Vinamilk group branches out to beef with Japan's Sojitz
Vietnam’s dairy king seeks to diversify into growing domestic market
HANOI — Vilico, a group company of top Vietnamese dairy producer Vinamilk, will form a joint venture next month with Japanese trading house Sojitz to process and sell beef products.
The Hanoi-based venture initially will import beef from Japan and distribute the meat to large supermarket and restaurant chains in Vietnam. Vinamilk brings its sales channels and nationally recognized brand to the table, while Sojitz provides the know-how in selling livestock products.
The Vietnamese company will hold a 51% stake in the unit, with Sojitz owning the rest.
Vinamilk, officially known as Vietnam Dairy Products, looks to diversify from its mainstay business and develop the domestic beef market. Vietnam’s 98 million people consume 500,000 tons of beef per year, according to Sojitz, or about half the volume of Japan.
Vietnam’s beef consumption is expected to rise as population and income levels grow. Vinamilk and Sojitz eventually may expand the business outside of Vietnam.
PPV 2019 OVERVIEW
10 July, 2019