Local milk consumption per capita will reach 28 litres next year (Photo: VNA) Hanoi (VNA) – The Vietnamese dairy industry sets a target of producing 1billion litres of fresh milk in 2020, meeting 38 percent of the domestic demand.
The figures will increase to 1.4 billion litres and 40 percent by 2025,according to a development plan of the domestic dairy industry.
TheVietnam Dairy Association forecasts the industry will grow from 9-10 percentnext year and local milk consumption per capita will reach 28 litres in2020.
Chairman of the associationTran Quang Trung said the growth is due to rising incomes and the developmentof modern sales chains.
Demand for high-value dairy products is also expected to increase sharply dueto the young population and growing number of middle-class people in urbanareas. These customers often want to experience new products, especially organicproducts and nut milk products.
However, consumed dairy products are mainly liquid milk, powdered milk, yogurtand condensed milk, while the consumption of other products such as cheese andbutter remains modest.
At present, Vietnam’s demand for milk per capita is 26 litres per year,lower than the 35 litres in Thailand, 45 litres in Singapore and between 80-100litres in Europe. Moreover, the dairy industry has only met about 35 percent ofdomestic demand.
The domestic dairy industry has achieved good growth in recent years, Trungsaid. Enterprises in the industry have renovated production equipment andfacilities and applied technology to production to improve the quality of milksupply and products made from milk.
Two major segments on the local dairy market are liquid milk and powdered milk,accounting for nearly three-quarters of market value with an output of 1.5million litres of fresh milk and 138,000 tonnes of powdered milk products.
In recent years, dairy businesses have diversified milk products such asorganic products and special nutritional products.
Many large enterprises have increased their market shares throughdeveloping new products, such as Vietnam Dairy Products Joint Stock Company(Vinamilk), TH Food Chain Joint Stock Company (TH True Milk), Moc Chau CowJoint Stock Company (Moc Chau Milk) and Nestlé Vietnam, he said.
According to the Department of Livestock Production under the Ministry ofAgriculture and Rural Development, the country's cow herd has been growingstrongly as large businesses have increased investment in expandingproduction scale of animal husbandry.
Those businesses have built local raw material areas in the country. They haveaccelerated development of dairy farms with imports of more cows from the USand Australia.
They have many farms reaching GlobalGAP standards and organic farms to ensurefood safety and quality standards. Besides that, they have also built linkswith the farms with processing plants.
Vinamilk currently has 12 farms across the country, including two farms underEuropean organic standards and 10 farms following GlobalGAP standards.
The company is also building a complex producing organic milk in Laos. It isexpected to complete construction at the end of 2020 and its organic fresh milkmeeting European and American standards will supply Vietnam’s market andexports.
Meanwhile, TH Group, parent of TH True Milk, has also spent about 2.7billion USD developing a fresh milk production project on processingmilk and some food projects in Russia.
At the end of 2019, Nestlé Vietnam will operate the second phase of expandingthe Nestlé Bong Sen Plant in Hung Yen. This is the sixth factory of NestléGroup in Vietnam and the second factory of Nestlé in Hung Yen./.
VNA
