A study on the role and development of dairy cooperatives in Hanoi and Hochiminh City -A case study of Phudong and Tanxuan Dairy Cooperatives-

Abstract

The ineffective operation of hundreds of the collective agricultural cooperatives in the Socialist Republic of Vietnam in the end of 1980s and early 1990s led to the establishment of many new style ones after the new cooperative law enacted in 1997, nearly one century later than the Industrial Cooperative Law of Japan (1900) (Ogura 1979). The cooperation is very helpful and very important for every small producer, especially for farmer, who is fragile in the market economy, where most individual producers and consumers are price-takers. In order to strengthen and further promote cooperative activities, the specific researches into the existing agricultural cooperatives in general and dairy cooperatives in particular are necessary. This study describes operation of Phudong Dairy Cooperative in Gialam, Hanoi and Tanxuan Dairy Cooperative in Hocmon, Hochiminh City, using a tool of cost-benefit analysis, 1) to make better understanding about the existing dairy cooperatives in Hanoi and Hochiminh City in terms of establishment process, organization, business activities, efficiency and etc, 2) to analyze cooperative's role for dairy production in the study areas, 3) to highlight pros and cons of dairy cooperatives, and 4) to make possible recommendations to improve dairy cooperatives in Hanoi and HCM city. The study shows the dairy cooperatives are at so small scale and so poor activities that they can not attain the advantages of both "economy of scale" and "economy of scope". Through analyzing the reasons of the above problems, the study suggests some recommendations to improve cooperative's operation in the study areas.