Vietnamese Dairy Firms Optimistic About Growth

VIET NAM - Viet Nam’s dairy market is predicted to double in size by 2020, reaching US$8.2 billion as the population is expected to increase by five million and dairy consumption to rise by a compounded annual growth rate of 7 per cent.
calendar icon 13 March 2017
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The dairy industry targets producing 2.6 billion litres of milk by 2020, said Tong Xuan Chinh, deputy head of the Ministry of Agriculture and Rural Development’s Department of Livestock Production.

Domestic raw milk production is projected to reach one billion litres to serve 38 per cent of total demand by 2020, Mr Chinh said at a Beef and Dairy Livestock Asia conference that wrapped up last week (Thursday, 9 March) in HCM City.

Viet Nam News reports that dairy consumption per capita is projected to rise from 20 litres to 27 litres of milk per person per year by 2020.

The targets are achievable due to improved income, rapid urbanisation and higher attention to nutrition of the children and the elderly, Chinh said.

Domestic dairy companies have expanded their production capacity of both raw milk and dairy products, while high technologies have been adopted in the raising of dairy cows and processing of milk.

Chinh said that national systems for breeding and quality control for raw milk and dairy products should be established.

There is also a need to improve processing technologies at household and farm levels as well as processing of forage and agro-industry byproducts for cattle feed.

Industrial concentrated dairy farming using high-tech methods should be developed to lay a foundation for the dairy processing industry, Chinh said.

From 2011 to 2016, the dairy industry grew at an annual rate of 16.6 per cent.

In 2015, the dairy market was valued at $4.1 billion, with powdered milk and liquid milk the bestselling products, accounting for 66 per cent of value share.

Domestic raw milk production, however, has been able to fulfill only 30 per cent of consumption demand.

Foreign producers provide 60-65 per cent of powdered milk demand in Viet Nam, while 50 per cent of the sale value of powdered milk is from imported products.

Foreign companies are the major supplier of cheese, accounting for 70-90 per cent of the volume consumed in Viet Nam.

Last year, the number of milk cows reached a total of 283,000, with milk production totaling 800,000 tonnes. The number of meat cows was estimated at 5.2 million heads.

Southeast Asian markets for beef and live cattle are growing and maturing, said Allister Lugsdin, a representative of Meat & Livestock Australia.

Viet Nam remains a major market for Australian beef exports as well as technology exchange in livestock production.

Australia plans to continue to supply healthy beef, as well as breeding and feeder and slaughter cattle to Southeast Asia, the representative said.

More than 40 domestic and Australian companies took part in the two-day conference and exhibition, which showcased modern technologies in livestock management, traceability and control of abattoirs, feedlots and breeding.

The event was organised by the Ministry of Agriculture and Rural Development’s Department of Livestock Production in coordination with Meat & Livestock Australia.

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