Vietnamese dairy plan targets growing market

A project on raising cattle and processing milk has been developed in the Vietnamese central province of Nghe An with a total investment of US$350 million, according to project co-ordinator TH Milk Joint Stock Company.

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, it said.

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 partly contribute to the economic development of Nghia Dan district and Nghe An province.

Hoang Kim Giao, head of the Ministry of Agriculture and Rural Development's Livestock Breeding Department, said the project was very important for the development of the milk industry in Vietnam as it would be developed under modern Israeli management and technology.

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

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

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

Minh said his company would invest US$100 million to build a processing factory with a design 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 coming years and 50% in next 10 years. Currently, fresh milk made in Vietnam has reached 250 million litres, meeting half of domestic demand.