World Food Policy
pendent quality test agency is crucial in
stabilizing the dairy zone.
protect the interest of those concerns
and to reduce risks; association of 14
collectors in Tản-Lĩnh commune es-
tablished in 2013 aiming at mutual aid,
strengthened solidarity, and limited
competition among collectors) have no
operational protocol to undertake their
mission in reality. Meanwhile, the dairy
farmer groups cannot perform collec-
tive actions. A national dairy manage-
ment board encompassing different
stakeholder representatives (produc-
ers, processors, state and consumers)
is recommended to improve coordina-
tion between local actors and to han-
dle all emerging issues and conflicts of
the value chain.
Dairy smallholders in Ba-Vi,
like in other milksheds in Vietnam and
other countries in the South, are fac-
ing challenges related to strengthened
health regulations and increasing re-
source competition among operators
that weakens the participation of small
producers in the market. Innovations
in the dairy industry, such as concep-
tion of new products manufactured in
the territory (cheese for example), will
allow small producers and processors
to have easier market access, to diver-
sify their products and to increase their
revenues. This would also help to meet
other issues such as addressing season-
al fluctuations of milk products, lower
costs to food, or the improvement of
the quality of milk.
Value chain governance and
territory governance
A
s Vinamilk, the biggest milk
company in Vietnam, IDP and
BVM rely on large supply net-
work of smallholder farmers and inter-
mediary collectors within a milkshed
where milk is collected into a tank
mixing milk from different producers.
Bimonthly payment to farmers for de-
livered milk bases on the quality test
done by the companies, while collec-
tors receive a collection fee. The cur-
rent decentralized collection system
is beneficial to processors by reducing
their investment, but is argued unfair
and untransparent by both farmers and
collectors since milk tests are done at
the dairy plants and they have to accept
the results and prices published by the
companies. Such quality and payment
system crystalize the tensions between
farmers and processors; thus, an inde-
The recent strategy for eco-tour-
ism development of Hanoi to 2020-
2030 opens opportunities and chal-
lenges to the sustainable development
of the dairy chain. From economic per-
spective, a fashion trend would be to
create more diversity in dairy products
and tours integrated with homestay at
and visit to dairy farms. Community
eco-tourism contributes to higher in-
come for the locals. From social per-
spective, with a strong territorial iden-
tity, the local chain should involve more
the local farmers and artisanal and
small processors. From environmental
perspective, for the non-grazing dairy
system characterized by the confine-
ment of animals, attention should be
paid to effluence management and sus-
tainable development of the territory.
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