Dairy firms optimistic about growth

HCM City (VNA) - Vietnam’s dairy market is predicted to double in size by 2020, reaching 8.2 billion USD as the population is expected to increase by five million and dairy consumption to rise by a compounded annual growth rate of 7 percent.

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 percent of total demand by 2020, Chinh said at a Beef and Dairy Livestock Asia conference recently held in HCM City.

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 urbanization 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 percent.

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

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

Foreign producers provide 60-65 percent of powdered milk demand in Vietnam, while 50 percent of the sale value of powdered milk is from imported products.

Foreign companies are the major supplier of cheese, accounting for 70-90 percent of the volume consumed in Vietnam.

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.

Vietnam 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.-VNA