TH True Milk Dairy farm in Nghệ An Province. — Photo Zing.vn

HÀ NỘI — Government officials have revealed the huge potential for dairy farming and called on more businesses to get involved.

With the total turnover of VNĐ109 trillion (US$4.73 billion) last year, Viêt Nam ranks sixth in Asia in milk output, and fourth in dairy cow productivity.

That was the message from Deputy Minister of Agriculture and Rural Development (MARD) Phùng Đức Tiến who was speaking in a forum this week in Hà Nội.

In the first eight months of 2019, productivity has rised. Milk and dairy products increased by 7.2 per cent compared to the same period last year.

Deputy head of the Department of Farm Produce Processing and Market Development Phạm Văn Duy said: “Vietnamese milk and dairy products are popular in overseas market, especially in China and the Middle East.”

Currently, China was the second largest dairy market in the world after the US with a total value $60 billion, according to Food Navigator.

Duy added China's domestic milk supply is currently producing enough to only meet 75 per cent of market demand. 

This year China is expected to import 39.43 million tons of milk and milk products, of which fresh milk import volume will be about 750 thousand tons and about 650 thousand tons of powdered milk.

To meet increasing demand, deputy minister Tiến suggested accelerating restructuring of the farming sector on an industrial scale, improving added values of animal products, and developing processing industry.

Tống Xuân Chinh, deputy head of the Livestock Production Department, said: “Milk output of Vietnam’s dairy cows is equal or higher than those in Thailand, Indonesia and China.”

Việt Nam plans to have 500,000 dairy cows and a million tonnes of milk in 2020, a growth of more than 11 per cent. It also plans to have 700,000 cows and two million tonnes of milk by 2030.

In order to promote the industry, MARD also urged close cooperation in the form of public private partnerships from the local dairy businesses. Deputy Minister Tiến said MARD formed a PPP task force to boost the partnership last April.

At the forum, the delegates discussed the situation and development of dairy farming by 2030 and how to benefit from trade agreements, especially Comprehensive and Progressive Agreement for Trans-Pacific Partnership CPTPP and European Union – Việt Nam Free Trade Agreement, sharing experiences in developing value chain models of the dairy industry and milk production of typical enterprises.

Currently, dairy companies operating cow farms in Viêt Nam are Vinamilk, TH True Milk, Mộc Châu Milk. — VNS