The dairy farm is part of a memorandum of understanding on agricultural cooperation, which was signed in HCM City on November 5 in the presence of Ambassador Haim Divon, Head of Israel’s Centre for International Cooperation (MASHAV) and Nguyen Trung Tin, Deputy Chairman of HCM City People’s Committee.

Israel will provide US$1.06 million for the US$2.54 million project.

The farm will be a centre to provide high-yield and quality fresh milk and train workers for modern dairy farms throughout the country.

HCM City has earmarked 10ha in Binh Chanh district for the project. The first phase of the project, from 2007-08, will purchase equipment and build infrastructure facilities. The project will be put into experimental operation in the second phase from 2009-2012.

Deputy Chairman Tin and Ambassador Haim Divon agreed that both groups will continue sharing experiences, information and facilitate the implementation of other projects to promote agricultural cooperation and transfer of modern technology on processing of farm produce, recycling waste water and building irrigation works.