Domestic dairy groups enlarge capacities to meet fresh demand
- 167
- Enterprise
- 17:25 30/05/2022
DNHN - After years of applying high technology and global standards towards green and sustainable manufacturing trends, dairy businesses in Vietnam are showcasing their innovative, high-quality, and safe products to enhance domestic sector performance.
The Vietnam Dairy 2022 International Exhibition, held from May 31 to June 4 at the Cultural Friendship Palace in Hanoi, will provide a panorama of Vietnam’s dairy market in recent years, as well as the expansion and contributions of dairy businesses to the economy and society.
Major domestic and international dairy brands will be present at the exhibition, including Vinamilk, FrieslandCampina, Nestlé, Nutifood, Abbott, Vinasoy, Nutricare, Vitadairy, and Aiwado, along with several large players from New Zealand, France, and the Czech Republic.
The exhibition will introduce different categories such as dairy products and ingredients, additives used in the industry, production and packaging technologies, cow breeding techniques, milk products standards, and technologies for environmental treatment, among others.
Last year the value of the dairy sector increased 1 per cent, AC Nielsen reported. The higher income and health awareness of urban consumers has boosted the demand for high-quality product lines such as organic products. Three major players in the industry – Vinamilk, FrieslandCampina, and TH Group – have introduced organic dairy products to the market.
To address the rising demand for organic milk, domestic producers continue to increase their control and exploitation of raw material areas.
Industry leaders such as Vinamilk recently debuted a Green Farm system in the central province of Quang Ngai with a scale of 4,000 cows and will bring into operation a farm complex in Laos in 2023.
Smaller-sized companies like Moc Chau Milk also enlarged their current farming capacity and are planning to develop a new ecological farm.
According to Euromonitor, yoghurt consumption dominated the sector last year thanks to public awareness of its benefit in strengthening the immune system and resistance. The demand for liquid milk remained stable since it is easy to consume and serves a crucial function in the nutritional support of early children’s growth. The usage of condensed milk slightly increased, driven by the habit of using the ingredient in making coffee and desserts.
The demand for powdered milk was meanwhile impacted by the decline in fertility rate and the changing purchasing behaviour of parents towards liquid milk, as it is more affordable for a majority of Vietnamese households.
The domestic dairy industry is confronting several challenges. The Vietnam Business Council for Sustainable Development (VBCSD) highlighted that rearing cows requires a high level of expertise and investment, but 95 per cent of the country’s dairy cows are raised by small and unskilled households.
Farmers lack training on livestock methods and disease prevention. In addition, they are massively impacted by other socioeconomic factors including livestock and cow feed price, as well as productivity.
In addition, the VBCSD pointed out that a substantial amount of investment capital is required to establish a proper dairy farming system. Due to the limitations of local technology, product costs, and company earnings, companies in the dairy sector must import the materials and equipment from abroad in order to meet market demand.
The dairy sector relies on imported milk powder rather than domestic products, and local herds are unable to fulfil more than 20-30 per cent of national demand, resulting in supply and demand mismatches in the sector. The changing price of imported dairy products also poses a risk of margin compression.
Tran Quang Trung, chairman of the Vietnam Dairy Association (VDA) said, “Among the efforts in post-pandemic economic development, the Vietnam Dairy exhibition is a crucial activity to strengthen investment cooperation, thereby contributing to the recovery of Vietnam’s and the global economy.”
The exhibition, co-organised by the VDA along with Vietnam Exhibition and Advertising JSC, is a periodic event that will enable Vietnamese-based dairy companies to exchange technologies and methods for sustainable development.
Through the event, individual participants may acquire practical knowledge of milk and dairy product consumption in order to make the best decisions for their families.
Hue Anh
Related news
- The billionaire who donated 1 million USD to help Vietnam recover from the typhoon
- Practical applications of carbon credits in the economy. Part XXI:Carboncor Asphalt - An effective solution for Vietnam to achieve net zero emissions
- Ho Chi Minh City allocated funding to support small and medium enterprises in digital transformation
- Real estate businesses and macroeconomic challenges
- VINASME and VISA collaborated to promote financial solutions for small and medium-sized enterprises
- Vietnamese brands reaching international markets
- Hòa Phát Group leaders receive major pay hike during steel market crisis
- Apartment prices continue to rise far beyond workers' incomes
- Ho Chi Minh City: Economic recovery, yet the number of businesses exiting the market remains high
- General Secretary and President Tô Lâm: "Although it is a small and medium-sized business community, it is very large..."
- Practical applications of carbon credits in the economy. Part XI: Bridging policy and strategy for the carbon credit market
- Vietnamese users pay special attention to security when using OTT applications
- Is the gold price stabilization policy truly effective?
- Yen Bai: Implementing the plan to manage and eliminate ozone-depleting substances and greenhouse gases
- FPT's strategic expansion in Japan
- Mastering Real Estate Business Law to be ready for the next growth cycle
- The Vietnam Association of Small and Medium Enterprises honors an audience with the General Secretary and President Tô Lâm
- Practical applications of carbon credits in the economy. Part XIX: Training human resources - A strategic and urgent task for the carbon credit market
- Dr. Tran Xuan Luong: Real estate businesses lacking resources will be eliminated from the game
- "Vietnam's startup ecosystem in 2024 remains on a path of promising development"
#Domestic dairy groups
Vinamilk: The only FMCG enterprise in the Top 50 Listed Companies by FORBES Vietnam for 12 consecutive years
For 12 consecutive years, Vinamilk has maintained its position among the leading group in the Top 50 Best Listed Companies ranking. It is also the sole representative of both the dairy industry and the FMCG sector to hold this record.
Đọc thêm Enterprise
Real estate businesses and macroeconomic challenges
The year 2024 marks a challenging period for real estate businesses, not only in Vietnam but also worldwide.
VINASME and VISA collaborated to promote financial solutions for small and medium-sized enterprises
On September 10th, at the Government Office Conference Center, the VINASME and the international card organization VISA will co-host a seminar titled "Payment and Financial Solutions for Small and Medium-sized Enterprises".
Hòa Phát Group leaders receive major pay hike during steel market crisis
Although the global steel industry is experiencing a crisis, Hòa Phát recorded a sharp increase in executive remuneration in the first half of 2024, with costs rising 3.4 times compared to the same period last year, reaching VND 112 billion.
Ho Chi Minh City: Economic recovery, yet the number of businesses exiting the market remains high
In the first eight months of the year, the number of businesses entering the market increased by 8.8%, but the number of businesses withdrawing also rose by 7.4%.
Businesses are the main actors and the greatest drivers of innovative startups
Dr. Đàm Quang Thắng – Chairman of the National Innovation Advisory Council has provided deep insights into the role of businesses within the innovative startup ecosystem.
General Secretary and President Tô Lâm: "Although it is a small and medium-sized business community, it is very large..."
On the afternoon of August 22, General Secretary and President Tô Lâm received a delegation of the Vietnam Association of Small and Medium Enterprises. This important and meaningful event was organized by the Business and Integration Magazine.
BIDV financed the construction of Cap Saint Jacques Complex in Vũng Tàu City
The signing ceremony for the credit contract to finance the project was organized by BIDV and the Development Investment Construction Joint Stock Corporation (DIC) — the project's investor — in Ho Chi Minh City on August 19, 2024.
The Vietnam Association of Small and Medium Enterprises honors an audience with the General Secretary and President Tô Lâm
On the afternoon of August 22, the VINASME will have the honor of meeting with the General Secretary and President Tô Lâm to report on the results of their activities. This significant event is organized by the Business and Integration Magazine.
Dr. Tran Xuan Luong: Real estate businesses lacking resources will be eliminated from the game
Dr. Tran Xuan Luong believes that real estate businesses that lack resources and strategy will certainly struggle to survive in the current competitive environment.
Tight control on foreign borrowing, businesses face more difficulties
Since 2022, borrowing foreign capital without government guarantees has become more difficult, and according to feedback from many businesses, part of the reason is the tight control policies on foreign borrowing from the State Bank of Vietnam.