The Rise of Mega Farms in the Vietnamese Dairy Sector: A Marker of a New Agrarian Capitalism in Asia

Guillaume Duteurtre (), Mai Huong Nguyen () and Emmanuel Pannier ()
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Guillaume Duteurtre: CIRAD, UMR Selmet (CIRAD, INRA, Mtp Supagro, University of Montpellier)
Mai Huong Nguyen: IPSARD
Emmanuel Pannier: IRD (UMR Paloc), Paris, France USSH (VNU)

Chapter Chapter 4 in Rethinking Asian Capitalism, 2022, pp 93-114 from Springer

Abstract: Abstract Up to the mid-2000s, the development of Vietnamese dairy production relied on the complementarity between small peasant farms, private milk processors, and public sector services. In the late 2000s, this regime ran up against questions concerning the underlying food model, mainly due to its dependence on imported milk powder. Vietnamese policies encourage capitalist firms to enter the milk production sector. The emergence of mega dairy farms (holding more than 1000 cows each) reflects this change of direction pushed to the extreme. In 2018, mega farms represented 32% of the national dairy herd. This rapid change reflects the growing importance of financial capital and high technologies in the transformation of today’s Vietnamese agriculture. This new agrarian capitalism relies on new food models concerned with “health safety”. But mega farms also constitute a challenge to the social dimension of agriculture: they provide fewer jobs per liter of milk than smallholder farms, because they substitute capital for labor. The rise of this new agrarian capitalism is constrained by the fact that the State, which formally owns the land, tends to preserve land-use rights for smallholder farmers.

Keywords: Socio-technical transition; Agrarian capitalism; Dairy sector; Value chain; Vietnam (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-98104-4_4

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DOI: 10.1007/978-3-030-98104-4_4

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