What shapes the governance of the dairy value chain in Vietnam?
Insights from Ba-Vì milkshed (Hanoi)
into an asymmetric sharing of incomes.
Yet our data is lacking to assess wheth-
er contracted farmers earn more or less
income than non-contracted ones, in
particular through coercive measures
on quality.
of the products in the urban markets.
Besides, technology is highlighted in
transforming the chain and shaping
the value chain governance (crossbred
cows, new technology, and market dy-
namics such as prices).
The investments made by IDP
have had a major impact on the upgrad-
ing trajectory of the local value chain.
Among the upgrading dimensions,
vertical integration and upgrading of
both processes and products appear to
be the most significant changes. The
capacity of IDP to invest in farmers’
development projects and in UHT pro-
cessing technology has provided new
opportunities and value addition for
farmers and for other small-scale pro-
cessors, through improved processing
and packaging. The future of processing
firms may depend on their capacity to
set up contracts with appropriate incen-
tives. The role of the authorities in man-
aging the Ba-Vì certification trademark
and milk quality control will certainly
affect success chances of semi-industri-
al processing plants in the future.
Governance structure and
upgrading strategy
T
he governance of the value chain
relies on very complex social
networks including dairy pro-
ducers, collectors, processors, and pub-
l