TH Group receives outstanding livestock enterprise award for circular economy development

TH Group, owner of the TH true MILK fresh milk brand, was recently honored in two categories: Outstanding Livestock Enterprise for Circular Economy Development and Closed-Loop Value Chain Linkage at the Vietstock Awards 2024.

The Vietstock Awards 2024 ceremony is one of the most anticipated events within the framework of the International Exhibition on Livestock, Feed, Aquaculture, and Meat Processing in Vietnam. Organized by the Department of Livestock Production under the Ministry of Agriculture and Rural Development, the event took place from October 9 to October 11 in Ho Chi Minh City.

Over its 12 editions, the Vietstock Awards have recognized and honored enterprises and organizations with exemplary and outstanding contributions to Vietnam's livestock sector. This prestigious award has become a key target for all businesses and organizations operating in the country’s livestock sector.

Duong Tat Thang, General Director of the Department of Livestock Production, remarked that the awards reflects TH Group's exceptional efforts and contributions to the livestock sector. Furthermore, they highlight the leadership role of pioneering enterprises such as TH Group in guiding the sustainable development of the domestic livestock sector.

The two awards for TH Group were selected based on a strict set of criteria, including legal compliance, operational scale, contributions to environmental protection and emission reduction, closed-loop production based on the livestock value chain, high volume of livestock product sales through widely distributed channels, and strong participation in fulfilling social responsibilities and community support.

The Outstanding Livestock Enterprise for Circular Economy Development category also assessed various other criteria, including the use of advanced, eco-friendly processing technologies and the extent of implementation of circular economy models in livestock production

A model example in closed-loop livestock production

Launched in October 2009 with a total investment capital of 1.2 billion USD, TH Group’s "High-Tech Industrial-Scale Dairy Farming and Milk Processing" project has expanded its farm network across several provinces, with nearly 70,000 dairy cows in operation.

TH farms have consistently won numerous major livestock awards both domestically and internationally, including the record for the largest farm in Southeast Asia in 2015 and the "World's largest closed-loop high-tech livestock farming and dairy processing cluster" in 2020.

Tal Cohen, CEO of TH Milk Food Joint Stock Company, stated: "TH Group maintains strict management over its closed-loop production chain from the field to the glass of milk, with the aim of producing fresh milk with the highest quality for consumers both domestically and internationally."

From its inception, TH Group has continuously invested in advanced technologies, from growing grass for livestock feed and ensuring the health of dairy herds to automating the milking and milk processing procedures. The company's efforts have improved productivity and product quality, and minimized negative environmental impacts.

TH Group currently utilizes various world-class technologies in its production process, including the Afimilk advanced herd management system from Israel, disease management and veterinary protocols from New Zealand, the 1-One and DNS software systems for feed mixing and ration control, and water and waste treatment processes from Japan, Israel, and the Netherlands.

In addition to cultivating dairy feed crops on 8,100 hectares of land, TH Group has established production linkages with local farmers. Accordingly, the Group provides farmers with technical support, seeds, and fertilizers to grow feed crops for dairy cows. Furthermore, TH Group established contracts to purchase local farmers' yields in their entirety. Every year, the company purchases over 100 billion VND worth of roughage (such as straw, corn silage, and sugarcane tops) from local farmers. As a result, TH Group has generated significant income for the region and created employment opportunities for the local community.

A model circular economy

Regarding the award for Outstanding Livestock Enterprise for Circular Economy Development at the Vietstock Awards 2024, CEO Tal Cohen emphasized that circular economy presents an invaluable opportunity for TH Group. Sustainability and environmental protection have been guiding principles in all of the company's activities since its founding. "Respect Mother Nature," a seemingly inspirational slogan, is also a philosophy that TH Group implemented through concrete development steps.

As an alternative to discarding by-products, waste, and wastewater from one process in its circular, closed-loop production chain, TH Group repurposes these items as resources for other processes. Consequently, this initiative reduces emissions, extends the life cycle of materials, and contributes to the protection of natural resources and the environment. Additionally, TH Group continuously invests in advanced technologies to promote environmental friendliness, reduce emissions, and enhance recyclability.

One of the most successful examples of TH Group’s circular economy model is the conversion of agricultural waste into organic fertilizer.

At the Organic Fertilizer Processing Plant within the TH dairy farm complex in Nghia Dan District, Nghe An, workers collect and process cow manure using the aerobic composting technology. This process produces Greenma organic fertilizer, a high-quality, nutrient-rich product that enhances soil and crop quality. Consequently, the process reduces waste and creates valuable fertilizer products.

A portion of the treated waste is converted into bedding material for the farm. This feature demonstrates how the circular economy at TH not only protects the environment but also generates additional economic value by transforming waste into a resource.

TH Group has invested in wastewater treatment systems that utilize Dutch technology. Accordingly, the systems were designed specifically for each farm complex, with a daily treatment capacity ranging from 1,200 to 2,500 cubic meters. Additionally, all treated wastewater meets the discharge standards set by the Ministry of Natural Resources and Environment.

All of TH’s activities promote using environmentally friendly materials, green energy, and renewable energy.

In 2023, TH's farm system reduced emissions by an average of more than 20% per unit of product through a range of comprehensive solutions focusing on three areas: reducing greenhouse gas emissions, switching to green and renewable energy sources, and increasing carbon capture.

Notably, TH’s solar panel system at its farm and factory generates over 7 million kWh annually, contributing to a reduction of approximately 5,000 tons of CO2 per year.

According to CEO Tal Cohen, the circular process has significantly mitigated the environmental impact from TH Group’s closed-loop production chain. TH’s next plan is to share these sustainable solutions with local farmers, thereby enabling them to participate in sustainable development. By becoming a link in TH’s high-tech closed-loop production chain, farmers will work alongside the government to achieve Vietnam's Net Zero goal, as outlined at COP26.

The two awards for Outstanding Livestock Enterprise for Circular Economy Development and Closed-Loop Value Chain Linkage at the Vietstock Awards 2024 are a recognition of TH Group's recent efforts.

TH Group also achieved two awards, titled "Best Ruminant Feed Producer" and "Best Dairy Farm 2022-2023," in 2023.