People buy BAF pork at the counter in the supermarket – Photo: BAF
BAF Vietnam has just passed a resolution to accept the transfer of 99.99% of its capital contribution at Tuyet Hoa Dak Lak Company Limited, a company with a charter capital of 50 billion VND, whose main business is pig farming.
BAF has been continuously acquiring shares of companies in the same industry since September 2024.
Most recently, on November 22, this company announced the transfer of 99.99% of the charter capital of Thanh Xuan Clean Agriculture Development Joint Stock Company, headquartered in Thanh Hoa province.
This company was established in 2017, with the main business being mixed farming and livestock farming.
Notably, on October 30, 2024, BAF announced information on the transfer of shares in six companies, with ownership ratios ranging from 49-95%.
These companies are mainly in Quang Tri such as Toan Thang Joint Stock Company, Hoang Kim QT Joint Stock Company, Viet Thai HT Joint Stock Company in Quang Tri... and own 95% of the capital of Khuyen Nam Tien High-Tech Livestock Company Limited.
Khuyen Nam Tien is a company established in August 2024, headquartered in Dak Lak and with a charter capital of 50 billion VND.
The legal representative of Khuyen Nam Tien Company is Ms. Le Thi Tuyet, who is also the legal representative of Tuyet Hoa Dak Lak Company Limited, which BAF has just announced to receive a transfer of shares.
In addition, in early September 2024, BAF received the transfer of 2.8 million shares, equivalent to 40% of the charter capital of Rung Xanh Production Joint Stock Company (Dak Lak).
During a meeting with investors in early November 2024, a BAF representative said that the five enterprises whose charter capital was acquired all had land funds and were completing legal procedures, and BAF would buy back all shares after completing the procedures.
BAF is a business established in 2017, operating in the field of livestock farming, processing and food supply.
According to a report by DSC Securities Corporation, BAF's total pig herd increased by 74% from the end of 2023 to the third quarter of 2024 (from about 330,000 to more than 500,000). The expansion of the pig herd helps BAF increase its commercial pig production to up to 1 million pigs.
BAF’s continued acquisition of livestock companies and construction of new farms will help it increase its pork market share. However, large herds require strict management systems to control disease and product quality.
At the same time, rapid expansion causes initial costs to increase sharply, which can put pressure on cash flow and profits in the short term. As of the end of Q3-2024, the livestock segment accounts for more than 60% of BAF's revenue, with a total gross profit margin of 17%.
According to the analysis center of Tien Phong Securities Joint Stock Company, the 2018 Law on Animal Husbandry, effective from 2020, strictly prohibits animal husbandry in unauthorized areas of cities, towns, townships, and residential areas.
Localities have 5 years to prepare, with a deadline of January 1, 2025, to relocate unsuitable livestock facilities.
This regulation will force some small-scale livestock farmers to stop operating if they cannot relocate, narrowing the supply. This is an opportunity for large-scale livestock enterprises to expand their market share.
Pork consumption in Vietnam in 2025 is estimated at 3.9 million tons, an increase of 3.3% compared to 2024.
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