TH Group Launches $204 Million Dairy Project in Russian Far East
Source: The DairyNews
Vietnamese dairy company TH Group has initiated a substantial $204 million investment in the Russian Far East, marking a significant expansion in its global operations. The project includes the construction of a dairy farm and a processing plant aimed at enhancing the agricultural capabilities of the region.
At a groundbreaking ceremony, TH Group's chairman, Ngo Minh Hai, outlined the project's scope: a farm housing 12,000 cows, with half being dairy cows, and a processing factory with a daily capacity of 250 tonnes. Additionally, the project will utilize approximately 13,000 hectares of agricultural land, aiming to revitalize an area that has long been overlooked agriculturally.
Scheduled for completion by the end of 2027, the farm cluster will operate as a self-sufficient unit, providing all input materials necessary for dairy production. This initiative is expected to significantly contribute to the regional GDP and establish a 'from grassland to glass of milk' high-tech production chain.
TH Group holds the distinction of being the first Asian entity to invest in dairy capacities across multiple Russian regions. Since 2022, the company has committed to investing $2.7 billion in the Russian dairy sector. This includes developing farms and processing facilities in Moscow, Kaluga, Primorsk Krai, and Bashkiria Republic.
Despite facing earlier challenges such as construction delays and cost overruns attributed to underestimating the complexities of the Russian construction market, TH Group remains optimistic about its Russian ventures. The company had previously reported issues with escalating construction costs and considered importing labor from Vietnam to manage expenses.
In the Kaluga region, TH Group is progressing with the construction of two farms, each designed to house 6,000 dairy cows and include dairy processing capabilities. This complex is projected to achieve a total output of 1,000 tonnes of dairy products per year by 2026.
TH Group's founder, Thai Huong, in an interview, emphasized the substantial growth potential within the Russian dairy market, especially given the technological lag in local agricultural practices. Huong highlighted that while the average milk yield in Russia stands at 17 liters per cow, TH Group’s operations achieve around 40 liters, underscoring the technological and operational advancements the company brings to its investments.
Scheduled for completion by the end of 2027, the farm cluster will operate as a self-sufficient unit, providing all input materials necessary for dairy production. This initiative is expected to significantly contribute to the regional GDP and establish a 'from grassland to glass of milk' high-tech production chain.
TH Group holds the distinction of being the first Asian entity to invest in dairy capacities across multiple Russian regions. Since 2022, the company has committed to investing $2.7 billion in the Russian dairy sector. This includes developing farms and processing facilities in Moscow, Kaluga, Primorsk Krai, and Bashkiria Republic.
Despite facing earlier challenges such as construction delays and cost overruns attributed to underestimating the complexities of the Russian construction market, TH Group remains optimistic about its Russian ventures. The company had previously reported issues with escalating construction costs and considered importing labor from Vietnam to manage expenses.
In the Kaluga region, TH Group is progressing with the construction of two farms, each designed to house 6,000 dairy cows and include dairy processing capabilities. This complex is projected to achieve a total output of 1,000 tonnes of dairy products per year by 2026.
TH Group's founder, Thai Huong, in an interview, emphasized the substantial growth potential within the Russian dairy market, especially given the technological lag in local agricultural practices. Huong highlighted that while the average milk yield in Russia stands at 17 liters per cow, TH Group’s operations achieve around 40 liters, underscoring the technological and operational advancements the company brings to its investments.
