Tuesday's shipment of pasteurized fresh milk produced by Vietnamese dairy firm TH True Milk followed a deal signed by the Ministry of Agriculture and Rural Development (MARD) and China Customs in April this year.

TH True Milk is the first Vietnamese dairy producer to have approval for exports to China. Vinamilk, Moc Chau Milk, Nutifood and Hanoimilk are awaiting similar approval, according to the agriculture ministry.

China, with a population of more than 1.4 billion, has a huge demand for milk and milk products, Minister of Agriculture and Rural Development Nguyen Xuan Cuong said at the ceremony launching Vietnam’s first milk shipment to China on Tuesday.

China has the highest milk consumption in the world, with a total value of $60 billion, but domestic supply only meets 75 percent of demand.

China Customs issued an official announcement on October 16 allowing the import of heat treated dairy products from Vietnam, including different types of pasteurized milk, milk powder, condensed milk and baby formula.

Exporters will be required to obtain approval from Vietnamese authorities, complete registration and undergo phytosanitary procedures with China Customs before being allowed to export to the country.

Vietnam’s dairy output rose 6.9 percent to 936,000 tons last year, and is set to rise to one million tons next year and two million tons by 2030, according to the agriculture ministry. It exports dairy products to 46 markets with 70 percent going to the Middle East.