BAF forms joint venture with global poultry farming giant

BAF Viet Nam Agriculture Joint Stock Company (BAF) has officially signed a cooperation agreement to establish a joint venture with Shandong Hekangyuan Group - China (HKY) to deploy a chain of commercial poultry farming, breeding, incubation, and slaughtering projects using a high-tech model, based on value chain development orientation and domestic market potential surveys.

According to data from the Department of Livestock Production and Animal Health (Ministry of Agriculture and Environment) and the Viet Nam Poultry Association (VPA), the total national poultry flock reached nearly 590 million birds by the end of 2025, up 3.7 - 4.3% compared to 2024. Of which, ducks and Muscovy ducks accounted for about 27.5%, corresponding to approximately 160 - 163 million birds.

The total output of live-weight poultry meat reached 2.6 million tons, an increase of 5.9%, with duck meat accounting for about 25 - 28%, estimated at 650,000 - 720,000 tons. The total poultry egg production reached 21.4 billion eggs, with duck eggs alone accounting for 30 - 32%, equivalent to 6.4 - 6.8 billion eggs.

The consumer market also shows immense growth potential for the "poultry protein" niche in Vietnamese meals. The average poultry meat consumption is approximately 25 - 26 kg/person/year, with duck meat alone contributing about 6.5 - 7.2 kg/person/year (equivalent to 2.5 - 3 ducks/year). Duck egg consumption accounts for 65 - 70 eggs/person/year.

The momentum for consumption growth is more strongly driven as consumers tend to partially shift from pork to clean and traceable sources of poultry "white protein".

However, over 65% of current production models still lean towards small-scale household farming and traditional free-range grazing. While requiring low investment costs, they reveal significant limitations in biosecurity, disease outbreak risks, and issues concerning traceability and food safety.

Market potential, combined with experience and production capabilities, is a strong driving force for the two enterprises' joint venture. Prior to the signing, both sides conducted a series of fieldworks, surveying HKY's genetic farm models and high-tech incubation centers in China, while evaluating BAF's planned livestock farming areas in Viet Nam. On that foundation, the BAF - HKY joint venture was established to create an automated closed-barn farm system, an incubation center applying advanced genetic techniques, and a chilled processing and slaughterhouse plant meeting food hygiene and safety standards.

Expectation for a new traceable food brand for Vietnamese consumers

Expanding into poultry farming is a new step in BAF's agri-food ecosystem. Following successes affirming its leading position in the high-tech closed livestock chain and clean food, expanding the poultry segment helps BAF optimize the existing operational capacity in the Feed - Farm - Food chain and circular agriculture, while effectively leveraging its logistics infrastructure and extensive nationwide distribution network.

The goal BAF aims for is diversifying nutritional sources for Vietnamese meals. The presence of clean poultry meat products, strictly controlled from breeding, nutrition and biosecurity to the slaughtering line, will provide consumers with more safe food choices, alongside pork, which is already this enterprise's strength.

Ms. Bui Huong Giang, General Director of BAF Viet Nam, emphasized: "The joint venture cooperation with HKY Group will provide BAF with an additional piece in the high-tech livestock value chain and more broadly, circular agriculture. We are not only aiming to expand the production scale but, more importantly, pursuing the mission of providing fresh, biosecure poultry food sources, enriching quality nutritional choices for Vietnamese meals".

Chairman of HKY Group Meng Qingli (Manh Khanh Loi) shared: "Viet Nam's livestock market has many similarities in potential and consumption structure compared to China, while BAF Viet Nam possesses a systematic production chain platform, suitable for deploying these large-scale projects. Immediately after the signing agreement, we will dispatch a team of experts to coordinate with BAF to conduct in-depth field surveys and urgently promote cooperation programs to quickly bring the joint venture into effective operation".

The cooperation signing between BAF Vietnam and the leading Chinese partner in livestock and food not only opens a new chapter for both enterprises' development strategies but also actively contributes to the modernization landscape, shifting Viet Nam's poultry farming industry towards an industrial, safe and sustainable model.