World Food Policy Volume 3, No. 2/Volume 4, No. 1, Fall16/Spring17 | Page 65

What shapes the governance of the dairy value chain in Vietnam? Insights from Ba-Vì milkshed (Hanoi) Figure 3: Dairy production development trajectories in Ba-Vì Source: Authors continued to buy fresh milk from local farmers, resulting in a concentration of the dairy industry. IDP built a new dairy processing plant (2010) next to Ba-Vì Cattle and Forage Research Center 10 (CFRC) in Tản-Lĩnh commune, and extended its collection network. These investments were further valorized and secured by a memorandum of under- standing (MOU) between IDP and the district authorities. IDP then adopted a 2012-2020 dairy development program aiming at expanding local milk pro- duction through credit to farmers, im- proved breeding, new production tech- niques, supports for an industrial-scale “demonstration farm”, and building an animal feed mill. Characterization of the Ba-Vi dairy value chain T he Ba-Vi dairy value chain in- cludes five segments: supply of inputs, milk production, milk collection, milk processing, and mar- keting and distribution of dairy prod- ucts (Figure 4). Input and service provision: Farmers have their inputs sourced from either self-supplied stock, mostly green fodder (representing about 50% of the farms’ feed requirements), or external inputs purchased off-farm (industrial feed, artificial insemination, veterinary services, etc.). Beside the network of private veterinarians, local producers 10 In 1989, Ba-Vì State farm was converted to Cattle and Forage Research Center with mandates to conduct research into cow breeding and feeding, animal health and reproduction, and forage culti- vation 65