Milking Israeli hi-tech dairy farming techniques

TH true MILK’s Nghe An dairy cow production and management technology and know-how are sourced from Israel

During his meeting with TH Milk Food Joint Stock Company (TH true Milk) late last month in Hanoi, Israeli Minister of Agriculture and Rural Development Yair Shamir said Israel wanted to rivet its agricultural co-operation with more Vietnamese enterprises to develop hi-tech agriculture in Vietnam.

“We’re keen to pursue greater co-operation with Vietnamese firms after the successful adoption of Israeli hi-tech processes in TH true Milk’s production process,” Shamir said.

In July 2013, the company placed its $100 million 200,000-tonne-per-year hi-tech milk producing facility into commercial operation in the northern central province of Nghe An’s Nghia Dan district. The facility will continue being expanded until 2017, with annual capacity of 500 million litres of milk.

The fully automated facility uses technology from global leaders such as Siemens, Danfoss and Grundfos. Husbandry management technology and know-how are provided by Afimilk, Israel’s leading milk technology producing group.

The facility is part of TH true Milk’s $1.2 billion hi-tech dairy cow and fresh milk processing project, making it the most advanced of its kind in Southeast Asia.

TH true Milk also has a 200-tonne per day milk facility in the northern province of Hung Yen which began operations in 2010.

At present, the company has invested $350 million into the first stage of its milk production system and the figure will increase to $1.2 billion by 2020.

Shamir said “We’re proud that advanced Israeli technology and experience have been successfully applied in this project. I believe that agricultural co-operation between Israel and Vietnam and between Israel and TH true Milk will further flourish.”

“The support of Israeli experts has greatly helped us in ensuring a fresh clean milk material sources and products for consumers in Vietnam,” said Thai Huong, general director of Bac A Bank – the investment consultant for TH true Milk – and also the company’s chairwoman.

In May 2013, Vietnam Development Bank’s branch in Nghe An and TH true Milk clinched a $100 million loan to develop the project.

This loan follows a financial protocol earlier agreed between the governments of Vietnam and Israel.

Despite a difficult climate and just 3 per cent of its population engaged in agricultural activities, Israel is one of the world’s top exporters of farm produce, with an average annual export turnover of $3 billion.

“Vietnam-Israel agricultural co-operation is flourishing. Israel is providing support to Vietnam’s agricultural development via human resources training, the transfer of technology and irrigation improvements,” said Deputy Minister of Agriculture and Rural Affairs Hoang Van Thang.

He cited TH true Milk’s state-of-the-art project as a prime example.

“This project has effectively applied Israel’s hi-tech agricultural technology. Its success should be replicated in Vietnam. The company has been greatly contributing to Vietnam’s efforts in constructing its modern agriculture,” Thang said.

Huong said besides this project, TH true Milk  would also co-operate with other Israeli firms in Vietnam. For example, the company is now working with Israel’s Green 2000 Company to implement a project to cultivate vegetables and flowers in conservatories. Green 2000 will provide consultancy on cultivation, harvesting and packaging techniques, and product marketing.

“Our target is to create clean and natural produce to meet consumer demand. TH true Milk’s successes rest on a strictly-managed production process and high compliance in use of high technologies. The best way to shift from old-fashioned agricultural techniques is via the application of new technologies,” Huong stressed.

TH true Milk’s dairy herd has expanded to 45,000 cows sourced from New Zealand, Canada and Australia, with over 15,500 cows providing milk. By 2017, the herd will grow to 137,000 dairy cattle, equivalent to 50 per cent of Vietnam’s total dairy cattle population, with the total rising to 203,000 by 2020. The total area in terms of meadows, feed production, and clean and waste water treatment will rise from the current 4,000 hectares to 37,000ha by 2017.

In just three years of operation, TH true Milk has secured nearly 40 per cent of Vietnam’s fresh milk market with its sterilised milk, and its stake is likely to increase to over 50 per cent within the next two years

TH true Milk’s dairy produce is currently sold by over 130,000 stores nationwide via 171 distributors. The firm currently has 109 TH true Marts and is dedicated to launching a new range of TH true Milk yoghurt products this year.

The company’s total revenue reached over $48 million in 2011, more than $96.15 million last year, and is expected to top $190.47 million this year, $714.3 million by 2015 and $1.1 billion by 2017.

The company is one of the founders of Vietnam Association of Enterprises with High-technology Agricultural Production established in February 2013.