C.P Vietnam Corporation Towards Sustainable Livestock Industry

2:29:55 PM | 27/5/2021

Building its first factory in Vietnam in 1993, C.P. Vietnam Corporation promoted its business strengths, continuously expanded its production, improved quality and developed its brand name.

2020 marked the transformational milestone of C.P. Vietnam with the inauguration of CPV Food Binh Phuoc export chicken processing and slaughtering factory complex on December 23, 2020, located at Lot B5-CN Becamex Binh Phuoc Industrial Park, Minh Thanh commune, Chon Thanh district, Binh Phuoc province. This is the first closed model of Vietnam, the largest scale in Southeast Asia. The 10-ha facility cost an initial investment of US$250 million. The first phase capacity is 1,000,000 chickens a week or 50 million a year, designed to be scaled up to 100 million chickens a year (after 2023). This event made C.P. Vietnam in particular and Vietnam in general a major poultry food producer in the world.

Closed supply chain in biosafety zone

Inheriting a multi-business foundation in a closed model, especially agribusiness and food industries - an important foundation of Charoen Pokphand Group for the past 100 years, C.P. Vietnam currently has 12 animal feed producers across the country that provide suitable nutrition - clean and safe and no lean substances - for each growth age of livestock. The company has 3,000 green, clean, beautiful farms and ensures biosafe and organic slaughtering, processing, preservation and distribution of products.

CPV Food Company Limited, a subsidiary of C.P. Vietnam Corporation, is one of the largest and most modern food investment projects in Vietnam. This business pioneers in the "3F" model, from Feed to Farm and Food. The factory, powered by advanced production processes, modern machinery and equipment, and skilled employees, meets all 3F strict food standard requirements.

CPV Food Vietnam Factory Complex in Binh Phuoc includes an animal feed factory, five breeding chicken farms, a hatchery, 24 broiler farms and one chicken slaughtering and processing factory. The feed made here is supplied to chicken farms in the CPV Food Binh Phuoc Factory Complex. CPV Food Binh Phuoc is expected to create a breakthrough in the livestock industry in Vietnam. The factory is expected to supply high-quality safe chicken products to domestic consumers and export them to Japan (45%), Europe (35%), Asia (10%) and China East (10%).

The project is divided into two phases. The first phase (from 2019-2023) is carried out in six localities of Binh Phuoc province (Dong Xoai, Binh Long, Dong Phu, Chon Thanh, Hon Quan and Bu Dang) to process 50 million broiler chickens a year. These six localities were recognized by the World Organization for Animal Health (OIE) as the first disease-free zone in Vietnam. The second phase will boost the capacity to 100 million broiler chickens a year. CPV Food has built a IOE-standard safe production system against avian influenza and avian cholera. Specifically establishing an integrated disease-free facility for feed manufacturers: disease-free facility for breeding chicken, disease-free facility for poultry hatcheries, disease-free facility for chicken farms, disease-free facility for poultry slaughtering and processing plants. These factors are an important premise for Vietnamese branded chicken reaching the world.

CPV Food Binh Phuoc Factory Complex adheres to 100% traceability of the entire supply chain from feed ingredient sources to processed products along with consistent solutions for environment and animal welfare to meet all strict criteria from high-demanding importing countries. This is one major and important project of C.P. Vietnam Joint Stock Company, which is expected to bring in US$100 million a year in the first phase and US$200 million a year in the second phase.  The complex had the first chicken export in 2020, initially creating products with great added value, full-time jobs and stable incomes for many employees; increasing state budget revenue, and speeding up economic restructuring and agricultural industrialization in Binh Phuoc province.

Investing in technology, improving competitiveness

Being aware of the importance of sustainable business, the company has focused on applying science and technology to environmentally friendly production and breeding processes and livestock farming based on green business models. Specifically, the company built biogas facilities, feed and food factories furnished by cutting-edge emission, wastewater and odor treatment systems, strictly complied with the law; adopted 3R (Reduce, Recycle, Reuse) waste treatment model; planted trees in factories/farms, and achieved international standard certifications like ISO 9001, ISO 22000, Global GAP, ISO 14001 and ISO 50001.

Animal feed factory is equipped with modern automated technology. All production stages are performed by machines. Despite the large production scale, only 38 people in total, from managers to engineers and security staff, run the facility. And, only seven of them are running production. Even inputs and outputs are automated, without human beings' presence needed.

Binh Phuoc Export Chicken Processing Complex applies cutting-edge technology, adopts disease-free and environmentally friendly biosecurity production and processing approaches. The complex is equipped with a modern air-conditioning system to minimize pollution. Feed meets highest quality standards. All feed is thoroughly tested before being fed into specially designed splitter tanks in fowl farms. Quality management systems comply with Global GAP, ISO and SHE standards.

The application of Industry 4.0, artificial intelligence - AI and big data in livestock management and production is considered a key step. This will help improve productivity, product quality and competitiveness, make prices more reasonable and move toward sustainable development.

Always upholding information technology application to production, improving product quality and service quality, CPV Food not only creates distinctive product lines of high quality and high value, but also importantly sharpens its competitive edge in the market.

Sustainable development built on three benefits

C.P. Vietnam pursues a sustainable business strategy in line with the United Nations' Sustainable Development Goals (SDGs) on society and environment. During its operation, C.P. Vietnam has continuously expanded, developed and diversified its business activities while applying the circular economy to minimize environmental impacts and balance the ecosystem towards sustainable production and business. The company focuses on developing in all three aspects of economy, society and environment, and on joining hands with Vietnam to deliver joint sustainable development.

Mr. Sawang Chanprasert, Deputy General Director of C.P. Vietnam, said, “Always working for human health, we are well aware of our influence on the community and social sustainability with practical and meaningful actions. The company runs its business based on a sustainability strategy with three core pillars: Food Security; Self Sufficient Society; and Balance of Nature with three-benefit philosophy towards sustainability: Benefits for the country, for the people and for the company. We have been following this strategy with the desire of fostering sustainable development in Vietnam and the world.”

In addition to pursuing sustainable production and business, C.P. Vietnam cares about social benefits with positive community activities such as voluntary blood donation, medical examination and treatment and drug distribution for the poor, and houses built for people with recognized contributions to the nation. During the COVID-19 epidemic, joining forces with others in the fight against the plague, the company provided millions of medical masks and free food to the community.

With quick adaptability to overcome difficulties, C.P. Vietnam had a shining performance in 2020, ranked Top 50 best performers in Vietnam in 2020. On the path to the goal of becoming the “Kitchen of the World, C.P Vietnam is determined to bring high-quality, nutritious, hygienic and safe food to consumers, all based on environmentally friendly production standards and socially responsible business processes.

Source: Vietnam Business Forum