De Heus Invests In US$11 Million Feed Facility In Myanmar

Monday, October 17th, 2016 | 740 Views

Dutch animal feed producer De Heus has opened a new €10 million (US$11 million) feed plant in Yangon, Myanmar. The facility is located close to the prime agriculture production areas in the country. With a current capacity of 120,000 tons per year, the feed plant has potential to expand to 240,000 tons annually.

Agriculture is one of the largest contributors to Myanmar’s GDP. The sector provides around 30 percent of GDP, over 50 percent of employment and about 20 percent of exports. According to officials from the Dutch embassy in Yangon, the current 12.8 million hectares of cultivated land can potentially be increased by 50 percent.

De Heus’ Myanmar arm, in collaboration with Belgian company Belgabroed, is also building a new hatchery, which is expected to be completed by mid-2017. The company will focus mainly on the poultry sector, but sees growth potential in the cattle and pig sectors as well.

The country’s poultry meat demand is also set to grow around 15 percent per year, but the dairy products market is growing at a quicker rate of 30 to 100 percent in the next decade. Myanmar’s dairy sector is still underdeveloped, with dairy imports valued at US$75 million in 2012.

There are six large dairy farms around Yangon, with only 400,000 total dairy cows. Additionally, the majority of dairy farms have 20 or fewer heads of cattle.

There is much higher demand for fresh milk in the country than its existing output, and demand is expected to increase considerably in future. The Myanmar government has requested for assistance from the Netherlands to develop the dairy sector.