There is at least one official of the Ministry of Agriculture and Rural Development (MARD) who is not optimistic about the prospect of milk processing factories in Vietnam.
The dairy industry in Vietnam is relatively new compared to other countries. However, because of the rising demand for fresh milk, the market has drawn the attention of a number of producers and processors.
Vietnamese consumers prefer fresh milk
This week MARD, in conjunction with the U.S Diary Export Council, held a meeting on new technologies and the development of Vietnam’s diary industry. The meeting came on the heels of the implementation of a 2001 government decision to stimulate the sector.
La Van Thao, an official from MARD’s Department of Animal Husbandry said that selling prices for dairy farmers in Vietnam have been too low. While other countries with a tradition of producing and consuming dairy products have created a system of cooperatives, which sustain price levels for farmers, Vietnam lacks such a system. Thao suggested that Vietnam set up a national milk committee that could coordinate farmers, processors, consumer associations and state agencies.
Thao added, "In the long-term the situation for milk processors in the country does not look bright since Vietnamese consumers are becoming more aware and prefer fresh milk to reconstituted milk products. Also, domestic processing factories rely largely on imported milk powder."
Relevant ministries, including MARD, Ministries of Health, Science and Technology, Industry and Trade and the police should intensify inspection to test the accuracy of the amount of fresh milk advertised on labels.
Nguyen Xuan Duong, deputy dector of the Department of Animal Husbandry, said that after recent drastic measures, labeling of fresh milk has become more accurate and transparent.
Most dairy farms in Vietnam are small-scale
Duong also commented that Vietnam’s diary industry has great potential for development as Vietnam’s annual per capita milk consumption stands at only 15 litres, much lower than the average in developed countries, around 100 litres per year. Currently, domestic fresh milk production meets only 30% of demand, imported milk meeting the rest of demand.
He noted that one of the biggest challenges to Vietnam’s diary industry is the lack land allotted to dairy farms.
“If we really want to foster sustainable development of our domestic diary industry, it’s important to increase the size of dairy farms. Currently the average dairy farm is just five cows. This should be increased to 25 to 35. Farmers must also take an active role in the industry. This way we could increase production and generate jobs," he noted.
