Wagyu cattle in Vietnam: high economic value on the plateau

Kobe VN Beef Corporation constructed a 10-hectare farm in Tan Lac commune, Bao Lam district, Lam Dong province in 2009. By 2011, this business began importing Japanese Wagyu cattle to raise in Vietnam. The farm currently houses approximately 200 cattle, 60 of which are breeding cows, with the remainder being calves and cattle used for fattening.

Regarding the production process, Mr. Nguyen Tri Duc Vu, Director of Kobe VN Beef Corporation, said that the farm imports Wagyu cattle from Japan and breed them with available cows. Subsequently, Wagyu calves are raised using standard and modern Japanese procedures to ensure their growth as well as meat quality.

According to Mr. Nguyen Tri Duc Vu, the Wagyu cattle's diet consists mainly of Japanese grains. “We mix different type of grains such as soybean meal, peanut meal, black sesame, cornstarch, etc.  according to the standard ratio to meet the nutritional needs of the cows. Additionally, Japanese experts are always available to advise and support us during this stage," said Mr. Nguyen Tri Duc Vu.

​​Bao Lam district features a cool climate, which is suitable for the health and growth of the Wagyu cattle. Wagyu calves will reach a weight of 650 to 700 kilogram per head after 40 months of care, at which point they can be slaughtered and sold to the market.

In addition to the advanced breeding process, the business constructed a modern slaughterhouse with beef processing in compliance with Japanese standards. After Wagyu cattle are butchered at this location, they will be preserved in cold storage to avoid the loss of marbling. This process also inhibits the growth of harmful bacteria and gives the beef a more unique flavor.

Kobe VN Beef Corporation is currently selling their Wagyu beef products to partners in the markets of Ho Chi Minh City, Hanoi as well as affiliated restaurants and hotels.

The price of Kobe VN Beef Corporation's wagyu beef products ranges from 2.8 to 4.2 million VND per kilogram. Their most advanced product line has slower consumption compared to the mid-range and low-end products.

Mr. Nguyen Tri Duc Vu reported that the rising demand for Wagyu beef in Vietnam has provided the company with a remarkable development opportunity. The company is currently unable to supply the market with adequate beef products, thus it will increase its production capacity in the immediate future.

According to Mr. Pham Phi Long, Director of Lam Dong Sub-Department of Livestock Production, Animal Health and Fisheries, the province has favorable climatic conditions for the development of large cattle, including imported Wagyu cattle. According to Mr. Pham Phi Long, Wagyu cattle raised in Lam Dong province has high meat quality and the beef product has a much higher competitive advantage compared to other industries.

“Lam Dong province is attracting several investment projects in livestock production. Most notably, the Provincial People's Committee has encouraged stakeholders to develop and establish areas of registered products to compete in the market. In addition, Lam Dong Provincial People's Committee has successfully built a disease-free area to facilitate the development of Wagyu beef farming", emphasized Mr. Pham Phi Long.

According to Kobe VN Beef Corporation, the business is currently utilizing information technology to raise and manage cattle. Namely, the cattle will be assigned a number that is marked on their ears. They will also be monitored through chips installed in their collars. The collected information will be integrated into the management software on computer devices. With the help of this software, the background, weight, age, breed type, growth process of each individual are constantly updated. Moreover, these parameters will assist customers in tracing the origin of beef products, and learn of the products in full details.

The famous Japanese cattle breed known as "wagyu" is grown in the Kobe area of Japan with special care procedures, massages, beer, and music. As a result, the price of its beef is approximately 10 million VND per kilogram. Kobe beef is produced in very limited quantities, and consumed primarily by the upper classes. It is also only sold to a select few countries around the world.