Vietnam's TH Milk Joint Stock Company recently unveiled a US$350-million project on raising cattle and processing milk in the central province of Nghe An.

The project, the biggest of its kind in the country, aims to develop an international-standard dairy industry based on advanced Israeli technology and management.

Nguyen Dinh Chi, chairman of the People's Committee of Nghe An Province, said this was the first high-tech project in the agricultural sector and it was expected to contribute to the economic development of Nghia Dan District and Nghe An Province.

The project includes eight farms which will raise 2,400 head of cattle each and a fresh milk processing factory. The construction of a 10,000-hectare pasture farm is needed for 30,000-45,000 cattle within two years, said Tran Bao Minh, the company director.

Nghia Dan District is capable of meeting the demand for a total area of 30,000 hectares for pasture, said Minh.

In February, TH Milk received 16,000 dairy cows transported from New Zealand and it expected to add another 6,000 dairy cows to its farms by the end of this year.

The company would invest US$100 million to build a processing factory with a production capacity of 530 million litres of milk per year, the largest in the country.

The project is expected to meet 30% of domestic consumption in the coming years and 50% in the next 10 years.

Fresh milk made in Vietnam currently averages 250 million litres, which is capable of meeting half of the domestic demand.