Dairy Producers Boost Investment In Farms
Dairy producers now attach great importance to expansion of dairy cow farms and cooperation with farmers, seeing this as a strategy for material source development.
Vietnam Dairy Products Co. (Vinamilk) late this month will open two large factories, so the company is seeking ways to expand its material zone.
Vinamilk currently has five dairy cow farms and will set up three more in the coming time. Since the 1990s, the company has been joining hands with dairy cow farmers.
Now, Vinamilk every day collects about 500 tons of milk from its own farms and from farmers. Such a volume will meet only half of the capacity of the new factory to be inaugurated late this month, said Mai Kieu Lien, general director of Vinamilk.
At present, Vinamilk has over 8,500 dairy cows, in which 4,300 are yielding milk with a daily output of more than 90 tons.
In 2012, Vinamilk collected over 161,000 tons of milk, up 12.24% over the year before, including 141,000 tons bought from farmers.
The company is looking for land to expand its material zone, said Lien.
TH Milk has made great investment in dairy cow farms. The company now has 30,000 hectares of farms with more than 20,000 dairy cows, said Tran Bao Minh, former deputy general director of TH Milk.
The number of dairy cows may reach 100,000 in the future.
Minh, who now serves as managing director of International Dairy Products Co. (IDP), said his company was boosting investment in material zones.
IDP will spend VND600 billion providing farmers with breeds and technical supports, with a pledge to buy all milk from them at good price. Currently, the company has about 10,000 dairy cows and is looking to increase this herd.
IDP will continue to give aids to farmers so that they will be able to raise 7-10 dairy cows each household instead of three.
FrieslandCampina also has its plan for development of dairy cow farms in Vietnam.
Experts said it is very costly to expand fresh milk material zones. Dairy cow farms often require large pieces of land and heavy investment in technology.
Currently, the majority of dairy cow farms are located in the northern region, where dairy cows produce muck milk during winter but the demand is low. Even so, dairy producers have to buy milk frequently because fresh milk if not collected within 24 hours cannot be used anymore.
Despite the heavy costs, dairy companies must invest in dairy cow farms as it is a long-term strategy.
The global demand for dairy products is surging, but supply does not rise significantly, leading to material price hikes, dealing a hard blow to local producers.
“In the long run, those who are independent of material sources will win,” said Minh.