Cost Monitoring to Promote the Fresh Milk Chain in Northern Vietnam

Value added within the fresh milk chain was unequally distributed among actors in the bias orientation to the non-farmers. Key feature in the chain was the dairy farmers, but they were the most vulnerable actors. The most appropriate method to promote the added value for dairymen is to help a better control on their production costs by improving the management at their farm. Inspiring from foreign experience, we defined an accounting system for technical-economic monitoring of dairy cattle adapted for the situation of Vietnamese farmers. This system has been tested in Moc Chau to provide data regarding the efficiency and profitability of operations. The major constraints in the application of this monitoring were the lack of capacity and knowledge from producers. Our study provides an appropriate model for the establishment of a management system of milk production. The cost of this monitoring was estimated, and scenarios for sustainability have been proposed. Contributing to lower costs through a better understanding of technical and economic performance of farmers, the service management operations will improve the competitiveness of locally produced milk with imported products.