A major Chinese feed player is will significantly ramp up its aquafeed production and sales in Vietnam.
Shanghai, China-based Tianbang (which is also known as Tech-bank Food Co. Ltd. and was previously Ningbo Tech-Bank Co. Ltd.) will be adding to the 300,000-metric-ton capacity the firm has in Vietnam by producing feed for the aquaculture sector, according to Ni Shunlin, head of Tianbang’s Vietnamese operations.
Ni was speaking at a conference for company executives, customers, and media to outline Tianbang’s strategy as part of its Chinese New Year celebration. Ni said growing Chinese demand for seafood from Vietnam was the driving factor behind Tianbang’s decision to expand in Southeast Asia. Ni said the company will work to bring aquaculture technology and know-how from China to help Vietnam producer higher-value seafood.
Tianbang, which runs a robust pig-feed business, is also aiming to increase its domestic output of what it terms “cooked, fermented aquafeed” product from 10,000 metric tons (MT) per year to 70,000 MT in the coming decade, with 50,000 MT of that in crab and shrimp feed.
The firm is also aiming to use its subsidiary, Qingdao Qi Hao Sheng Wu Science and Technology Co., to expand sales of feed for cold-water species in the Bohai Bay, a vast expanse of sea stretching from Qingdao to Tianjin on China’s east coast. Tianbang has vowed to increase Qi Hao’s output from a current 30,000 MT to 300,000 MT, but hasn’t given a timeframe for that expansion. The company is targeting future expansion of ocean-based aquaculture for high-price fish like flounder and grouper as a driver of demand for “high-quality” feed.
Tianbang has traditionally focused on southern China, thought it became known internationally for its acquisition of American broodstock firm Primo in 2017. It stated its intention to replicate the integrated model common in China’s pig industry in its aquaculture business, meaning it will expand its footprint in aquaculture as well as feed production.
China’s government has encouraged the development of big firms like Tianbang as a way to consolidate a very fragmented food production scene, seeing this as a means of improving food safety. But China’s consolidated pig-farming companies have recently been forced to hedge against the decimation caused by a swine flu in China, with many looking to expand into aquafeed. In their economic outlooks, several have pursued the goal of growing sales of feeds and antibiotics to the aquaculture sector as China increases production of higher-value species like crayfish, croaker, grouper, and salmon.
Photo courtesy of Tran Thanh Sang/Shutterstock
