Dairy producers run race in high-end market segment

In late June, both Vinamilk and TH True Milk, the two largest dairy producers in Vietnam, announced the development of A2 milk cows and the launch of A2 milk in the near future.

While Vinamilk imported 200 purebred A2 cows, TH True Milk chose to develop 500 A2 cows selected from its herd available in TH's farm in Nghe An province.

In Vietnam, A2 cow and A2 milk remain unfamiliar concepts. 

Scientists say most primitive purebred cows produced the milk containing only beta-casein A2. After an evolutionary process, beta-casein A1 has appeared in milk. 

And now, there are both A1 and A2 protein in milk and so far, fresh milk contains both A1 and A2. In a randomized cow herd, there are about 30 percent of A2 cows.

A2 milk has an amino acid sequence close to breast milk, which helps users absorb milk naturally, mitigate the symptoms of allergy and indigestion in people sensitive to cow's milk protein, thus maximizing the benefits from the nutrients in milk.

According to Hoang Kim Giao, chair of the Vietnam Big Cattle Association, A2 milk is sold mostly in Australia, New Zealand, China, the US and UK. Vietnamese consumers have begun seeking A2 milk, which is mostly imported from Australia.

A2 milk is sold at some private shops at VND400,000 per kilogram of full-cream milk powder. Salesmen said the amount of milk powder could be used to make 7 liters of liquid milk. A 900 gram box of formula milk powder sourced from Australia is priced at VND800,000.

In general, A2 milk is still scarce in Vietnam and most of the products available are carried to Vietnam across the border gates by individuals. 

The products do not go through examination, while there is no information about the quality and preservation conditions. The only document that salesmen can provide to customers is the invoice issued by foreign dairy shops.

According to Tran Quang Trung, chair of the Vietnam Milk Association, Vietnamese consumers are quick to catch up with the consumption trends in the world. Therefore, organic and A2 products appeared in Vietnam early.

As the Vietnamese income is increasing, the demand for dairy products has become high, which has allowed the industry to gain a stable 10% growth rate for many years. The future of made-in-Vietnam A2 milk is very bright.

Thai Huong, founder of TH True Milk, said TH plans to make a series of digestible dairy products, including A2 fresh milk and yogurt.