Mavin

active

Established in 2004 Mavin Group JSC is a vertically integrated pork producer, meat processer, feed mill operator, and veterinary health products manufacturer based in Vietnam. The four business units are located across north, central and the south of the country. Mavin Farm JSC (Mavin Farm) is one of the top five swine producers with a breeding herd of ~3,250 sows distributed across five breeding centers; 15,400 Parent Stock (PS) in 15 PS farms under direct control and 36 contracted Porker Farms with a combined head of ~257,000 porkers. Mavin AustFeed JSC (Mavin Feed) is one of the top 10 feed mill operators producing animal/aqua feeds and one day old chicks. Mavin Feed operates five mills across Vietnam with an annual production capacity of ~1.24 million tons of animal feed per annum. The Mavin Food JSC (Mavin Food) established in 2013 has one operating meat processing factory in Northern Vietnam with a production capacity of 10,000 tons of output per annum. Specialty products include sausages, bacons and hams for the Vietnam market using modern production equipment within an enclosed production line. Material inputs of pork and chicken are sourced from local slaughterhouses and European Union. Cai Lay Veterinary Pharmaceutical JSC (Mavin Vet) was founded in 1990 and acquired by Mavin Group in 2013. It is based in Tien Giang, Southern Vietnam. The entity produces a range of antibiotic and nutrient treatment products for livestock. The company sources liquid and powdered inputs, formulates, processes and packages for distribution for both wholesale and retail markets. The company is considered as Vietnam’s largest veterinary products producer with 400 distributors nationwide.  The proposed IFC investment of up to US$52 million equivalent in Redeemable Convertible Dividend-paying Preferred Shares (RCDPS) in the Mavin Group, as part of IFC Agribusiness’s African Swine Fever (ASF) Regional Recovery Program. This proposed financing is to support the Mavin Farm growth in its genetic breeding stock and breeding farms in Vietnam. Specifically, the sites under construction/planning to be supported by this project include: i) a breeding facility on a 50-hectare footprint with a 12-hectare buffer zone in K’Bang District, Gia Lai Province, ii) a breeding facility with a 30 hectare footprint and a 70 hectare buffer zone in Anh Son District, Nghe An Province, and iii) a breeding facility with a 30 hectare footprint and a 15 hectare buffer zone in Cao Lanh District, Dong Thap Province. The farm expansion is anticipated to increase the breeding herd by 7,500 head (cumulative breeding stock of ~15,600) and gilt raising capacity by 72,000 head (to a cumulative total of ~87,400 head). The increase in breeding stock shall result in a threefold increase in contracted Porker farms to an anticipated ~150 operating units by 2025, or around ~900,000 head.   Mavin Farm model for pig farm expansion is to identify suitable locations for breeding farms either acquiring the land use right directly with self-build, own and operate, or engage partners to conduct the construction under a lease back/rental arrangement. Under the rental model, the landowner constructs the facility to the agreed design and technical specification then renting the finished unit back to Mavin Farm. For acquisition, Mavin Farm acquires the site from the landholder developing the facility themselves. The economic life expectancy of the breeding farm operations is 20 years. For all breeding and PS farms, Mavin Farm retain management and operational control of the sites.  For the contracted Porker Farms, two models apply, one where the facility is already constructed and Mavin Farm engage directly with the operator following evaluation of both the quality of existing structures, legality and regulatory compliance of the facility, and operation (especially as this relates to biosecurity). Mavin Farm will contract businesses for a period of three to five years. The second approach (for new construction) consist in Mavin Farm identifying a suitable location and requiring the landowner to construct a facility to the Mavin Farm technical specifications with an agreement to engage in the contract farming once the site is constructed. In both scenarios for the models above, where a third party constructs the facility, Mavin Farm will act as advisor during the construction and support the partner with guidance on contractors to engage with and supervision during the construction.