Vietnamese dairy group TH True Milk will invest a further $1.7 billion in establishing a dairy operation in eastern Russia.
The investment will help the company to meet demand in China and Japan for organic dairy products, where availability is labelled as ‘scarce’.
It will allow TH True Milk to establish a dairy farming set-up in Russia’s Far Eastern federal district – a 6-million-square-kilometre region of Russia that falls entirely within the Asian continent. Despite its sparse population, the area provides the third highest economic contribution per head of all of Russia’s federal districts, and is strategically placed to help TH True Milk grow its business in Asia.
The company has previously invested in two separate dairy production projects in Russia.
TH True Milk president Thai Huong said: “The total amount of projects in Russia which our company plans is approximately $2.7 billion. Of this amount about $1 billion has already been invested.”
Russia’s domestic dairy market has itself benefitted from Asian investment, after Western imports were banned in 2014.
Details of the additional investment from TH True Milk were given by Russia’s deputy prime minister, Yury Trutnev.