Yogurt accounts for just 12-20% of milk-based products in Vietnam compared to 50% in many countries.
The Viet Nam Dairy Products Joint Stock Company (or Vinamilk) is the largest player in the dairy market, selling fresh and processed milk, sweetened condensed milk, yogurt and other products. Its revenue from yogurt sales last year was $105.3m, which accounted for 60% of the total yogurt market.
Many other companies, including the International Dairy Products Joint Stock Co (IDP) and Kido Dairy Products JS Co, have recently entered the yogurt market with some success. Nguyen Tuan Dung, deputy general director of IDP, which makes Ba Vi yogurt, said realising the potential of the market, IDP has bought probiotics from Denmark to make yogurt products. For IDP, revenue from yogurt is growing at the fastest pace among all dairy products, he revealed, adding that its Ba Vi brand is becoming popular around the country, especially in the north.
To improve their competitiveness, many companies are developing their own dairy farms to source raw materials, while others have opted to have tie-ups with dairies. IDP, for instance, offers interest-free loans to farmers in Ba Vi District near Ha Noi to buy dairy cows and equipment such as milking machines, with farmers repaying them by supplying milk.
Nguyen Manh Khan, deputy chairman of the Tan Linh Commune People’s Committee in Ba Vi, said this has not only helped the company set up a stable source of supply, but also brings a considerable income to farmers.
Source: Vietnam News Service
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