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Abstract

Vietnam locates in the most active region (Asia), where gains the highest economic growth rate and highest milk consumption in the world. Milk growth rate is higher than almost other agricultural products in the past 10 years in this region (Nancy, 2008). Vietnam is also one of the highest milk productivity in the Asia. Milk consumption in Vietnam is increasing rapidly (Nancy, 2008). However, the dairy industry in Vietnam is currently able to meet only 22 percent of domestic demand; the remaining amount has been imported from overseas suppliers and producers (VOV News/VNA, 2008). In addition, the linkages among the actors and stakeholders in the value chain of milk in the North of Vietnam are very weak. It leads to low effective in the production of the whole chain. This paper based on semistructure, standard questionnaires and PRA method to collect data of dairy farms in Sonla province, of milk collecting centres, of dairy plan and of milk distributors in 2008-2010. The findings show that dairy plan is the most powerful actor in the chain and it drives the whole chain. The value added of the chain is distributed unequally among determinants in the bias orientation to the non-farmer (non-producer). Opportunity cost of land, capital, and family labor in farm does not include when they calculate their benefits, thus it is not reflect the real situation and their value added would be much lowers. Weak linkages among participants in the chain with stakeholders and insufficient supports discourage farmers to develop their production.

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