Recent Trends in Dairy Production

in Vietnam and theirConsequences on Land Use

Guillaume Duteurtre(Cirad Vietnam)

“Animal Productions. Food and feed future demand, consequences on land uses and food security”Agrimonde-Terra WorkshopParis, February 13th, 2013

1. The “livestock revolution” in Vietnam

Main livestock production in Vietnam (in 1000 tonnes)

Source : Hoang Kim Giao, 2012

Production and importation of animal feed in Vietnam (in 1000 tonnes)

Source : Hoang Kim Giao, 2012

1. The “livestock revolution” in Vietnam

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2. History of the milk “success story”

Production of milk in Vietnam (in tonnes)

Source : FAOSTAT

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2. History of the milk “success story”

(data Year 2009)

• Population 87 millions• Consumption per capita 12 kg EL

• Number of farms 20.000 • Number of cows/farms 7

• Total number of milking cows 135 000• Share of nat. prod. in total consumption 23 %

2. History of the milk “success story”

countries 1961 1971 1981 1991 2001 2007

France 219,5 235,2 281,6 287,2 272,9 260,5

China 2,5 2,3 3,2 6,5 11,1 28,7

Thailand 2,4 7,3 9,3 15,0 20,2 22,5

Viet Nam 1,9 4,3 1,1 2,1 11,2 11,9

Source : FAOSTAT, 2011 Supply of milk products - except butter

Milk consumption (kg/capita.an)

2. History of the milk “success story”

Factors related to market and consumption

Collectivist period (1954-1986)

The “đỏi mới” and family farms(1986-2012)

The “industrial trend”

(2008-??)

2. History of the milk “success story”

Factors related to policies and institutions

3. Recent trends

• Dairy Development Plan (1998-2000)• Based on small-holder farms• With a lot of support from the Government (credit, services, AI, …)

• Decision 10/2008 of the Government of Vietnam (2008-…)

• “Livestock Development Strategy to 2020”• Priority to “quantitative development” (productivist approach)• Objective : to feed the markets and to reduce import

• New investments of private firms • National• International

Factors related to policies and institutions

• The « TH Milk company »– 2010 : set up (350 millions US$)– Sept. 2012 : 30,000 cows

– … 2017 : 137,000 cows ?

– 1 500 Ha of land allocated

3. Recent trends and consequences on land use

(source : DARD Son La)

Planted Area in Son La Province (North Vietnam)(x 1,000 ha)

3. Recent trends and consequences on land use

Production and importation of animal feed in Vietnam (in 1000 tonnes)

Source : Hoang Kim Giao, 2012

3. Recent trends and consequences on land use

• Transition in livestock farms• Rice cultivation Forages + Feed cultivation Elephant grass + Maize (Cassava)

• Transition in territories• Food cultivation Feed cultivation• Forest Land Feed cultivation Maize + Cassava• Land re-allocations to industrial projects (CF TH milk)

• Transition in the use of important feed-stuffs• in the use of imported feed stuffs Mainly soybean meals (66%), + other meals and oilcakes,

starch… (Mainly from Argentina, India, US)

3. Recent trends and consequences on land use