A breakthrough from TH Group

(Baonghean) - High-tech agricultural production is a new direction and is expected to create breakthroughs in agriculture. Choosing this path, TH Dairy Food Joint Stock Company has taken professional steps by purchasing all the technological know-how and dairy farming techniques from Israel and world-leading processing procedures from advanced countries.

In the final days of the year, visiting the dairy farm of TH Milk Food Joint Stock Company, one can clearly feel the bustling and urgent atmosphere of work to complete the year's plan, while also preparing high-quality products to meet the ever-increasing demand during the Tet holiday. Over 40,000 cows are meticulously and carefully cared for, and the fields of mombasa grass, corn, sunflowers, and sorghum, with their modern sprinkler irrigation system, are thriving.

Located in the heart of the North Central region, on the North-South trade route and with full integration of transportation networks, Nghe An has very favorable conditions for trade and economic development. According to Ms. Thai Huong (General Director of Bac A Commercial Bank - investment consultant for the TH true MILK project), "The Bac Phu Quy region has fertile red basalt soil and abundant freshwater resources, but agricultural land has long been abandoned and underutilized, and the weather is harsh. Therefore, we determined that introducing high technology is the only way to overcome the limitations of nature and increase productivity many times compared to conventional production methods." By choosing that path, TH Group has taken very professional steps, overcoming both limitations that have prevented the dairy farming industry in Vietnam from achieving breakthrough success: process and compliance. This was achieved by purchasing all the technological know-how and dairy farming techniques from Israel and world-leading processing procedures from advanced countries.

Automated packaging line at TH Milk Factory in Nghia Dan. Photo: SM

Currently, only 30% of the liquid milk on the Vietnamese market is pasteurized or UHT fresh milk, while the remaining 70% is reconstituted milk (milk powder mixed with water and sterilized), mainly from imported milk powder, posing many risks and dangers. The dominance of reconstituted milk largely stems from the shortage of fresh milk raw materials in Vietnam. According to data from the General Department of Animal Husbandry, in 2013, the national dairy cow herd was estimated at 184,000 cows, producing 420,000 tons of fresh milk raw materials. Furthermore, dairy farming currently faces many challenges. While some receive technical support from dairy companies, most are run spontaneously by individual households, resulting in numerous shortcomings regarding cattle breeds, housing conditions, herd management, feed, nutrition, veterinary care, milking, and milk preservation, all of which negatively impact milk yield, quality, and hygiene.

Therefore, TH Group's focus on investing in a closed-loop production process, producing delicious and nutritious fresh milk according to international standards, is truly significant. It contributes to reducing the trade deficit for the dairy industry and is also a practical way to improve the stature and physical health of Vietnamese people. TH Group's dairy farming and processing project has a total investment of $1.2 billion on a total area of ​​37,000 hectares, with phase 1 covering 8,100 hectares and a capital of $350 million. This is one of the pioneering units in the large-scale industrial dairy farming model; overcoming all the shortcomings in current dairy farming and ensuring the highest quality, clean fresh milk raw materials.

It is worth remembering that on December 26, 2010, the first products from the TH true MILK line of fresh, clean milk were officially distributed to consumers. This is a memorable historical milestone for the TH Group in contributing to the health and well-being of Vietnamese people, improving their quality of life through truly fresh and clean products. It is the result of the efforts and endeavors of the entire TH Group, opening up a future for advanced agriculture in Western Nghe An, contributing to improving the quality of life and the industrialization and modernization of agriculture and rural areas.

At the same time, it is a testament to Nghe An's determination, agility, and dynamism in receiving and facilitating new, effective projects to the province. July 9, 2013, was another important milestone in the development of the TH Group, when the TH true MILK fresh milk production plant, the largest in Southeast Asia and the most modern in the world, officially commenced operation of its first phase production line with a capacity of 200,000 tons/year (total designed capacity reaching 500,000 tons/year by 2017). This plant is part of the Group's large-scale industrial-scale dairy farming and milk processing project, and is also the largest private investment project in the agricultural sector in Vietnam.

Mr. Ngo Minh Hai – Deputy General Director of TH Group, stated: “In the next phase of the project (2013-2017), TH will put into operation the entire Mega Plant with a total expected capacity of 1,700 tons/day (over 500,000 tons/year, equivalent to 500 million liters/year), the most modern in the world.” Thus, with the inauguration of the fresh milk production plant in Nghia Dan district, TH Group has basically completed the integrated value chain from green pastures to a glass of clean milk, with the most modern technological standards in the world, contributing to enhancing the position of Vietnam's dairy industry, stabilizing the domestic market, and creating more opportunities for domestic consumers to choose dairy products of international quality at competitive prices. High technology has helped improve farming efficiency. Previously, one hectare of land yielded an average income of only about 70 million VND per year. Now, thanks to high-tech methods of growing sorghum, it generates an income of 500 million to 1.5 billion VND per year.

After nearly three years of operation, TH has become the leading supplier of clean fresh milk in Vietnam. TH true MILK products account for nearly 40% of the market share for pasteurized fresh milk. It is a pioneer in demanding transparency in the milk market and is licensed to label its products as clean fresh milk on its packaging. Currently, TH true MILK is available in over 125,690 stores with 168 distributors. The TH true mart company's direct sales and showroom system comprises 110 stores nationwide, evenly distributed between the North and South.

With the rapid success of the TH true MILK brand, the TH Group has provided practical support to the people in the project area. Nearly 2,000 local workers are employed at the farm with stable salaries. The most notable example is the "Giving Calves to Poverty Alleviation for Farmers in Nghe An" program. Through this program, the Group sells male calves born at the TH Farm and uses the proceeds to support farmers (5 million VND/household) in purchasing domestic breeding calves. To date, the program has supported over 1,500 poor farming households in Nghia Dan, Nam Dan, and Dien Chau districts (Nghe An) and will continue to expand. In addition, TH provides scholarships of 500,000 VND/month to children of families with land in the project area who are studying at universities and colleges nationwide with above-average academic performance. Since 2009, the Group has contributed to building 400 solidarity houses for poor families in Anh Son and Do Luong districts; donated Tet gifts in 2013 to 900 poor households in Do Luong, Que Phong, and Ky Son districts, totaling over 600 million VND… making a practical contribution to the development of western Nghe An province.

Through the initial success of TH Group, it is clear that, to create a revolution in the application of high technology in agriculture, the first prerequisite is to have a generation of patriotic entrepreneurs with sufficient heart, mind, and strength to plan a clear and unique path for themselves, knowing how to place their own interests within the interests of the country. At the same time, there must be sufficient land to introduce high technology into agriculture, and in this, the strong involvement and participation of all levels of government is indispensable. Finally, along with choosing the right technology, an equally important factor is gaining the support of the people. TH has met these very basic conditions.

Phu Huong