Dairy producers have launched organic milk products into the market

Two years ago, Vinamilk, the nation’s leading dairy producer, launched its organic fresh milk products that meet European standards .

One year later, TH True Milk began its campaign to advertise its organic products with the TH brand.

Early last week, Friesland Campina put organic products imported from the Netherlands into distribution networks.

A representative of Friesland Campina said the company decided to import and distribute organic products in the domestic market after realizing the increasingly high demand for organic milk.

“The market of organic products, especially dairy products, is heating up. Consuming organic products is a growing tendency among a community of Vietnamese. Friesland Campina must not be outside the trend,” he said.

Last week, NutiFood, a nutrient food manufacturer, also announced it is joining the organic dairy market when signing an MOU on cooperation and investment with Backahill of billionaire Erik Paulsson from Sweden.

Under the cooperation program, the two sides would set up a 50/50 joint venture to make and export dairy products to European and Asian markets.

NutiFood’s president Tran Thanh Hai said the foreign partner is from the south of Sweden, the best agricultural land in the north of Europe. There are many milk cow farms meeting organic standards and many farms capable to shift to organic production. 

Supply short

Since the launch day, VInamilk and TH’s organic products have always been in short supply because of high demand.

Analysts commented that the organic market is large, while productivity is limited.

Vinamilk’s CEO Mai Kieu Lien affirmed that the farm with 500 milk cows in Da Lat can only provide a small part of materials, therefore, Vinamilk’s output is not enough to satisfy demand.

To improve the supply, VInamilk is breeding milk cows. The farm in Da Lat has been enlarged, and it is building a hi-tech milk cow farming complex in Thanh Hoa. The first farm of the complex opened in March, while other farms will be ready by 2020, including one that breeds cows for organic milk.

Meanwhile, TH has more than 1,000 cows, of which 500 cows have provided fresh milk materials to make TH True Milk Organic and Topkid Organic. It plans to increase the number of cows to 3,000 and make products for export as well.

Analysts said the production cost of organic dairy products is relatively high. However, production on a large scale will force prices down.

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