Dairy Industry

Dairy is an important and essential food but due to the high price compared to Vietnamese average income leading to the limitations in dairy’s expenses. Dairy’s spending accounts for 10% of the total food’s expenditure in Vietnam. Average GDP per capita growing constantly is the important factor boosting the dairy consumption.

In the 1st 6 monhs of 2018, total spending for dairy products in the whole market is only below 5%, especially in the city area, which continues to grow negatively. However, in the third quarter of 2018, the total spending for dairy products in both urban and rural areas showed sign of growth.

In recent years, dairy farming in Vietnam has shown development. However, the efficiency has not really matched the potential. In the first 9 months of 2018, domestic raw milk production was estimated at 713.3 thousand tons, up 8.4% compared to the same period in 2017.
Vietnam’s liquid milk market has an annual double growth rate of 22.4% in the period 2010 – 2017. Up to the first 9 months of this year, liquid milk sales reached VND 3.6.8 thousand billion, up 21.01% compared to the same period in 2017.

Yogurt consumption in the first 9 months of 2018 reached about 12.4 thousand billion dong, increasing by 22.4% over the same period last year. Condensed milk consumption in the first 9 month of 2018 reached 5.2 thousand billion dong, increasing by 3.1% compared to the same period in 2017.

From 2010 to the end of 2017, Vietnam imported about 7.17 billion USD of milk and milk products, on average, each year Vietnam spent 897 million USD to import milk to meet domestic consumption demand.

Abbreviations
Summary
I. Business environment
1. Macroeconomic situation
2. Legal framework
II. Global market
1. Current status of  industry
III. Vietnam’s market
1. History of establishment and development
2. Production process
3. Production
4. Consumption
5. Import Export
6. Price
IV. Industrial development plan
V. Drivers of the dairy industry
1. Enterprise introduction
2. Financial analysis
Vietnam Dairy Products Joint Stock Company (Vinamilk)
Nestlé Vietnam Company Limited
NutiFood Nutrition Food Joint Stock Company
3A Nutrition Company Limited
Frieslandcampina Vietnam Company Limited
TH True Milk Joint Stock Company
Moc Chau Dairy Cattle Breeding Joint Stock Company
Mead Johnson Nutrition (Vietnam) Company Limited
KIDO Frozen Food Joint Stock Company (KDF)
International Dairy Products Joint Stock Company (IDP)

Figure 1: GDP and dairy consumption per capita, 2001-2017e
Figure 2: Expenditure structure of Vietnamese people, 2017
Figure 3: Rate of urbanization in Vietnam, 2004 – 2017
Figure 4: Growth in urban and rural dairy consumption by quarter, 2013 –  2018
Figure 5: Total population and population structure in working age period 2010-2017
Figure 6: VND/USD exchange rate, 2013 – 9/2018
Figure 7: Monthly CPI Fluctuation 2015 – 9/2018
Figure 8: Consumer confidence index by quarter, 2014 – Q2/2018
Figure 9: Retail sales of goods, 2010 – 9M/2018
Figure 10: Liquid milk production and consumption, 2012 – 2018f
Figure 11: Fresh milk consumption per capita, 2008-2023f
Figure 12: Milk consumption per capita growth 2006 – 2025
Figure 13: Liquid milk trade, 2008-2023f
Figure 14: Top 10 largest export milk countries in the world by value, 2017
Figure 15: Global cheese production and consumption, 2011 – 2018f
Figure 16: Cheese production structure, 2017e
Figure 17: Cheese consumption structure, 2017e
Figure 18: Cheese Global Trade 2011 – 2018f
Figure 19: Export structure of cheese, 2017
Figure 20: Import structure of cheese, 2017
Figure 21: Skimmed milk powder production and consumption, 2011 – 2020f
Figure 22: Structure of skimmed milk powder production and consumption, 2017e
Figure 23: Skimmed Milk Powder Global Trade, 2011 – 2018f
Figure 24: Export structure, 2017e
Figure 25: Import structure, 2017e
Figure 26: Global WMP production and consumption, 2016 – 2020f
Figure 27: Production structure of WMP, 2017e
Figure 28: Comsumption structure of WMP, 2017e
Figure 29: Whole Milk Powder Global Trade, 2015 – 2020f
Figure 30: Export and import structure of WMP, 2017e
Figure 31: Global butter production and consumption, 2011 – 2018f
Figure 32: Consumption structure of butter, 2017
Figure 33: Butter Global Trade 2011 – 2018f
Figure 34: Export structure of butter, 2017
Figure 35: Global yogurt production value, 2000 -2018f
Figure 36: Market share of global yogurt by company name, 2017e
Figure 37: Global yogurt export, 2012 – 2017 e
Figure 38: Export structure of global yogurt by value, 2017e
Figure 39: Consumption of milk and dairy products per capita, 2011 – 2020f
Figure 40: Consumption of dairy products per capita, 2017
Figure 41: Price movement of milk and dairy products, 2010 – 9/2018
Figure 42: Number of enterprises and workers in the dairy industry, 2010 – 2016
Figure 43: Fixed asset value of dairy sector over the years, 2010 – 2016
Figure 44: Production volume of liquid milk, 2010 – 9M/2018e
Figure 45: Production volume of milk powder, 2010 –9M/2018e
Figure 46: Production of liquid milk and powdered milk by month, 2016 – 9M/2018
Figure 47: Dairy industry’s sales, 2010 – 2017e
Figure 48: Dairy consumption per capita, 2008 – 2017f
Figure 49: Sales of liquid milk, 2010 – 9M/2018e
Figure 50: Market share of liquid milk, 2017
Figure 51: Sales of powdered milk, 2006 – 2020f
Figure 52: Market share of powdered milk by brand, 2017e
Figure 53: Sales of yogurt, 2010 – 9M/2018e
Figure 54: Market share of yogurt by brand, 2017e
Figure 55: Sales of condensed milk, 2010 – 9M/2018e
Figure 56: Market share of condensed milk, 2017e
Figure 57: Import of milk and dairy products, 2010 – 9M/2018
Figure 58: Import market for milk and dairy products, 9M/2018
Figure 59: Import structure of milk and dairy products by HS code, 9M/2018
Figure 60: Export of milk and dairy products, 2010 – 9M/2018e
Figure 61: Total population and birth rate over the years, 2010-2017
Figure 62: Number of people above 60 years old, 2017 – 2030f
Figure 63: Elder rate having healthy problems, 2017
Figure 64: Net revenue, 2016 – 2017
Figure 65: Gross profit, 2016 – 2017
Figure 66: Selling expense/ Net revenue, 2016 – 2017
Figure 67: Vinamilk’s selling and advertising expenses, 2010 – 2017
Figure 68: Selling expense structure of Vinamilk, 2017
Figure 69: Administrative expenses, 2016 – 2017
Figure 70: Debt ratio, 2016 – 2017
Figure 71: Short-term Assets/Long-term Assets, 2016 – 2017
Figure 72: Liquidity, 2016 – 2017
Figure 73: Profit Ratio, 2017

Table 1: World’s top 5 biggest butter importing countries, 2016-2017
Table 2: Some brands of powdered milk in Vietnam
Table 3: Description of goods under the HS code
Table 4: Retail price of some powdered milk products for kids under six years old in 9/2018
Table 5: Development planning for dairy products to 2020, vision to 2025