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Vinamilk challenges American and Australian imports in Japanese tie-up
Vinamilk and Sojitz started importing Japanese beef into Vietnam under the Yuki Beef brand in December. (Photo by Tomoya Onishi)
FUMIE YAKU and TOMOYA ONISHI, Nikkei staff writersFebruary 4, 2022 14:05 JST
TOKYO/HANOI -- As incomes rise in Vietnam, the country's dairy leader is betting consumers will pay more to put meat on the table.
Vinamilk will raise beef cattle for premium meat through a joint venture established in 2021 by a subsidiary and Japanese trading house Sojitz.
Vietnam eats about 650,000 tons of beef a year, importing 200,000 tons of this. Premium beef is shipped mainly from the U.S. or Australia. But the market is approaching a turning point now that gross domestic product per capita has far exceeded $3,000.
Beef initially will be imported from Japan for distribution to supermarkets and restaurants in Vietnam. © Reuters
In December, Vinamilk began selling Japanese beef in Hanoi supermarkets to build up a following ahead of its investment.
The meat from cattle mostly imported from Japan's northern island of Hokkaido is sold under the Yuki Beef brand, and the packaging plays up the Japanese origins. It also carries a bigger price tag.
In Vietnam, the word "meat" is generally associated with pork. A Hanoi supermarket sells pork for about 150,000 dong ($6.60) per kilogram, compared with roughly 120,000 dong for chicken. A roughly 250-gram package of Yuki Beef sells for around 150,000 to 450,000 dong.
Japanese beef already has fans in Vietnam. "It's more tender and tastier than Vietnamese or other imported beef," Ho Chi Minh City shopper Nguyen Viet Ha said. "Once you try it, you can't stop buying."
Vinamilk is the biggest dairy producer in Vietnam. (Photo courtesy of Vinamilk)
Vinamilk and Sojitz will process their Japanese-quality beef at a factory in northern Vietnam's Vinh Phuc Province. Investment is expected to total up to $500 million.
The goal is to process an annual 30,000 head of cattle a year to yield roughly 10,000 tons of beef. Construction of processing facilities will begin this year, with deliveries starting in the spring of 2023.
"We'll use advanced Japanese production technology to produce high-quality beef cattle at reasonable prices," Vinamilk executive Trinh Quoc Dung said.
Formally known as Vietnam Dairy Products, Vinamilk raises roughly 130,000 head of dairy cattle across 13 farms it operates directly or through affiliates. But the company has been slow to turn its bulls into a source of revenue.
Vietnam is home to a population of about 100 million. The average age is a relatively young 31, and many households are dual-income. The market is poised to bounce back post-coronavirus, and Vinamilk expects further market growth as incomes rise. More restaurants are serving premium steak and yakiniku barbecue.
But rivals are already moving in. Vietnamese electronics manufacturer Asanzo said in 2021 that it would enter the beef business. The company has invested in ranches to produce 25,000 head of cattle.
Disease remains a risk. The 2019 outbreak of African swine fever in Vietnam forced a mass culling of pigs, dealing a huge blow to pork producers.
In Vinamilk's beef operation, Sojitz will tap its global resources to handle feed procurement and the creation of system to track cattle.
asia.nikkei.com
Vinamilk and Sojitz started importing Japanese beef into Vietnam under the Yuki Beef brand in December. (Photo by Tomoya Onishi)
FUMIE YAKU and TOMOYA ONISHI, Nikkei staff writersFebruary 4, 2022 14:05 JST
TOKYO/HANOI -- As incomes rise in Vietnam, the country's dairy leader is betting consumers will pay more to put meat on the table.
Vinamilk will raise beef cattle for premium meat through a joint venture established in 2021 by a subsidiary and Japanese trading house Sojitz.
Vietnam eats about 650,000 tons of beef a year, importing 200,000 tons of this. Premium beef is shipped mainly from the U.S. or Australia. But the market is approaching a turning point now that gross domestic product per capita has far exceeded $3,000.
Beef initially will be imported from Japan for distribution to supermarkets and restaurants in Vietnam. © Reuters
In December, Vinamilk began selling Japanese beef in Hanoi supermarkets to build up a following ahead of its investment.
The meat from cattle mostly imported from Japan's northern island of Hokkaido is sold under the Yuki Beef brand, and the packaging plays up the Japanese origins. It also carries a bigger price tag.
In Vietnam, the word "meat" is generally associated with pork. A Hanoi supermarket sells pork for about 150,000 dong ($6.60) per kilogram, compared with roughly 120,000 dong for chicken. A roughly 250-gram package of Yuki Beef sells for around 150,000 to 450,000 dong.
Japanese beef already has fans in Vietnam. "It's more tender and tastier than Vietnamese or other imported beef," Ho Chi Minh City shopper Nguyen Viet Ha said. "Once you try it, you can't stop buying."
Vinamilk and Sojitz will process their Japanese-quality beef at a factory in northern Vietnam's Vinh Phuc Province. Investment is expected to total up to $500 million.
The goal is to process an annual 30,000 head of cattle a year to yield roughly 10,000 tons of beef. Construction of processing facilities will begin this year, with deliveries starting in the spring of 2023.
"We'll use advanced Japanese production technology to produce high-quality beef cattle at reasonable prices," Vinamilk executive Trinh Quoc Dung said.
Formally known as Vietnam Dairy Products, Vinamilk raises roughly 130,000 head of dairy cattle across 13 farms it operates directly or through affiliates. But the company has been slow to turn its bulls into a source of revenue.
Vietnam is home to a population of about 100 million. The average age is a relatively young 31, and many households are dual-income. The market is poised to bounce back post-coronavirus, and Vinamilk expects further market growth as incomes rise. More restaurants are serving premium steak and yakiniku barbecue.
But rivals are already moving in. Vietnamese electronics manufacturer Asanzo said in 2021 that it would enter the beef business. The company has invested in ranches to produce 25,000 head of cattle.
Disease remains a risk. The 2019 outbreak of African swine fever in Vietnam forced a mass culling of pigs, dealing a huge blow to pork producers.
In Vinamilk's beef operation, Sojitz will tap its global resources to handle feed procurement and the creation of system to track cattle.
Vietnam dairy king bets on middle-class taste for Japan-quality beef
Vinamilk challenges American and Australian imports in Japanese tie-up
asia.nikkei.com
