The agreement between Bunge Agribusiness Singapore and Baria SereceJoint Venture Company, operator of Phu My Port, commits Bunge's Asian division to use the port to supply its customers in Vietnam and provides Bunge exclusive access to the facility for shipments of agricultural commodities. The two parties have also agreed to partner on future logistics improvements at the port.
"Vietnam is the fastest growing market for the domestic use of soybean meal and corn in ASEAN, and is among the fastest growing in the world," said Christopher White,regional general manager - Asia. "Bunge's partnership with Baria Serece will enableus to be the leading supplier to this promising market.
"In the last five years, commercial feed production in Vietnam has grown at over 10percent per year, and annual per capita growth in meat consumption has exceededseven percent. We believe that this growth will continue or evenaccelerate due to continued increases in population and per capita income."
Soybean meal is the primary protein component in commercial animal feedformulations. The USDA Foreign Agricultural Service estimated that Vietnam imported990,000 metric tons of soybean meal in 2003. The Service also estimates that thelivestock sector contributes around 20 percent of the total value of Vietnam's agriculturalproduction.
Phu My Port is located on the Thi Vai River, approximately 70 km from Ho Chi MinhCity. It is Vietnam's leading port for dry bulk cargo, and is one of the country's onlyports capable of receiving Panamax class ships. Phu My Port is strategically locatednear the provinces and regions of Vietnam that contain the majority of the nation'spopulation and commercial feed mill operations.