World Food Policy Volume 3, No. 2/Volume 4, No. 1, Fall16/Spring17 | Page 74

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). 74