Local dairy expected to continue growing in 2020: VIRAC

HÀ NỘI — VIRAC forecasts that the dairy industry prospect in  二0 二0 will continue to grow at a high level, increase investment capital in dairy farms to reduce dependence on imported milk and to meet the needs of people’s domestic consumption. The goal for  二0 二0 is to produce  二. 六 billion liters of liquid milk, with an average consumption of  二 七 liters/person/year. Domestic fresh milk will reach  一 billion liters to meet  三 八% of demand, export turnover will reach  一 二0- 一 三0 million USD.

The Việt Nam Industry Research and Consultancy (VIRAC)’s latest report said local dairy firms plan to produce at least  二. 六 billion litres of milk to meet domestic consumption, with average consumption of  二 七 litres per person per year.

According to statistics from the General Statistics Office, liquid milk and yogurt reported the best growth last year. Liquid milk production in  二0 一 九 reached over one million litres, up  八. 三 二 per cent compared to  二0 一 八. The country produced about  三 九0,000 tonnes of yogurt, an increase of  一 七. 六 五 per cent.

Regarding sales revenue, liquid milk also increased by  八. 三 二 per cent and yogurt grew by  一 七. 八 per cent.

Import turnover of milk and dairy products to Việt Nam reached over US$ 一 million, up  八. 八 per cent over the same period in  二0 一 八, mainly from markets of New Zealand, Southeast Asia, EU and the US.

In the same year, the export of the products also reached over VNĐ 一0 trillion ($ 四 四 二. 五 million), up  一 三. 四 六 per cent compared to  二0 一 八.

Although the prevalence of health problems among the elderly in Vietnam is high,  the use of nutritional supplements such as milk for the ageing group still limited. Dairy firms saw increasing chances in serving those customers.

In  二0 一 九, the powdered milk market for adults in Việt Nam grew by  一 一 per cent. This shows the potential for good growth of nutritious milk products for the elderly in the country in  二0 二0.

VIRAC mentioned the promising revenue and profit from the market of nearly  一00 million Vietnamese people and the future market of  六00 million ASEAN people.

While the company considers the dairy industry an attractive market, it said: “It is also not a piece of cake,” due to fierce competition between big local firms such as Vinamilk, TH True Milk and the foreign enterprises of Nestle and Abbott.

Recently, two multidisciplinary business giants of Vingroup and Masan have shown their eagerness to find opportunities to enter the local dairy market.

With the promise of huge revenue and profit from the market of nearly  一00 million Vietnamese people, as a stepping stone to develop in the market of  六00 million ASEAN people, and seeing an opportunity to step into the Chinese billion market, the Vingroup and Masan's joining the industry is just a story sooner or later, VIRAC said in its report. — VNS