World Food Policy Volume 3, No. 2/Volume 4, No. 1, Fall16/Spring17 | Page 57

World Food Policy • Vol. 3, No. 2 / Vol. 4, No. 1 • Fall 2016 / Spring 2017 What shapes the governance of the dairy value chain in Vietnam? Insights from Ba-Vì milkshed (Hanoi) Mai-Huong Nguyen 1 , Guillaume Duteurtre 2 , Paule Moustier 3 Abstract Vietnam has experienced a rapid growth in the dairy sector since the early 2000s. However, the organization of the sector is said to be inequitable and its motivational mechanisms are not sufficient to ensure the development of smallholder farmers. To assess small- holders’ prospects in the upgrading process of the whole dairy sector, we conducted a study in Ba-Vì district, the largest “milk- shed” in the Red River Delta, which has undergone a remarkable transition from state-owned concentrated production to small- holder farms. The study focuses on value chain governance and upgrading strategies. The local dairy value chain is dominated by smallholders and characterized by contractual relations between private milk collectors and industrial, semi-industrial, and cottage processors. The local chain is featured by a mixed relational-cap- tive governance pattern. Relational governance characterizes the two sub-channels in which small-scale industries operate. Captive governance describes the leading role of a medium-size dairy firm that has invested in UHT processing facilities and benefited from support from the local government. The strong role of public au- thorities and some challenges for chain upgrading are discussed. Keywords: dairy sector, value chain governance, livestock devel- opment, Vietnam Resumen Vietnam ha tenido un crecimiento rápido en el sector lechero des- de los primeros años de la década del 2000. Sin embargo, se dice que la organización del sector es inegalitaria y sus mecanismos 1 2 3 RUDEC/ IPSARD, Hanoi, Vietnam/ CIRAD-MOISA, Montpellier, France. CIRAD, UMR SELMET, Montpellier, France. CIRAD, UMR MOISA, Montpellier, France. 57 doi: 10.18278/wfp.3.2.4.1.4