Yoghurt accounts for just 12-20 percent of milk-based products in Vietnam compared to 50 percent in many countries.
The Vietnam Dairy Products Joint Stock Company, or Vinamilk, is the largest player in the domestic dairy market, selling fresh and processed milk, sweetened condensed milk and yoghurt.
According to Vietnam Business News, Vinamilk reported revenue from yoghurt sales last year of US$105.3 million, 60 percent of the total yoghurt market.
Two other players in Vietnam’s dairy industry, the International Dairy Products Joint Stock Co (IDP) and Kido Dairy Products JS Co recently entered the yoghurt market.
IDP makes the Ba Vi branded yoghurt and recently bought probiotics, a kind of micro-organism that aids fermentation, from Denmark to make yoghurt products.
“For IDP, revenue from yoghurt is growing at the fastest pace among all its dairy products,” the Vietnam Business News said.
“To improve their competitiveness, many Vietnamese companies are developing their own dairy farms to source raw materials while some others have opted to have tie-ups with dairies.”
For example, IDP offers interest-free loans to farmers in Ba Vi District near Hanoi to buy dairy cows and equipment, with farmers repaying them by supplying milk.
Source: Vietnam Business News
