On Friday 13 May 2016, the Australian milk processor, Pactum Dairy Group, held a press conference in HCMC to announce details of an agreement supply milk into Vietnam with through local distributor, International Dairy Products (IDP).
Pactum Dairy Group is a member of AusCham. CEO of IDP, Tran Bao Minh (see photo above), is an Australian Alumnus with degrees from both Western Sydney University and the University of Technology Sydney (UTS). Both universities are members of AusCham.
Below is an article from the Saigon Times regarding the launch.
IDP in deal with Aussie milk processor, by Hung Le, 16 May 2016, Saigon Times.
An edited extract of the original article appears below.
HCMC – International Dairy Products Joint Stock Company (IDP) and Pactum Dairy Group, a business unit of Australia’s Freedom Foods Group, has clinched an agreement on production and supply of milk products for the domestic market.
The deal makes IDP the first Vietnamese dairy firm to cooperate with an Australian dairy processor.
Initially the two sides will locally distribute fresh milk boxes bearing the LiF brand, which are produced and packaged at a milk factory in Australia. IDP plans to sell around four million liters of Pactum fresh milk in the first year.
Tran Bao Minh, general director of IDP, said domestic supply of unprocessed milk was not enough to meet local demand while those countries famous for milk production like Australia have abundant high-quality milk supply. Therefore, IDP chose to team up with a major dairy firm like Pactum to supply milk for local consumers…
He said the deal would benefit both sides. The Australian firm is strong in production technology and material sources while IDP is a fast-growing dairy processor on the domestic market with an extensive distribution system.
Prices of LiF products are 10-12% higher than other similar domestic items but 25-35% lower than imported products. A one-liter LiF milk box sells for VND36,000 and the price of a 250ml box is VND12,000.
Representatives of the two firms said they are researching to turn out dairy products suitable for domestic consumer tastes.
IDP, established in 2004, got a US$75 million investment from Japan’s Daiwan PI-Partner and Vinacapital VOF in 2014.
Related news stories
- For photos of the press conference, click here.
- GV in new dairy market launch, by Geoff Adams, 10 May 2016, MMG Country News
- New Australian dairy products are coming to Vietnam, 15 April 2016, Vietnam Investment Review.
- Vietnam taps into Pactum’s UHT production line, by Jared Lynch and Andrew Marshall, 10 April, 2016, Queensland Country Life.
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