Vietnam Case Study: Milk Production and Marketing in smallholder dairy

In Phu Dong Commune, suburb of Hanoi, there is only fresh milk is available for sale. The average milk collected by HF breed is higher than that of F-generation breed. Age of the household, education level, experience in dairy production, distance from milk market and number of milking cow owned have significant impacts on the probability of the household milk market participation. Number of milking cows, education level of the households, and non-dairy source financial income are important factors affecting sale volume of milk. Distance from milk market in contradictory to prior expectation has a positive impact on marketable milk volume, but negative impact on dairy household market entry decision. The most important marketing type was formal marketing, which was characterized by underdeveloped and inefficient type of market. The existing situations with regard to dairy production service sector were not encouraging. Extension service which is in line with improving dairy production, credit and market information was very weak.