Building a Sustainable Dairy Farming Model

11:18:51 AM | 7/28/2014

The FrieslandCampina company in Vietnam recently held the ground-breaking ceremony for construction of the sustainable dairy farming area in Moc Bac commune, Duy Tien district, Ha Nam province. On this occasion, Vietnam Business Forum had an interview with Tran Quoc Huan, Deputy General Director of FrieslandCampina about this project. Le Hien reports.
 
It is known that this is the largest project in the province of Ha Nam, could you please tell us about this project in detail?
This project is located in an area of 66 hectares based on the public private partnership. This project is a collaboration between the FrieslandCampina, Ha Nam province and the government of the Netherlands under the framework of the Facility for Sustainable Entrepreneurship and Food Security (FDOV) programme in the period 2014-2018. The goal of this project is to establish and develop a professional and sustainable family-sized dairy farming model, which contributes to ensuring food security, creating jobs and reducing dairy imports.
 
The project is associated with the objectives of the Facility for Sustainable Entrepreneurship and Food Security (FDOV).
 
Thereby, the FrieslandCampina is committed to helping solve the three major social problems: an urgent need to guarantee the future of young farmers who will be under the risk of increasing age, a need to provide better quality and adequate nutrition for the increasing population of the world and demand for low-price food, along with the manufacturing supply chain and sustainable production.
 
When will this project be kicked off?
Launched in 2011 after a period of verification, the project is expected to be kicked off at the end of this year. Under the plan, after 5 years of implementation by 2018, the project will build three concentrated dairy regions. In particular, each region will have about 50 dairy farms, producing at least 7 million pounds of milk per year and creating 345 jobs.
 
Each farm, after 5 years of participation in the project, will have a dairy herd with size of 50 to 80 cows and supply enough grass land to feed the cows.
 
In addition, the project also aims to develop and implement the training program from basic to advanced levels, build the supply system for dairy foods and look for sustainable financial services for farmers participating in the project.
 
Based on the technical and economic study submitted to the People's Committee of Ha Nam province to apply for the license to operate the dairy concentrate, there is none of ambition for land and the profits but only the sustainable measures for the local governments to create the greatest value from the land so farmers could access to land and capital formation and efficiently exploit the scale of dairy farming and the Dutch partners can promote their professional capacity to produce added value.
 
What will the role of FrieslandCampina Group be?
As the main partner of the project, the FrieslandCampina is assumed to be the main manager and direct investor of the project to build three dairy regions in Vietnam with two sample farms in each region, and support the farmers to seek preferential loans for the sustainable development of the dairy farming. In addition, the company will support training and give technical advice to dairy farmers, build up procurement systems, control systems and assurance of milk quality, while ensuring consumption of dairy products at competitive prices in the market.
 
The sustainable dairy farming model of Ha Nam is a public-private partnership model with close collaboration between all levels of government from central to local as Minister of Agriculture and Development Rural, People's Committee of Ha Nam, and Department of Agriculture and Rural Development of Ha Nam. In particular, the cooperation, commitment and support of the Dutch partners has built confidence in the good results that come from the creation of shared value to communities.