Dairy report cites rising GDP for consumption boom

Milk consumption is rapidly growing in Viet Nam and will reach roughly 2 billion litres by 2013, a significant increase from 580 million litres in 2004, said Tetra Pak’s Chief Representative in Viet Nam Bert Jan Post.

Post said while the rate of the average milk consumption per capita in Viet Nam remains modest by world standards, it is rising spectacularly. Currently, the rate of average milk consumption per capita in Viet Nam is 14.8 litres yearly, while the figure in Thailand is 23 litres.

The rate of milk consumption in Viet Nam is set to increase by about 15 per cent between now and 2013, Post said, adding that it will be an opportunity to create more jobs and income for farmers.

In the Dairy Index 2011 published this week by Tetra Pak, the world leader of food processing and packaging solutions, Viet Nam’s vibrant growth in liquid dairy products (LDP) makes it a market spotlight this year.

The Index states that LDP demand per capita in Viet Nam increased by roughly 22 per cent yearly, due to the tripling of GDP per capita in the past decade and more than one fifth of its population living in cities.

Under the Index, Tetra Pak also said the rising tide of prosperity and urbanisation in Asia, Africa and Latin America will fuel growth of LDP demand. It forecasts global demand for LDP to rise around 30 per cent, from roughly 270 billion litres in 2010 to 350 billion litres in 2020. India and China will consume a third of the world’s total LDP by 2020.

Notably, the Index said, packaged milk will overtake unpackaged milk in 2014.

“Milk consumption in developing countries is forecast to reach a tipping point in 2014, with around 55 per cent of white milk sold in packages,” states the Index. The figure is expected to climb towards 70 per cent by 2020.

Tetra Pak Dairy Index is an annual report offering unique insights into today’s dairy sector and the global trends shaping its future. — VNS

Tags: Vietnam Dairy sector, Vietnam milk prices