July 7, 2005

Vietnamese dairy producers to double output by 2010

Vietnam has set a fresh milk production target of more than 300,000 tonnes by 2010. This would meet about 40 percent of domestic demand and double the present level of output.

The target was essential to dealing with the shortage of local material supplies. A plan for increasing the number of milk processing facilities has been approved by the Ministry of Industry, and is expected to lead to an increase in material supplies for the industry.

Hoang Kim Giao, vice chairman of the agriculture department under the Ministry of Agriculture and Rural Development, said that increases in fresh milk prices around the world will create an incentive and momentum for growth in the Vietnamese dairy industry and farmers will find dairy cattle becoming more profitable.

The agriculture sector is endeavouring to introduce higher yield, higher quality dairy cows and provide farmers with advanced techniques in dairy farming, and developing quality meadows and infrastructure.

Since 2001, Vietnam has imported more than 10,000 cows but because of the time needed for imported cows to adapt to Vietnam's weather, the sector has needed to crossbreed hybrid species that acclimatize quickly. About 80 percent of the country's dairy cows are hybrids.

The Ministry of Agriculture and Rural Development has proposed that the government should also encourage the establishment of milk production cooperatives and an association of dairy farmers, along with the development of dairy farms and processing plants.

Additionally, it has recommended that the Government promulgate incentives to attract local and foreign investment in developing the dairy industry while using 30 percent of milk import tariffs collected to support a programme on dairy development.