Vinamilk set to invest in US milk production

Vinamilk set to invest in US milk production

Viet Nam Dairy Products Joint Stock Company (Vinamilk) plans to invest in a milk factory in the US, according to the company's chairwoman Mai Kieu Lien.

The decision follows recent approval given to Vinamilk by the United States Food and Drug Administration (FDA) to export their products to the US, Lien said, adding the US was a potential market for the dairy giant.

The move comes as Vinamilk looks to invest in milk factories abroad, including in countries such as New Zealand, which is expected to become operational by September 2014. The products will be labelled under the trade name of Vinamilk. "Vinamilk aimed to develop production capabilities in countries which had a comparative advantage in breeding dairy cows, such as the US and European countries," Lien said.

The company also plans to increase the domestic procurement rate from the current rate of 30 per cent by 10 per cent.

To date, the company has managed five breeding farms with a total output of 90 tonnes of milk per day; joining forces with 5,000 additional farmers to lift output to around 460 tonnes milk per day.

Vinamilk plans to be among the world's top 50 milk producers, with a turnover of US$3 billion, by 2017.

vietnamnews