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:
Butter and Cream
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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 antiaging. And this is the product that B04 team will focus on researching and launching the
II. RESEARCHING AND DEVELOPING OF FRESH DAIRY PRODUCTS FOR THE
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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
P15-59* (milli 26,63
rate P (%)
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
Number of people
Number of the elder
(Million people )
The proportion of
the elder (%)
(4) = (3) : (2)
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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.
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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
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
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:
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RAW MILK INSPECTION AND ANALYSIS
- Dairy Farm
- Dairy farming households
3. Plant location selecting and building supply chain for the company:
Mocchau dairy cattle breeding JSC
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
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
Ensure linking with other developing regions.
3.2 Supply chain building
More than 15,000 retail store, Big C, Metro …
The individual consumers, organizations, schools
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Extended supply chain model
The last supplier
The last customer
3.3 The members and the role of supply chain
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.
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
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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
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
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.
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.
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:
• 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.
• 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
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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and grassed areas in Moc Chau plateau. This is the plateau of Son La province climates with
cool summer temperatures average 20 º C and drier winter than in other regions, located at an
altitude of 1050m above the sea level, with large area stretching approximately 80km, 25km
wide with 1600ha pasture (see attached image). With an area of grass, the company can
ensure food for dairy cows with large numbers.
In the production of milk and milk material the cow is very important factor to ensure
adequate milk production necessary for the company plant. Realizing that role, Moc Chau
dairy cattle breeding JSC also entered large number of 200 dairy cows from Australia to
ensure necessary milk quality and quantity to provide to the market. This is one of the
activities to actively source local raw milk, which helps companies improve quality, increase
the localization rate of materials.
In the cow managed by the company, currently including pregnant cows and heifers which
were transported by specialized agencies, are being escorted and followed by Australian
experts in Moc Chau Milk farm.
The imported cattle will be isolated enough time to follow then be herd. Experts and
veterinarians will check daily for disease and bovine milk samples to monitor in accordance
with the test.
The importation of 300 cows will help Moc Chau dairy cattle breeding JSC add more breeds
for cow farm of the company, help the company more active in exploiting local raw milk and
increase the localization rate of materials. It is also important strategic objective and longterm direction to help Moc Chau Milk improve quality.
Demand for raw milk of Moc Chau dairy cattle breeding JSC is growing fast in recent years.
Serving this demand, on the one hand, the company has taken the initiative to invest in
industrial-scale farms, on the other hand constantly strengthening and developing purchasing
raw milk from farmer’s area.
It is expected in 2016, Moc Chau Milk’s farm can provide more than 50,000 tons of fresh
milk to meet 40% of raw milk demand for its production.
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Besides, Moc Chau Milk has signed contracts with nearly 1,000 livestock farmers in Moc
Chau and the surrounding area to sell Moc Chau’s milk. Moc Chau’s milk procurement from
farmers is now over 150 tons / day.
With this development, by 2016, the company is expected to purchase nearly 200 tons of raw
milk per day from households. The milk procurement meets the needs of about 60% of raw
milk. To learn more about milk procurement processes, please refer to the table below:
Figure 3: Producing, transporting milk to the factory diagram
Milk was placed
in the 10-30 per
Store milk in
Milk farm: Dairy
milking by machine
Milk was stored in
the cold tank
Moc Chau milk
Besides, to ensure the high quality of raw milk, the company also has certification policy for
cattle farmers in accordance with procedures and standards. The company has provided over
500 households and the program are positive developments. This activity helps to ensure the
quality and safety of fresh milk, original guarantee.
Planning and scheduling of Moc Chau dairy cattle breeding JSC
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It is a process of decision-making that plays a very important role in most activities, the
manufacturing industry and services. Technique is used in sales and production, in
transportation and distribution, in information processing and communication. The function of
the degree in a company is to use
mathematical techniques or some other quantitative
methods for the fair distribution of limited resources for the job. An appropriate allocation of
resources will enable the company to achieve the desired optimum. Resources may be the
machinery in the workshop, the runway of the airport, workers at the construction site or the
processing unit of the computing environment ... The task may be operated in the workshop,
the time off or landing at an airport, the stages of a construction project or computer program
which is executed corresponding resources. Each task can have a priority, a time can start early
and a separate due date. The goal of this level can produce different types, such as minimizing
the time to complete the minimum work or work late.
Operational plan - that is the job of producing a management group, a division of the company,
or many parts of the company. This task is not simple at all, people who do not only manage to
complete his work, but also control the workload of workers as well as coordination chemistry
with the other parts of the company. You have tried hard, frequent overtime, but the final
orders have been "late". Is there any way for you to lead the order and support others people to
Based on the general plan and the resources of raw materials and human resources to assume
available technological lines, human resources as well as other inputs were responsive (stages
before the transmission has been operating here as well as the stage of raw material, the
collection ...). Working here is only moderate in the planning framework processing line.
With a capacity of 160 tons per day with 75% line capacity of 8 tons per hour relative duping
operate 20 hours per day and 4 remains hours for the rinsing, cleaning and maintenance.
Through integrated application of schemes such as the Gantt chart, assigning the problem and
the work of the cyclical companies that offer the specific degree:
Production plan chart:
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Pasteurized milk plus sugar
Pasteurized milk plus non sugar calcium
Directly labor force
Driver, car accessories purchased materials
Receiving materials, centrifuge refrigerated
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Transportation of finished products to the 2
Total of people
Such a shift must have at least 43 employees to complete the task.
With the holiday for
workers, HR department will base on the cycle method to allocate their workers properly.
6. Building quality management plan
In goods and services production, it is said that product quality is the scrumptious product or
service, gain qualifications of areas or worldwide and meet the expectations of customers
with acceptable cost. If the production process is not consistent with the cost price, the
customer will not accept its value. It means the price is higher than the price that customers
have to spend in exchange for the properties of the product. On that basis, the same basis for
the social reality in order to meet quality standards for company products, Moc Chau dairy
cattle breeding JSC decides to choose ISOO-9000 system.
ISOO_9000 system is the standard procedure which is regarded as a new technology to help
manage a business organization to create high-quality products to satisfy customer benefits.
The adoption of this standard brings benefits:
In the immediate future: Improving image in the eyes of customers and other enterprises.
Medium Term - The quickly and effectively will be enhanced internally as well as with
Long-term: improve efficiency, increase profits for the company.
In this section, the company focuses on quality management system include:
Quality policy: overall intentions and direction related to quality management will be
Quality target: All that company is looking for or targeting issues related to quality.
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Quality management: coordinated activities to direct and control the quality.
Quality Planning: Focus on setting quality objectives, and regulations of the necessary
business processes and related resources to implement those.
Quality control: The activity focuses on the implementation of quality requirements.
Quality Assurance: The activities aimed at providing confidence that quality
requirements are taken seriously.
Quality Improved: Working to improve the responsiveness, the ability to perform the
Continuous improvement: The repetitive activities to enhance the ability to meet the
In summary, to integrate into the world market, the enterprises must have language in
common each other and ISO9000 is such language. ISO9000 is not only a standard of
product quality, but also a quality management system applies to the unit to improve
governance accordingly, thereby ensuring the implementation commitment to quality
products and service to customers.
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1. Russell, Taylor. Operations Management. Prince-Hall International Inc., US.
2. General of Population - Family Planning. Population Information Center. Results
of the population Survey - family planning in 2007. Hanoi, 2008
3. Committee for Population, Family and Children. Forecast of Vietnamese
population, family and Children in 2025. Ha Noi, 6-2006
4. Is there anything new in the structure of the Vietnamese population? Prof.
Nguyen Dinh Just - Institute of Population and Social Issues, National
Economics University, 30/12/2008
5. Choose age-appropriate formula
6. Moc Chau dairy cattle breeding JSC.,
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