Abstract

Dairy farming, in Vietnam, existed in the early twentieth century thanks to the favorable natural advantage. During many difficult periods, the Vietnam’s dairy industry has developed constantly and contributed significantly to the food needs ensuring. However, Vietnam’s dairy industry still could not satisfy the domestic milk demand. Retail milk prices in Vietnam are very high, whereas the price of milk sold by the dairy farmers is very low. The cause stems from the control of dairy companies in the quantity and quality of milk. Moreover, that control caused an imbalance in the profits and benefits of each actor in the dairy value chain. This study, hence, finds out the distribution of benefits, costs, value-added among the actors, and problems in the practical management in dairy milk value chain with specific focus on Bavi as the case study.

Highlights

  • For each different research, the value chain will be interpreted in many different ways

  • The production activity directly relates to the process of creating the greatest value-added of products such as processing of raw materials into the final product

  • The combination contains the farmer, the processors and the seller. These actors directly participate in the value chain; their relationships depend on the flow of good, the flow of information and the cash flow

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Summary

Introduction

The value chain will be interpreted in many different ways. The production activity directly relates to the process of creating the greatest value-added of products such as processing of raw materials into the final product. The combination contains the farmer (growing dairy cows and collecting milk), the processors and the seller These actors directly participate in the value chain; their relationships depend on the flow of good, the flow of information and the cash flow. A typical value chain of dairy milk contains production, transport, chilling and bulking, processing, transport or distribution and retail. The milk retail prices in Vietnam are very high, whereas the prices of fresh milk provided by the dairy farmers are very low. This chapter will find out the distribution of benefits, costs and value-added among the actors, and point out the problems in management system of this dairy value chain in Vietnam

Literature review
Methodology
Overview of the dairy sector in Vietnam
Dairy milk consumption
The dairy milk production
First stage: input supply
Second stage: production and farming
Third stage: processing
Fifth stage: consumption
Economic analysis of dairy plants
Economic analysis of wholesalers
Economic analysis of retailers
The benefit and value-added comparison among actors
Findings
Conclusion and recommendation
Full Text
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