VME – Vietnam Manufacture Expo

Emerging trends in milk production technologies worth investing in nowadays

In recent years, the Vietnamese milk production and processing industry has experienced dynamic growth, offering a wide range of products for economic livelihoods and progressively meeting domestic demands while replacing imported goods. Alongside this, the milk production sector has significantly contributed to the state budget, creating employment opportunities, and gradually becoming a crucial link in Vietnam’s economy. With such immense developmental potential, let’s delve into the top trends in top emerging trends in milk production technologies worth investing in nowadays, in collaboration with RX Tradex.

1. An overview of the present milk market

Globally, in recent years, the dairy market has been shifting towards plant-based products. Especially after the Covid-19 pandemic, plant-based products have gained traction and are predicted to grow at an annual rate of around 5.3%, generating total revenue of approximately $593 billion by 2023. [1] Various milk products are currently available in the market, encompassing no-sugar, low-sugar, fresh milk, condensed milk, and even milk-based products like pastries, yogurt, beverages, butter, and snacks. Amid fierce competition, dairy milk production companies are constantly researching and introducing new products to diversify and cater to consumer preferences. Furthermore, health and environmental considerations are increasingly pertinent to global consumers. Issues like environmental protection, recycling, and emission reduction are demanding companies to improve and upgrade their milk production technology and machinery to address these challenges.

In Vietnam, according to Mai Kieu Lien, CEO of Vinamilk, the country witnesses around one million births each year, thereby generating significant demand for milk consumption. [2] Notably, the demand for nutritional milk products, especially powdered forms, is expected to continue growing, offering ample investment opportunities. However, despite this promising domestic market, many Vietnamese companies still struggle to meet criteria related to nutrition, safety, hygiene, and supply chain management. Thus, technological improvements in milk production processes are essential for local businesses to keep up with market trends and pursue exporting products to larger regions like South Korea, Japan, and other parts of Europe.

2. Introducing the top 4 most promising milk production technologies today

2.1. Industry 4.0 technology to enhance milk production processes.

In the era of the Fourth Industrial Revolution (Industry 4.0) characterized by digitalization and breakthrough solutions, the dairy industry has undergone positive changes and revolutionary transformations in livestock farming and product processing. Notably, many companies have upgraded their machinery and equipment for an integrated production model. A prominent example is TH true MILK, a company that employs high-tech solutions throughout its production process, ensuring a closed-loop system from inputs to distribution. [3]

Specifically, TH true MILK’s milk extraction and raw material preservation processes are carried out within a completely closed system. The milk circulates through enclosed pipes, avoiding exposure to external environments, and is cooled to a temperature of 2-4°C. To ensure milk quality, TH true MILK has invested in a tracking and identification system for cows using electronic leg chips. This system updates all information into a computer system, enabling the elimination of subpar, unsafe milk.

Among the outstanding Industry 4.0 technologies worth investing in for milk production are:

Artificial Intelligence (AI).
Electronic sensors.
Virtual Reality (VR).
Internet of Things (IoT).
Big Data.
…

2.2. In-Vitro Fertilization (IVF) technology for dairy cattle reproduction.

This technology is considered one of the most modern and advanced methods in livestock farming and milk production today. IVF in cattle breeding involves the reproduction of superior individuals, resulting in improved milk quality and quantity. Currently, only cattle breeds from countries such as Cuba, New Zealand, and Australia are regarded as the best for milk production and processing. As a result, Vietnamese companies had to import these breeds to fulfill their milk production material requirements.

At the beginning of 2016, TH true MILK imported frozen embryos to initiate research and application of IVF technology in creating purebred HF dairy cows with milk quality equivalent to the top breeds in the United States. [4] The IVF technology is expected to produce dairy cows with superior productivity and milk quality. Furthermore, this technology will support the milk production companies in cost-effective domestic breeding, costing only half as much as imported cows. Consequently, this solution propels the development of Vietnam’s dairy industry towards a more elevated position.

2.3. Cattle breeding technology to enhance milk quality.

Currently, by applying cattle farming technologies in activities like feed management, nutrition, veterinary care, and environmental control, businesses can improve the quality of their milk products. Specifically, factors such as breed selection, feeding and nutrition, and care, when controlled and optimized through modern methods, lead to cows producing high-quality milk, ensuring high economic efficiency.

In Vietnam, Vinamilk is a pioneering company in the application of advanced technologies in dairy cattle farming, adhering to European Union (EU) standards. [5] In reality, Vinamilk has invested in an organic farming model linked with digital economics. Furthermore, the company implements a quality management system following EU standards, offering products that comply with stringent regulations. Notably, Vinamilk’s dairy farm refrains from using pesticides, synthetic fertilizers, food additives, support substances, or genetically modified organisms. Consequently, the company supplies the market with organic milk, free of residual antibiotics and growth hormones.

2.4. Sustainable green-focused milk production technology.

At the Climate Change Conference – COP26 held in the UK in 2021, the Prime Minister committed to achieving net-zero emissions by 2050 for Vietnam, [6] sparking a trend to apply modern technologies to production processes and embrace sustainable green development. In fact, many industries in Vietnam have begun shifting business models, delving deeper into green technologies, and the milk production sector is no exception.

Vinamilk is a notable example of applying this technological trend, boasting the first Carbon-neutral dairy farm and factory in Vietnam. [7] As such, Vinamilk’s announced roadmap includes reducing greenhouse gas emissions by 15% by 2027, reducing and neutralizing 55% of emissions by 2035, and eventually achieving Net Zero emissions by 2050. Specifically, the company’s Nghệ An milk factory has initiated accurate greenhouse gas monitoring and made substantial investments in green production technologies such as heat recovery systems, biomass energy utilization, solar power supplementation, and methane combustion in wastewater treatment. These solutions are anticipated to further reduce annual emissions.

3. Summary.

Above are the top 4 emerging trends in Milk Production Technologies Worth Investing in Nowadays. By implementing these advanced solutions in the milk production sector, businesses can achieve remarkable progress, enhance product quality, and establish a competitive advantage in the global market. Additionally, this year, businesses aiming to explore the latest production technologies can participate in the Vietnam Manufacturing Expo International Exhibition organized by RX Tradex Vietnam. Furthermore, in 2023, RX Tradex is hosting premier exhibition events in the region, including NEPCON Vietnam, METALEX Vietnam, and Waste and Recycling Vietnam, scheduled for the upcoming time.

Note:

[1]: Xu hướng sử dụng các sản phẩm sữa trong tương lai.

[2]: Lãnh đạo Vinamilk nói gì về thị trường sữa hiện nay?

[3]: Sữa TH: Sữa tươi công nghệ 4.0.

[4]: Trang trại đầu tiên tại Việt Nam thụ tinh ống nghiệm cho… bò sữa.

[5]: Áp dụng công nghệ 4.0 ở trang trại bò sữa Organic.

[6], [7]: Vinamilk có trang trại và nhà máy sữa đầu tiên tại Việt Nam đạt trung hòa Carbon.