World Food Policy
applying for certification mark “Ba-Vì
cow milk”, in 2009, as intellectual prop-
erty rights protection. The district gov-
ernment’s control over the certification
mark aims at maintaining the quality
and reputation of Ba-Vì milk; but re-
serving the mark rights for only two
companies (IDP and BVM) may prevent
other companies who are qualified from
obtaining the certification mark and, to
some extent, ensures IDP’s monopoly on
collecting milk locally as IDP and BVM
have partially merged.
and large farms, Ba-Vì district, in the
2010-2014 period, witnessed a relevant
change in farm size: decreasing number
of small farms of 1-5 cows (from 89.55%
to 61.17%), and increase in number of
farms of more than 5 cows (farms of
6-9 cows: from 8.14% to 32.17%; farms
of more than 9 cows: from 2.31% to
6.66%). Priority is given to the medi-
um and large farms in view of higher
economic returns, better epidemic and
quality control and improved effluence
management.
Despite the rapid structural
changes in parts of the sector, small-
holders till dominate dairy production.
Low entry barriers to production are set
by both dairy processors and local gov-
ernment to ensure smallholder farmers
access to credit, public services (ex-
tension and veterinary services), and
training as well as improved infrastruc-
ture. Higher barriers concern land con-
straints, dependence on concentrates,
demanding quality standards and per-
manent contracts with companies.
Smallholder production shows more
resilient against market fluctuations,
but it is difficult to generate sufficient
volume to meet increasing demand and
face higher competition from import-
ed milk products. Accordingly, a niche
Discussion and Conclusion
marketing seems to be an important
opportunity that help Ba-Vì milk over-
Structural transformation and
come barriers to trade (special demand
organization of the value chain
for fresh milk, quality local product,
s a snapshot of national dairy local market for tourists, restaurants,
sector which has been expe- etc.). Increasing domestic demand and
riencing a rise of medium improved roads would facilitate sale
Since 2012, the district dairy de-
velopment strategy appears to be close-
ly linked with the IDP development
plan. Beyond the use of certification
mark, the district government supports
IDP in many institutionalized opera-
tions in the 5-year MOU. Together with
the government’s favorable policies (ag-
ricultural insurance for producers 14 ,
favorable loans and taxation regimes,
etc.), the district administration con-
trols the entrance of other dairy com-
panies by gauging daily collection ca-
pacity of minimum 600kg for placing
collection points. This structural mech-
anism endeavors to a stable supply of
milk to IDP and BVM.
A
14 The State provides grants to cover the insurance fees: 100% of insurance fees for poor farmers, 80%
for quasi-poor farmers, 60% for non-poor farmers, and 20% for cooperative groups (who are part
of a pilot project on livestock insurance).
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