Decision No. 167/2001/QD-TTg On certain measures and policies for developing dairy cattle farming in Vietnam during the period 2001-2010.

Pursuant to …;

On Certain Measures and Policies for Developing Dairy Cattle Farming in Vietnam during the Period 2001-2010

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

At the request of the Minister of Agriculture and Rural Development,

DECISION:

Article 1. Developing dairy cattle farming aims to meet domestic milk consumption needs, gradually replace imported milk, create jobs, increase income for farmers, contribute to restructuring agricultural and rural economies.

By 2005, achieve 100 thousand dairy cows, meeting over 20% of domestic milk consumption; by 2010, reach over 40% of domestic milk consumption; thereafter, reach 1.0 million tons of milk.

Article 2. Development of dairy cattle farming must be linked with milk processing facilities, concentrated raw material areas for the milk processing industry, organized tightly like sugarcane, pineapple, rubber, coffee, tea, etc., and develop pastures in places with suitable land, labor, climate conditions, ensuring ecological and environmental hygiene, specifically:

1. Northern provinces: Ha Tay, Bac Ninh, Vinh Phuc, Phu Tho, Bac Giang, Thai Nguyen, Ninh Binh, Thanh Hoa, Nghe An, Son La, and suburban districts of Hanoi.

2. Central midland counties in coastal central provinces: Binh Dinh, Quang Nam, Quang Ngai, Khanh Hoa, Phu Yen,...

3. Southern provinces: Binh Duong, Binh Phuoc, Dong Nai, Tay Ninh, Long An, Can Tho, An Giang, and suburban districts of Ho Chi Minh City.

4. Western Highlands provinces: Lam Dong, Dak Lak, Giai Lai, Kon Tum.

Article 3. Encourage all organizations and individuals from all economic sectors within and outside the country to invest in dairy cattle farming and breeding dairy cow breeds to meet the demand for livestock farming among the people according to the following directions:

1. Form a hybrid dairy cow herd based on:

- Continuing the program to improve the Vietnamese yellow cattle herd. The Ministry of Finance will allocate annual state budget plans to implement this.

- Collecting and selecting high-quality improved cows throughout the country.

- Establishing several concentrated dairy cow breeding areas with household and farm-based breeding models, especially for workers in rubber, coffee, tea, sugarcane, pineapple plantations, and forest farms in Southeastern Region, Western Highlands, Phu Quy (Nghe An), Thanh Hoa,...

- Livestock breeders of the dairy cow herd will enjoy credit and vaccine support policies. Strive to form a good basic herd of cows within 2-3 years to meet the annual breeding plan requirements.

2. Based on the good basic herd of cows, organize crossbreeding with high-yielding foreign dairy bulls such as Holstein bulls to produce 50% and 75% bloodline Holstein-Friesian dairy cows to meet the national demand for dairy cattle.

The Ministry of Agriculture and Rural Development will guide provinces, centrally-administered cities, and corporations to implement projects to improve the yellow cattle herd, breed dairy cows, and develop dairy farming.

People's Committees of provinces, centrally-administered cities, corporations, and organizations shall implement projects to improve the cattle herd, breed dairy cows, and produce local products or those of their units.

Article 4. People's Committees of the provinces mentioned in Article 2 of this Decision need to review existing land funds, allocate appropriate land for guiding farmers to develop grass planting for dairy cattle farming.

For some areas planted with annual or perennial crops (coffee, rubber, tea,...) with low economic efficiency, they should be converted to grass planting for dairy cattle farming.

The Ministry of Agriculture and Rural Development will direct research and training units within the sector and coordinate with external units to select and rapidly propagate high-yield grass varieties such as elephant grass, pangola, gineer, ru zi, legume grass, etc., to provide seeds for farmers to plant. Guide intensive cultivation techniques, intercropping grass with legumes to ensure high yield and quality of grass. Issue and guide procedures for processing, preserving, and storing roughage feed for dairy cows: ensiling, drying grass, using agricultural and industrial by-products (sugarcane tops, molasses, sugarcane bagasse, beer and wine residue) as feed for dairy cows.

Article 5. Planning and investment in building milk processing facilities must be linked with raw material regions. Milk processing plants must have advanced technology to produce high-quality products that meet consumer preferences.

- Milk processing facilities must organize a collection network suitable for the sales area and convenient for dairy farmers to sell milk; at the same time, they must sign contracts to purchase milk at favorable prices for dairy farmers.

Milk processing facilities must diversify milk product lines and strengthen marketing efforts to sell all produced products efficiently.

The Ministry of Industry will lead and coordinate with the Ministry of Agriculture and Rural Development and People's Committees of provinces and centrally-administered cities to review, adjust, and supplement planning and development plans for milk processing facilities to match raw material regions and enhance investment effectiveness.

The Ministry of Commerce will annually forecast domestic milk consumption levels to closely coordinate between domestic milk production and imported milk quantities, ensuring the development of dairy herds and that milk processing plants purchase all milk from farmers.

Article 6. Continue to invest in upgrading scientific research and training institutions to improve the quality of research from genetics, breeding techniques, veterinary science, feed, etc., and transfer advanced technologies to farmers.

Import some high-quality bull semen and embryos to create high-yielding dairy cow hybrids to meet the national demand for dairy cattle.

- Effectively implement individual productivity checks, moving towards checking subsequent generations to select F2 bulls with 75% Holstein-Friesian blood to stabilize the hybrid herd.

The Ministry of Agriculture and Rural Development will lead and coordinate with the Ministry of Science, Technology, and Environment to establish standards for dairy cows and imported milk in Vietnam.

Article 7. Investment and credit policy:

1. Regarding investment: The budget (including central and local budgets) will invest:

- Implementing the program to improve the Vietnamese yellow cattle herd;

- Providing free bull semen, liquid nitrogen, and transportation costs for artificial insemination of foundation cows to produce dairy-oriented hybrid cows.

- Providing free vaccines to prevent dangerous diseases to ensure disease safety.

- Support VND 200,000 per male F1 crossbred dairy calf for the first three years from the date of project implementation.

- Support interest rates on loans for organizations, individuals, and households with contracts for producing crossbred dairy cattle to purchase Zebu crossbred female cows; the loan amount eligible for interest rate support is VND 2,000,000 per cow, with interest rate support provided for three years from the date of purchasing the cow.

- Training, education, and technology transfer for dairy cattle farming.

2. Regarding state investment credit according to the state plan.

- Investment in constructing milk collection points and processing facilities can obtain credit from the Development Support Fund pursuant to Decree No. 43/1999/NĐ-CP dated June 29, 1999, of the Government and Decision No. 02/2001/QĐ-TTg dated January 2, 2001, of the Prime Minister regarding policies to support investment from the Development Support Fund for production and processing export projects and agricultural production projects.

- Increase capital of the Bank for the Poor and the National Target Program for Job Creation to provide loans to poor households and dairy cattle farmers to develop dairy cattle farming.

3. Regarding commercial credit.

The State Bank of Vietnam directs commercial banks to ensure sufficient capital and facilitate loan procedures for organizations, individuals, and households to borrow; cooperate with the Farmers' Association and the Vietnam Women's Union to expand credit through farmer credit groups and mutual aid groups so that households in difficulty can obtain capital to develop livestock farming.

Article 8. Implement tax incentives for milk collection and processing centers and grass cultivation according to Decree No. 51/1999/NĐ-CP dated July 8, 1999, of the Government guiding the Law on Encouraging Domestic Investment (Amended).

Exempt quarantine and transportation fees for milk.

Establish a Livestock Production Insurance Fund participated in by dairy farmers, processors, and importers/exporters of milk, with partial initial capital support from the state budget. The Dairy Cattle Farming Association manages and uses the fund in accordance with regulations and guidelines issued by the Ministry of Finance.

Article 9. The development of dairy cattle farming primarily follows the household and farm economy model. Encourage private enterprises and limited liability companies, both domestic and foreign, to invest in dairy cattle farming, service provision for materials and technology, and milk procurement and processing.

State-owned enterprises mainly undertake technical service tasks such as breeding, materials, veterinary services, sales, and milk processing.

Encourage the formation of cooperative groups or cooperatives voluntarily joined by dairy farmers to assist each other in breeding, materials, veterinary services, milk sales, and protecting their rights.

Establish a Dairy Cattle Farming Association comprising dairy farmers, processing facility owners, and some scientists to help each other apply advanced technologies in dairy farming and milk sales and protect each other's interests.

Article 10. THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE.

Article 11. The Ministers of Agriculture and Rural Development, Planning and Investment, Industry, Finance, Trade, Science, Technology, and Environment, the Governor of the State Bank of Vietnam, the Director-General of the Development Support Fund, the Chairpersons of the People's Committees of provinces and centrally-administered cities, and the Heads of relevant agencies are responsible for implementing this Decision.