VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE FACULTY OF ECONOMY RURAL DEVELOPMENT TRAN LAN ANH RISK MANAGEMENT IN DAIRY FARMING OF HOUSEHOLDS IN MOC BAC COMMUNE, DUY TIEN DISTRICT, HA NAM PROVINCE GRADUATION THESIS Hanoi, 2022 VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE FACULTY OF ECONOMY RURAL DEVELOPMENT GRADUATION THESIS RISK MANAGEMENT IN DAIRY FARMING OF HOUSEHOLDS IN MOC BAC COMMUNE, DUY TIEN DISTRICT, HA NAM PROVINCE Student’.
VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE FACULTY OF ECONOMY & RURAL DEVELOPMENT ***** TRAN LAN ANH RISK MANAGEMENT IN DAIRY FARMING OF HOUSEHOLDS IN MOC BAC COMMUNE, DUY TIEN DISTRICT, HA NAM PROVINCE GRADUATION THESIS Hanoi, 2022 VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE FACULTY OF ECONOMY & RURAL DEVELOPMENT ***** GRADUATION THESIS RISK MANAGEMENT IN DAIRY FARMING OF HOUSEHOLDS IN MOC BAC COMMUNE, DUY TIEN DISTRICT, HA NAM PROVINCE Student’s name : TRAN LAN ANH Major : AGRICULTURAL ECONOMY Class : K63KTNNE School year : 2018 – 2023 Advisor : Dr NGUYEN MINH DUC Hanoi, 2022 AUTHOR’S DECLARATION I hereby declare that: The data and research results in this thesis are true and have never been used to protect a academic title or degree I hereby declare that: All help in the preparation of this thesis has been thanked and all information cited is attribution Hanoi, May 20, 2022 The guarantor TRAN LAN ANH i ACKNOWLEDGMENT To complete this graduation thesis, in addition to my own efforts, is the dedicated guidance of teachers as well as the encouragement of collective organizations, family and friends Through this, I would like to express my deep gratitude to the teachers of the Vietnam National University of Agriculture in general, the Board of Directors and the teachers of the Faculty of Economics and Rural Development in particular for their help, facilitate me during my studies at school In particular, I would like to thank Professor Dr Nguyen Minh Duc, who directly guided me to complete the thesis I would like to express my gratitude to the People's Committee of Moc Bac commune for creating conditions for me to research and carry out the thesis Finally, I would like to express my deep gratitude to my family, friends and those who have encouraged, encouraged and helped me to complete the course and carry out the thesis Due to limited research time and limited experience, shortcomings are inevitable Looking forward to the encouragement and suggestions of teachers, family, and friends I sincerely thank! Hanoi, May 20, 2022 Thesis author TRAN LAN ANH ii SUMMARY OF THESIS Animal husbandry is an important part of the agricultural sector, which is the main economic activity of the majority of households in rural areas In Moc Bac commune, too, dairy cows are livestock that bring high income for households, but dairy farming requires people with high technical skills Meanwhile, the households here mainly breed by experience, which makes dairy farming potentially risky In order for risk management to be most effective in economic activities in general and risk management in households in particular, it is necessary to study risk management Topic: "Risk management in dairy farming in farmer households in Moc Bac commune, Duy Tien district, Ha Nam province" Specific Objectives To achieve the overall goal, the study proposes the following specific objectives: (1) Contributing to systematizing the theoretical basis of risk and risk management of households in dairy cow production; (2) Assessment of the current situation of risks and risk management in dairy farming of farmers in Moc Bac commune; (3) Proposing solutions to improve risk management in dairy farming for farmers in Moc Bac commune Research subjects Dairy farming households in Moc Bac commune, Duy Tien district, Ha Nam province Research scope Content scope The topic focuses on researching contents related to risk management and risk coping in livestock farming households in Moc Bac commune, Duy Tien district From there, propose a system of management solutions to minimize risks in dairy farming in Moc Bac commune, Duy Tien district iii Spatial scope Research topic in Moc Nam commune, Duy Tien district, Ha Nam province Time scope Secondary data was collected from 2019 to 2021, primary data was collected in 2022, the research period was from December 24, 2021 to June 14, 2022 To achieve the goal of the topic, I have collected primary and secondary information Secondary information is collected from books, newspapers, magazines, websites, reports of the People's Committee of Moc Bac Commune Primary information was collected by direct interview with officials in charge of dairy farming management of the commune Survey to select a sample of 60 dairy farming households In which, there are 20 small-scale households raising less than 10 heads, 20 medium-sized households raising 10-20 animals, 20 large-scale households raising 20 or more heads using a pre-prepared survey form according to the survey content, with corrections and additions to suit local realities Collected data was aggregated, classified and processed using Microsoft Excel software Using descriptive statistics, comparative methods to analyze, describe information, make comments and draw conclusions The results of the study are as follows: (1) The dairy farming of Moc Bac commune is developing day by day From 2019 to now, the commune's dairy herd tends to increase rapidly in both the number of households raising and the number of cows raised In 2019, the whole commune had only 142 raising households with 2256 cows, then a year increased by 12 raising households and 362 cows By 2021, the whole commune has 3226 cows with 186 breeding households, an increase of 608 cows, equivalent to 23.22% and 32 breeding households compared to 2020 This is the period when the commune has completed the planning of iv concentrated breeding areas far from residential areas Along with the province's policies to develop dairy herds, many people switched to raising dairy cows, and livestock production began to develop stably and expand From the above situation, it can be seen that the dairy cow herd of the commune is growing rapidly in number, the new breeding conditions are relatively favorable for people to stabilize production and invest in expanding the livestock production scale However, this also poses many challenges in terms of milk consumption when the number of cows increases beyond the control threshold and exceeds the milk purchasing capacity of processing enterprises In the past year, there were many risks in the commune, mainly risks of diseases, markets, and food However, with the strict management of the local government and the people's many years of breeding experience, these risks are always strictly controlled (2) Livestock barns of the majority of households have been solidified, the husbandry method has changed from livestock rearing to semi-industrial and industrial The main risks appearing in surveyed households are risks of seed, disease, feed, technology, finance, and market These are common risks in livestock production in general and dairy farming in particular 3) Risk management in dairy farming of farmer households in Moc Bac commune: Risk identification in dairy farming of farmers in the commune Among the types of risks on indicators such as varieties, feed,… market risks account for the greatest frequency, and risks of diseases and techniques account for a lower proportion The level of market risk is highest because output in production is always the most important issue Next is the risk of disease because if the disease is not well controlled, it can lead to death, and the quantity and quality of milk are not qualified, leading to huge losses Risk analysis in dairy farming of farmers in the commune The process of analyzing hazards, determining the causes of risks on the basis of which to find v out preventive measures Therefore, we need to delve into the analysis of main risks: risks of breed, feed, disease, technology, finance, market in dairy farming of farmers to find out the causes of risks, as well as finding ways to prevent, prevent and overcome unexpected risks Control and monitor risks in dairy farming of farmers (4) Factors affecting risk management in dairy farming of households are: Livestock farmers; Local government; The state livestock support policy in dairy cow production risk management is education level, livestock experience, and participation in training courses There are also other factors such as access to capital, access to information,… (5) Current solutions focus mainly on overcoming risks instead of “prevention is better than cure” Therefore, in order to limit and minimize risks to develop the dairy industry, contributing to creating local jobs and increasing income for households It is necessary to perform well the solutions on: Breeding risk management solution, Feed risk management solution, Disease risk management solution, Weather risk management solution, Financial risk management solution, Market risk management solutions Finally, the topic gives conclusions and recommendations to the State and local authorities vi TABLE OF CONTENTS AUTHOR’S DECLARATION .i ACKNOWLEDGMENT ii SUMMARY OF THESIS .iii TABLE OF CONTENTS vii LIST OF TABLES x LIST OF DIAGRAMS xii PART I INTRODUCTION 1.1 Research problems 1.2 Research objectives 1.2.1 General Objective 1.2.2 Specific Objectives 1.3 Subjects of research 1.3.1 Surveyed participants .4 1.3.2 Research problems 1.4 Research scope 1.4.1 Content scope 1.4.2 Spatial scope 1.4.3 Time scope PART II THEORETICAL BASIS AND PRACTICE .5 2.1 Theoretical basis of risk and risk management in livestock 2.1.1 Several definitions 2.1.2 Common risks in dairy farming 11 2.1.3 Risk management in agriculture 12 2.1.4 Risk management content 14 2.1.5 Factors affecting risk management in animal husbandry .16 2.2 Practical basis for risk management in dairy farming .21 vii PART V CONCLUSIONS AND RECOMMENDATIONS 5.1 Conclude Through research on the topic: "Risk management in dairy farming in livestock households in Moc Bac commune, Duy Tien district, Ha Nam province", I draw the following conclusions.: Risk management in dairy farming in the current stage of livestock industry development is a very important task for farmers as well as authorities at all levels from the commune upwards From the theories of risk management is a process of planning, methods and actions to analyze, evaluate, treat and monitor risk with the ultimate goal of reducing risk risk to achieve the desired return In addition, risk management is the process of approaching risk in a scientific, comprehensive and systematic way in order to identify, control, prevent and minimize losses, losses and adverse effects of risk Contributed to helping farmers avoid unpredictable consequences that the risk brings Through the study: Risk situation, risk management, analysis of factors affecting risk management in dairy farming of farmer households in Moc Bac commune, shows that: i) In recent years, the livestock industry has been focused and developed across the country Moc Bac commune, Duy Tien district, Ha Nam province is one of the communes with a strong livestock tradition, and livestock production is considered the main source of income for people in the commune In recent years, there has been a positive change, although there has not been rapid development in quantity, but the quality is much better The scale of husbandry has increased slightly, the husbandry method has changed, this is not consistent with the inevitable trend for dairy cows Breeders are tending to gradually switch to industrial and semi-industrial farming, 88 producing according to commodity trends But the fact is that dairy farmers are facing risks in the process of raising cows Disease risk is still the biggest risk causing the most serious damage among the risks faced by households It not only kills, reduces weight, but also reduces output costs, encountering financial risks The input market is also an issue that needs to be mentioned in the current industrial livestock industry With the constant increase in feed prices, the cost of raising livestock is increasing Moreover, the decreasing and unstable output price increases the risk for households In addition to risks of diseases and markets, dairy farming households also face risks in terms of breed, feed, technology and finance These risks also cause certain damages ii) Risk management in local dairy farming is the deepening and analysis of processes in the risk management process system In dairy farming, for good risk management, it is necessary to first identify and identify risks, that is, the process of continuously and systematically identifying possible risks in order to develop information about source of risk, risk factors, hazards The method of risk identification is a complete presentation of all aspects, the contents of the risk have been identified according to a specific structure First, we have to set up research questions and conduct surveys such as: What types of risks livestock producers face? Number of occurrences of risk in a year of household? What is the extent of the damage? Risk analysis is the process of analyzing hazards, determining the causes of risks on the basis of which to find preventive measures Therefore, we need to delve into the analysis of main risks in dairy farming of farmers to find out the causes of the risks, as well as find ways to prevent, prevent and overcome these risks unexpected Risk control means preventing, avoiding, and minimizing possible losses of livestock producers when a risk occurs, in fact, it is to limit risks and limit 89 losses in the process of managing livestock production activities Livestock activities of dairy farmers Finally, risk monitoring: Risk in livestock once occurs often not only once, the process of risk monitoring, also known as "post-" risk control, needs to be focused, every time a risk is identified Successful identification, analysis and control, must provide direction to avoid recurrence iii) Factors affecting the risk management in pig meat production of households are: Livestock farmers; Local government; State livestock support policy The factors are closely related to each other Pig farmers often face all kinds of risks, especially risks caused by markets, diseases and feed The solutions to manage and cope with risks of dairy farmers today are mainly focused on overcoming risks instead of "prevention is better than cure" Therefore, in order to limit and reduce risks, in order to develop the dairy industry, contribute to creating local jobs and increase income for households, it is necessary to well implement solutions on: Seeds, Feed Risk Management Solutions, Disease Risk Management Solutions, Technical Risk Management Solutions, Financial Risk Management Solutions, Market Risk Management Solutions 5.2 Recommendations In order to reduce the risks in dairy farming of farmers and provide more effective risk management, we would like to propose the following recommendations: For the state - The State improves the disease prevention capacity for farmers Support vaccination, barn cleaning, disinfection and sterilization - The state needs to control beef and dairy products to limit the smuggling of livestock products For government level 90 Policies to encourage and support concentrated livestock areas This is a form that can minimize risks related to disease or the market, the state needs to provide finance to open concentrated livestock areas Policies to support disease prevention: Currently, the epidemic is complicated, so the State should have effective strategies to support epidemic prevention Insurance service development policy: create peace of mind in dairy farmers, and partly support compensation when risks occur to dairy farmers Improve the veterinary system, strengthen the veterinary system in the communes, improve the capacity of veterinarians Science, technology and technology policy: These can be breakthrough and key solutions Support training to improve the level of breeders, to produce disease-free and resistant varieties Establishment of livestock association: In fact, if farmers affiliated with an organization, the risks that households face are less than other households Therefore, in the coming time, it is necessary to establish a dairy association to reduce unnecessary risks for livestock households - Establish a system of information on livestock market and livestock products disseminated to the commune level - Organization to build a large agency to provide quality and satisfactory feed 91 REFERENCES Bui Thi Minh Nguyet (2011) “Research on risk and risk management of farmer households in Luong Son mountainous district - Hoa Binh province” Hoang Van Luu (2014) “The role of gender in risk management in dairy farming in farmer households in Moc Bac commune, Duy Tien district, Ha Nam province” National Agricultural Extension Center “Some issues to pay attention to in dairy farming” Downloaded at https://dairyvietnam.com.vn/vn/Chan-nuoi-bo-sua/Mot-so-vande-can-chu-trong-chan-nuoi-bo-sua-8647.html, access date 22/04/2022 Nguyen Quoc Oanh, (2019) “Agricultural Finance”, Hanoi Agricultural University Pham Van Hung (2015) “Methods of economic research” Hanoi Agricultural University People's Committee of Moc Bac Commune (2019) “Socio-economic summary report of Moc Bac commune in 2019” People's Committee of Moc Bac Commune (2020) “Socio-economic summary report of Moc Bac commune in 2020” People's Committee of Moc Bac Commune (2021) “Socio-economic summary report of Moc Bac commune in 2021” Tran Dinh Thao (2010) “Research on risk management policy in dairy farming in Vietnam” 92 SURVEY RISK MANAGEMENT IN DUCK LIVESTOCK PRODUCTION IN FARM HOUSEHODS IN MOC BAC COMMUNE, DUY TIEN DISTRICT, HA NAM PROVINCE (Apply to the commune's dairy management staff) Information First and last name: …………………………………………… Sex: Male Female Age: ………… Please tell us about the risks in dairy farming that took place in the commune in the past year, and the commune's management solutions to overcome and limit the risks.? Risks appear Number of Extent of Management measures of households damage the commune encountered What policies local authorities have to manage risks and develop dairy herds?? 93 SURVEY RISK MANAGEMENT IN DUCK LIVESTOCK PRODUCTION IN FARM HOUSEHODS IN MOC BAC COMMUNE, DUY TIEN DISTRICT, HA NAM PROVINCE (Apply to the commune's dairy management staff) A GENERAL INFORMATION ON HOUSEHOLDS Name of householder: Sex: Male Female Age: ………… Academic level: Secondary school High School Intermediate College, University Professional qualifications in dairy farming (trained at intermediate schools, colleges, universities, training courses) Yes No How many people in the household have been trained in dairy farming? ………………(Person) Evaluation of the household head's dairy farming experience? Good Medium Little experience What is the training status of the household head on dairy farming?? Regularly Medium Less training Regularly exchange knowledge with other livestock households? 94 Regularly Medium No exchange 11 How often you watch TV, listen to the radio, read the internet about agricultural extension programs?? Regularly Medium Do not track B ABOUT PRODUCTION B1 About capital Situation of loans for livestock When you need capital, can you get a loan? [ ] 1= Yes ; [ ] 2= No Currently, you have a loan to raise dairy cows? 1= Yes 2= No If not, why? = Enough capital for livestock = Interest rate is too high = Difficult procedure = Other, …………… If yes, please indicate: a Borrowing source? Amount borrowed Tenor Interest b Loan purpose? = Build barns, infrastructure = Purchase of animal feed (including purchase of feed on credit) = other If you take a loan, what is the loan procedure? = Easy, convenient = Normal 95 = Difficulty 6.Infrastructure Number of Type of barn stalls Solid stables Area (m2) Year Built Value (VND) Temporary barn 7.Evaluate the level of fan equipment for the barn? Very full Full Medium Few 8.Evaluation of the level of heating ball equipment for the barn? Very full Full Medium Few 9.Evaluation of the level of equipment with cooling water system for the barn? Very full Full Medium Few 10 Evaluation of the level of equipment to cover the barn? Very full Full Medium Few B2 About livestock scale and risk assessment Number of dairy cows raised by the family: …………………… … (head) Number of years of raising dairy cows of the family: … (years) Income from dairy farming/year: …………………… (million VND) Besides raising dairy cows, you have any other occupations, any occupations? Average time per day in dairy farming of husband and wife: Wife: ……… (hours) Husband: ……… (hours) What is the form of husbandry of the family? Animal lodging: 96 Permanently Semi-permanent Temporary Breeding method: Industrial Semi-Industrial Utilization Breeding location: In a residential area Adjacent to residential area Far from residential area 7.In the past year, what risks did the family's dairy farming face? + Breed - Buy the seeds of poor quality - Can't buy seed - Buy seeds of unknown origin Other…………………………………………………………………………… + Diseases - Stomach flatulence - Mastitis - Poisoning - Organism - Foot and mouth sores - Diarrhea Other …………………………………………………………………………… + Food - Lack of feed for cows - Food is not of good quality + Technical - Not sure how to care for and express milk - New technology is not suitable for household production + Financial risk Capital status: Lack of capital Heavy Less heaviness Trivial + Market risk 97 High input price Low price of milk Can't sell milk Damage level …………………… What you think when your family encounters risks in dairy farming? - Risk is a preventable objective factor - Ready to apply new science and technology - Do more jobs to limit risks - Other C ABOUT VARIETIES Where you buy dairy cows? Self-produced Buy from other farmers Buy from the farm Buy traders Other Why choose the main source of purchase? Quality assurance, clear origin Close, convenient Rag price Other Compared to the past, has the source of your dairy cows changed? 1= yes 2= no If yes, when? …………………………………… How does it change? 1= switch to self-production 2= buy from acquaintances; 3= clear origin, bought new 4= other Why? In the future, you plan to change the source of dairy cows? 98 1= yes; 2= no If yes, how to change? 1= switch to self-production; 2= buy from acquaintances; 3= clear source of new purchase; 4= other Why? D Veterinary Services and Disease Prevention In the past year, have any dairy cows been sick? 1= yes 2= no If yes, detail the following table? Number Number Number Farmer's Interesting Is there Who of sick of dairy of sick diagnosis diagnosis a cure treats? dairy cows days for Farmers cows that (days) dairy 2.Veterinar (head) died cows? y Medicine Yes No What grandparents usually when dairy cows are sick? Sell now Meat slaughter and household consumption Self-healing Call the vet right away Self-healing if it doesn't help, call for help Ask your neighbors Doing nothing Other …… 99 Usually? 1= Always, 2= Almost, 3= Occasionally, 4= Rarely, 5= Never What grandparents when dairy cows die? Slaughtering meat for household consumption Throw away Burn Ham Ask for veterinary advice Selling at cheap price Other Are you satisfied with the veterinary service? 4.1 Pharmacy 1= Very good; 2= Good, 3= Average; 4= Poor; 5= Very bad 4.2 Commune Veterinary Medicine 1= Very Good; 2= Good, 3= Average; 4= Poor; 5= Very bad Availability of veterinary drugs? Very available Available Less available Not available Medium Satisfaction with the quality of veterinary drugs? Very good Good Medium Least Very poor Evaluation of the qualifications of veterinary staff? Very good Good Medium E DISEASE CONTROL Do your grandparents have pillows? 1= yes, 2= no If yes, how many days does it take? (days)? 100 Least Very poor If not, why? = No barn; = costing; = not necessary; = Other…………… Do you keep the newly purchased dairy cows separately? 1= yes; 2= no If yes, how many days (days) Do you apply any other preventive measures to newly purchased dairy cows? 1= yes; 2= No If yes, specifically…………………… …………………… What you if you hear your neighbor's dairy cow is sick? Sell now Increased spraying of disinfectants Do not allow people to visit the barn Birth control injections Doing nothing Other:……………………… How you wash the barn? Daily Weekly Twice a week Monthly Twice a week Monthly How you spray disinfectant? Daily Weekly What you disinfect the barn with? Disinfectant, name……………………………………………………… Smoke 101 Lime powder Other……………………………………………………… How you clean the area around the barn? Daily Weekly Twice a week Monthly Isolate the dairy herd How often to isolate sick dairy cows? Very often Regularly Medium Rarely Never 10 How often to isolate newly purchased dairy cows? Very often Regularly Medium Rarely Never 11 How far is the distance from the barn to the isolation barn? Very often Regularly Medium 102 Rarely Never ... Moc Nam commune, Duy Tien district From there, propose a system of management solutions to minimize risks in dairy farming in Moc Nam commune, Duy Tien district 1.4.2 Spatial scope Research project... important branch of modern agriculture, raising livestock to produce products such as food, fur, and labor Products from livestock to provide profit and serve the daily life of people Livestock farming... commune, Duy Tien district From there, propose a system of management solutions to minimize risks in dairy farming in Moc Bac commune, Duy Tien district iii Spatial scope Research topic in Moc Nam