Vietnamese Increasing Interest in Dairy
In recent years Vietnam has undergone a major rise in demand for dairy products. As the demand for processed milk-based products is growing rapidly, local manufacturers are trying to keep up with this trend. Regarding the time between 2001 and 2014, annual domestic milk production increased by 26,6%. Despite such a significant increase in production, this output could not meet customer demands, and many dairy products had to be imported. As it was stated in the report by Investprocen – an organization under the Ministry of Industry and Trade of Vietnam; “For the period from 2010 – 2015, fresh milk production capacity increased by an average of 16% per annum from 520,6 million liters in 2010 to 1.093 million liters in 2015.”. Taking advantage of such an upward trend, some companies are investing in the sector.
TH Milk, a Vietnamese dairy processing company recently announced the beginning of the construction of its newest plant. This concentrated dairy cow project is going to be the biggest in the area, in total covering 441ha of land. Investment is taking place in the Central Highlands in the province of Kon Tum. The high tech plants will consist of farm clusters and dairy cow breeding facilities. The breeding cluster is planned to raise up to 100,000 cows with help of technology from Israel. The project is believed to be worth 2.54 trillion VND (109.5 million USD) in total. In terms of the cost and size of such a facility, it is going to be the biggest of its kind.
As was stated in the report mentioned above, Vietnamese dairy output is hoped to show an increase; in the period between 2026 and 2035 a growth of 5% year is predicted. In the recent report, the Vietnam Dairy Association forecasts a supply growth of 9 to 10% just in 2020. Following VDA calculations, local per capita consumption will rise to 28 liters. Such an increase in interest in dairy is due to rising incomes and the development of modern sales chains.