Vietnamese Brand Spread in Russia

2:49:13 PM | 11/28/2018

TH true MILK is a Vietnamese brand that is unfamiliar to most Russian consumers; however, for Ms Ekaterina, 37, from Botovo Village, Volokolamsk Town, Moscow Oblast, Russia, the brand is very, very close. Like her colleagues, she is looking forward to the day the brand is on the shop shelves in Russia.

Spreading joy
Ekaterina is currently a dietician at the TH dairy farm in Moscow Oblast. On September 7, she and her colleagues attended the ground-breaking ceremony of a high-tech dairy processing plant with a daily capacity of 1,500 tonnes in Kaluga Oblast, nearly 300 km from the TH dairy farm in Moscow Oblast.

When completed, the plant will process raw milk produced by her farm. The output will be distributed throughout Russia. So, she is very eager to wait for that day.

She said that the TH milk farm in Moscow recently received 1,100 more dairy cows, raising the herd here to 2,000 heads and the herd will continue to increase by the end of the year.

“I am responsible for feeding cows and controlling farming processes. When TH came, there were some rumours about a milk production and processing project in Volokolamsk Oblast but hardly anyone believed it would become true. But, it is completely different now. I worked on the farm and I am preparing to start the new factory. I feel that this is a huge project with a very bright future. Our executives are wonderful and my colleagues are working hard together to achieve the outcomes we want. I am very happy that my salary is high and I always get paid on time,” she said.

Similarly, Maxim is a veterinarian working in the farm. He is the first person to receive TH’s first cows in the Russian Federation. Attending the plant commencement ceremony, he is very happy because many young people like him get well-paid jobs in their homeland.

In Moscow Oblast, he witnessed legendary agricultural machines, which are very expensive, catering feeds and water for dairy cows. Combine machines break the soil, grind weeds into fertiliser, sow seeds into soil, harvest and carry them to the plant, make silage and feed into troughs for cows. Then, high tech is applied to cow management, veterinary and milking. World-leading technological equipment has helped TH develop high-quality dairy cows to produce and process premium milk. Therefore, his joy will continue to spread as many more workers will work for TH true MILK’s grand project in Russia.

From gratitude to market penetration
The investment project helps compensate for milk shortage as a result of economic embargo, creates jobs for countryside people, and unlocks enormous potential of Russian soil. Answering the question why TH chose to invest US$2.7 billion in Russia, Ms Thai Huong, Founder of TH Group, said, in addition to her love and gratitude to Great Russia, the Russian market has extremely high potential.

“In addition to economic aspect, the project has political significance, enriching the Vietnamese and Russian cooperation besides other traditional fields such as defence technology, education and training. The project also demonstrates the integrating capability of Vietnamese enterprises on the international market, boldly applies world-advanced technology to increase productivity and product quality. The project may start a new investment trend for Vietnam and Russia. Conventionally, Russian businesses invest in Vietnam but now there is big change: Vietnamese businesses invest in Russia. Supported and facilitated by the two governments, this will certainly be a promising business deal. I hope that, with the success of this project of TH Group, more Vietnamese businesses will invest in Russia, including Kaluga Oblast.”

Excerpt from the speech delivered by Party General Secretary Nguyen Phu Trong at the Commencement Ceremony of TH Dairy Plant in Kaluga Oblast (Russia) on September 7.
Russia is one of the largest dairy markets in the world, worth about US$15.5 billion in 2016. By type, drinking milk and yoghurt account for 46 per cent of raw milk, butter accounts for 21 per cent, cheese makes up for 14 per cent, and desserts and ice cream consume 5 per cent.

However, milk supply in Russia is falling short largely due to economic embargo, resulting in a sharp drop in per capita consumption from 387 kg a year in 1990 to 233 kg in 2016.

As the world's second largest importer of dairy products, holding 12 - 15 per cent of global dairy trade, Russia is fully aware of the importance of milk and dairy products to its people.

As Russia’s agricultural soil is underutilised, the Russian Government introduced attractive policies to develop this sector, including dairy farming.

This is also an opportunity for foreign investors. TH Group has quickly looked at this opportunity to develop its market in Russia.

Only in a short time, workers and experts like Ekaterina and Maxim will see their working results - TH-branded organic milk, butter, cheese, tvorog and Smetana - to be available in the Russian market, the great symbol of Vietnam-Russia friendship and the sharpness and strength of TH Group, Vietnam's first enterprise daring to embark on this challenging field.