World Food Policy
rights. These measures should be com-
bined with specific regulations aimed at
preventing or reducing potential nega-
tive effects (exclusion of small produc-
ers and processors, environmental deg-
radation, unfair distribution of added
value, market competition, etc.). Uni-
Policy implications
lateral decision making by the “captain”
ur analysis highlights the role of the chain should be replaced by new
played by private companies rules of the game co-constructed with
and government intervention all the actors to ensure a sustainable and
in promoting the dairy sector in Ba-Vì, inclusive value chain.
which has emerged recently and un-
dergone a rapid transition. The context
of the local dairy industry led to the Acknowledgement: The authors thank
emergence of three factors that influ- the ANR and AIRD for financing the Re-
ence transaction costs and hence shape valter project (Multi-scale assessment of
a “mixed” type of governance needed livestock development pathways in Viet-
to facilitate transactions along the lo- nam)
cal dairy chain. The three factors are
(i) the structure of the local dairy value
chain, which is driven by private indus- References
trial-scale processing companies; (ii)
specific agricultural characteristics, and Bair, Jennifer. 2005. “Global Capitalism
(iii) strong backstop of public services. and Commodity Chains: Looking Back,
Strong state involvement has taken dif- Going Forward.” Competition & Change
ferent forms but is responsible for the 9 (2): 153–80.
initial impulses to the local dairy sector.
Entry barriers to production and trade Birthal, P. S., A. K. Jha, M. M. Tiong-
have increased significantly over time. co, and C. Narrod. 2009. “Farm-Level
The State uses the barriers by partner- Impacts of Vertical Coordination of
ing with private firms to facilitate the the Food Supply Chain: Evidence from
flows of products and information. Contract Farming of Milk in India.” In-
Smallholder dairy farmers still have dian Journal of Agricultural Economics
a role in local economy in the context 64 (3): 481–96.
of land constraint and livelihood as-
surance, but further support is needed Bui, Thi Nga, Huu Cuong Tran, and
to ensure their access to stable mar- Phillipe Lebailly. 2013. “An Analysis of
kets and help them understand quali- the Value Chain of Fresh Milk in the
ty and food safety regulations through North of Vietnam: The Case-Study in
training, improved support services Son La Province.” Vietnam’s Socio-Eco-
and protection of intellectual property nomic Development Review 68: 272–86.
the access of consumers to products of
quality and of reasonable prices and to
encourage enterprises to invest in milk
production rather than being depen-
dent on imports
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