Liên kết trong sản xuất và tiêu thụ sản phẩm sữa bò ở tỉnh Lâm Đồng TT Eng

Vietnam Academy of Social Sciences GRADUATE ACADEMY OF SOCIAL SCIENCES TRAN VINH HOANG LINK IN PRODUCTION AND CONSUMPTION OF COW'S MILK PRODUCTS IN LAM DONG PROVINCE Industry: Economic management Code: 4 SUMMARY OF THESIS OF ECONOMY HANOI – 2022 The project was completed at: Vietnam Academy of Social Sciences GRADUATE ACADEMY OF SOCIAL SCIENCES Scientific guide group: Dr BAO TRUNG Dr LY VINH QUANG Reviewer 1: Prof Dr Do Duc Binh Reviewer 2: Assoc Prof Dr Le Van Chien Reviewer 3: Assoc Prof Dr Nguyen Xuan Dung The thesis will be defended before the Academy level thesis committee, at: Academy of Social Sciences, 477 Nguyen Trai, Thanh Xuan, Hanoi At …….hour, date ……month ……year …… The thesis can be found at: - Library of the Academy of Social Sciences - Vietnam National Library INTRODUCTION Regarding the Rationale of the Study Economic linkage is an inevitable trend for economic subjects, especially in the period of time when the market is becoming more and more competitive Regarding the process of producing and consuming agricultural produces, the main participant of the production process is farmers If they don’t cooperate with each other, it will be challenging for them to develop and survive due to their small economy scale, limited investing budget, low level of scientific and technical ability, and limited human resources For businesses, when they cooperate with farmers, they have a stable source of supply; they can expand their resources more easily and reduce intermediary expenses happened in the buying process Cooperative groups play as a connecting factor in the economic linkage The federal government and scientists encourage a sustainable economic linkage and the development of scale and quality However, due to the perculiarity of each economic group, many economic subjects have not been aware of the needs for economic linkage and all the benefits it could bring yet Farmers don’t fully comprehend and businesses have difficulties with economic linkage policies Thus, the efficiency of economically linking activities in producing and consuming agricultural produces is relatively low Farmers and businesses don’t always reach a mutual agreement, and there are produces that cannot be sold as businesses either don’t buy them or try to lower the price Vietnam has a great deal of natural resources that can be used to develop animal husbandry However, in Vietnam this field is not developed to its full potential yet and still faces challenges that come from competition with other agricultural producing countries especially when Vietnam has entered several FTA agreements like EVFTA, AANZFTA, and CPTPP The pressure on agricultural produces is getting heavier More than that, the habit of producing individually without a sustainable connection of economic subjects in the demand-supply chain is an obstacle for the development and intergration of Vietnam’s agriculture and animal husbandry The Government has also taken practical actions to promote linkages in the production and consumption of agricultural products On April 26, 2002, the Government issued Decision No 80/2002/QD-TTg of the Prime Minister: On politics policies to encourage the consumption of agricultural products and commodities through contracts On May 9, 2014 the Minister of Agriculture and Rural Development issued Decision No 984/QD-BNNCN approving the Project "Restructuring the livestock industry towards enhancing added value and developing lasting" One of the important contents of the project is "Restructuring by value chain and industry: organizing linkages by product chain from production to market, in which enterprises play a central role to link link with production organizations such as association of THT, Association, Industry Association; focus on building a brand” And most recently, the Ministry of Agriculture and Rural Development has issued Decision No 1368/QD-BNN-CN promulgating an action plan to implement the Prime Minister's Decision No 1520/QD-TTg dated October 6, 2020 approved by the Prime Minister livestock development strategy for the period of 2021-2030, with a vision to 2045 Recognizing the importance of the above problem, I chose to study the topic "Link in production and consumption of cow's milk products in Lam Dong province" as my PhD thesis in Economics, majoring in Economic Management Objectives and research content of the thesis 2.1 Research objectives Starting from the overview of previous researches, the author determines that the main goal of the thesis is to find a solution to promote linkages in the production and marketing of cow's milk products in Lam Dong 2.2 Research content To achieve the above general goal, the thesis identifies specific research tasks that need to be carried out as follows: The first is to systematize the theories related to the linkage between production and marketing of agricultural products in general, and cow's milk products in Lam Dong in particular Second, find out the status of linkages in production and consumption of cow's milk products in Lam Dong, thereby determining the factors affecting the linkage in production and marketing of cow's milk products and the extent of their influence that factor The third is to propose solutions, mechanisms and policies to support development and cooperation in the production and marketing of cow's milk products in Lam Dong The object and scope of the thesis's research 3.1 Research object The object of the study is the factors affecting the association in the production and consumption of cow's milk products 3.2 Research scope The scope of the thesis's spatial research is in Lam Dong province In terms of time are the data related to production and consumption of cow's milk products of Lam Dong in the last five years including both primary and secondary data Methodology and research methods of the thesis 4.1 Research methodology The thesis is researched based on the methodology of the MarxistLeninist theory, including the materialist dialectic and the historical materialist methodology Accordingly, the issues of linkage, linkage between production and marketing in agriculture, factors affecting the success of linkage between production and marketing of cow's milk products were studied in a state of motion and developed in the field of agriculture inseparable relationship with economic, political, social and technological factors 4.2 Specific research methods - Methods of searching, synthesizing and analyzing documents: studying textbooks, documents, and results of domestic and foreign researches on linkages between production and marketing of agricultural products - Methods of synthesis, analysis, actual survey, and comparison: presenting and evaluating issues related to production-TT linkages of cow's milk products - Sociological survey method: provide more information from the questionnaire distributed to farmers, cooperatives, companies and agricultural management agencies - Expert method: through seminars, talks and exchanges; email interviews and face-to-face interviews with experts in the field of agriculture - Modeling method: the author uses modeling method and proposes a research model to find out the factors affecting the association between production and marketing of cow's milk products as well as the influence of each factors to the production and consumption linkage of cow's milk products - Qualitative research: The participants in this study include a number of experts and scientists The number of people directly interviewed was 10 - Quantitative research: This phase is conducted through two phases: preliminary research and formal research New scientific contributions of the thesis Through the study of topics and scientific works of scholars in Vietnam and around the world in the same direction as the thesis, a model has been built to analyze the factors affecting the linkage in production and consumption of cow's milk products Through the quantitative analysis model, in order to confirm the influencing factors and the degree of influence of the factors on the association in the production and marketing of cow's milk products in Lam Dong Province, which previous studies using only qualitative or quantitative but only at the level of descriptive statistics Detecting the above-mentioned influencing factors and their influence on linkages in the production and marketing of cow's milk products in Lam Dong, and at the same time show the influence of qualitative variables on the forms of cross-linking and vertical Theoretical and practical significance of the thesis Theoretically, the thesis synthesizes the theoretical basis for linkage between production and consumption, including concepts and models of linkage in agricultural production and marketing In practical terms, the unique novelty is the first study to quantify and measure the influence of factors on linkages in the production and consumption of cow's milk products of Lam Dong The thesis contributes to equipping necessary knowledge for state management agencies and associated entities so that they have more necessary information when deciding to link and develop this relationship Structure of the thesis In addition to the Introduction, the Conclusion, the Appendix and the Reference List, the thesis is structured in specific chapters as follows: Chapter 1: Overview of the research situation The content of this chapter introduces domestic and foreign studies on the forms of association and the factors affecting linkage in the production and marketing of agricultural products Chapter 2: Scientific basis for linkages in production and consumption of agricultural products In this chapter, the author synthesizes concepts, definitions and theories related to linkages in the production and marketing of agricultural products, categorizes linkage relationships as well as mentions the experiences of domestic and international linkage development Chapter 3: Research models and methods The content of this chapter is the issues related to the research method that the author uses to achieve the research objectives of the thesis These contents range from building models, establishing research hypotheses, research processes, building and testing scales, and analyzing research samples Chapter 4: Research results and discussion After having built the scale of factors affecting the association in the production and marketing of products, the author focuses on analyzing the relationship between factors and the degree of influence, and at the same time finding out the difference between the two factors factor groups Chapter 5: Proposing solutions to link in production and consumption of cow's milk products in Lam Dong This chapter is to offer solutions to strengthen linkages based on research results in chapter and general conclusions for the whole thesis CHAPTER OVERVIEW OF THE RESEARCH SITUATION 1.1 Overview of studies on linkages in production – consumption of agricultural products In the world as well as in Vietnam, the issue of "linking in production - consumption of products" in the agricultural industry in general, in dairy farming and milk production in particular has been studied by many scientists and experts published many scientific works The research focuses on the models of linkages between households and the linkages between households and the market Households are considered as the main actors to link production with consumption of agricultural products According to Eaton and Shepherd (2001) [205], connecting farmers to markets can be the total arrangement of activities from very small to very large This means that the business relationship between the farmer and the partner is a long-term relationship through some form of association Eaton and Shepherd (2001) [205] identify forms of linkages between farmers and markets, including forms: (1) linkages between households and local traders (traders); (2) linkage between farmers and retailers; (3) linkage through farmer representatives; (4) linking through cooperatives; (5) linkage between farmers and processors; (6) linkage between farmers and exporters The linkage model formed the “Milk Industry and Production Association” (APILAC) in Costa Rica APILAC is a manufacturer of dairy products in Costa Rica APILAC buys milk from 136 small-scale dairy farmers, of which 79 are members of APILAC (Pilar, Ruth and Hernando, 2005) [280] Runsten, Key has studied two forms of association, that is: Linking by production contract and marketing contract (Marketing contract) between farmers and processing enterprises in the livestock industry is developed developed in the United States (Runsten, Key, 1999) [234] Are these two types of contracts different in terms of decision rights over the livestock farm? Regarding policies and solutions for linkage development, there are a number of countries that have supportive policies to form organizations representing farmers and mobilize farmers and processors to sign production linkage contracts consumption like South American countries However, some countries have almost no clear policies like the United States The linkage between farmers and processors and consumers is agreed upon by the partners and the state does not intervene and there is no supportive policy to develop linkage models in production and consumption of livestock products In Vietnam, Nguyen Trong Khuong (2004) [41] in "Research on linkages between businesses and pork farmers in the Red River Delta (RRD)" analyzed the linkage models between farmers and pig farmers with direct processing enterprises or intermediaries, with or without contract Research has also shown the benefits of the actors participating in the association, the distribution of benefits between the parties in the form of a contract, without a contract, a direct link between the producer and the processor., linking between processors and consumers through an intermediary organization that is agricultural cooperatives and farmers' associations Vo Thi Kim Sa (2013) [72] studied the model of linking Evergrowth dairy cooperatives (Soc Trang) funded by Socodevi to develop linkages between dairy households to form a "model" cooperative ” Regarding the need for linkage, Nguyen Thang (2013) [97] has carried out the topic: Researching the economic linkage needs of farmers in the Mekong Delta (Mekong Delta) The study has studied: (1) identifying the economic linkage needs of rice farmers in the Mekong Delta; (2) building the factors affecting: link participation behavior, existing link status and link participation behavior; (3) propose an economic linkage model suitable to the needs of rice farmers in the Mekong Delta In the study of Bui Thi Nga (2013) [270] on milk production linkage in doctoral thesis on cost monitoring at dairy farms to promote fresh milk value chain in the North of Vietnam was carried out currently at the University of Liège - Gembloux Agro- Bio Tech of Belgium and research in Son La Province Research confirms that a value chain can be promoted through strengthening linkages (1) linking small businesses with highvalue brokerage contracts with domestic or international customers This includes strengthening the contractual position of small producers to improve the distribution of benefits in favor of businesses that provide income to the poor; (2) improve efficiency, reduce contract monitoring and information costs, and build trust among business partners The author gives three basic factors affecting production linkages in agriculture to consider: land, capital and labor Regarding policies and solutions for linkage development, Bao Trung (2013) conducted the topic: "Researching and perfecting mechanisms and policies to link production and consumption of livestock products in Vietnam" The topic has studied: (1) explain the scientific basis of mechanisms and policies associated in production-consumption: livestock products; (2) assessing the current status of mechanisms and policies on linkage in production-consumption: livestock products in Vietnam today; (3) propose contents to improve mechanisms and policies to promote linkages in production and consumption: livestock products in Vietnam in the coming time Duong Ngoc Thi (2008) [100] conducted the topic "Research and propose mechanisms, policies and solutions to develop vertical linkages in some major agricultural product industries" This study is based on the value chain approach and has proposed vertical linkage models for the tea and fruit and vegetable industries On that basis, this study has proposed linkage mechanisms related to the following aspects: (1) Institutional organization, showing transactional relationships are managed through the market or by corporate governance measures Karma; (2) benefit distribution mechanism, this is a distribution mechanism through market prices or distribution in a combination of many forms; (3) product quality management institutions in different stages; (4) risk-sharing institutions on advance investment, risks due to market fluctuations; (5) institutions to coordinate actors outside the linkage system such as S&T support agents, local authorities Nguyen Trong Khuong (2010) [42] implemented the topic: "Study on scientific basis to propose policies to strengthen linkages between processing enterprises and pangasius farmers in the Mekong Delta" The study focuses on researching and proposing policies to strengthen the linkage between pangasius fillet processing enterprises and pangasius farming households in two provinces of An Giang and Dong Thap 1.2 Studies on factors affecting linkages in production - consumption of agricultural products Many studies by previous scholars showing the success and failure of various types of linkages in the agricultural market have been empirically studied Bruynis et al (1997) [173] conducted an empirical survey of 52 US marketing cooperatives and identified eight key factors for success, based on longevity, business growth, and fertility benefits, member satisfaction, training, financial transparency Sexton and Iskow (1988) [296], who built research around the theory of vertical integration on a survey of 61 buying shrimp feed; Chiphi_hc_dt: costs of buying drugs and chemicals for shrimp farming; Phapli1: assessment of the legal framework; Phapli2: effective handling of violations Author Vu Duc Hanh (2015) [21] also synthesizes many factors affecting linkages in agriculture such as Economic environment/ Market development; The policy/legal environment of the state; Local infrastructure; Farmer capacity; Farmers' awareness; The capacity of the subjects participating in the association / processing enterprises; Production organization characteristics; Production scale and area; Labor size; The motives of the affiliated parties; Linkage efficiency/capacity; Link enforcement level; The ability to coerce and punish Vo Thi Kim Sa (2013) [72] in the study "The association of farmers in the West - South region in groups and organizations to develop commodity agriculture" synthesized four main factors affecting to the link in agriculture; Economic environment/Market development; Social environment/Social organizations; Production scale and area; Labor size Similarly, Ho Que Hau's research also stopped at synthesizing factors affecting economic linkages between agro-processing enterprises and farmers The author identifies factors divided into two groups internally and externally, including: (1) Development level, market demand and volatility; (2) State management; (3) The role of social organizations; (4) Characteristics of the household; (5) Characteristics of each agricultural product processing enterprise and (6) Characteristics of raw agricultural products 1.3 Research gaps Through the above research, it has contributed to the development of various types of linkages in the production and marketing of agricultural products The above link research methods are approached in two directions: (1) Qualitative and (2) Quantitative Most of it, however, is qualitative Up to now, Vietnam has not had any research done on dairy farming and dairy production, nor has any work done quantitative research on this issue And there is no work that comprehensively and specifically considers the influence of external and internal environmental factors on vertical and horizontal linkages in the process of milk production and consumption cows in Lam Dong By combining both quantitative and qualitative methods, this thesis will build a model of the influence of factors 11 from the internal and external environment on the two linkages to draw conclusions and propose solutions solutions to help policy makers refer to contribute to promoting the development of the linkage process in production and consumption of cow's milk products in Lam Dong CHAPTER SCIENTIFIC BASIS OF LINKS IN AGRICULTURE PRODUCTION – CONSUMPTION 2.1 Theory of production-consumption linkage 2.1.1 Nature and characteristics of economic links and linkages Linkage originates from "Integration", which in economic terms means "unification, coordination or merger of many parts into a whole" Previously, the authors called it "unification", and now the authors call it "linking" (Nguyen Nhu Y, 1999) [118] According to Robert Axelrod and Robert O Keohane (2008) [284], “association occurs when subjects adjust their behavior in response to actual or anticipated desires of others” or “ Economic linkage is just a situation where different sectors of an economy, often industrial and agricultural sectors, work together in an efficient and interdependent manner, which is a factor of the development process This condition is often accompanied by sustained growth” (David Pearce, 1999) [195] Tran Duc Thinh (1984) [101] said that economic linkage is the economic relationship between organizations, sectors, localities and economic units Economic linkage is both a form of production organization and a management mechanism Nguyen Dinh Phan (1992) [61] has taken out of the concept of economic association the usual forms of economic relations such as: buying and selling of common goods, leasing land, factories, and business locations business, lending capital Vu Minh Trai (1993)[110] said that economic linkages are cooperative relations between enterprises and other business entities Association is a necessary and inevitable activity in order to promote the role and ensure the development ability and efficiency of production and management units in the market economy Affiliate relationship is essentially a relationship of coordination and cooperation between entities (enterprises, management agencies, sectors, localities) to satisfy the needs of the associated parties In the world, researchers not directly address the issue of economic linkage between processing enterprises and households, but only focus on its manifestation form as contract agricultural production contract 12 farming- CF) (Ho Que Hau, 2011) [25] In the research framework of this thesis, economic linkage is understood as a form of production organization as well as a management mechanism according to Tran Duc Thinh's point of view (1984) [101] and is considered as a economic nature as described above From the concept of the institution of economic linkage in general, it can be said about linkage in production - consumption of dairy products: "Economic linkage in production - consumption of dairy products is a part of the linkage of dairy products economic integration in the national economy, in which milk processing enterprises and dairy farmers are the two main actors in linkage activities, in addition, actors play a supporting and promoting role such as cooperatives and cooperatives., State management agencies, scientists Entities carry out a type of agroindustrial vertical linkage, and at the same time, farming households link together to create horizontal links to stabilize and improve economic efficiency.” 2.1.2 Participants 2.1.2.1 Farmer's household Households and their linkages have been mentioned in many basic documents on production economics and household economics such as: Ellis (1993) [210], Le Dinh Thang (1993) [95] “Farmers are a socioeconomic cell, a basic economic form in agricultural and rural areas” 2.1.2.2 Enterprise Firm is an organization of production in which different factors of production (with regard to their prices) are combined by the company's employees in order to sell in the market goods or services to receive the difference between the selling price of the product and the cost of that product 2.1.2.3 Cooperative A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit A cooperative is defined by the International Union of Cooperatives as an autonomous association of people united voluntarily to meet common economic, social and cultural needs and aspirations 2.1.2.4 State management agency in agriculture 13 In the production and consumption of agricultural products, the State's management affects the linkage relationship between farmers and entrepreneurs very important (Ho Que Hau, 2011) [25] 2.1.2.5 Scientist in Agriculture A scientist, in a broad sense, is a person who engages in systematic activities to acquire knowledge in a certain field In a narrower sense, a scientist is someone who applies scientific methods in their profession (Isaac Newton (1687,1713,1726) [228] 2.1.3 Link Forms a Vertical link Vertical integration/coordination: An association between enterprises and production-business establishments in different industries but having economic-technical relationships in the whole or a segment of a technology chain production-circulation from starting materials to final consumer products (Ho Que Hau, 2011) [25] b Horizontal link Horizontal integration/coordination: A link between enterprises, production and business establishments in the same industry that work together to work together for a common benefit or specialize in the industry to contribute part that produces the same product c Mixed link Mixed coordination, also known as mixed coordination, is a link between enterprises, production and business establishments in the fields of expertise, science and technology; regardless of industry or industry 2.1.4 The role of linkages with agricultural development 2.1.4.1 For farmers Participating in the association helps farmers to overcome the disadvantages of scale such as small-scale production, failure to meet market requirements in terms of quantity of agricultural products, etc 2.1.4.2 For Businesses Thanks to the association with farmers, enterprises purchasing agricultural products can proactively plan production with a stable input supply, and the quality of their production products is guaranteed 2.1.5 Basic principles of economic linkage Stemming from the nature, characteristics and conditions of existence, economic linkages form and develop according to the following 14 three basic principles: the principle of voluntariness and agreement, the principle of predetermined course of action, and the principle of benefit and risk sharing 2.2 Factors affecting linkages in agricultural production and consumption 2.2.1 External factors External factors include: Market factors, legal environment, and Integration context 2.2.2 Internal factors Internal factors include: Cognitive factors, factor of production resources, the engine for making the link, and link capacity 2.3 The role of the state in the association in the production and consumption of agricultural products The State promulgates policies related to the production, processing and consumption of agricultural products, consolidation and exchange of plots, development of cooperatives and cooperatives; support the construction of infrastructure, capital, human resources, development of large commodity production areas, concentrated raw material areas In addition, the state also plays the role of patronage through the legal system, with an important role in management, the state promulgates policies to facilitate the development of agricultural production, and supervises the development of agricultural products, harmonizing the "four-house" link 2.4 Experience in the world and Vietnam 2.4.1 Experience in the world Skills lessons from China and Thailand on contract manufacturing and CNC application in agricultural production 2.4.2 Experience in Vietnam The linkage model of TH True Milk in Nghia Dan, the link in production and consumption is the key to helping Dong Thap successfully implement the rice production value chain Form of production contract between enterprises and farmers in the production of tea and sugar cane in Son La 15 CHAPTER RESEARCH MODEL AND METHODS 3.1 Research model Starting with the factors selected in Table 2.2, these factors have similarities with this study The author directs the analysis to the influence of seven main factors with two horizontal and vertical linkages in the production and marketing of cow's milk products (1) Economic environment; (2) Policy environment; (3) Natural environment; (4) Infrastructure; (5) Farmer capacity; (6) The capacity of the subject to participate in the association; (7) Scale of production Links in SX-TT include: (1) Vertical links and (2) Horizontal links Figure 3.1: Research model of the influence relationship from factors to linkage in production and marketing of cow's milk products Source: Author 3.2 Research hypothesis From the presented research model, two main groups of research hypotheses are set forth and need to be tested as follows: First group: Factors H1.1: Economic environment; H1.2 Policy environment; H1.3: Natural environment; H1.4: Infrastructure; H1.5: Farmer capacity; H1.6: The capacity of the subject to participate in the association; H1.7: Production scale has a positive effect on cross-linking in the production and marketing of cow's milk products in LD Province Second group: 16 Factors H2.1: Economic environment; H2.2 Policy environment; H2.3: Natural environment; H2.4: Infrastructure; H2.5: Capacity of farmers; H2.6: The capacity of the subject to participate in the association; H2.7: Production scale has a positive effect on vertical linkages in the production and marketing of cow's milk products in LD Province 3.3 Research process To evaluate the models in the thesis, a quantitative description of the design study is the appropriate method The author will perform the test to discover the influence relationship from the identified factors to the link between production and marketing of cow's milk products, specifically, the test subject selected is the "Four Houses" of the province Lam Dong This is a quantitative study conducted in four phases: Phase one - qualitative research; Phase two - preliminary quantitative research; Stage Three – Formal Quantitative Research and Stage Four – Proposal of Solutions 3.4 Research sample 3.4.1 Determine sample size According to Nguyen Dinh Tho (2011) [102] and Hair et al (2006) [219], the minimum sample size to use EFA analysis is 50, preferably 100, and the number of observations/independent variables is 5:1 For regression analysis, the model must follow the formula: n >= 8m + 50 The research model's survey table has 54 questions belonging to independent factors, to ensure objectivity and increase value For the study, the sample size was originally planned to be 370 3.4.2 Sampling method The sample is selected according to the clustered random sampling method, which means that the researcher has access to the survey subjects based on convenience, in the places where the researcher has determined to reach or contact the object survey About the sample of research in this topic are all members participating in the association of milk production and consumption of Lam Dong Province 3.5 Research scale The concepts used in the research include: (1) Economic environment; (2) Policy environment; (3) Natural environment; (4) Infrastructure; (5) Farmer capacity; (6) The capacity of the subject to participate in the association; (7) Scale of production Links in production and consumption include: (1) Vertical links and (2) Horizontal links 17 3.6 Adjusting the research model After testing the scale of influencing factors and the scale linking production and consumption, we have the following research model: Figure 3.3: Modified research model Source: Author CHAPTER RESEARCH RESULTS AND DISCUSSION 4.1 The situation of linking milk production and consumption in Lam Dong 4.1.1 Introduction to dairy industry in Lam Dong province Currently, the agricultural structure of Lam Dong province is agriculture 97.8%, forestry 1.4%, fishery 0.8% The internal structure of the agricultural sector is cultivation 82.96%, animal husbandry 13.82%, services 3.22% (Lam Dong Provincial People's Committee, 2017) [142] Lam Dong has a comparative advantage compared to neighboring provinces in terms of natural conditions, climate and land, which are very favorable for the development of beef and dairy cattle, especially purebred dairy cows Dairy cows started to be raised in Lam Dong in 1975 but the herd increased very slowly because of low demand and no dairy company in Lam Dong This industry started to grow in 2001 with the participation of Vinamilk and a number of government support programs As of November 2017, the total cow herd reached 101,820 heads, supplied to the market was 5,616 tons of live beef, and 77,416 tons of raw milk (Lam Dong Province People's Committee, 2017) [142] The two districts with 18 the largest number of cows are Don Duong and Duc Trong, which have natural conditions suitable for large cattle raising 4.1.2 Actual situation of linkage models in production and consumption of livestock industry in Lam Dong province Currently, Lam Dong has a number of linkage models as follows: a Centralized type model Figure 4.1: Centralized linkage model - dairy industry in LD b Model of production association under contract, intermediary form Figure 4.2: Model of joint production under contract, intermediate form Source: author's synthesis from theory and practice 19 c Linkage model between Dalatmilk with support from ACP Figure 4.5: Linkage model between Dalatmilk with support from ACP Source: Author's own compilation 4.2 Sample statistics The survey sample in vertical linkage with the number of questionnaires collected from 297 respondents, is statistically as follows: 25.4% of the respondents are from the State Administration, 20.2% are from the Enterprise, 4.4% respondents are people working in cooperatives, the largest number of respondents is farmers with 62.3%, the rest is 3.0 scientists The survey sample is vertically linked with the number of questionnaires collected from 300 respondents, classified and statistically as follows: Accordingly, 20% of the respondents are from the State Administration, 10% are from the Enterprise Industry, 4.3% of respondents are people working in cooperatives, the largest number of respondents are farmers with 61.7%, the rest is 4.0 scientists and experts 4.3 Analysis of the influence of factors on production-consumption linkage 4.3.1 The first model: Horizontal link Using SPSS data analysis software to build a model to evaluate the impact of variables affecting HI variable Results of linear regression analysis, we have regression equation after analysis with the following results: HI = 0.082 (EC) + 0.612 (PO) + 0.182 (IN) + 0.147 (FC) + 0.126 (CC) 4.3.2 Second model: Vertical link Similar to cross-linking, the results of linear regression analysis have the following regression equations: VI = 0.143 (EC) + 0.438 (PO) + 0.105 (IN) + 0.192 (FC) + 0.224 (CC) 20 4.4 Discussing the research results With the research of this thesis, in terms of science, in the process of analyzing the influence of factors affecting the link between production and sales, two basic research models have been built The analysis data shows that the explanatory level of these models is high Specifically: R2 adjusts to fluctuate larger than 0.648 and 0.544 In practice, in this study, the analysis results show that: Cross linkage is affected in the same direction (+) from all groups of influencing factors The PO (Policy Environment) factor is the highest (0.612), followed by the parameter of the IN (Infrastructure Factor) factor (0.182) The lowest is the parameter going with the EC (Economic Environment) variable of 0.082 Subjectively, it can be concluded that: Cross-linking is greatly influenced by the state's institutional policy environment Vertical linkage is also affected in the same direction (+) from two groups of factors influencing PO (Policy environment) factor (0.438), followed by the parameter of CC factor (Capacity of the factor CC) subject) (0.224) The remaining factors are at lower and lower influence Subjectively, the author concludes as follows: Vertical and horizontal linkages are most influenced by the Policy Environment CHAPTER PROPOSED SOLUTIONS FOR LINKS DEVELOPMENT IN MANUFACTURING - CONSUMPTION OF DAIRY PRODUCTS IN LAM DONG 5.1 Domestic and international economic context 5.1.1 World context Food security is one of the top concerns today Climate change changes the agricultural industry in a negative way, the trend of urbanization, the wave of migration from rural to urban areas are also pressures on agricultural production With fierce agricultural competition, countries such as Israel, the US, and Europe have made great strides in agriculture In Europe, the Quota mechanism, restricting milk production was officially abolished in the territory of 28 European countries, this is really a big challenge for Vietnam's dairy industry 21 5.1.2 Background in Vietnam Vietnam has become an official member of FTAs: FTAs with countries with strengths in agricultural products such as: EVFTA, AANZFTA, CPTPP The pressure on Vietnamese agricultural products is increasingly acute since the EU Vietnam's agriculture is still basically a crude production in terms of products, low in class, and the application of science and technology and mechanization in agriculture is still modest, consuming a lot of resources leading to low competitiveness with the region and the world The dairy industry also faces problems with productivity, quality as well as linking activities in the value chain, which is a top concern because there are still issues that need to be resolved 5.2 Propose a group of solutions for link development 5.2.1 Group of solutions for developing linkages between livestock households – horizontal linkage a Solutions from the perspective of state management through policy The support from the State is expressed in the form of policies Therefore, when formulating supportive policies, the State needs to respect and acknowledge the objectivity of various types of linkages and the freedom of the market Some specific policies such as: - Policy on dairy products market - Policy on land, taxes, and administrative procedures - Policy on credit, priority insurance for cooperatives and cooperatives - Policy of bringing scientific and technical progress and new technology into production - Policy on development of facilities and infrastructure for animal husbandry b Solutions to improve the capacity of livestock households participating in the association Strengthen communication and advocacy to raise awareness of farmers about the benefits of association Deploying the application of science and technology in livestock production often comes with scale conditions Training and applying a system of standards and technical regulations in inspection of breeds, animal husbandry, veterinary medicine and raw milk Support industrial households to invest in mechanization and modernization of equipment and facilities 22 c Synchronous solution and improve infrastructure capacity Infrastructure will be crucial to improving farmers' productivity and reducing costs for both farmers and businesses Continue to increase the proportion of state budget capital invested in agriculture and rural areas in the spirit of Resolution No 26, Course X on "Agriculture, farmers and rural areas" Continuing the policy of socializing investment in infrastructure in linking production - consumption of agricultural products 5.2.2 Group of solutions to develop linkages between livestock households, cooperatives, THTs and Enterprises – vertical linkage a Policy solutions - Developing agricultural market according to the formal form: The official market can be understood as a place where transactions are standardized: weighing scales, means of payment, taxes, etc., according to legal regulations In order to participate in this official market, farmers must ensure strict requirements on the quality of agricultural products as well as the volume of products committed to the consumers - Completing credit policies to promote linkages between agricultural production and consumption - Completing policies to promote actors involved in the production and consumption of agricultural products b Solutions on capacity building for entities participating in the association of agricultural production - consumption For enterprises: Strengthening incentives for processing and consumption enterprises to have strategies to build brands for key products, Support enterprises to participate in building raw material areas, Improve business forecasting capacity For farmer households: The State should have a policy to finance 100% of training funds to help improve the understanding of livestock households about legal understanding, commercial contracts, knowledge about livestock production, product management and conservation Solutions for infrastructure construction and market development of supporting services for farmers - Developing the market for support services for farmers - Solutions on building infrastructure 23 CONCLUSION The thesis "Link in production and consumption of cow's milk products in Lam Dong province" studies the factors affecting the linkage in production - consumption of cow's milk products in Lam Dong province Data sources for the research are collected through fieldwork by observation, group discussion and in-depth interviews, reports of state management agencies, documents on business activities of enterprises survey subjects are related to linking activities The author of the thesis has conducted interviews, surveys and discussions with experts, actors who participate in and influence linkages such as dairy households, leaders of THT/cooperatives, officials agriculture in charge of animal husbandry, representatives of purchasing enterprises to assess the current status of factors affecting existing linkages Record the wishes and suggestions of the actors participating in the association From there, develop solutions and recommendations to link production and consumption of dairy products locally On the basis of analyzing theories of linkages in agricultural production, domestic and international lessons, through the process of surveying the situation to determine the factors affecting linkages in production - consumption cow's milk products in Lam Dong province The thesis combines qualitative and quantitative research to find out the factors and their influence on linkage activities in the production and consumption of dairy products On that basis, the author of the thesis proposes groups of solutions for the success of the association, which are: (1) Group of solutions for state management through policy, (2) Group of solutions for improving capacity of participants in the association (3) Group of solutions for infrastructure development Along with the solutions are recommendations to the local authorities on the following activities: planning livestock breeding areas; support branding for livestock products; promote the four-house linkage form Recommendations to the agricultural sector: support in environmental treatment; remove barriers on taxes and fees; veterinary work Through the thesis, the author has surveyed and learned about local forms of association and influencing factors in order to propose solutions and recommendations to help policy makers refer to contribute to promoting develop linkages in production - consumption of cow's milk products in particular as well as livestock products in general 24 LIST OF PUBLICATIONSRELATED OF THE THESIS AUTHOR Dr Canh Chi Hoang, Master Tran Vinh Hoang (2015) Lam Dong develops agriculture in a sustainable way Numbers and Facts Magazine, October 2015 issue Pages 43-45 Tran Vinh Hoang (2018) Success factors for the joint development program in the production and consumption of livestock products Asia Pacific Economic Review, issue 511 February 2018, pages 40 – 42 Tran Vinh Hoang (2018) Situation and solutions to develop dairy herds in Lam Dong province Asia Pacific Economic Review, issue 512 March 2018, pages 40 - 42 Tran Vinh Hoang (2018) Developing linkages in the livestock industry chain in Lam Dong province Asia Pacific Economic Review, March 513,2018,Pages 50- 52 Tran Vinh Hoang (2020) Promote cashless payment solutions Finance Magazine, Issue 727, period April 2020 Pages 56-58 ... can be promoted through strengthening linkages (1) linking small businesses with highvalue brokerage contracts with domestic or international customers This includes strengthening the contractual... propose policies to strengthen linkages between processing enterprises and pangasius farmers in the Mekong Delta" The study focuses on researching and proposing policies to strengthen the linkage... Province People's Committee, 2017) [142] The two districts with 18 the largest number of cows are Don Duong and Duc Trong, which have natural conditions suitable for large cattle raising 4.1.2 Actual