October 22, 2007

 

Vietnam holds forum to perk up dairy industry

 

 

A dairy forum in Vietnam will provide domestic and international companies, as well as consumers, the chance to assess the progress of the country's milk industry.

 

The forum, organised by the Vietnam - Belgium Dairy Project, will be financed by the Embassy of Belgium in Hanoi and the Ministry of Agriculture and Rural Development (MARD).

 

The forum will also build a website with the help of the Information and Communication Ministry that is intended to increase the efficiency and profits of all stakeholders, including farmers.

 

Representatives from the ministry's Livestock breeding department, the Ho Chi Minh City's Agriculture and Rural Development Department, the Industry and Trade Ministry as well as milk processors, including Hanoimilk, Vietnam Dairy and Vinamilk, have traded information about the industry when the forum was launched last Wednesday.

 

HCM City Agriculture and Rural Development Department representative Pham Minh Tri said a committee of milk producers and processors would be established to develop long-term plans and strategies for the industry.

 

Vietnam's dairy herd totalled 113,000 last year, posting a 25 percent increase on-year while milk production totalled 216,000 tonnes.

 

However, these figures are not enough to stop Vietnam from importing to meet surging demand.

 

The Industry and Trade Ministry said domestic producers meet only 22 percent of demand and the cost of imported milk products was US$220 million in 2005.

 

Ministry representative Trinh Quy Pho said better state management is needed if the industry wants to increase production and rely less on imported milk.

 

Vinamilk representative Vuong Ngoc Long said domestic milk production has dropped behind despite the government's incentive loans for would-be dairy farmers in 2000.

 

The initiative, administered the MARD via Government Decision 167, is intended to promote the breeding of dairy cows.

 

The initiative is aimed to meet 40 percent of the demand for milk by 2015.

 

MARD forecasts milk consumption will grow to 1 million tonnes by 2010. However, domestic milk prices are estimated at 17 percent higher than the average global price.