One of China’s largest animal feed producers, New Hope Group started production at its newly built feed mill in Gazipur, Bangladesh earlier this year. The plant has the capacity to become the largest in the country.
At the same time, local competitors fear the entry of such a big
conglomerate into the local feed industry, saying it might drive small local
feed companies out of business. However agricultural analysts said it would
increase competition and help farmers get quality feeds at a competitive price.
“It will be tough for small scale manufacturers to survive in the
business as New Hope will enjoy low production costs due to large scale
production,” said Moshiur Rahman, managing director, Paragon group, one of the
country’s biggest animal feed producers.
Moshiur said the production
capacity of New Hope will far outpace the existing production capacity of many
local manufacturers. The total production capacity of our four feed mills is
about 55 tonnes per hour while New Hope alone will produce 30 tonnes per hour,
said Moshiur. However, Shah Habibul Haque, in charge of Aftab’s poultry and feed
businesses, is eager to compete. “We will be able to compete through our quality
and marketing efforts,” he said.
The New Hope Group, which has businesses
ranging from animal feed through real estate to finance, has also invested in
Vietnam and Philippines.
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