June 12, 2014          
 

Vietnam: US$566 million joint venture by dairy, cattle companies

A major dairy producer and a leading cattle-slaughtering company in Vietnam has embarked on a US$566 million project that will raise cattle for meat and milk in Vietnam's Central Highlands.

Property developer Hoang Anh Gia Lai Group (HAGL), meat supplier Vissan, and dairy producer NutiFood have signed the cooperative deal for the project that will include as many as 236,000 cattle.

HAGL will cover half of the VND12 trillion (US$566.04 million) investment required to raise the cattle.

NutiFood will set aside VND5 trillion (US$235.85 million) to set up a fresh milk and yoghurt manufacturing plant, using raw materials from the project.

Vissan will cover the remaining investment.

HAGL will raise 120,000 meat cattle of Australian breed to supply to Vissan, which will then slaughter the animals and distribute their meat domestically, chairman Doan Nguyen Duc said.

The first batch of the meat cattle will arrive at HAGL's farm in the Central Highlands province of Gia Lai by the end of this month, Duc said. They will be raised for seven months before being taken to Vissan.

It will also breed 116,000 dairy cattle imported from Australia to supply raw milk to the NutiFood plant. The first dairy cattle imported from Australia are expected to arrive late this year.