September 25, 2008
Vietnam's dairies face crisis
Farmers in Ho Chi Min City are going bankrupt due to the high cost of feed and the low retail prices of milk as the global dairy industry booms.
Dairy farming is booming all over the world, with record prices for cows, calves and dairy products.
In Ho Chi Min city, the scale at which farmers are going bankrupt has prompted government to intervene, according to the Argentine Beef Packers. S.A.
A report is being prepared in the industry for the government to consider the best solutions to assist dairy farmers.
City officials are also meeting representatives from dairy industry to outline measures to cope with the risk of bankruptcy in the wake of falling milk purchasing prices.
During the meeting, the farmers voiced their dissatisfaction on the sharp price drop after dairy companies set strict regulations on quality and sanitation standards and drastically raised fines local breeders for low quality milk products.
City officials have also proposed to Vinamilk and Dutch Lady, the country's two major milk processing companies and biggest buyers of unprocessed milk to continue investing in cow breeding and upgrading of processing facilities to ensure the sustainable development of the dairy cow industry.
