LDC and Haid in fish feed joint venture in China

By Jane Byrne contact

- Last updated on GMT

© GettyImages/CountDuckula
© GettyImages/CountDuckula
A joint venture between Louis Dreyfus Company (LDC) and Guangdong HAID Group Co. Ltd. aims to develop the biggest aqua feed mill in North China and leverage the synergies from combining soy crushing and feed production activities in one location.

Construction work is now set to begin on that JV’s new feed mill in Tianjin, China. The two companies held a groundbreaking ceremony there yesterday [May 22].

The LDC and HAID JV operates under the name of Tianjin Rongchuan Feed Co. Ltd.

Under a partnership agreement, signed by the two companies in December 2018, the mill will produce high-end aqua feeds, including prawn feeds, as well as fermented soybean meal.  Situated in the center of the Beijing-Tianjin-Hebei economic zone, the facility is expected be on stream by mid-2020; the owners said it will have an annual feed production capacity of 300,000 metric tons.

Protein demand 

China is the world’s largest supplier and consumer of aqua feed, noted LDC.

James Zhou, who heads up the company’s North Asia Region, said that as demand for protein rises in a number of markets and consumer demand for healthy meat alternatives grows in China, aquaculture represents an efficient and sustainable source of protein. LDC’s move into aqua feeds is consistent with that vision, he added.

He told FeedNavigator in April 2018, after the company added to its soybean crushing capacity in Tianjin​, that it was an opportune time to invest in that market.

“The Chinese government has openly communicated its intentions to expedite the opening up of the economy, welcoming investments across many industries, including the agricultural processing sector.

“It is encouraging to witness the growth and modernization of the Chinese feed sector that contributes to a conducive business environment for agricultural processors like ourselves to supply the market with higher protein soybean meal that helps meet growing domestic consumer demand for animal protein.” 

Partnerships 

Margarita Louis-Dreyfus, chairperson of Louis Dreyfus Holding, said the agribusiness group places huge importance on partnerships in terms of advancing its growth strategy.

The HAID Group is among China's top three and the world's top ten feed sellers. It has feed production bases in 23 provinces and cities in China, as well as Vietnam, India, Indonesia, Ecuador and other countries, with annual animal feed sales of more than 10 million tons. It has been listed on the A-share SME board of the Shenzhen Stock Exchange since 2009.  

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