Shrimp farming in Central Vietnam: A value chain analysis

White shrimp has become a key commodity in Vietnamese aquaculture. White shrimp farming does not only enable the participation of smallholders, but also attracts companies and other stakeholders along the value chain. The value generating activities in white shrimp farming have contributed to improved livelihood opportunities of its stakeholders, and the socioeconomic growth of coastal communities in general. However, low accessibility to high value markets, low bargaining power and high dependence are existing issues for farmers, which affect the efficiency of white shrimp farming, as well as the development of the white shrimp value chain. Based on a qualitative analysis of the white shrimp value chain in Vietnam, the presented research explores the current situation of production and consumption of the white shrimp industry, as well as advantages, disadvantages and development strategies in white shrimp farming. The value chain analysis approaches are theoretically based on the concepts of global production networks and global value chains (e.g. Gerreffi et al., 1994, 2005, 2016; Humphrey and Schmitz, 2001; Dicken, 2015; Coe and Yeung, 2015). Gereffi et al.’s (2005) approach of five types of governance and Humphrey and Schmitz’ (2002) concept of four types of upgrading within the concept of value chain analysis are the backbone of this study. The goal of this study was to provide information on the current status and sustainability issues in white shrimp farming, the differences among marketing channels and response ability of farmers to access each channel. Additionally, the power relationships among actors within the white shrimp value chain and the impact of these relationships on farmers are also outlined. Qualitative research methods were applied by conducting 24 semi-structured interviews. Interviewed stakeholders include white shrimp farmers, suppliers, middlemen, wholesalers, retailers, and relevant representatives of local governments. Further, secondary data was collected through socio-economic reports of government levels and related previous research. Thua Thien Hue province in central Vietnam was selected as the case study area. The first part of this thesis is an introduction on global food, the importance of aquaculture and the rationale behind conducting research on value chain analysis. Afterwards, the framework of value chain analysis, governance and upgrading dimensions and the agri-food value chain, Vietnamese aquaculture with regard to development processes, distribution and existing issues, as well as the research methodology are outlined before presenting the empirical results, discussion and conclusion. The research results are outlined in four stand-alone research papers (chapters 5-8), which have the following common characteristics: the research focuses on small-scale white shrimp farmers; the theoretical approach of global production networks and global value chains is used for the analysis; governance dimensions are also a theoretical lens used throughout the research; furthermore, informal transactions and informal relationships often coin the white shrimp value chain and are thus integral parts of the empirical work. The results show that the volume of white shrimp has significantly increased in central Vietnam in both, production and export since 2002. White shrimp farming requires high investments while it can provide comparably high revenue for farmers; normally, farmers can gain profit margins from 4.5 to 10%. However, lack of expertise, low availability of relevant infrastructure, missing access to capital and traditional production routines of farmers are affecting sustainability as well as resilient livelihoods with regard to the quality of white shrimp seed, changing technical knowledge, use of aquatic medicine, water pollution and curing diseases. Furthermore, there is a dependency of farmers on input suppliers because farmers are often debtors of input suppliers, especially of industrial feed suppliers. Meanwhile, the output market of white shrimp is controlled by intermediaries and most of the Vietnamese white shrimp production is traded via these middlemen before being distributed to consumers or processors. Although farmers can access the processing plant to capture a higher share of value, international standards appear as barriers for these kinds of direct business relations. The change from informal relationships to formal relationships is constrained by the gap between the quality requirements of processing plants and the ability of farmers to adapt to those requirements. Thus, selecting intermediaries is currently the easiest solution for farmers for accessing sales markets. This development led to ignoring the regulations on using antibiotics for shrimp production and wastewater treatment among farmers; instead, they solely focused on growing the production and maximizing revenues, which can be considered an attempt of farmers to compensate their disadvantages. Compared to other actors in the white shrimp value chain, farmers have less bargaining power, and little to no possibilities of independent decision-making, which leaves them only able to react instead of act within business relations. The relationships among actors in the chain were established based on personal trust, regular face-to-face interaction and the exchange of tacit information. The typical feature of the relationships is a high degree of informality and that the binding character can be stronger than with a formal contract. Local governments and farmers have implemented various strategies to upgrade the white shrimp value chain. That might result in issuing the regulations in white shrimp farming, establishing cooperative organizations. However, these activities are still limited and the majority of farmers are still facing major issues of access to distribution channels and dependencies on middlemen and suppliers. Hence, the thesis concludes, that in order to be competitive and ecologically sustainable, white shrimp farmers need to change production habits and improve product quality to respond to the requirements of domestic and international markets. The local government needs to continue to support farmers with infrastructure, capital and technology

Middlemen: good for resources and fishermen?

Submitted manuscript version. Published version available at https://doi.org/10.1017/S1355770X19000196. This paper studies the role of middlemen in open-access fisheries and how the organization of the supply chains affects resource exploitation and the level and distribution of economic rent. Imperfect competition among middlemen can help ensure that fish stocks are not depleted, which is typically the case in open-access fisheries with competitive markets. Middlemen with market power can also induce higher economic rent for the supply chain in total, but these rents mainly benefit the middlemen. The supply chains of inshore anchovy and offshore skipjack tuna fisheries in Vietnam are used as empirical examples. The analysis shows that in the anchovy supply chain, the middlemen have insignificant market power and the stock is being overexploited. In the skipjack tuna supply chain, the middlemen have oligopsony power and the stock is higher than the level that produces maximum sustainable yield

Towards a Nex-Gen Cottage Industry in the Digital Age: Insights from an Action Research with Rural Artisans in India

Despite the recognition of the significance of the crafts industry for inclusive development, its informal, disaggregated and disenfranchised nature poses several problems for the rural artisans, who are often forced to live in poverty. Extant approaches to address the industry’s problems have involved siloed attempts, wherein interventions were appropriated to resolve issues within parts of the supply chain, resulting in persistence of the issues. Using Self-Help- Group women in rural India as a case in point, the paper adopts a discovery orientation and action research alignment to evolve the design principles of an ICT driven peer-to-peer collaborative, decentralized supply chain model known as Nex-Gen Cottage Industry as a means to organise the industry. The results of a pre-pilot study in a village Kandi have been discussed along with the implications of this research for academia and the society

Collective action for small-scale producers of agricultural biodiversity products:

"The role of well-functioning markets for development is now widely recognized, however the challenge remains to make these markets benefit the poor and the environment. Increasing attention is being given to the potential role markets can play for agrobiodiversity conservation through product diversification and increasing competitiveness in niche and novelty markets. Bioversity International has undertaken several studies that explore the use of market-based approaches to on-farm agrobiodiversity management and livelihood improvement. Case studies have been developed on a range of species, varieties and derived products, including underutilized species and commodities in several regions of the world. This paper explores how the theory of collective action can provide a more synthetic understanding of how market chains operate and how changes in the market chain and market institutions can permit a more equitable distribution of welfare benefits. The case studies illustrate the need for improved trust, a mutual understanding of each actor's involvement and the need for an agreed process of collective action that involves a high level of community participation to achieve an improved market chain organization benefiting the poor. The cases differ in their degree of collective action, the level of market organization and the ways in which handling, processing, and innovative marketing add value to the agrobiodiversity products. Comparative analysis of these cases identified a range of options and situations in which market development can support agrobiodiversity conservation and livelihoods. Bringing together these experiences will also help to identify the situations in which a collective approach can maximize the capturing of market benefits for smallholders. Trade-offs between income generation, livelihood security, and agrobiodiversity conservation should be further examined in order to find solutions that support sustainable development of poor communities that manage agricultural biodiversity." authors' abstractAgricultural biodiversity, Market chain, Market access, Livelihoods, Collective action, Small farmers, Biodiversity,

Will blockchain emerge as a tool to break the poverty chain in the Global South?

Just like its recent predecessors, blockchain – also known as the distributed ledger technology – is considered to have the potential to cause major economic, political and social transformations in the Global South. The visible effects of this technology are already being noted there. We present early evidence linking the use of blockchain in overcoming some economic, social and political challenges facing the Global South. The article highlights the key applications and uses of blockchain in developing countries. It demonstrates how blockchain can help promote transparency, build trust and reputation, and enhance efficiency in transactions. The article looks at opportunities and key triggers for blockchain diffusion in these countries. It also delves into challenges and obstacles that developing economies are likely to encounter in the use of blockchain

The limit of blockchains: Infeasibility of a smart obama-trump contract

Although smart contracts are Turing complete, it is a misconception that they can fulfill all routine contracts.Scopu