given the country’s growing population and higher standards of living. The Vietnamese agricultural landscape is driven by small farms and smallholders are looking to make sustainable strides in biosecurity and feed quality.

“IFC’s financing will help Anova Feed triple its production capacity, providing quality and reliable feed to the fast growing animal protein sector in Vietnam,” said Nguyen Hieu Liem, Anova Corporation’s CEO. “We are also seeking IFC’s advice in expanding our reach to other countries and strengthening corporate governance standards in preparation for a listing.”

In addition to financing, IFC will help Anova Feed pursue sustainable operation by adopting IFC performance standards and the World Bank Group’s environment, health and safety guidelines.

“IFC aims to support the sustainable development of Vietnam’s agricultural sector, which is growing rapidly and accounts for more than 20 per cent of the country’s gross domestic product,” said Kyle Kelhofer, IFC’s country manager for Vietnam, Cambodia, and Laos. “By supporting companies like Anova Feed, we are promoting the development of efficient and sustainable local private enterprises along the agribusiness supply chain as a driver of competitiveness and improvement of agri-products in the local market.”

IFC has significantly scaled up its agribusiness investments in recent years. In the fiscal year ending in June 2015, IFC invested $3 billion across the agribusiness supply chain from farms to retail units to help boost production, increase liquidity, improve logistics and distribution, and expand access to credit for small farmers. At the end of the fiscal year, IFC’s committed agribusiness portfolio stood at $5.2 billion.