By Fei Thompson, Staff Writer, EMEA News
At VIV Asia 2025 in Bangkok last week, Johan van den Ban, CEO of De Heus Vietnam & Asia, told Expana that the company’s first feed mill in India is under construction and set to be operational by Q3 2025. With a $20 million investment, the facility will have a production capacity of 250,000 tonnes/year and will primarily focus on dairy cattle feed, buffalo feed, and poultry feed.
“When it comes to selling feed products from the new facility, we primarily focus on dairy cattle feed, as well as feed for buffaloes, which are widely used for milk production in the region. Additionally, we supply poultry feed for meat production,” van den Ban said.
“In this industry, logistics play a crucial role because feed cannot be transported over long distances without significantly increasing costs, which would erode our margins. Given that margins in our sector are relatively thin, we strategically choose locations close to both raw material sources, mostly local in India, and our customers,” he added.
De Heus entered the Southeast Asian market in 2009 and has since established a strong presence in Indonesia and Vietnam. Van den Ban noted that the company holds approximately 12% of the market share in Vietnam.
“We are very happy with our positions in Vietnam and Indonesia, as well as in the other countries where we operate. India is relatively new for us, but it holds huge potential. We want to establish a presence across India, and we believe it will become one of our biggest markets in the future,” he said.
Further expansion in Southeast Asia will depend on the success of the Indian market. van den Ban said: “We would like to establish production bases in other countries, such as the Philippines, and possibly in Bangladesh in the future, depending on how India develops.”
De Heus continues to navigate industry challenges, particularly animal health concerns. "Working with independent farmers in a market facing security risks, we also play a role in supporting their efforts to become more professional. Protecting assets and animals from these risks, including diseases, is essential. As a result, we see the market consolidating and integrating vertically," van den Ban said.
The company is also closely monitoring global trade developments, particularly the China-US situation and the impact of tariffs.
“Tariffs are something we follow daily, preparing ourselves for different scenarios and assessing their impact on the markets where we operate or plan to expand,” he said.
“Commodity markets are a major factor in our cost structure, as commodity prices are critical to our business. We track these closely, along with indirect effects such as trade policies. For example, Vietnam is heavily reliant on exports to the U.S., after Mexico and Canada, it ranks third in trade balance with the U.S. However, Vietnam is performing well and is actively preparing for government restructuring, which will reduce the number of ministries and provinces. The country is working to avoid the so-called middle-income trap by improving efficiency and increasing productivity,” van den Ban added.
Despite global uncertainties, De Heus remains optimistic about Vietnam’s growth and the broader Asian market.
