Regional research “Agricultural innovations review in Sub-Mekong region countries” in the framework of the project “Network for Agriculture and Rural Development Think-tanks for Countries in Mekong sub-region” – November 2022 - April 2023.

Moc Chau Milk, a joint stock company based in Moc Chau Farm Town, Vietnam, focuses on raising, supplying, and processing dairy products. The company has a feed processing factory, milk processing factory, dairy breeding center, technology transfer center, and branches in 42 provinces and cities. Moc Chau Milk offers pasteurized fresh milk, yogurt, cheese, butter, milk cake, cream, and sweetened condensed milk. Moc Chau Milk, a Vietnamese dairy farming enterprise, was granted VietGAP certification in 2014 and has a dairy material area of over 4,000 hectares. With a herd of over 24,500 cows, it contributes 11% of Vietnam's milk production.

Dairy cow farm in Moc Chau District

Source: Moc Chau dairy farm.

To ensure the supply of raw milk, the company contracted its over 15,000 dairy cows and 1,000 hectares of land to 565 farmer households by contracts. That helps to generate job opportunities for local people and improve household income. The average livestock scale is about 28 dairy cows per household. Some households have up to 180 cows. In general, this is a contract-based association model between enterprises and farmers that helps ensure benefits for both parties and is quite effective. This model has been maintained and developed over the past 10 years.

Click this link for detail information: Contract farming model in Moc Chau Milk Company