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June 1, 2015
Sheng Long Bio Tech International
Since its start in 2011, Sheng Long Bio Tech International has become a major player in Vietnam’s shrimp feed industry. It is now the fourth largest producer of shrimp feed in the country, behind Grobest Feeds, Uni President Vietnam and CP Aquaculture Vietnam.
On March 18, 2015, Sheng Long, a subsidiary of Guangdong Haid Group Co., Ltd., one of China’ largest feed companies, held a ceremony to mark the expansion of its second feed mill in Long An Province, Vietnam. The expanded mill will create 500 new jobs and contribute $3 million to the provincial budget. The total investment for the expanded feed mill, which has that has two Wenger twin-screw extruders, was $15 million.
Another investment at the expanded mill is a state-of-the-art laboratory for routine feed analyses. It has a PCR laboratory, an electrophoresis room, analytical balance laboratory and a chemical storage room. These facilities allow the feed mill to keep a database of nutritional information on ingredients as well as to implement quality assurance systems based on ISO 9001:2005 and HACCP standards.
Sheng Long now has feed mills in Binh Duong, Khánh Hòa and Long An provinces with a total production capacity of 14,400 metric tons per month of shrimp feed. It has five brands of starter to growout feeds for Penaeus monodon and P. vannamei: Tiger, Royal Dragon, Lion, Bitech and Panda; and four brands of booster feeds: Golden Tiger, Golden Lion, Baccarat and Marina.
In his opening address at the ceremony, Jeff Jie Cheng Chuang, general manager of Sheng Long said, “We were undeterred by the decline in the local aquaculture industry in the past three years and showed an incredible growth rate of 900%. I am happy to say that we have...a 14% market share. In certain regions, we have the lion’s share.”
“The shrimp feed market has expanded with an overall increase in shrimp farming area of around 3%. The area used for monodon shrimp farming has declined slightly, but we can see a rapid growth for vannamei shrimp. By volume, shrimp production in Vietnam has increased by 22%, mainly because more farmers in the southwestern provinces have been changing their farming models from extensive system for monodon shrimp to intensive systems for vannamei shrimp. In parallel, in 2014, Sheng Long’s sales volumes increased rapidly by 72% while that for the overall shrimp feed industry increased by 22%.”
Chuang added, “We also promote antibiotic-free farming. Among the small farms, it is really difficult to eliminate the use of antibiotics and to rely solely on high quality aquafeed.”
Sheng Long benefits from the R&D of the Haid Group which spends $30 million a year to improve feed formulation and aquaculture at its research center in Guangdong, China, where 200 researchers with PhDs and Master degrees and some 900 researchers with Bachelor degrees work on basic and applied research in nutrition, microbiology, physiology and biotechnology applications of aquaculture. The company also benefits from the service oriented strategy developed by the Haid Group for its feed clients in China and similarly has applied this to service feed clients in Vietnam.
Hatcheries: Chuang said, “Under the Hisenor Brand, we have set up three shrimp hatcheries...in Ninh Thuam, Hue and Tien Giang provinces. Each has a production capacity of two billion specific pathogen free (SPF) Penaeus vannamei postlarvae. We believe that the farmer should have a good start in each crop. We estimate...sales...of one billion...SPF postlarvae in 2015.” In Malaysia, Sheng Long has established an operating center and will invest in a vannamei hatchery. In addition to the hatchery business, the Hisenor Group has been progressing with the development of a broodstock program, and it aims to provide high-quality broodstock to shrimp hatcheries in Vietnam.
Regional Plans: Sheng Long has also expanded its shrimp feed sales into Malaysia, India, the Philippines, Sri Lanka and Brunei. These countries will be serviced from the expanded mill in Vietnam.
Chuang outlined plans for the business in India. “In our next three-year plan, we will be developing a feed plant and a vannamei hatchery in India.” The feed plant will service South Asia, the Middle East and African markets. By 2016, the feed mill will produce 30,000 tons a year, and the hatchery will produce and 2.5 billion SPF postlarvae a year.
Chuang added that Sheng Long will be looking for a suitable partner to develop its seafood processing plans.
India: Sheng Long Bio-Tech India, Pvt., Ltd., has its registered office in Chennai. It has two regional managers; the regional manager for south India, Bhaskaran, is in charge of the southern markets in Tamil Nadu and Andhra Pradesh, while the northern regional manager, Kiron, covers markets in Odisha, West Bengal, Gujarat, Kerala and Karnataka. Its two distributors are Aqualife System in Andhra Pradesh and Magnum Sea Foods in Odisha and West Bengal. The Magnum group has a well-established shrimp farm and is the third largest seafood exporter in India. It has a buy back scheme for farmers in addition to the production from its own 60-hectares of farms. In 2014, it sold 8,000 tons of feeds.
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