Milking a profitable dairy industry

The dairy milk industry development plan sets forth the targets to produce 2.6 billion liters of fresh milk equivalent and average per capita consumption of 27 liters per year by 2020. Export value will amount to US$120-130 million. Similarly, by 2025 the country will produce a total 3.4 billion liters of fresh milk equivalent with average per capita consumption of 34 liters per year. Export value will be around US$150-200 million.

Total investment capital for the industry will be VND5.230 trillion from 2016-2020, increasing to VND6.060 trillion from 2021-2025.

Continually reforming and innovating technology for quality improvement and product diversification, carrying out in-depth studies to create new products of better quality to satisfy domestic and export requirements; these were some components in the Vietnam’s dairy milk industry development plan until 2015, with vision to 2020 that was recently adopted by the Ministry of Industry and Trade via Decision 3399/QD-BCT.

Dairy production is a peculiar industry as it does not simply generate profits but also provides a substantial food intake to human life. The achievements the domestic dairy milk industry has recorded in the past couples of years are undeniably great, however, reality shows that local milk products are vying fiercely with similar imported items in the domestic market. Processing milk is to diversify milk products, improve quality and raise the milk industry revenue. Thereby, the milk industry’s development plan highlights the application of leading-edge equipment and technology to continually improve quality and diversify product ranges along with creating quality products to meet domestic and export demands. However, due heed must be given to ensuring food safety and hygienic standards, raising product nutritional value, saving energy and treating wastes in an efficient manner to protect the environment.

The State should encourage businesses to invest in scientific research and apply cutting-edge equipment into production, in the meantime investing in the latest equipment and technology from developed countries or accepting technology transfer from leading global companies. Businesses are also given the green light to go into joint ventures or associations for technology transfer to be able to manufacture equipment locally while investors are encouraged to use local equipment with quality compatible to imported equipment. To aid local milk processing, incentives must be given to the development of supporting industries such as the production of packaging, additives and micro nutrients for use in the dairy milk industry, and promoting research and technology transfer to turn out products of supreme quality.

In addition, it is important to enhance the capacity of research institutes to enable them to delve into science and technology issues pertaining to milk preservation and processing and food hygiene in milk processing.

Concerning investment solutions for the dairy milk industry, the application of science and technology progress must be put at top importance. Thereby, the milk industry development plan also urges businesses to expand production, innovate technology and equipment and bring into use energy efficient solutions. Newly-built plants must invest in leading-edge technologies to be able to turn out quality products featuring diversified designs and types. Investment licenses must not be given to projects that fail to satisfy environmental protection requirements and ignore waste treatment facilities. – VEN

Tags: Vietnam Dairy sector