Vietnam Dairy Standard Report Q3/2016
Dairy are important food providing necessary nutrients for every human being. Dairy is a universal and livestock industry related production: Livestock and milk collection take place in almost every country across the world, and up to one million people participate in milk production. It is an important part of the global food system and it plays a key role in the sustainability of rural areas in particular. In fact, the dairy industry actively contributes to the economies of a number of communities, regions and countries. An increasing demand worldwide is noticeably emerging at the present, and the industry is globalizing, thus increasing the scope and intensity of the global dairy trade. However, the world’s dairy industry is mainly produced in developed countries, such as America, New Zealand and is mostly exported to developing countries. In addition, the dairy industry is in shortage of supply. The motivation comes from China and Europe with annual input growth rates up to 20%.
Vietnam does not initially possess the cow raising tradition, this only emerged in Vietnam since the early of the 20th century. Up to 2015, Vietnam has more than 275 thousand units of cow and a total of 19 thousand producers. Cow raising requires capital and high technical skills, but in Vietnam, cows are mainly raised by small scale producers (less than 20 units/ producer) coupled with the lack of knowledge on raising and preventing cows from diseases, resulting in low productivity, high production cost, and unstable milk quality. According to Vietnam Industry Research and Consultant (VIRAC), West Europe has production cost from 45-55 USD. While America has the production cost at about 35-60 USD, depending on each area development. Countries like Argentina have suitable weather and big farming land, helping reducing the average cost. Cost of production in Australasia is 36.6 USD, while it is 30 -35 USD in Australia and 41-42 USD in New Zealand. The discrepancy comes from food price, land price and the revaluation of NZD recently. New Zealand used to have the most competitive price in around the year 2000 (12USD/ 100kg) but the revaluation of the currency and rising inputs price trebled the price. In general, the cost of production did not fluctuate strongly throughout the period. Vietnam has the average cost of production because diluted raising and scale, does not achieve the economics of scale, low productivity (12-15 liters/day) and high cost of cattle-feed and veterinary. This leads to the lack of milk as input materials for milk manufacturing industry for years hence has to rely on imports.
The in-depth research “Vietnam Dairy Industry” carried out by Vietnam Industry Research and Consultant (VIRAC) illustrates the overall scenario of the dairy industry in Vietnam in order to provide an insight for a better understanding regarding the market. The report details the economic situation in general and the industry in particular with updated date and statistic until 2016, the movement of the price as well as the forecast for the upcoming future, covering all domains, including liquid milk, powdered milk, condensed milk as well as yogurt, butter and cheese. Analysis of big players in the industry is also elaborated by providing detailed financial analysis, applied technology, market share, etc. herein to help companies position and define the competiveness in the market. For example, some typical producers are VinaMilk, TH True Milk, Nutrifood, Hanoi milk, IDP, 3A nutrition.
Vietnam does not initially possess the cow raising tradition, this only emerged in Vietnam since the early of the 20th century. Up to 2015, Vietnam has more than 275 thousand units of cow and a total of 19 thousand producers. Cow raising requires capital and high technical skills, but in Vietnam, cows are mainly raised by small scale producers (less than 20 units/ producer) coupled with the lack of knowledge on raising and preventing cows from diseases, resulting in low productivity, high production cost, and unstable milk quality. According to Vietnam Industry Research and Consultant (VIRAC), West Europe has production cost from 45-55 USD. While America has the production cost at about 35-60 USD, depending on each area development. Countries like Argentina have suitable weather and big farming land, helping reducing the average cost. Cost of production in Australasia is 36.6 USD, while it is 30 -35 USD in Australia and 41-42 USD in New Zealand. The discrepancy comes from food price, land price and the revaluation of NZD recently. New Zealand used to have the most competitive price in around the year 2000 (12USD/ 100kg) but the revaluation of the currency and rising inputs price trebled the price. In general, the cost of production did not fluctuate strongly throughout the period. Vietnam has the average cost of production because diluted raising and scale, does not achieve the economics of scale, low productivity (12-15 liters/day) and high cost of cattle-feed and veterinary. This leads to the lack of milk as input materials for milk manufacturing industry for years hence has to rely on imports.
The in-depth research “Vietnam Dairy Industry” carried out by Vietnam Industry Research and Consultant (VIRAC) illustrates the overall scenario of the dairy industry in Vietnam in order to provide an insight for a better understanding regarding the market. The report details the economic situation in general and the industry in particular with updated date and statistic until 2016, the movement of the price as well as the forecast for the upcoming future, covering all domains, including liquid milk, powdered milk, condensed milk as well as yogurt, butter and cheese. Analysis of big players in the industry is also elaborated by providing detailed financial analysis, applied technology, market share, etc. herein to help companies position and define the competiveness in the market. For example, some typical producers are VinaMilk, TH True Milk, Nutrifood, Hanoi milk, IDP, 3A nutrition.
I. Business environment
1. MACROECONOMIC SITUATIONS
Figure 1. GDP and average milk consumption per capita
Figure 2. Food and dairy goods spending, 2012-2015E
Figure 3. Urbanization ratio, 2004-2014
Figure 4. Consumption growth in cities and rural areas 2010-Q3/2015
Figure 5. Vietnam’s population structure, 2014
Figure 6. Population and growth rate, 2004 – 2015
Figure 7. VND/USD Exchange rate, imported milk input price, 2010 – 7/2016
Figure 8. Monthly CPI fluctuation
Figure 9. Consumer’s Confidence Index CCI
Figure 10. Retails sales
2. LEGAL FRAMEWORK
II. Global market
1. CHAIN VALUE OF THE DAIRY INDUSTRY
2. DAIRY GOODS
Figure 11. Quantity production and consumption of liquid milk
Figure 12. Change in milk consumption per capita by countries, 2014
Figure 13. Trade of dairy, 2008-2023F
Figure 14. Milk Import/Export structure, 2015
Figure 15. World’s yogurt production value
Table 1. Quantity production of yogurt by the region
Figure 16. Milk consumption structure
Figure 17. Skimmed milk production structure, 2008-2015
Figure 18. Skimmed milk production and consumption structure, 2015
Figure 19. World’s skimmed food transaction, 2008-2015
Figure 20. Export structure, 2015
Figure 21. Import structure, 2015
Figure 22. Whole milk production and consumption, 2008-2023F
Figure 23. Whole milk production structure, 2015
Figure 24. Whole milk consumption structure, 2015
Figure 25. Global trade of whole powdered milk
Figure 26. Whole milk export structure, 2015
Figure 27. Whole milk import structure, 2015
Figure 28. Cheese production and consumption , 2008-2023F
Figure 29. Cheese export structure, 2015
Figure 30. Cheese import structure, 2015
Figure 31. World’s cheese transaction, 2008-2015
Figure 32. Butter consumption and production
Figure 33. Butter consumption structure 2015
Table 2. World’s top 5 most importing countries, 2015
Figure 34. World’s butter transaction, 2008-2023F
Figure 35. Butter export structure, 2015
Figure 36. Average dairy consumption, 2015
Figure 37. Movement of milk and dairy goods, 2010-T1/2016
III. Vietnam’s market
1. HISTORY OF ESTABLISHMENT AND DEVELOPMENT
2. PRODUCING PROCEDURES
3. PRODUCTION
Figure 38. Number of enterprises and labor in milk industry
Figure 39. Production quantity of liquid milk
Figure 40. Production quantity of powdered milk
Figure 41. Production quantity of other milk
Figure 42. Monthly production quantity of powdered milk and liquid milk
4. CONSUMPTION
Figure 43. Sale of milk consumption in Viet Nam
Figure 44. Quantity consumption of milk
Figure 45. Revenue of milk companies
Figure 46. Milk Consumption per capita
Table 3. Several powdered milk brands in Vietnam
Figure 47. Sale of powdered milk in Viet Nam
Figure 48. Market share of powdered milk in 2014
Figure 49. Sale of liquid milk
Figure 50. Liquid milk market share in 2014
Figure 51. Sale of Yogurt, 2010-2015
Figure 52. Yogurt market share, 2014
Figure 53. Condensed milk market shares, 2014
Figure 54. Sale consumption of condensed milk
5. PRICES
Figure 55. Price movements of 400g milk powder
Figure 56. Powdered milk wholesale price 2015
Figure 57. Condensed milk wholesale price in the market 2015
Figure 58. Milk powder wholesale price 2015
Figure 59. Yogurt wholesale price 2015
IV. Industrial development plan
1. POPULATION GROWTH
Table 4. Forecast of several basic population indicators
Figure 60. Population and population growth forecasts Vietnam 2017
2. RAISING INDUSTRY DEVELOPMENT
Table 5. Domestic dairy herd growth target 2010 – 2020
3. DAIRY INDUSTRY DEVELOPMENT
Table 6. Dairy product development plan until 2020, vision 2025
V. Prospects and forecasts
1. DEVELOPMENT INCENTIVES
Figure 61. The percentage of families having children in several countries 2014
Figure 62. Milk consumption forecast in Viet nam 2020
VI. Business analysis
1. OVERVIEW
Table 7.
2. FINANCIAL ANALYSIS
Figure 63. Net Revenue and Gross Profit, 2015
Figure 64. Selling expenses, 2015
Figure 65. Advertising and Selling costs of Vinamilk 2015
Figure 66. Selling Expenses Structure of Vinamilk 2015
Figure 67. General & Administrative expenses, 2015
Figure 68. Capital Structure, 2015
Figure 69. Forecast of TH Milk loans until 2020
Figure 70. Assets structure, 2015
Table 8. The evaluation indicators of solvency 2015
Table 9. Indicators to assess efficiency of assets 2015
Table 10. The evaluation indicators of business performance, 2015
VII. Financial analysis annex
1. MACROECONOMIC SITUATIONS
Figure 1. GDP and average milk consumption per capita
Figure 2. Food and dairy goods spending, 2012-2015E
Figure 3. Urbanization ratio, 2004-2014
Figure 4. Consumption growth in cities and rural areas 2010-Q3/2015
Figure 5. Vietnam’s population structure, 2014
Figure 6. Population and growth rate, 2004 – 2015
Figure 7. VND/USD Exchange rate, imported milk input price, 2010 – 7/2016
Figure 8. Monthly CPI fluctuation
Figure 9. Consumer’s Confidence Index CCI
Figure 10. Retails sales
2. LEGAL FRAMEWORK
II. Global market
1. CHAIN VALUE OF THE DAIRY INDUSTRY
2. DAIRY GOODS
Figure 11. Quantity production and consumption of liquid milk
Figure 12. Change in milk consumption per capita by countries, 2014
Figure 13. Trade of dairy, 2008-2023F
Figure 14. Milk Import/Export structure, 2015
Figure 15. World’s yogurt production value
Table 1. Quantity production of yogurt by the region
Figure 16. Milk consumption structure
Figure 17. Skimmed milk production structure, 2008-2015
Figure 18. Skimmed milk production and consumption structure, 2015
Figure 19. World’s skimmed food transaction, 2008-2015
Figure 20. Export structure, 2015
Figure 21. Import structure, 2015
Figure 22. Whole milk production and consumption, 2008-2023F
Figure 23. Whole milk production structure, 2015
Figure 24. Whole milk consumption structure, 2015
Figure 25. Global trade of whole powdered milk
Figure 26. Whole milk export structure, 2015
Figure 27. Whole milk import structure, 2015
Figure 28. Cheese production and consumption , 2008-2023F
Figure 29. Cheese export structure, 2015
Figure 30. Cheese import structure, 2015
Figure 31. World’s cheese transaction, 2008-2015
Figure 32. Butter consumption and production
Figure 33. Butter consumption structure 2015
Table 2. World’s top 5 most importing countries, 2015
Figure 34. World’s butter transaction, 2008-2023F
Figure 35. Butter export structure, 2015
Figure 36. Average dairy consumption, 2015
Figure 37. Movement of milk and dairy goods, 2010-T1/2016
III. Vietnam’s market
1. HISTORY OF ESTABLISHMENT AND DEVELOPMENT
2. PRODUCING PROCEDURES
3. PRODUCTION
Figure 38. Number of enterprises and labor in milk industry
Figure 39. Production quantity of liquid milk
Figure 40. Production quantity of powdered milk
Figure 41. Production quantity of other milk
Figure 42. Monthly production quantity of powdered milk and liquid milk
4. CONSUMPTION
Figure 43. Sale of milk consumption in Viet Nam
Figure 44. Quantity consumption of milk
Figure 45. Revenue of milk companies
Figure 46. Milk Consumption per capita
Table 3. Several powdered milk brands in Vietnam
Figure 47. Sale of powdered milk in Viet Nam
Figure 48. Market share of powdered milk in 2014
Figure 49. Sale of liquid milk
Figure 50. Liquid milk market share in 2014
Figure 51. Sale of Yogurt, 2010-2015
Figure 52. Yogurt market share, 2014
Figure 53. Condensed milk market shares, 2014
Figure 54. Sale consumption of condensed milk
5. PRICES
Figure 55. Price movements of 400g milk powder
Figure 56. Powdered milk wholesale price 2015
Figure 57. Condensed milk wholesale price in the market 2015
Figure 58. Milk powder wholesale price 2015
Figure 59. Yogurt wholesale price 2015
IV. Industrial development plan
1. POPULATION GROWTH
Table 4. Forecast of several basic population indicators
Figure 60. Population and population growth forecasts Vietnam 2017
2. RAISING INDUSTRY DEVELOPMENT
Table 5. Domestic dairy herd growth target 2010 – 2020
3. DAIRY INDUSTRY DEVELOPMENT
Table 6. Dairy product development plan until 2020, vision 2025
V. Prospects and forecasts
1. DEVELOPMENT INCENTIVES
Figure 61. The percentage of families having children in several countries 2014
Figure 62. Milk consumption forecast in Viet nam 2020
VI. Business analysis
1. OVERVIEW
Table 7.
2. FINANCIAL ANALYSIS
Figure 63. Net Revenue and Gross Profit, 2015
Figure 64. Selling expenses, 2015
Figure 65. Advertising and Selling costs of Vinamilk 2015
Figure 66. Selling Expenses Structure of Vinamilk 2015
Figure 67. General & Administrative expenses, 2015
Figure 68. Capital Structure, 2015
Figure 69. Forecast of TH Milk loans until 2020
Figure 70. Assets structure, 2015
Table 8. The evaluation indicators of solvency 2015
Table 9. Indicators to assess efficiency of assets 2015
Table 10. The evaluation indicators of business performance, 2015
VII. Financial analysis annex
