HÀ NỘI — The dairy industry is facing mounting challenges as the growth of the national dairy herd has slowed to just 0.4 per cent per year, far below earlier levels of expansion.

The warning was raised at a forum on dairy farming held in Hà Nội on Monday by Nông nghiệp và Môi trường (Agriculture and Environment) Newspaper, the Việt Nam Animal Husbandry Association and the Việt Nam Large Livestock Association.

From 2010 to 2015, the dairy herd expanded by over 15 per cent annually, turning areas such as Mộc Châu, Ba Vì, Vĩnh Tường and Củ Chi into prosperous 'dairy hubs'. But between 2020 and 2024, numbers dropped sharply, with HCM City losing more than half its herd.

“This is a worrying decline that threatens the industry’s future, farmers’ livelihoods and the ambition of providing Vietnamese people with fresh domestic milk,” said Lê Trọng Đảm, the newspaper's Deputy Editor-in-Chief.

Industry experts pointed to shrinking farmland, high feed costs, and volatile purchasing prices as major hurdles.

“Dairy farming requires large investment and professionalism, but urbanisation has reduced grazing land while input costs keep rising," said Lê Việt Hải, Deputy Head of HCM City’s Animal Husbandry and Veterinary Sub-department.

"Many farmers cannot make a profit and are forced to give up.”

Meanwhile, many households still lack access to high-yield breeds, affordable credit, and modern equipment. Dependence on imported powdered milk and fluctuating market demand add further pressure. Despite Việt Nam’s population of over 100 million, the national herd stands at just 330,000 cows, meeting only 40 per cent of domestic demand, according to the Việt Nam Large Livestock Association.

Experts agreed that a comprehensive approach is needed.

Nguyễn Xuân Dương, Chairman of the Việt Nam Animal Husbandry Association, stressed the importance of farmer–business partnerships.

Dương said: “Enterprises should sign long-term contracts, ensure transparent pricing and provide technical support, while farmers need to join cooperatives and adopt modern practices. The State must also improve standards and enforce minimum domestic sourcing requirements.”

The Government’s livestock development strategy targets 650,000 dairy cows and 2.6 million tonnes of fresh milk annually by 2030. To reach that goal, stronger policies on land-use planning, preferential credit and fair market mechanisms will be required.

Ngô Minh Hải, Chairman of TH Group, underlined the central role of cooperation.

“Sustainable growth in dairy farming depends on close ties between enterprises and farmers," he said.

"Only by moving together in a high-tech, closed chain can we reduce reliance on imported milk powder and ensure national nutrition security.”

TH’s Dalatmilk model in Lâm Đồng, which links farmers with breeding, veterinary services, feed and guaranteed purchase, has already delivered incomes of hundreds of millions of đồng per household weekly.

“This is proof that when farmers and enterprises walk side by side, both economic and social benefits multiply,” Hải added. — VNS