From the desire for 'milk fields' to the brand that changes the Vietnamese dairy industry nature

In the 15-year journey of building and developing the TH true MILK clean fresh milk project, TH Dairy Foods Joint Stock Company (THMF, part of TH Group) has always been the main force and started from a harsh land, seemingly " impossible" in the field of dairy farming.

According to Nguyen Xuan Duong (Former Director of Department of Livestock - Ministry of Agriculture and Rural Development, Chairman of Vietnam Livestock Association), in 2008, many people, including famous livestock experts and many officials, were skeptical about this high-tech dairy farming and fresh milk processing project. They supposed raising dairy cows in arid land with the sun and dry westerly wind like Nghia Dan (Nghe An) is the idea of ​​adventure. 

The seemingly "utopian" project was successful, creating a brilliant mark in the Vietnamese dairy farming industry

“I myself am a livestock industry manager who has worked, studied, and visited many countries with dairy farming and milk processing industries in Europe, America, and Asia but still wonder about the project.” Mr. Duong recalled.

In a newspaper, the then Minister of Agriculture and Rural Development, Mr. Cao Duc Phat - who studied management at Harvard University (USA) - talked about the decision to implement the TH true MILK Fresh milk project: “If Mrs Thai Huong is right, then all of our theories learned in America are wrong. And if TH is right, that is, the technology will solve all problems of competitive advantage, then the face of Vietnamese agriculture will change”.

However, the fact that TH was successful!

Mr Nguyen Xuan Duong still remembers the story at the end of 2008 when he accompanied former Deputy Prime Minister Nguyen Cong Tan on a field visit to the TH dairy project. On the newly plowed field, still in disarray, Mrs Thai Huong - founder of TH Group, passionately presented to the former Deputy Prime Minister about her aspirations for Vietnam's dairy farming industry. When the former Deputy Prime Minister said that Vietnam must have a "milk river", the businesswoman - later awarded the Labor Hero of the reform period, asserted that "TH will also build "milk fields" in this Nghia Dan land". 

Based on the sustainable development foundation, THMF Company has learned and applied 4.0 technology and world-class technologies in the project. Good experts from countries with the world's leading dairy farming industries are invited to work directly and direct technical instructions. The farm also imports the best purebred high-yield dairy cows (Holstein Friesian cows) from the US and New Zealand. 

“To be successful today, in addition to the determination and aspirations of investors, the thinking and vision of applying high technology in livestock farming, processing, advanced management, and the way the company chooses partners - are all world leading partners, investing methodically in technology from the beginning, are the most important factors”. Mr Duong acknowledged.

Dr. Dang Kim Son, former Director of the Institute of Strategic Studies, Ministry of Agriculture and Rural Development, explained that this success comes from many factors. According to him, the first factor is the quality of the dairy herds. THMF  imports purebred high-yield dairy cows, builds a standard barn system, visionary design and applies Israel's advanced technical processes in livestock farming, management, and herd care. The next step is to build a synchronous processing system to produce clean, fresh milk. Besides, the management thinking, management methods and staff building, creating conditions for high science and technology to go into production also contribute to the company's success.

In 2011, when visiting the project, Mr. Shimon Peres, President of the State of Israel at that time, evaluated the TH true MILK clean fresh milk project as follows: “The TH True Milk project has initiated a revolution about clean fresh milk in Vietnam”.

The revolution changes the nature of the dairy industry, for public health

According to Dr Dang Kim Son, when THMF started this project, Vietnam had about 500 different milk brands, but it was not clear which was reconstituted milk (reconstituted powdered milk) and which was fresh milk, of which the majority were actually reconstituted milk. According to a survey, reconstituted milk at that time accounted for 92% of the liquid milk market. 

In this background, TH successful project has had a profound impact on the nature of the dairy industry. With cows raised on a large scale and fresh milk processed right in Vietnam, the brand positioning "true MILK" - clean and real fresh milk has created a competitive position in the market. The success of TH true MILK has also motivated milk processing enterprises to compete in quality, and to actually raise dairy cows, thereby increasing the proportion of fresh milk products from 8% in 2008 to about 55%  in 2022. 

As of December 2022, this project has owned a herd of nearly 70,000 cows, TH true MILK products account for about 45% of the market share in the fresh milk segment of Vietnam's urban market.

Not only creating a revolution for the Vietnamese dairy industry, TH true MILK also convinced markets with the world's leading strict food standards, China is an example. The journey to reach the world of this national brand product is even more strongly affirmed with the dairy farming project with a total capital of 2.7 billion USD in Russia.

Sustainable development foundation

With the principle of "Appreciating Mother Nature" instilled in all units of TH Group, THMF company determined the path of sustainable development from the first day of establishment, even though this is a difficult path and requires high costs. 

THMF applies leading modern technologies and uses a closed, circular process: installing solar power on farm and factory roofs to provide clean energy; build a factory to process clean microbial fertilizer with international standards from dairy farm waste; wastewater treatment… All are aimed at sustainable development by a closed, circular process.

This is the development approach that the whole world is aiming for to adapt to climate change, as well as a way to leave no one behind.

"We have constantly strived to find solutions for sustainable development and practice green and circular economic models" affirmed by Mr. Tal Cohen - General Director of THMF Company.

Former Minister of Agriculture and Rural Development, Mr Nguyen Xuan Cuong assessed. TH contributed to sustainable development in many aspects, including promoting the circular economy, one of the solution groups to develop the agricultural economy in particular and the Vietnamese economy in general.