3F model of Dabaco Vietnam Group

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25/01/2024 17:41

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3F model of Dabaco Vietnam Group

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Dabaco Vietnam Group steadfastly pursues its vision of becoming a leading corporation in the field of Agriculture - Food in Vietnam with a sustainable, closed value chain 3F (Feed - Farm - Food). At the same time, Dabaco also pioneers the application of advanced technology solutions in agriculture effectively and carries out the mission of controlling the value chain in the field of Agriculture - Food with the desire to bring products to the community. products & services of good quality, safety, and effectiveness with the highest respect and responsibility.

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Part 1

Starting background of the project/
initiative

From a state-owned enterprise with a capital of only 657 million VND, 30 employees, and an annual revenue of 40 million VND in 1996, Dabaco Vietnam Corporation officially underwent equitization in 2005 with a charter capital of 70 billion VND. This success can be attributed to the strategic vision of Chairman Nguyen Nhu So and the leadership team of the corporation, along with the determination and efforts of its employees.

In 2006, when Vietnam officially joined the World Trade Organization (WTO), Dabaco Vietnam Corporation was in its early years of equitization with a scale and stature that were only average compared to many domestic companies at the same time.

The country's opening up and integration led to a wave of FDI livestock enterprises entering the Vietnamese market to invest and take advantage of land and cheap labor, affecting Dabaco, a company located in the then-youngest province of Bắc Ninh. Concurrently, the livestock market was regulated and developed towards industrialization by the state.

While other enterprises were grappling with market issues, market share, and products, Dabaco had meticulous preparations and held many competitive advantages. Instead of engaging in small-scale livestock farming, from its early days in the market, Dabaco identified the goal of building a closed 3F (Feed – Farm – Food) supply chain. This served as the foundation for establishing a strong position in the market as well as sustainable development in the future.

3F model of Dabaco Vietnam Group- Ảnh 6.

Part 2

Goals and motivation for implementation of the project

Goals:

Instead of small-scale livestock farming, from the early days of entering the market, Dabaco Vietnam Corporation has set the goal of building a closed supply chain. With independent efforts to exploit and leverage the competitive advantages of the integrated 3F (Feed – Farm – Food) value chain production model, Dabaco Group has become a master of technology and the development of new products.

The concept of 3F stands for Feed – Farm – Food, representing the process of producing safe food. It starts with animal feed, goes through the farming process on various farms, and concludes with the food processing stage.

3F model of Dabaco Vietnam Group- Ảnh 9.

Motivation

Dabaco Group has diligently constructed and developed a modern and comprehensive production model, ensuring high standards of cleanliness from farms and factories to the dining table, each with its distinct characteristics. This forms the basis for establishing a strong market presence and sustainable development in the future.

The application of science and technology in the production and livestock farming of Dabaco Group has driven the development of the agricultural value chain towards large-scale commodity production, utilizing scientific and technological advancements to enhance efficiency, competitive capacity, and the development of the Vietnamese agricultural brand.

3F model of Dabaco Vietnam Group- Ảnh 13.

Part 3

Activities and scope of implementation

In the livestock feed sector, Dabaco has made substantial investments in a system of high-end industrial feed processing plants in provinces such as Bac Ninh, Ha Nam, Ha Tinh, Binh Phuoc, and Phu Tho, with a total capacity of 1.5 million tons. The well-known brands include Dabaco, Topfeeds, Kinh Bac, Khangti Vina, Nasaco, and Growfeeds. These brands not only supply animal feed nationwide but also cater to the needs of the group's farms.

In the livestock and poultry breeding sector, Dabaco Group is renowned for its breeding farms for pigs and its position as the number one supplier of chicken breeds nationwide. The company provides over 1.5 million piglets and more than 60,000 tons of pork annually. Particularly noteworthy is the production of green-shelled eggs, which are exclusively produced by Dabaco and are often referred to as ginseng eggs.

Food processing is the final stage in the integrated 3F closed-loop process. The group emphasizes comprehensive investment in the deep processing of agricultural products, from livestock and poultry meat, producing high-tech and safe products such as sausages, cotton wool, Chinese sausages, pork patties, and instant eggs. Raw materials are rigorously selected according to international standards, and the production process is controlled for both raw materials and finished products according to ISO 22000 and VIET G.A.P standards.

Moreover, Dabaco is a pioneering enterprise with specialized software to accurately collect, monitor, and process data, serving selection work. This includes breeding management software, data collection software and equipment, PEST/VCE for estimating genetic values, and genetic parameters, SAS for statistical processing, applying selection methods based on genetic values (EBV), and several selected traits based on selection indices.

3F model of Dabaco Vietnam Group- Ảnh 16.

Part 4

Project innovation/ invention

The Dabaco Biotechnology Center was established to conduct research, development, and application of biotechnology in the fields of livestock and veterinary medicine, particularly in the area of genetics. The center aims to proactively manage genetic resources, and shorten the time and cost for breeding high-yield, high-quality pig and poultry breeds to serve livestock farmers, contributing to sustainable development.

The Livestock, Poultry, and Feed Testing Center is the first unit in Vietnam equipped with an automated data processing system (FAN'S) - Fan's Feed Assessment Network System and Software. This system allows the monitoring and evaluation of various indicators in pig farming, such as growth rate, feed consumption, profit, and loss for each pig. These activities aim to accurately assess technical and nutritional indicators of breeds and test new types of feed before they are introduced to the market.

The Veterinary Diagnostic Center brings together a team of veterinarians, engineers, and technicians with high professional qualifications. Their responsibilities include diagnosing and preventing diseases for livestock companies, overseeing hygiene and production processes of member companies, testing feed, and nutrition, and performing microbiological analysis in animal husbandry.

The testing laboratory of the center is recognized as Vilas 834 according to ISO/IEC 17025:2005 standards.

The Biosafety Level 3 (BSL3) Testing Room, equipped with a biological safety cabinet imported from the United States, along with a system of ultra-low temperature freezers (-80 degrees Celsius) and liquid nitrogen tanks for storing vaccine virus strains, serves the purpose of researching dangerous infectious diseases.

3F model of Dabaco Vietnam Group- Ảnh 22.

Part 5

Implementation and cost

Dabaco remains steadfast in its strategic goal to develop its core areas, applying high technology in the 3F model while maximizing opportunities to improve production and business efficiency.

The group will conduct a thorough review and diligently implement biosafety farming processes, vaccine procedures, and epidemic prevention and control measures to ensure absolute safety for livestock and poultry herds. Strengthening the development of the breeding system and animal feed market based on the efficient exploitation of the 3F closed-loop production chain aims to increase the value of the group's products and brand in the market.

Simultaneously, the group continues to expedite the progress of investment projects in core areas, developing high-value-added food products such as green-shell eggs, instant eggs Devi, premium soybean oil COBA, UMI, etc. Particularly, priority is given to accelerating the research and commercial production of the African swine fever vaccine, aiming to bring the product to market as quickly as possible.

The process of upgrading the entire operational machinery is also a focal point for Dabaco Vietnam. Accordingly, units and specialized departments will deploy digital technology, multi-channel strategies in product access, and consumer goods to promptly capture market demands.

3F model of Dabaco Vietnam Group- Ảnh 25.

Part 6

Achievements

11,000

billion VND total assets

2,420

billion VND charter capital

10,000+

workers

60

business units

Part 7

Model expandation potential

Dabaco Vietnam continues to expand the 3F model by actively implementing high-tech projects in breeding and trading of breeding pigs in Thanh Hoa, expanding the breeding area in Tuyen Quang, Phu Tho... The Phase II oil pressing plant in Tan Chi Industrial Zone, Tien Du district, Bac Ninh province. In addition, the project for the production of animal vaccines... remains committed to the strategic goal of developing core areas, applying high technology in the 3F model, and maximizing opportunities to improve production and business efficiency.

Alongside the 3F model, Dabaco Group has left its mark by rapidly investing in modern technology and techniques in the working process. From the application of biotechnology in breeding, automatic data processing software Fan's to solutions for managing pedigree, productivity, and technical indicators of breeding stock. Mr. Nguyen Nhu So, Chairman of the Board of Directors of Dabaco Group, has expressed the viewpoint that agriculture must be systematic, with a business mindset along the value chain, and investments in science and technology to minimize risks.

3F model of Dabaco Vietnam Group- Ảnh 26.

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