Khanh Viet Corporation (KHATOCO) is a State-owned enterprise operating in paper production, printing, package production, textile, garment, tourism, trade and other fields. KHATOCO has invested in expanding its business scope to maintain development.
Success from ostrich and crocodile farming
In an effort to bring profit to KHATOCO, Khanh Hoa Province and Vietnam’s economy, the company began raising ostriches and crocodiles on a large scale in Khanh Hoa Province and the central region in 2001. The highly valued ostriches and crocodiles, which grow well in the dry climate of Central Vietnam, have not been developed there until recently.
KHATOCO started ostrich breeding on Hon Thi Islet in Nha Phu Lagoon, Ninh Ich District, where the company combined the business with tourism services provided by Long Phu Tourism Company. Test results showed that African ostriches fit the climate, soil and hydrographical conditions on Hon Thi Islet in particular and Khanh Hoa in general. Weight-gaining, egg-laying, hatching and baby ostrich survival criteria meet the requirements. Several diseases broke out but were successfully overcome. Then, KHATOCO began to try breeding crocodiles in freshwater and brackish water in several islets in Nha Phu Lagoon. In 1998, crocodiles began laying eggs and baby crocodiles began growing. KHATOCO’s goals are to build overall ostrich and crocodile industries in Khanh Hoa and other central coastal provinces in the coming years, including reproduction, breeding, processing and consumption.
Particularly, KHATOCO will provide baby ostriches and crocodiles and techniques and will be responsible for the processing and sale of products. Commercial breeding will be conducted by farming households and other economic organisations like cooperatives, private enterprises and limited liability companies. From now until 2010, the company will construct 3-4 centres to raise 7,500 reproducing ostriches to lay 250,000 eggs, hatch 160,000 eggs and raise 75,000 three month old ostriches.
Regarding commercial breeding, the company will sell 60,000 ostriches to farmers annually. At the same time, KHATOCO will cooperate with farmers and relevant units like banks and insurance firms to develop ostrich farming. The company is also building feed production factories with annual capacity of 37,800 tonnes. Each breeding region will have collecting, slaughtering and preliminary processing units. Ostriches will be processed for leather, meat and hides.
Regarding crocodile farming, KHATOCO will raise 500 female crocodiles and 167 males to reproduce 10,000 crocodiles a year and register with CITES to export to other nations. The company also opens crocodile farms to visitors. The crocodile and ostrich meat processing factories will annually process 2,000 tonnes of frozen, canned and other products. KHATOCO will be able to tan the rough hides of ostriches, crocodiles, iguanas, pythons and skates, and flat hides from cows and buffalos.
KHATOCO production units will focus on developing value-added products like ostrich eggshell powders, eggshells, feathers and hides for handicraft products and nutritious foods. Tanned leather is used to manufacture high-grade wallets, purses, belts, bags, shoes and samsonite. Ostrich organs will be used to make extracts, bone fluid, protein capsules, seasonings, sausages, refined fat, pharmaceuticals and cosmetics.
In October 2002, KHATOCO built the 20-hectare Quang Nam Ostrich Breeding Centre in Tam Phu Commune, Tam Ky Town, Quang Nam Province. In February 2004, the company set up the 26-hectare Ninh Hoa Ostrich Breeding Centre in Ninh Phung Commune, Ninh Hoa District, Khanh Hoa Province. Ostriches were imported from Long Phu Tourism Company, Thuy Phuong Poultry Research Centre and eggs were imported from Australia. In October 2003, KHATOCO started building a 10-hectare crocodile centre in Yangbay tourist site in Khanh Phu Commune, Khanh Vinh District. So far, the centre is keeping crocodiles bought from southern provinces and imported from the company’s trial farms.
Affirming the brand name
Regarding breeding technologies and techniques, KHATOCO has built up technical processes for raising ostriches and crocodiles, from reproduction and breeding to hatching, raising and disease treatment. The hatchery is developed with machines designed and manufactured by KHATOCO Machinery Enterprise. Since 2006, farmers started raising ostriches commercially. Especially, brackish crocodiles have been hatched since 2004. This is the only Vietnamese brackish crocodile gene source. The company also commenced construction on a four hectare animal feed production plant in Ninh Than Commune, Ninh Hoa District in September 2005.
Regarding product categories, KHATOCO has manufactured a wide range of products from ostriches and crocodiles such as fresh meat, frozen meat, internal organs, eggs, eggshells, fine-arts eggshells, leather wallets, belts, bags, shoes, bone extracts, tonic drinks and others. Most products are registered with competent authorities and have codes and eye-catching packages.
Regarding the market, KHATOCO-branded ostrich and crocodile products are now available in restaurants, hotels, shops and supermarkets in big cities throughout the country. The company quickly sells out its products after they roll off production lines. Demand overwhelmingly exceeds the supply from the company. Leather products and decorated eggshells are highly appreciated by both Vietnamese and foreign consumers.
In scientific research, KHATOCO is conducting studies on extracts, protein capsules, seasonings, liver pâté, eggshell powders, refined ostrich fat and feathers. The firm also built hundreds of formulas for feed production, designs, packages, finished quality registration procedures and marketed animal feed plants.
KHATOCO has proposed the Government and authorities at all levels provide farming credits and rural development assistance programmes for the company, and that provincial authorities assist the development of infrastructure works and implement investment incentive policies like tax and land rental exemption and reduction. Farmers will have wide access to bank loans to do business with KHATOCO.
Hai Trung
Vietnamese
