An Analysis of the Goat Value Chain from Lao PDR to Vietnam and a Socio-Economic Sustainable Development Perspective

Thi Nga Bui (), Huu Van Nguyen, Xuan Ba Nguyen, Le Van Nam, Thi Mui Nguyen, Cuc Thi Kim Ngo, Quyen Thi Le Ngo, Nam Hoang, Luis Emilio Morales, Viet Don Nguyen, Luisa Olmo, Stephen Walken-Brown and Thi Thu Huong Le
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Thi Nga Bui: Faculty of Tourism and Foreign Languages, Vietnam National University of Agriculture, Hanoi 100000, Vietnam
Huu Van Nguyen: Faculty of Animal Sciences and Veterinary Medicine, University of Agriculture and Forestry, Hue University, Hue 49000, Vietnam
Xuan Ba Nguyen: Faculty of Animal Sciences and Veterinary Medicine, University of Agriculture and Forestry, Hue University, Hue 49000, Vietnam
Le Van Nam: Faculty of Rural Development, University of Agriculture and Forestry, Hue University, Hue 49000, Vietnam
Thi Mui Nguyen: Faculty of Animal Sciences and Veterinary Medicine, University of Agriculture and Forestry, Hue University, Hue 49000, Vietnam
Cuc Thi Kim Ngo: National Institute of Animal Science, Hanoi 100000, Vietnam
Quyen Thi Le Ngo: National Institute of Animal Science, Hanoi 100000, Vietnam
Nam Hoang: UNE Business School, University of New England, Armidale, NSW 2351, Australia
Luis Emilio Morales: UNE Business School, University of New England, Armidale, NSW 2351, Australia
Viet Don Nguyen: Faculty of Animal Science, Vietnam National University of Agriculture, Hanoi 100000, Vietnam
Luisa Olmo: School of Environmental and Rural Science, University of New England, Armidale, NSW 2351, Australia
Stephen Walken-Brown: School of Environmental and Rural Science, University of New England, Armidale, NSW 2351, Australia
Thi Thu Huong Le: Faculty of Accounting and Business Management, Vietnam National University of Agriculture, Hanoi 100000, Vietnam

Sustainability, 2023, vol. 15, issue 18, 1-20

Abstract: Goats are produced in Laos on a small scale and most of them are exported to Vietnam, where they receive a price approximately 30% higher than Vietnamese crossbred goats. In 2021, Laos exported 2.2 million dollars in sheep and goats, mostly to Vietnam (2.19 million dollars). Vietnam was also the fastest-growing export market for sheep and goats of Laos between 2020 and 2021, comprising 66.7% of the total exports. This study aims to analyze the goat value chain from Laos to Vietnam and, based on its characteristics, to suggest policy interventions for the socio-economic sustainable development of the chain. This research analyzes a sample of 400 survey interviews of goat chain actors collected during the second and third quarters of 2022, with the support of CommCare software version 2.53.1. The results show that the Lao goat chain has four main functions implemented by four prominent actors: goat-rearing farmers, traders, abattoir owners, and restaurant owners. However, the role of input suppliers is unclear in this chain. Support to the stakeholders has been provided by local authorities and the government, projects and NGOs, technical supporters, and license supporters. There was not any clear evidence of the goat processing industry. Vertical and horizontal linkages between stakeholders exist, but agreements are primarily oral. There is no declaration of leading actors, and a traceability system has yet to be implemented. The increase in Lao goat exports to the Vietnamese market is driven by the high demand from Vietnamese consumers. The commercialization of goats’ yields provides a positive net income in Lao, where all actors benefit, especially traders and restaurant owners. The chain also creates job opportunities and income that improve living standards, especially for disadvantaged groups, such as women, middle-aged people, people with low literacy, and those living in rural areas. For the sustainable development of the chain, this research recommends that the Lao and Vietnamese governments work together to develop more favorable conditions for goat trading, to improve the traceability across the goat chain, to promote goat husbandry and feeding practices, and to foster goat farmer collaboration by sharing goat-rearing experiences.

Keywords: goat rearing; goat meat; small scale production; traders; marketing; abattoirs; restaurants (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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