Logo of Phnom Penh Post newspaper Phnom Penh Post - Feed mill to take bite out of growing import demand

Feed mill to take bite out of growing import demand

Pigs are given water at a Mong Reththy feed mill in Preah Sihanouk province in 2013.
Pigs are given water at a Mong Reththy feed mill in Preah Sihanouk province in 2013. Sam Rith

Feed mill to take bite out of growing import demand

Chip Mong Group is the latest conglomerate to invest into local production of animal feed, announcing this week that it will sink $60 million into building a large-scale feed mill and industrial piggery, a move that agricultural experts welcomed but said would still not be able to curtail the Kingdom’s dependence on imported feed.

Sen Sovann, director general of the Ministry of Agriculture’s animal production and health department, said Cambodia imported over half of its animal feed last year at a cost of $135 million. It spent another $100 million to import some 400,000 pigs from neighbouring countries to meet local demand for pork meat.

“We are still overly reliant on imports of both meat and feed,” he said yesterday. “Even though we have new feed mill factories coming soon, they will not be able to the fill the gap created by the demand from the local market, which is increasing 10 percent annually.”

According to Sovann, there are 10 local feed mills currently in operation providing feed for swine and other livestock. Their combined output covers about 40 percent to 50 percent of domestic demand.

Leang Khun, director of Chip Mong Group, said his company is sinking $60 million into a new feed mill and piggery that will help reduce this gap when it starts up in 2019. The facility will be capable of producing 200,000 tonnes of animal feed a year for pigs, of which 70 percent will be used for the company’s 280,000 pigs and the rest sold to the local market.

“We will use the latest technology from Europe for our feed mill production,” he said. “Through this we will reduce imports of feed and also supply fresh, high-quality meat at a fair price.”

Khun said developing local feed mill production was crucial to improving the production chain of the agricultural sector. However, further investment would be needed to fully meet local demand.

“Feed mill factories are an important part of the country’s agricultural production chain because we already have a lot of raw materials to supply the factories,” he said.

“Feed mill production will allow us to reduce the flow of imports and promote local agricultural products.”

Mong Reththy, CEO of agro-industrial conglomerate Mong Reththy Group, said feed mill factories offer a good opportunity for investors because the sector still has plenty of room to grow.

“Currently, because the market is dependent on imports, there is still a lot of room for investments in feed mills,” he said. “When we can produce good-quality feed products, we will be able to compete with meat importers.”

Mong Reththy Group, which inaugurated its own $10 million feed mill last December, has the capacity to produce 60,000 tonnes of animal feed a year from locally grown corn and paddy rice. The plant currently supplies the 100,000 pigs on its pig farm in Preah Sihanouk province, as well as 100 nearby family-owned farms.

Reththy said his company plans to add further production lines to increase its supply to the local market.

MOST VIEWED

  • Body of woman killed in Bangkok returns

    The Cambodian embassy in Thailand is working to repatriate the body of a casino dealer who was shot dead in Bangkok on Monday night. Ministry of Foreign Affairs and International Cooperation spokesman Kuy Kuong told The Post on Wednesday that officials are preparing paperwork to

  • Chikungunya hits 15 provinces, says gov’t

    Ministry of Health spokeswoman Or Vandine said on Thursday that the chikungunya outbreak in the Kingdom has spread to 15 provinces. Some 1,700 people are now suspected to have the disease. Vandine urged people to prevent its further spread by eliminating shelters for the Aedes aegypti mosquitoes

  • Gov’t exempts visa A and B holders from Covid fees

    Airline passengers who are diplomats and officials of international organisations holding Type A and B visas for travel to Cambodia are exempted from paying Covid-19 testing fees, said the Ministry of Health in its latest adjustment of rules on Wednesday. Health Minister Mam Bun Heng

  • Bill covering dress code draws ire

    Ministry of Interior secretary of state Ouk Kim Lek responded on Tuesday to criticism concerning a draft law that would ban women from wearing overly revealing clothing, saying that input from all parties will be considered as the law moves through the promulgation process. Several

  • What’s the deal with Cambodia and China’s FTA?

    Cambodia’s Free Trade Agreement (FTA) with China kicks off a series of FTAs in future but for now, critics wonder what else the parties could bring to the table apart from what it already has to date By the end of this year, Cambodia

  • Police arrest 29 Chinese for PP kidnapping

    Phnom Penh Military Police arrested 29 Chinese nationals on kidnapping charges on Wednesday. The suspects are said to have abducted three other Chinese nationals from a hotel in Chaktomuk commune, Daun Penh district. The operation took place on Wednesday and was led by two deputy commanders –