Exploring the Governance and Fairness in the Milk Value Chain: A Case Study in Vietnam

Abstract

Governance and fairness in the food value chain have gained considerable attention from both policymakers and scholars, especially in developing countries. This study analysed the milk value chain, exploring its governance and fairness, and assessed the regulatory interventions across the milk value chain in Vietnam using a qualitative framework and the global value chain governance model. The results show that Vietnam’s milk production and dairy market have developed notably since the reforms. The value chain is structured according to three governance models, i.e., relational, captive, and hierarchy models. Vietnam’s milk value chain has progressed through three building phases, expanding in breadth, and undergoing in-depth development, and the governance models have adjusted accordingly. However, Vietnamese dairy farms have been exposed to a low level of fairness across the supply chain. Although dairy farmers in the relational model may benefit from more power and fairness in the short term, farmers in the captive model may gain benefits and potential fairness in the long term. Vietnam has diverse regulatory interventions to enhance farmers’ fairness and welfare, and the results are notable. However, not all farmers have benefitted from these policies, and measures regarding fairness and welfare should be diverse, gradual, and inclusive.