Vietnam to increase supply and demand in livestock and dairy sectors

Experts forecast that production and consumption of meat and dairy products in Vietnam will increase strongly in the coming years.

Andrew Speedy, UN Food and Agriculture Organization (FAO) representative in Vietnam, said that consumption of meat, milk and eggs was increasing, particularly in South East Asia and Vietnam. Speedy said that with Vietnam's population expected to increase to 126 million by 2050, the demand for pork and milk would double from now until then. As a result, there is great potential for local farmers and livestock feed production. "However Vietnam's livestock industry started from a very small scale, which will constrain the development,'' he said.

The local livestock industry would still have to contend with high production costs as Vietnam still relies heavily on imported livestock feed. In addition, the cost of investment in industrial production is high.

Nguyen Anh Phong, an expert from the Institute of Policy and Strategy for Agriculture and Rural Develop (IPSARD), said Vietnam currently imports about 80% of its share of dairy consumption. "This is fast growth compared to local consumption 10 years ago.'' Phong said.

According to recent research conducted by Phong in coordination with Raf Sommers, former chief technical advisor of Vietnam Belgium Dairy Project, 10% of the population consumed 78% of dairy products and estimated consumption was only nine kilogrammes per capita per year, lower than many countries.

"Vietnam has reasonable production costs. Besides, most farmers in the country have about five dairy cows, while a farmer in the US has at least 20,” Phong added.

Appropriate training on good dairy farming practices is also essential right now to increase milk quality and production.

Phong said that several high-tech mega farms that already operate in Vietnam, including Vinamilk Co. or TH milk Co., which has invested US$350 million in a 10,000-hectare pasture farm and 45,000 cows in Nghe An Province, would boost the industry.