World Food Policy Volume 3, No. 2/Volume 4, No. 1, Fall16/Spring17 | Page 64

World Food Policy Possible changes over time of these variables were collected to grasp the dynamics of the whole system. Down- An in-depth survey was se- stream flows from milk production to quenced in September 2014 (50 inter- milk processing to end-use activities viewees) and September 2015 (20 inter- were traced to identify the drivers of in- viewees) comprising semi-structured novations and who received the largest interviews with different actors in the share of the margins and value addition local chain (local authorities, 5 input produced by the chain. and service suppliers, 21 producers, 9 collectors, 5 processors, 10 milk shops Results and 15 consumers) to characterize the value chain and scrutinize sustainabil- The dairy development trajectory ity of the value chain. Given this small in Ba-Vì sample, the study should be considered ilk production started in Ba- as exploratory and the results have to be Vì in the early 20 th century. supported by a quantitative survey. Yet, The development trajectories some representativeness was sought of Ba-Vì’s dairy sector correspond with in targeted interviewees according to the national trends in the periodized their involvement in the three identi- political economy (Figure 3): milk pro- fied channels steered by the processors. duction concentrated on State farms Local actors were questioned about (during the collectivism period), milk their business resources (assets, capi- production on individual smallholder tal, know-how, labor, technology used), farms (during the Đổi Mới period) (Su- functions and activities (products pur- zuki et al. 2006), and industrialization chased or sold, delivery and transport, of the private dairy sector (since 2008) services provided or received, access (Duteurtre et al. 2015). to credit, information exchange), eco- The recent industrialization shift nomic results and management prob- of the local dairy production has turned lems (prices of inputs and outputs, costs and margins, regulations, competition, out since the Government launched its strategy), relationship with other chain 2020 livestock development strategy in actors (contractual linkages, alliances, 2008. In the same year, the melamine dependence, groups or associations, crisis caused by adulterated powder market relationships, information, milk imported from China hit the local power asymmetry, proximity), quality chain as some local firms had to sus- management (types of products, quali- pend their milk collection and to stop ty standards, payment schemes, quality their processing activities. Among the labelling, certification), enabling envi- processing companies involved in the ronment and supports from local gov- collection of local milk, only Interna- ernment (technical assistance, exten- tional Dairy Products Joint-Stock Com- sion services, livestock insurance, etc.). pany (IDP) and Bavi Milk JSC. (BVM) channels were identified corresponding to three types of processing: artisanal, small-scale, and large-scale. M 64