High-tech, clean agriculture: investment trends for powerful capitalists
Injecting money into agricultural production has become popular among large conglomerates with powerful financial capability. Most of them are targeting organic agriculture projects.
Of the VND4 trillion worth of investments in high-tech agriculture, Vingroup has poured VND300 billion into VinEco Ha Nam in accordance with a closed model, from seedlings, production and harvesting to preservation and processing under advanced technologies from Israel, the Netherlands and Japan.
Vinamilk, the nation’s leading dairy producer, having realized high demand for organic products, has decided to spend VND200 billion to develop a European standard milk cow farm in Lam Dong province.
According to Vinamilk’s CEO Mai Kieu Lien, Vinamilk had to spend many years to find land area suited to farming milk cows in natural conditions.
It was more costly to develop an organic milk cow farm than a normal farm. It is expected that the milk output will be lower, while the number of workers required will be higher and the farm area larger.
NutiFood, a nutrient food manufacturer, has become the strategic partner of Phuoc An Coffee Company in Dak Lak province, moving ahead with the plan to make clean coffee for export.
Vinamit, a dried fruit manufacturer, has also decided to set foot in the organic foot sector. Vinamit’s CEO Nguyen Lam Vien said the company wants to invest in organic agriculture as consumers are buying more products with natural origin.
Vinamit wants to prove that its products are organic products so they can sell them in foreign markets.
In the last few years, many kinds of Vietnamese food products have been refused by import countries because of the high pesticide residue.
Meanwhile, the demand for clean food in the domestic market is very high.
Thai Huong, president of TH Group, also dreams of exporting organic fruits and medicinal herbs to the world market. It produces dairy products, and also grows clean fruits and vegetables.
$132 million has been poured by the group into the project on organic fruits and vegetables in Thai Binh and Lam Dong provinces.
Meanwhile, VND2.830 trillion has been poured into TH Herbals which now grows five kinds medicinal herbs.
Organic agriculture projects are highly promising. Vinamit’s Vien said one kilo of organice rice can be sold for three times higher than the price for normal rice.
Pham Minh Thien, director of Co May, said one kilo of clean mushrooms can be sold for VND140,000.
Thanh Mai, VNN