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Vinamilk Inaugurates Vietnam’s First Organic Dairy Farm in Central Highlands

Vietnam Dairy Products Joint Stock Company, Vinamilk installed country’s first organic dairy farm in the Central Highlands province of Lam Dong.

Vietnam: The Vietnam Dairy Products Joint Stock Company, Vinamilk opens the country’s first organic dairy farm in 70-hectare area with the total capital investment of USD8.8 million, having the initial scope of 500 organic cows, that meets European standards, as per the certification issued by Dutch Control Union, a global quality certifier.

The Da Lat-based farm with a herd of 500 organic cows is second in the Tay Nguyen (Central Highlands) province of Lam Dong, where entire cow population has been carefully selected and given organic feed. The farm follows strict standards ensuring the avoidance of bovine growth hormone, pesticides and antibiotic residue in the milk.

Despite of the huge investment and labor-intensive organic procedures, organic milk fetches only 30 percent more than conventional milk. Vinamilk expects that the farm’s inauguration has not only contributed in stabilizing domestic material supply but also has created faith and a foothold for Vietnamese milk brands to develop in the world. The company will be providing clean and sustainable production, with an aim to provide high-quality products to the consumers at reasonable prices. Most of the farms’ area has been dedicated to growing grass to feed the cattle all year round. The milk extraction and storage process has also been developed in comparison to conventional process.

TechSci Research depicts that due to increasing demand of organic dairy and their derivatives across the globe along with various health benefits associated with it, many countries have increased their organic dairy production and organic land capacity to grow feeders & fodders. Further, with changing consumer preferences towards healthy eating and adopting organic products in their daily diet, the sales of organic and naturally grown products and their byproduct has seen increment from 24 to 28 percentage over the past years. Furthermore, America and Europe have shown tremendous increase in consumption of organic dairy products than their counterparts in the world and other developing nations, and the people in these countries have acted upon their desire to purchase and consume healthier eating and maintaining healthy lifestyle in order to prevent serious health and medical expenditures.

According to a recent report published by TechSci Research,  “Global Organic Dairy Products Market, By Product Type, By Region, Competition Forecast and Opportunities, 2011 - 2021”, global market for organic dairy products is expected to grow at a CAGR of over 11% during 2016-2021, on the back of surging investments in organic dairy products market along with increasing use of bio-fertilizers for cultivation of organic grass for feeding the cattle. In addition, implementation of favorable government policies, online availability of organic dairy products facilitating easy sale and supply to consumers, is expected to augmented demand for organic dairy products, worldwide. Demand for organic dairy products is predominantly concentrated in Europe and North America as of 2015 and these regions are also anticipated to continue dominating the market during the forecast period as well. In 2015, global dairy products market was dominated by organic drinking milk segment.

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