Cargill opens its 80,000-tonne warehouse for grains and oilseed at the Saigon International Terminals Vietnam (SITV) port in Ba Ria-Vung Tau Province on April 10. (Photo: VNA)

Hanoi (VNA) - Cargill on April 10 opened an 80,000 metric tonne warehouse for grains and oilseed at the Saigon International Terminals Vietnam (SITV) port in Phu My town, the southern province of Ba Ria-Vung Tau.

Equipped with world-class equipment, the 10 million USD facility is expected to meet the growing demand for grains primarily from the food and animal feed sectors.

The company said the warehouse meets safety, security and quality requirements and enables customers to receive agricultural products faster, more efficiently and more cost effectively.

This is Cargill’s such facility in the southern region. It has another 50,000-tonne facility at Cai Lan Port in the northern province of Quang Ninh.

Alan Willits, head of Cargill’s grain and oilseed business in Asia Pacific, said Vietnam is a key market for the company and the new storage facility strengthens its ability to supply high-quality feed grains and animal feed products to customers.

According to him, the investment is part of Cargill’s strategy to expand business to meet the growing demand for feed grains and animal feed, driven by increased meat consumption amongst Vietnamese consumers.

In the past three years the volume of grains and oilseed handled by the company in Vietnam has grown four-fold from 400,000 metric tonnes to 1.75 million tonnes.

By 2020 Cargill expects this to increase to more than 3 million tonnes, making it one of the largest importers, marketers and distributors of grains in Vietnam, he said.

Alongside the investment in the storage facility, Cargill will also become the first company in Vietnam to offer customers a digital platform that will provide real-time information including the warehouse stock position, shipment status, product orders and contract status updates. The digital solution will be launched in June 2018.

Cargill, which came to Vietnam in 1995, is a leading animal nutrition company that produces premix and compound feed. It also deals in food and beverage ingredients, grain, oilseed and metals. –VNA