Development of a sustainable dairy sector in Vietnam

In Vietnam, the demand for dairy products has been growing rapidly in the past decade and is expected to continue to grow even faster as a result of urbanisation, driving farmers from their land and income growth. This growing demand will lead to shortages in milk supply and therefore lead to high milk prices. 

Despite all economic growth in Vietnam, the percentage of malnutrition prevalence among children below five years old is still 20%. The awareness of consumers in Vietnam that this malnutrition can be addressed through nutritious milk is high. But with the high prices, milk is unaffordable for large segments of the Vietnamese population. 

Thereby, new non-dairy companies suddenly move into the dairy sector, since it is a chance for them to make profit. However, they do not have knowledge and proper quality assurance systems. 

The goal of the project is to enhance the ability of the domestic smallholder in the dairy sector in the Ha Nam Province to meet the growing domestic demand by developing smallholder dairy farmers with currently one to five cows, to professional and sustainable family farms with 20 to 75 cows. Rural households can farm themselves out of poverty and the Vietnamese consumer will get better access to more affordable and good quality dairy products with high nutritional value.