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
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