March 11, 2023
Vinamilk and Japan's Sojitz collaborate on beef cattle project
Vinamilk and Sojitz Japan are collaborating on a breeding and beef processing facility in Tam Dao, Vinh Phuc province, Vietnam Economy News reported.
The Vinabeef project, with a total investment of VND 3 trillion (~US$131 million; VND 1000 = US$0.042) is a joint project between Japan's Sojitz Corporation and Vilico, a member of Vinamilk.
This is the first project in the investment and collaboration plan between both corporations in high-tech agriculture, cattle breeding, and beef processing, with a total value of up to US$500 million in cooperative agreements signed at the end of 2021.
The project's ground-breaking ceremony is one of many events marking the 50th anniversary of diplomatic ties between the two nations.
Around VND 3 trillion (~US$131 million) worth of investment capital was pooled in phase one by Vinamilk, through its subsidiary Vilico, and Sojitz Group, and VND 1.67 trillion (~US$70 million) was spent on building the Tam Dao farm and factory complex.
Once it goes live in 2024, the project will result chilled beef products processed using Japanese technology and marketed under the Vinabeef brand.
The complex is the first project to be carried out in accordance with the US$500 million Memorandum of Understanding signed by Vilico, Sojitz Cooperation, and Vinh Phuc province at the end of 2021.
The joint venture, which aimed to develop the beef breeding and processing industries in Vietnam, saw Vilico own 51% and Sojitz own 49% of its capital.
Vu Chi Giang, vice chairman of the Vinh Phuc Provincial People's Committee, said the project is the largest in high-tech agriculture and food production-processing in the province, adding that advantageous legal frameworks will be established to support the companies in efficiently deploying their projects.
Vinabeef Tam Dao is designed to be developed and run using a closed 4-in-1 process that includes livestock, production, processing, and distribution. As a result, fresh, flavourful, nutrient-dense, and health-safe chilled beef will be made available to Vietnamese consumers.
In order to ensure the highest levels of freshness and nutrition, Vinabeef's beef products are processed in an ultra-clean environment on a closed, highly automated manufacturing line that can process 10,000 tonnes of beef annually (equivalent to 30,000 beef cattle).
In order to maintain full product traceability and ensure the highest standards of quality and safety from farm to fork, the distribution process will continue to be strictly controlled as required to meet the requirements of the chilled supply chain
- Vietnam Economy News