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.
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