Enhancing farmers’ market power and income in the pig value chain; a case study in Bac Giang province, Vietnam

Abstract

The pig sector annually contributes about 78 % of the total meat production in Vietnam. The government of Vietnam has implemented numerous policies to promote the development of the pig industry. It strongly emphasizes the production with little attention paid to marketing. Bac Giang is one of the provinces with the highest pig population in Vietnam. Pig production contributes up to 52% of the gross output of the livestock sector of the province. One of emerging problems is the majority of pig farmers are l imited in market power and there is low income from pig production. This study aimed to analyse the pig value chain in Bac Giang province, identify main factors affecting farmers‟ market power and income in the chain, and propose relevant policy implicatio ns to enhance farmers‟ market power and income. It was found that pig collectors and pork retailers are the dominant players in the chain in terms of their strong influence on prices due to their coordination role in directing supply of pigs and carcass to market. Numerous factors affecting farmer‟s market power and income are weak collective action of farmers in production, lack of collective marketing, volatility of pig price, lack of formal contract farming, consumers‟ food safety concern, high price of feed and animal disease. Enhancing farmers‟ market power depends on farmers and public authority‟s involvement in the various strategies of implementation. Some policy implications focus on the improvement of farmer collective action and government actions related to supporting farmer collective action.