Fresh foreign investment pours into TH Milk

November 28, 2011 | 16:15
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The government of Israel will invest $100 million in TH Group’s industrial dairy farm project backed by TH Milk Food Join Stock Company.

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The  deal was signed on the occasion Israel President Shimon Peres’ visit  to Vietnam and was a supplement to the Finance Cooperation Protocol between the governments of Vietnam and Israel.

The project was deployed in central Nghe An province with a first phase investment of $350 million out of total investment of $1.2 billion. Though up and running for just two years, the huge dairy farm of 20,000 Holstein-Friesian (HF) cows is recognised as the biggest in Southeast Asia.

“This is the signal of a start-up trend for a new generation of investors aiming to international standard projects in Vietnam,” said vice president of Bac A Joint Stock Bank Thai Huong. Bac A Bank is the project’s investment advisory.

“A country can be strong only when its people are comprehensively developed both physically and mentally among which the prerequisite factor for this development is not only essential nutrients source such as rice, foodstuff and milk but also a sustainable health care system,” said Huong.  

Besides key projects in dairy products, TH Group is developing and investing in other large-scale projects of premium foodstuffs using advanced technologies such as fresh clean vegetables, fishery and meat which are applying Israeli technology with the model circled from farm to consumer.

TH Milk Food Joint Stock Company, established in February 2009, is the first company in the TH Group with the task of deploying investment in industrial dairy farm, modern dairy milk processing technology and professional distribution system across the country.

The project benefits from investment advisory from Bac A Joint Stock Bank and technology consultant and transfer from AFIKIM - an Israeli leader in high-tech agricultural development. Its total investment is $1.2 billion with $350 million for the first stage to be completed by 2012.

The project covers 37,000 hectares (8,100ha in the first stage). Up to now, the project owns approximately 20,000 cows in which there are 7,000 milk cows with output of 160 tonnes of fresh milk per day.

It is planned to reach 45,000 cows (30,000 milk cows) by 2012, increasing to 137,000 cows in 2017 when an automatic milk processing plant with output of 500 million litres per year will come online. The net revenue is estimated at VND15 trillion ($714 million) by 2015, increasing to VND23 trillion ($1.09 billion) by 2017.

vir.com.vn

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