Vinamilk and Sojitz kick off Vinabeef Tam Dao

On the occasion of the 50th anniversary of diplomatic relations between Vietnam and Japan, the Vinabeef cattle breeding and beef processing complex has broken ground in Tam Dao with an investment totalling VND3 trillion ($140 million). The project has been funded through contributions from Vinamilk, its subsidiary Vilico, and Japanese investor Sojitz Corporation.

This is the first-ever cattle breeding and beef processing project in Vietnam, marking the cooperation of Vietnamese and Japanese companies in the high-tech agriculture industry. The MoU was signed at the end of 2021.

The project is located on an area of 75.6 hectares in Tam Dao district, Vinh Phuc province. The complex's two primary subdivisions are the cattle farm, which can house up to 10,000 cattle, and the refrigerated beef processing factory, expected to be in operation by 2024.

Masayoshi Fujimoto, president of Sojitz Corporation, said that this is a potentially major project in Vietnam for the corporation for at least the next five to ten years.

"According to an analysis of the beef industry in Vietnam, there is still a significant amount of untapped potential, as the demand for and consumption of high-quality meat products remains at a very high level. As the project is put into operation, we anticipate that it could usher in a new period of prosperity in the market," said Fujimoto. "In addition, Vinamilk and Vilico are large, well-known partners that have capabilities in the areas of resources, experience in the livestock business, operational expertise, and understanding of the market. When it comes to bringing the Vinabeef Tam Dao complex online, as well as upcoming projects in the future, we will make excellent partners because of how well we complement and assist one another."

The uniqueness of the Vinabeef Tam Dao complex lies in the fact that it is intended to be developed and operated using a closed 4-in-1 process, which includes livestock, production, processing, and distribution. By doing so, it will supply Vietnamese consumers with fresh chilled beef that is guaranteed safe for consumption.

Vinabeef's beef products will be processed in an ultra-clean environment on a closed, highly automated manufacturing line that can handle 10,000 tonnes of beef per year, utilising cutting-edge technology to ensure food safety standards are met. The distribution process will remain tightly managed, as is necessary to fulfill the criteria of the chilled supply chain, and full product traceability will be maintained to guarantee the highest standards of quality and safety from farm to table.

While discussing Vinabeef's development orientation, Mai Kieu Lien, general director of Vinamilk and chairwoman of Vilico said, "We expect this to be a prototypical case of collaboration between Vietnamese and Japanese businesses in high-tech agriculture, focussing on long-term sustainable development. This way, we can work towards our goal of making Vinabeef a household name in Vietnam, not just as a trusted brand in the beef industry, but as a provider of high-quality foods for both domestic consumption and international export."

Policies on planning, science-technology, finance, commerce and training human resources, have contributed to turning the country’s livestock industry into a strong commodity production sector.

In the first two months of this year, the total import turnover for animal feed and materials reached $650 million, signifying an increase of 26.2 per cent on-year, according to statistics published by the Ministry of Industry and Trade.

Many livestock companies may fail to reach their profit targets for the whole year due to the low selling prices of pork and a surge in input costs.