With an average annual growth rate of 15-20 percent, the dairyindustry has potential to attract investment despite the currenteconomic difficulties, the Saigon Giai Phong (Liberated Saigon) onlinenewspaper reported.
Last month, Vinacafe Bien Hoa Company, knownas a coffee manufacturer, announced its intention to join in dairyindustry. Economists said that the coffee manufacturer’s ambitious planto “encroach” dairy industry will make the market more excited as foodproducer Masan, which reportedly obtain 53.2 percent of Vinacafe BienHoa’s shares, always surprises its counterparts and competitors.
WhileVinacafe Bien Hoa is nurturing the plan to encroach the dairy industry,property developer Hoang Anh Gia Lai Company officially participatedinto the industry by cooperating with Nutifood, a local milk producer.
HoangAnh Gia Lai spent around 6.3 trillion VND (297 million USD) on milkycow farms to raise 120,000 cattle. Nutifood will consume milk to makedairy products to the market. Accordingly, Nutifood also invested in 5trillion VND (236 million USD) milk processing plant imported fromGerman and Sweden.
Nutifood’s has tiny market share. CurrentlyVinamilk has a 50 percent market share, next followed by FrieslandCampina with 25 percent, TH True Milk with 7 percent and Dalat Milk, BaVi, Longthanh Milk, Nutifood and Vixumilk take up little market share.
Itis questioned whether Nutifood will make a breakthrough in gainingmarket share with the assistance of Hoang Anh Gia Lai as othermanufacturers are trying to keep or even expand its market share.
Vinamilkplanned to increase its selling costs to 30 percent though it hasraised the selling cost to 40 percent in 2013 compared to 2012’s.
Theannouncement of Hoang Anh Gia Lai or Vinacafe Bien Hoa’s encroachmentinto dairy industry will come as no surprise for everyone as theindustry is so attractive to investors. Vietnamese consume little milkthan other Asian countries.
For instance, in 2013, Vietnamconsumed 15 litres of milk per person per year while it is 35 litres perperson per year in Thailand and it is 45 liter in Singapore. Vietnameseparents will cut down upon over other expense to buy milk with the hopeof improving their children’s height.
To maintain and expandmarket share, most of enterprises have their own strategies to invest inmilk cow farms, production and marketing. Vinamilk is nurturing theambition for 3 billion USD turnover in 2017 and becoming one of 50 worldbiggest milk manufacturers.
From 2007, Vinamilk has invested in800 billion VND (37.7 million USD) building five big milk cow farms toraise around 8,000 Australian-imported cattle which produce 90 tonnes ofmilk every day. In the future, the company will build more farms worth 3trillion VND (141.6 million USD) in the southern province of Tay Ninh,the central province of Ha Tinh and two farms in the northern provinceof Thanh Hoa. In addition, Vinamilk also promoted its investmentprojects in abroad.
The TH True Milk planed to operate Mega Plantwith capacity of 1.700 tonnes of milk per day or 500 million liters ayear. The TH True Milk has reached turnover of 6 trillion VND afterthree year operation. It targets to capture 15 trillion VND (708 millionUSD) in 2015 and 23 trillion VND in 2017 and take up 50 percent ofdairy market share.
In addition to investment in farms and plants, these companies will boost advertising campaign.-VNA
Last month, Vinacafe Bien Hoa Company, knownas a coffee manufacturer, announced its intention to join in dairyindustry. Economists said that the coffee manufacturer’s ambitious planto “encroach” dairy industry will make the market more excited as foodproducer Masan, which reportedly obtain 53.2 percent of Vinacafe BienHoa’s shares, always surprises its counterparts and competitors.
WhileVinacafe Bien Hoa is nurturing the plan to encroach the dairy industry,property developer Hoang Anh Gia Lai Company officially participatedinto the industry by cooperating with Nutifood, a local milk producer.
HoangAnh Gia Lai spent around 6.3 trillion VND (297 million USD) on milkycow farms to raise 120,000 cattle. Nutifood will consume milk to makedairy products to the market. Accordingly, Nutifood also invested in 5trillion VND (236 million USD) milk processing plant imported fromGerman and Sweden.
Nutifood’s has tiny market share. CurrentlyVinamilk has a 50 percent market share, next followed by FrieslandCampina with 25 percent, TH True Milk with 7 percent and Dalat Milk, BaVi, Longthanh Milk, Nutifood and Vixumilk take up little market share.
Itis questioned whether Nutifood will make a breakthrough in gainingmarket share with the assistance of Hoang Anh Gia Lai as othermanufacturers are trying to keep or even expand its market share.
Vinamilkplanned to increase its selling costs to 30 percent though it hasraised the selling cost to 40 percent in 2013 compared to 2012’s.
Theannouncement of Hoang Anh Gia Lai or Vinacafe Bien Hoa’s encroachmentinto dairy industry will come as no surprise for everyone as theindustry is so attractive to investors. Vietnamese consume little milkthan other Asian countries.
For instance, in 2013, Vietnamconsumed 15 litres of milk per person per year while it is 35 litres perperson per year in Thailand and it is 45 liter in Singapore. Vietnameseparents will cut down upon over other expense to buy milk with the hopeof improving their children’s height.
To maintain and expandmarket share, most of enterprises have their own strategies to invest inmilk cow farms, production and marketing. Vinamilk is nurturing theambition for 3 billion USD turnover in 2017 and becoming one of 50 worldbiggest milk manufacturers.
From 2007, Vinamilk has invested in800 billion VND (37.7 million USD) building five big milk cow farms toraise around 8,000 Australian-imported cattle which produce 90 tonnes ofmilk every day. In the future, the company will build more farms worth 3trillion VND (141.6 million USD) in the southern province of Tay Ninh,the central province of Ha Tinh and two farms in the northern provinceof Thanh Hoa. In addition, Vinamilk also promoted its investmentprojects in abroad.
The TH True Milk planed to operate Mega Plantwith capacity of 1.700 tonnes of milk per day or 500 million liters ayear. The TH True Milk has reached turnover of 6 trillion VND afterthree year operation. It targets to capture 15 trillion VND (708 millionUSD) in 2015 and 23 trillion VND in 2017 and take up 50 percent ofdairy market share.
In addition to investment in farms and plants, these companies will boost advertising campaign.-VNA
