Movements of the dairy market: Organic fresh milk is strongly consumed

Currently, there are many organic standards in the world that are being applied, however Organic according to European standards is still considered one of the most stringent and globally recognized standards. Vinamilk's fresh milk products are made from 100% raw milk from organic dairy farms.

Vinamilk 100% Organic Milk is produced from the milk of organic cows that are naturally grazed on the vast grassy hills of Da Lat. All processes of caring for herds and milk production ensure strict adherence to the “3 No” regime of European Organic standards: No use of growth hormone for cows, no antibiotic residues, no drugs insecticides.

Refer to the price of some types of Vinamilk milk in December 2019

Up to now, Vinamilk's total export revenue has reached over 2.2 billion USD, coming from the export of products to more than 50 countries and territories. With positive results on exports in 2019, Vinamilk has recently received the Asian Export Enterprise Award 2019 for large enterprises in the category of processed foods. The award ceremony was held in Singapore on November 28, 2019 with the participation of more than 100 guests from typical Asian businesses.

Vinamilk currently has 12 farms across the country; In which, there are 2 farms built according to European organic standards and 10 farms according to GlobalGAP standards, this is the largest farm system in Asia in terms of number of international standards applied.

Recently, Vinamilk Company has also built a complex of “organic” dairy cow resorts with a scale of 5,000 hectares in Laos. It is expected that by the end of 2020, the farm will complete construction and achieve organic certification according to European standards and American standards, providing organic fresh milk for consumption in Vietnam and for export.

TH Group has also spent about 2.7 billion USD to invest in Dairy Complex, high-tech milk processing and a number of food projects in the Russian Federation. At the end of 2019, Nestlé Vietnam will also operate the second phase of the Nestlé Bong Sen Plant Expansion Project in Hung Yen, meeting the increasing demand of consumers for high quality nutrition products.

Experts said that in the future, the dairy industry is still considered to be potential because the milk consumption per capita in Vietnam is still low. According to the Vietnam Dairy Processing Industry Development Plan to 2020, with a vision to 2025, domestic fresh milk production is expected to reach 1 billion liters, meeting 38% of the demand by 2020 and 1, 4 billion liters, meeting 40% of demand in 2025. Dairy products currently consumed are mainly liquid milk, powdered milk, yogurt, condensed milk, while the consumption of other products such as cheese, butter … still modest. Moreover, the increasing trend of urban users in middle and high-end products (organic milk) can support sales growth in this region.

Liquid milk market has the participation of a number of large enterprises such as Vietnam Dairy Products Joint Stock Company (Vinamilk), TH Food Chain Joint Stock Company (TH True Milk), Moc Chau Dairy Cow Joint Stock Company. (Moc Chau Milk), Nestlé …

The two main segments that determine the growth of the whole domestic dairy industry are the two most important ones, liquid milk and powdered milk. The total value of these two segments accounted for nearly three-quarters of the market value with the current output of fresh milk reached 1.5 million liters, milk powder reached 138,000 tons. However, Vietnam's dairy industry only meets about 35% of domestic demand, so it is still a potential industry.

Moreover, Vietnam's demand for milk per capita is still low, only 26 liters / person / year, while Thailand is 35 liters / person / year, Singapore is 45 liters / person / year and other countries. Europe from 80 – 100 liters / person / year. The Vietnam Dairy Association forecasts that in the coming years, Vietnam's dairy industry will continue to grow from 9-10% and reach 28 liters of milk / person / year by 2020.

Source: VITIC