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GENERAL INTRODUCTION Moc chau dairy cattle breeding joint stock company is under Vietnam National Livestock Corporation - Ministry of Agriculture and Rural Development, trade name: Moc C

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MOC CHAU FRESH MILK PRODUCT DEVELOPMENT

FOR THE ELDERLY

I GENERAL INTRODUCTION

Moc chau dairy cattle breeding joint stock company is under Vietnam National Livestock Corporation - Ministry of Agriculture and Rural Development, trade name: Moc Chau dairy cattle breeding JSC

The main task is dairy farming, supply dairy breed, manufacturing and processing dairy products and animal feed production The purpose of Moc Chau dairy cattle breeding JSC is to satisfy the consumption of dairy products nationwide Every year the company has contributed hundreds of billions to the state budget Besides, they also contribute to addressing employment for local people and improve the lives of officers and employees

Currently, the company owns a large branch in Hanoi and many others distributors, agents, facilities at multiple locations across the country According to 2007 figures, the company has chartered capital up to 17.1007 billion dong

 In which state owns: 8.721 billion dong

 Other Equity: 247.9 million dong

 Employees shareholders' equity in the company : 8.1318 billion dong

The company's main products:

Pasteurized Milk

Butter and Cream

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Sterilized Milk

With the rapid and powerful development of dairy products in Vietnam market, the company has to compete directly in many strategic products such as fresh milk (pasteurized and sterilized product) for children, employees, the yogurt products Competitive pressures led the company to consider the special products, to provide more to potential customers, and the company has plans to develop and bring to market raw milk products served elderly subjects those are trending upward and increasing demand for dairy products rich in calcium and anti-aging And this is the product that B04 team will focus on researching and launching the market

II RESEARCHING AND DEVELOPING OF FRESH DAIRY PRODUCTS FOR THE ELDERLY

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1 Identify the target market and competing priorities:

The current population of Vietnam has showed that the age structure of Vietnam has rapidly been changing: the proportion of all age groups has increased or decreased significantly In particular, the proportion of children in the group (0-4) years of age in 2007 reduced by a half compares with that in 1979 In contrast, in 20 years, the proportion of the age group from 5 has increased twice: from 0.16% in 1979 to 0.38% in 1999 This signal has increased longevity and population aging trend is happening

Table 1: Total population and population aged from 15 to 59 in Vietnam

Total population (million)

52,742 64,375 76,325 85,1549 99,003

P15-59* (milli on)

26,63 34,76 44,58 55,38 64,543

Increasing rate P (%)

-Increasing rate P

15-59 (%)

-According to the report on population, our country has an aging population at close range Elderly rate in 2007 was 9.45% The pace of aging in our country is faster than population growth and rising If in 10 years, from 1979 to 1989, the population increased by 20%, the elderly increased 25%, while in the period 1989-1999, the proportion was 18% and 33% (see table below)

Year Number of people

(Million people)

Number of the elder

(Million people )

The proportion of

the elder (%)

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2007 85,1549 8,05 9,45

For the elder, the demand for milk is extremely large Milk is good for old people only to meet the daily nutritional supplements but also provide essential nutrients to help their body prevent diseases common in old age From the middle age, the demand for energy has reduced but the demand of nutrients such as protein, calcium, iron and vitamins still need to be ensured Regarding calcium, the calcium in the body is lost each year in both men and women are estimated at 0.3% -0.5% For women in the period before and after menopause (around 10 years), the amount of calcium lost more than men from 2% -5% per year So the supplement calcium need of women in this age group is higher than men (at least from 1000-1500mg per day) Meanwhile, although the daily needs of the body is not much, only about 1.2 mg But the rate of iron absorption should be at least 10% so the daily iron requirements foods have increased over 10 times, which is 10-20mg per day If the body is lack of iron can lead to deficiency anemia with symptoms such as lightheadedness primarily, dizziness, body fatigue, pale skin So, for this age food is low - fat but rich in other nutrients such as protein, calcium Low-fat milk is a food that can meet the requirements of little energy supply but much protein with high biological value and calcium

After analyzing on customers and basic characteristics of milk that fit elderly subjects, the group has decided to make a development on fresh dairy products for the elder

Prospect subjects of Moc Chau dairy cattle breeding company are people aged 40-60 who are living and working in the territory of Vietnam

The company will invest a milk production line separately with high levels of iron and calcium that fits anti-aging for the elder Besides, the company will leverage the existing infrastructure

of source materials including grass and cow number of companies and local people, transportation as well as distribution systems to save most costs So the system of production, distribution, procurement processes and marketing are presented in the following which will

be applied not only to the company's new products, but also to the existing products

Competitive priorities of the company: The Company will offer competitive priorities in the short term and long term consistent with the actual situation and the capacity Specifically, in

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the future, the company will build milk brand name for the elder with affordable, high quality and safety According to market analysts, there is no dairy enterprise that does research and develop fresh milk products for the elder, so the company's milk product is expected to change the market with no competitors

In long term, the company will also participate in the dairy market for the elder, so the company's market share may be affected Prediction of the situation, the company will give priority in long-term competitiveness as follows: to maintain the milk price and quality, attention focused on sales and after-sale service to make customer satisfy with most of the company's products Distribution and service delivery will be investing heavily to approach each alley Make sure all the elder use the milk product of Moc Chau dairy cattle breeding company

The company will also create messages for the elder: milk improves health and longevity Messages will create a generation of elderly milk and fresh milk

2 Process and production capacity selection

To meet the increasing demands of society for milk products, Moc Chau dairy cattle breeding company has applied advanced manufacturing processes in a modern and self-contained Many methods of processing, preserving life milk do not aim metamorphic dairy products, while maintaining the nutritional ingredients to consumers In developing countries, a milk process may not be strange

With closed technology and production line modern, Moc Chau dairy cattle breeding company

is being produced by the process:

Step

1

BREEDING CATTLE Breeding cows is not even known as the

primitive way It must be invested to create a best modern living farm to get the best source

of raw milk Here the water and feed for dairy cows are also focused, sheltered housing; cows are care and health management by the chip system mounted on the foot In 2013, the company has invested food processing plant

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for cow with first TMR technology in Vietnam Foods processing plants TMR has been invested about $ 1 million, according to the South Korean technology, the initial capacity of 120 tones per day and continue expanded to provide food for the nutritional content of milk for cows in Moc Chau "The TMR technology is a breakthrough and will transform dairy technology in Vietnam"

Step

2

MILK

The process of manual milking is replaced by machines Using machines help saving labor and ensure hygiene and safety food for raw milk

Step

3

STORAGE

Milk after milking will be done for the cooling of the temperature 4 ° C for storage before processing

Step TRANSPORTATION Transport process from farm to factory must

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be very strict Check the type of milk which is evaluated according to standard temperatures, colors, flavors before being transported to the factory

Step

5

RAW MILK INSPECTION AND

ANALYSIS

At the factory, raw milk is tested scientifically, analyzed the nutritional components If it does not meet the quality standards, it will be removed

3 Plant location selecting and building supply chain for the company:

3.1 Plant location selecting

Location of the factory, the services supply may affect the price advantage and the advantage of a distinguished company as well as the supply chain Therefore, Moc Chau dairy cattle breeding company will follow the principles when building the plant:

- Ensure appropriate conditions for natural cattle operations

- Located in the planned area of economic development

- In addition, the plant is also built on large land area, suitable for the production of short and long term

- Ensure linking with other developing regions

3.2 Supply chain building

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- Dairy Farm- Dairy farming households

Manufacturer Mocchau dairy cattle

breeding JSC

Distribution

area

The Northern The Middle

Distribution

area

More than 15,000 retail store, Big C, Metro …

Distribution

area

The individual consumers, organizations, schools

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Extended supply chain model

3.3 The members and the role of supply chain

- Supplier

Building long-term and sustainable development goals for providers in the country is strategic major objectives of Moc Chau dairy cattle breeding company to ensure the supply of raw materials is not only stable quality but also competitive price In addition to the dairy farm, the dairy farmers are the strategic partner of Moc Chau in providing consumers with the best products Milk is purchased from farms and farmers must always meet the quality standards which have been signed between the company and the dairy farms in the factory area

- Distributor

Extensive network distribution and sales is essential to the success of the operation, allowing Moc Chau dairy cattle breeding company have a large number of customers and ensure the introduction of new products and marketing strategies effectively across the country As of December 31, 2012, Moc Chau dairy cattle breeding JSC has sold its products through 120

The last

supplier

The last

Manufac turer

Manufac turer

Custome r

Custome r

The last custome r

The last custome r

Service supplier

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distributors with over 14,000 outlets in all 34 provinces of the country The sales team of 787 experienced sales staff across the country supports the distributors to serve retailers and consumers better, and to promote their products The sales team is responsible for serving and supporting distribution operations and developing relationships with new distributors and retailers In addition, Moc Chau dairy cattle breeding JSC has organized promotional and marketing activities with local distributors to promote their products and brand building across the country

Along with the distribution network in the country, the company currently is negotiating supply contracts with potential partners in other countries such as Thailand, Australia and the USA

Moc Chau dairy cattle breeding JSC is one of a few food and beverage companies has sales system equipped with coolers, freezers The investment in coolers, freezers sales system is a great hedging against competitors to participate in the market of food and drink, because equipping coolers; freezers sales system requires a very large investment

- Retailer

With 3 main distributions: Hanoi, Da Nang Since then Moc Chau dairy cattle breeding JSC delivered to their retailer system and customers As of December 31, 2012, Moc Chau dairy cattle breeding JSC sold its products through 120 distributors with over 14,000 outlets in all 34 provinces of the country The sales team of 787 experienced sales staff across the country to support the distributors to better serve retailers and consumers, and promote dairy products The sales team is responsible for serving and supporting distribution operations and developing relationships with new distributors and retailers In addition, Moc Chau dairy cattle breeding JSC has organized promotional marketing activities with local distributors to promote their products and brand building across the country Because of dense and covered retail systems Moc Chau milk products are delivered to end consumers Retailers system has an important role in the supply chain of the company

- Customer

Customers are an integral part of the supply chain Any supply chain must always have customers For Moc Chau dairy cattle breeding JSC, the business philosophy which is said

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above is the role for corporate clients such as: "Moc Chau Milk is desired to become the most popular products in every region and leading territory So we remember that quality and creativity is a companion of Moc Chau milk Moc Chau dairy cattle breeding JSC considers customer the centre and commits to meet every needs of our customers"

4 Synthetic plan / synthetic planning to produce milk for the elderly of Moc Chau dairy cattle breeding JSC is as follows:

A Function

 Develop plans and integrate production-oriented business development of the company Report and evaluate the targets implementation of the parts in the company

 The secretary summarize task for General Director and Board of Directors

 In relation to the companies' shareholders

B Task

 Providing general information on the business activities of the company to the Board of Manager and the Board of Director, in accordance with the Corporation

 Reporting and evaluating the target performance for each department in the company

 Monitoring and controlling the implementation of the targets which were approved by the General Assembly of Shareholders

 Secretary, recording the minutes and make the content relevant to the briefings of the Company's Board of Directors

 Providing information on the operations of the Company for the Company's shareholders (on the website or in the text)

 Application of information technology in the field of operations departments in the company Updating information on the Website

 Implementing programs and activities to promote and promoting the company's brand

on the Internet, newspapers, magazines and other media

5 Developing materials plan to prepare production

A Materials plan building

To ensure adequate supply of raw materials for the production of fresh milk gained particular elderly and dairy products in general, Moc Chau dairy cattle breeding JSC has built plants

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