Vietnam’s largest dairy processing project in Russia owned by TH Group has welcomed a visit by one of the country’s top leaders.
As part of her official November 8-11 visit to Russia, Vietnamese National Assembly Chairwoman Nguyen Thi Kim Ngan paid a visit to the high-tech concentrated dairy and fresh milk production project owned by Vietnam’s TH Group in Volokolamsk district of Moscow.
|National Assembly Chairwoman Nguyen Thi Kim Ngan delivered a speech at the TH farm |
“I am here because this is the biggest economic project by a Vietnamese entrepreneur in Russia. This project demonstrates the strong will of Vietnamese businesspeople, and that Vietnam is not only rolling out the red carpet to attract foreign investment but is also enabling its businesses to invest overseas,” Chairwoman Ngan stated. “This project has both economic and political significance to the two countries’ existing strategic partnership.”
This was the second time the project welcomed a top leader from Vietnam. In 2016, the project was visited by Prime Minister Nguyen Xuan Phuc for a ground-breaking ceremony.
This 10-year project cost $2.7 billion, including dairy cow raising and fresh milk processing, and a number of foodstuff processing projects, located not only in Moscow but also in Kaluga province of Bashkortostan and Primorye province in the Far-Eastern region.
All the products from the projects will have the TH true MILK brand name and be marketed in Russia.
|The material area of the dairy cow project in Russia of TH Group |
In Moscow, TH Group will build three clusters of farms, with a material area covering more than 30,000 hectares. The first cluster in Volokolamsk has already come into operation since January 2018, with cows imported from the US. With big investment, the farm’s construction is expected to be completed by late 2020.
The average daily milk productivity at the cluster hit 37 litres per cow, equivalent to over 11 tonnes of milk per cycle, which is far higher than the six tonnes per cycle average of the Russian milk industry.
Meanwhile, the second cluster, located in Shatura district of Moscow, is now being designed, with construction to be commenced next year.
TH Group began to invest in Russia after the country begansuffering from foodstuff and milk shortages.
The group’s founder, Thai Huong, visited Russia to explore and surveys investment opportunities. She found that the land was suitable for a big dairy processing project for TH, an idea that received a warm welcome from President Vladimir Putin.
Statistics from Russia showed that from 2013 to 2017, this nation could produce about 20 million tonnes of milk a year on its own, accounting for 76 per cent of its total demand, forcing it to import about seven million tonnes of milk a year.
Since 2009, TH Group has been operating a $1.2 billion facility in Nghia Dan district in the central province of Nghe An, Vietnam.
Currently, the group is also constructing the first phase of a major high-tech concentrated dairy farm in the south-central province of Phu Yen. The 82ha phase has a total investment capital of VND1.151 trillion ($50 million), with 5,000 dairy cows.
In the second phase (2019-2022), the number of cows will increase to 20,000, with total investment capital mounting to VND4.57 trillion ($198.7 million). All animals are imported from the US.