1 AIT Asian Institute of Technology

Operation of contract farming in Vietnam : a case study of dairy cow raising in Phu Dong Commune, Hanoi Province

AuthorNguyen Thi Kieu Trang
Call NumberAIT Thesis no.RD-04-07
Subject(s)Contracts, Agricultural--Vietnam

NoteA thesis submitted in partial fulfillment of the requirements for the degree of Master of Science
PublisherAsian Institute of Technology
AbstractThe research deals with operation of the contract farming in dairy cow raising in Phu Dong commune. The main objectives of the research were to assess the socio-economic conditions of farmers who practiced contract farming in cow dairy raising in Vietnam; to study the operation of the contract farming in terms of type of contract and the contractual operation between farmers and the Cooperative; to assess benefits and satisfaction of farmers on the operation of contract farming; to analyze factors affecting to the operation of the contract farming among farmers; and to identify problems, constraints and potentials of the contract farming in order to suggest recommendations for future improvement. The research was conducted in two villages in the rural area of Hanoi, Vietnam, namely Phu Duc 1 and Phu Dong 1 where had a different duration of the operation of contract farming. The research was a quantitative with a survey design applying a standardized questionnaire for those what were engaged in the contract farming with a total of 64 households. Group discussion and interview with stakeholders including staffs of the Cooperative, CPC, DPC members, VBARD, extension workers, non-adopters and other farmer's group were also conducted. The study was primarily focused on quantitative analysis but qualitative analysis was also applied. Main findings of this research showed the contractual operation between the farmers and the Cooperative generated great benefits and satisfactions in various aspects to farmers. The main factors associating with the operation of the contract farming focusing on the quantity of milk production included number of household labors, duration of participation into the dairy cow raising, credit and input support, veterinary and extension service and total annual household income. The determinants of volume of milk production under the contract farming in the two study villages were slightly different. Several problems of the contract farming were identified primarily in social and institutional aspects including lack of support in credit and input as well as inadequate veterinary and extension services. The study concluded that the operation of the contract farming was beneficial potential to improve social and economic situation of the dairy farmers. Certain recommendations were given in this research to improve the operation of the contract farming were given focusing on the following key areas consisting of provision of credit support and input, promotion of veterinary and extension service, dissemination of market information and enhancing price stability in milk production, assurance of contractual security between farmers and the Cooperative, exploration of additional pasture land, strengthening of farmer's participation in local farmer's groups, enhancing control measures and quality checking of milk products and provision of training on sanitation and environmental control of dairy farming. These need the effective implementation to be carried out by the Cooperative, the MARD and the Commune People's Committee and the client' farmers of the Cooperation. Specific implications for further planning were given to concerned authorities comprising of a strategy to select potential contract farmers in future for the Cooperative, the improvement of contractual arrangements between two parties and the determination of zoning area for dairy farming for agricultural development and environmental control.
Year2004
TypeThesis
SchoolSchool of Environment, Resources, and Development
DepartmentDepartment of Development and Sustainability (DDS)
Academic Program/FoSRural Development, Gender and Resources (RD)
Chairperson(s)Soparth Pongquan;
Examination Committee(s)Chandhana Indhapanya ;Shivakoti, Ganesh P. ;
Scholarship Donor(s)Asian Institute of Technology;Netherlands;
DegreeThesis (M.Sc.) - Asian Institute of Technology, 2004


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