Vietnam's dairy industry recorded an annual growth of 10%

Vietnam Dairy Association President Tran Quang Trung said this growth was due to rising incomes and the development of modern retail chains. The demand for high-value dairy products is also expected to increase sharply due to the young population and the growing middle-sized urban population. These customers often want to experience new products, especially organic milk and nut milk. However, the most commonly consumed dairy products are liquid milk, powdered milk, yogurt and condensed milk, while consumption of other dairy products such as cheese and butter remains low.

Currently the demand for milk per capita in Vietnam is currently at 26 liters, lower than the 35 liters in Thailand, 45 liters in Singapore and 80 – 100 liters in Europe. Moreover, the domestic dairy industry only meets about 35% of domestic demand. According to the domestic milk industry development plan, domestic fresh milk production is forecast to reach 1 billion liters, meeting 38% of domestic demand in 2020 and increasing to 1.4 billion liters, meeting 40% of domestic demand. in 2025.

The domestic dairy industry has achieved good growth in recent years, Mr. Trung said. Industry players are innovating production equipment and applying technology to improve the quality of milk and milk products. The two largest milk segments in the domestic milk market are liquid milk and powdered milk, accounting for nearly 75% of the total market value with an annual output of 1.5 million liters of fresh milk and 138,000 liters of milk powder.

In recent years, dairy businesses have diversified dairy products such as organic milk and special nutritional supplements. Many large enterprises increase their market share through developing new products, 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 and Nestlé Vietnam.

According to the Department of Livestock Production under the Ministry of Agriculture and Rural Development, the size of Vietnam's dairy herds is increasing sharply as large enterprises increase their investment in expanding the scale of animal husbandry production. These enterprises are building up domestic raw material supply. They are increasingly developing dairy farms, importing more cows from Australia and the United States. They have many farms that meet GlobalGAP and organic standards to ensure food safety and quality standards. Besides, they also build links from farms to processing plants.

Vinamilk currently has 12 farms across the country, including 2 farms that follow European organic standards and 10 farms that follow GlobalGAP standards. The company is also building an organic milk complex in Laos. It is forecasted that the complex will be completed by the end of 2020 and that organic milk meeting European and American standards will supply Vietnam and export markets.

Meanwhile, TH Group, the parent company of TH True Milk, also spent about 2.7 billion USD to develop a project to produce fresh milk, process milk and some food projects in Russia.

At the end of 2019, Nestlé Vietnam will implement the second phase of expanding Nestlé Bong Sen factory in Hung Yen. This is the 6th factory of Nestlé Group in Vietnam and the second factory of Nestlé in Hung Yen.

According to VNS