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Key analysis of the dairy value chain in Vietnam: the case of Bavi.
28/05/18 02:14PM
Nguyen Viet Khoi, Hai Yen Hoang Thi, Van Khai Tong, To Linh Huong and Tien Duc Nguyen. Journal of Agribusiness in Developing and Emerging Economies, 2018.

Abstract: Purpose This paper will find out the distribution of benefits, costs, value-added among the actors and problems in the practical management in dairy milk value chain, especially in one of the most important dairy area in Vietnam to see how they upgrade in the value chain. Design/methodology/approach A survey was carried out in Bavi, Hanoi where provides a large amount of fresh milk annually. The content of the survey was built before conducting in Bavi with 160 questionnaires. The questionnaires were based on the criteria which reflect the main objectives of the paper such as: the actor’s profits and costs, the relationship among these actors, the advantages and disadvantages in the dairy milk’s value chain. Some part of results of the paper should be evaluated (by interview) of the relevant target groups in the value chain of dairy milk. Data collected was aggregated and analyzed by SPSS20, Excel. The calculation of cost and profit margin of each actor in the chain will also be presented by a quantitative tool for value chain analysis. Findings This study pointed out the systemized problems in the value chain of one of the biggest dairy company in Vietnam. This study revealed some wicked problem in the value chains of Vietnam under globalization. Research limitations/implications This study could not cover all of the detailed actors in the dairy value chain. Originality/value The value of income in the chain is distributed inequality. The benefits that farmers receive is inadequate with the costs they have to pay. This is a particular chain, in which the main factors boosting the chain is factories and the revenue increasing also reflects the benefit of them. The result is that the value- added in the chain is also biased toward the dairy plant. The paper also pointed out the shortcomings in the cost calculation of farmers. All the expenses such as wages, the opportunity are calculated in the total cost of dairy plant whereas dairy farmers do not mentioned about these cost. Thus, in terms of benefits, farmers suffer more disadvantages, they should be received more value. In term of management, Bavi’s authorities could not manage the output of milk in the perfect way. It is the lax management has led to a series of counterfeit goods appear on the market today. These low quality products was sold right on the highway and the Bavi’s tourist destination.

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