Cattle-breeding corporation Ushichan Farm Co., based in Japan’s in Ishinomaki, Miyagi Prefecture, will partner with a state-run Vietnamese company to begin raising about 5,000 beef cattle in Vietnam by the end of this year at the earliest, The Yomiuri Shimbun reported.
The Vietnamese partner, Saigon Agriculture Incorporation (SAGRI), will prepare a 500-hectare ranch, cattle barns and about 5,000 young cattle in Ho Chi Minh City
Ushichan Farm will provide such techniques as breeding management that uses individual identification numbers and how to mix feeds.
The Japanese company, which was hard hit by the 2011 earthquake, will receive $3 million annually in consultation fees.
According to a statement filed on SAGRI’s website, the beef farm will be located in Ho Chi Minh City’s suburban district of Cu Chi. Beef from the Vietnamese ranch will be sold in local supermarkets and other stores starting around 2018.
“Such a large-scale investment in agriculture in Vietnam is rare. It indicates how high the Vietnamese side’s expectations are,” said an official of the Japan External Trade Organization (JETRO
Demand for meat in Vietnam has been on the rise, along with its rapid economic growth.
Vietnam spent $194 million to import 122,000 tons meat in 2014, with chicken meat accounting for 74% of import volume and 50% of value, according to customs data.
Meat consumption in Vietnam was 34.2 kilograms per capita in 2014, according to FAO data. That volume put Vietnam on the fourth position among the largest meat-consuming countries in Southeast Asia, but still below the world’s average of 42kg/capita/year.
Red meat accounted for just 9.2% of meat consumption volume in 2011.