Dairy industry milks new tech
Dairy industry milks new tech
The application of modern technology is considered to be a decisive factor in developing Vietnam’s infant dairy sector, an area with considerable potential for growth.
Industry insiders have affirmed applying more sophisticated technology in breeding dairy cows and the production of fresh milk is the only way to boost the sustainable development of Vietnam’s dairy sector. This is a promising sector throughout the country, even in places considered to have unfavourable natural conditions.
“Hi-tech applications are key to the success of Vietnam’s dairy sector,” said Thai Huong, chairman of TH true MILK.
The firm’s experience of breeding dairy cows and producing fresh milk in the central province of Nghe An can be cited as a typical example of success. This region is hot and dry, conditions that are naturally unfavourable for raising dairy cows. However, thanks to the application of technical expertise, there are now 28,000 dairy cows in the province. Whilst the Central Highlands of Lam Dong province, which has more favourable climatic conditions only has 5,000 cows.
According to Huong, TH true MILK has made a total investment of $1.2 billion in the large-scale project with a closed production process, equipped with the most modern technology in Asia.
“Now operational, TH true MILK’s project has already changed the structure of Vietnam’s dairy sector. The production of sterilised reconstituted milk has reduced from 92 per cent to 70 per cent. With the introduction of a closed process from pasture to dining-table, the project has helped to create a solid foundation for the organic fresh milk industry in Vietnam,” said Huong.
Vietnam has a hot and wet tropical climate that is generally unfavourable for breeding dairy cows. The application of modern technology helps to deal with many limitations in terms of climate and environment. These are traditionally viewed as weaknesses for the development of Vietnam’s dairy sector.
“Modern technology is a prerequisite factor in the development of Vietnam’s dairy sector,” said Dang Kim Son, general director of Institute of Policy and Strategy for Agriculture and Rural Development.
Yuval Rachmilevitz, chairman of Afimilk, Israeli’s top manufacturer of milk technology, said the expeditious way to sustainably develop Vietnam’s dairy sector was to apply scientific know-how.
Rachmilevitz said many Israeli firms wished to invest in Vietnam’s milk industry, but are awaiting incentives from the Vietnamese government.
“The Vietnamese government would need to give financial support to dairy farmers to construct large-scale farms, make long-term plans for price stabilisation and ensure hygiene and safety regulations. This will help lure foreign investors,” Rachmilevitz said. “Investors need to be able to trust that they can accrue profits from these policies.”
According to the Ministry of Agriculture and Rural Development (MARD), the country imports some 1.2 million tonnes of milk every year, making it one of the world’s 20 biggest milk importers. Currently, the volume of locally-made fresh milk meets only 30 per cent of the milk processing industry’s demand.
According to Nguyen Xuan Duong, acting director of the MARD’s Department of Livestock Production, per capita milk consumption in Vietnam stands at 14.8 kilogrammes. This is much lower than the average level of 35kg in the rest of Asia.
According to the MARD, Vietnam’s dairy sector aims to expand the herd from nearly 170,000 cows in 2012 to 500,000 cows by 2020 and increase milk output by one million tonnes, growing over 11 per cent year-on-year.
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