Ministry of Industry and Trade continues to seek comments on the Dairy Industry Development Strategy

Growing fast but still can't keep up with demand

Through studying the actual implementation of the Development Plan for the Vietnamese Dairy Processing Industry to 2020, with a vision to 2025, the Institute for Strategy and Policy Research on Industry and Trade, Ministry of Industry and Trade, assessed that the Vietnamese dairy industry has always achieved good growth rates. Enterprises in the industry are constantly building, improving, innovating equipment, applying advanced technology with a high level of automation on par with the region and the world to improve processing productivity, and improve the quality of milk supplied to the market.

The dairy industry has produced many different products, bringing to the market many new products such as organic milk products, special nutritional products from milk... However, the two main segments that determine the growth of the entire dairy industry are also the two most important main products today, which are still liquid milk and powdered milk. The total value of these two segments alone accounts for nearly 3/4 of the market value with fresh milk output currently reaching 1,500 thousand liters, powdered milk reaching 138,000 tons in 2021.

Currently, dairy processing enterprises in the industry have continuously invested in developing liquid milk raw materials to help the domestic dairy processing industry develop stably and increasingly stronger. In addition, the dairy industry also invests to increase domestic milk production and reduce dependence on imported raw materials. This is the right goal for the industry to exploit its full domestic potential and develop sustainably.

The Ministry of Industry and Trade continues to solicit comments on the Dairy Industry Development Strategy. Photo (illustration): Chinhphu.vn

In addition to the achievements, the Institute for Strategy and Policy Research in Industry and Trade also pointed out the current weaknesses of the dairy industry. In particular, the supply of animal feed and the investment value in livestock farming are still at a high level, leading to the price of Vietnamese dairy products being more expensive than similar dairy products in the world.

In many localities, investment in building processing facilities is still unbalanced with raw material sources, reducing production and business efficiency, leading to an unstable industry and not ensuring sustainability. The contribution of the processing industry to increasing the value of commodity dairy products is still low.

The quality and variety of products are not many, the added value is not high, the export price of milk is often 5-7% lower than the world market price of the same type. The processed products are still monotonous, the investment in deep processing, the production of products with high added value still accounts for a low proportion compared to the total output of processed products. In particular, the post-processed products are still limited, the level of meeting the domestic and export markets is still low.

New development roadmap for the dairy industry

Based on the research on the strengths and weaknesses of the dairy industry in recent times, the Institute for Strategy and Policy Research on Industry and Trade has developed a new development strategy for the industry. The Institute has also just published the full text of the Draft Decision submitted to the Prime Minister on the Dairy Industry Development Strategy for the period up to 2030, with a vision to 2050.

Accordingly, the dairy industry aims at the common goal of improving productivity and increasing processed milk output on the basis of promoting potentials and advantages, towards green growth, circular economy, smart economy and proactive adaptation to climate change; organizing large-scale, diversified production and processing of goods, increasing value, food safety associated with industrialization and modernization; competitive prices, building a strong national brand to meet the requirements of domestic and export markets; improving people's material and spiritual life, ensuring social security.

Specifically, in the period up to 2030, the average annual growth rate of the dairy industry is from 4% to 4.5%; in the period up to 2050, the average growth rate is from 3-4% per year.

Regarding production, the dairy industry focuses on investing in advanced technology on an industrial scale, applying technical advances in all stages of the process of developing raw milk sources, processing technology, product preservation; comprehensive processing, increasing the proportion of products with high added value.

Invest in and fully exploit the advantages of raw milk production areas. Research and develop animal feed supply sources, change traditional farming methods, and increase domestic milk production.

Use digital technology in production and processing to increase efficiency and product quality, as well as optimize processing, management and distribution of products. Encourage recycling and reuse of milk packaging products to reduce environmental impact and increase reuse of resources.

The strategy also sets out specific directions for the development of dairy products; dairy enterprises; attracting investment for industry development; consumer markets; improving competitiveness for dairy products and enterprises; developing human resources; attracting investment, and innovating technology for the industry...

To realize the above development orientations, the Institute for Strategy and Policy Research on Industry and Trade also proposed many solutions.

In particular, functional units focus on perfecting the policy mechanism for developing the dairy industry. Developing the product consumption market through building a market network for selling processed dairy products, organizing the construction of a logistics system closely connecting producers, purchasing and processing enterprises with distributors, etc.

At the same time, increase investment attraction, technological innovation for the dairy industry; develop human resources; develop sustainable and green dairy industry; build and develop brands for products.

Regarding the development of raw material supply sources for milk production and processing, the Institute for Strategy and Policy Research in Industry and Trade believes that dairy enterprises need to closely coordinate with localities and milk suppliers to build raw material areas as well as raw milk purchasing infrastructure to ensure stable quality and sufficient quantity for the processing industry.

Strengthening economic linkages between stages and parts in the production-processing-consumption system, contributing to the development of the processing industry and enhancing the competitiveness of Vietnam's processed dairy products.

Building raw milk production centers to form large raw material areas that can apply mechanization to production to increase productivity and output, and easily invest in science and technology to develop the industry.

Source: https://congthuong.vn/bo-cong-thuong-tiep-tuc-lay-y-kien-dong-cong-cho-chien-luoc-phat-trien-nganh-sua-347121.html