Many farmers in Vietnam's largest dairy farming area in HCM City have changed to selling beef instead due to its profitability.

Vietnam import nearly $590m of dairy products in the first eight months.

Dang Anh Duc from Tan Phu Trung Commune, Cu Chi District, said his family used to raise 15 cows for milk but now they were raising crossbred cattle. According to Duc, milk quality standards were improving while each cow only provided 10kg of milk per day and he was facing losses from unstable milk prices. Meanwhile, beef prices have been stable and high for years.

"A calf costs about VND2m (USD88) but after two years, it can be sold for VND40m. I've just sold two cows at that price," he said.

However, the farmers must be skilled in order to raise a large number of quality cows. As of now, Duc is able to breed the Red Angus and Blanc-Blue-Belgium beef cattle that gain 24 kilos a month. Dang Le Thi Thanh Huyen, owner of 400 cattle, said her cows were raised in factories in order to shorten the farming time.

In early 2016, HCM City authorities also advised farmers to raise cattle for meat production if their cows produced less than 17kg of milk per cow per day. The Red Sindhi and local Yellow Cow hybrids or cows with low milk yield can be kept for breeding.

According to Nguyen Van Chech, deputy head of Cu Chi District Farmers Association, over 1,200 households changed to raising beef cattle in their district last year.

Statistics from the city Department of Agriculture and Rural Development showed that by the end of July, the city had 142,400 cows, a decrease of 5% from last year. This means the milk production also decreased by 10% compared to same period last year, to 143,800 tonnes.

The number of cows has continued to drop to 81,117 and the average milk yield is 16kg per cow per day. Only at the Binh Chanh District hi-tech dairy farming testing centre can milk yields reach 24.5kg.

The local dairy industry is facing tough competition from imported products. According to the General Department of Customs, in the first eight months, Vietnam imported nearly USD590m of dairy products, an increase of 3.79% on last year. New Zealand is the top seller with USD151m worth of products. Malaysia is in second place, followed by Poland and Germany.

Dtinews