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Economic Analysis of Small-Scale Freshwater Aquaculture Production and Its Product Marketing Channels in Agro-Aquaculture System in Hai Duong Province, Vietnam

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Economic Analysis of Small-Scale Freshwater Aquaculture Production and Its Product Marketing Channels in Agro-Aquaculture System in Hai Duong Province, Vietnam Economic analysis of small-scale freshwater aquaculture production and its product marketing channels in agro-aquaculture system in Hai Duong province, Vietnam NGUYEN Van Huong, 2020 COMMUNAUTÉ FRANÇAISE DE BELGIQUE UNIVERSITÉ DE LIÈGE – GEMBLOUX AGRO-BIO TECH ECONOMIC ANALYSIS OF SMALL-SCALE FRESHWATER AQUACULTURE PRODUCTION AND ITS PRODUCT MARKETING CHANNELS IN AGRO- AQUACULTURE SYSTEM IN HAIDUONG PROVINCE, VIETNAM NGUYEN Van Huong Dissertation originale présentée en vue de l’obtention du grade de docteur en sciences agronomiques et ingénierie biologique Promoteur: Professor Philippe LEBAILLY Co-promoteur: Associate Professor TRAN Huu Cuong Année civile: 2020 © NGUYEN Van Huong 2020 Abstract Van Huong NGUYEN. (2020). Economic analysis of small-scale freshwater aquaculture production and its product marketing channels in agro-system in Hai Duong province, Vietnam (PhD Dissertation in English). Gembloux, Belgium, Gembloux Agro-Bio Tech, University of Liège, 202 pages, 44 tables, 24 figures, 03 pictures. Abstract VAC stands for the first three letters of three words: Garden (V), pond (A), cage (C), referring to a small-intensive farming ecosystem model to solve the shortages of food and develop the rural economy in Vietnam. It has been shaped and developed for nearly four decades since the Vietnam War ended and the country got reunited in 1975. At first, the VAC economy might have seemed to be small, and just an "informal economy". However, it has gradually become an important model for rural farm households to produce their self-sufficient food and income as a strategic tool of livelihood which was recommended for the poor to overcome the shortfall of food with limited resources of agricultural production during the past period of transition time. Since Vietnam approved the autonomous role of the household economy after the revolution of “Doi Moi '' in 1986, the VAC model has been widely promoted and exploited by many local provincial authorities and farmers in the country. Hai Duong province is one of the provinces, which has encouraged farm households to develop the VAC model since the beginning of the 1980s when it first was introduced in the Red River Delta in Vietnam. Impacted by the introduction of the VAC model with small scale aquaculture, many farm households in Hai Duong province have practised freshwater fish production converted from rice fields which have recently turned into zones of concentrated freshwater aquaculture production. The study was carried out to investigate the households’ current situations of fish production, focusing on the net returns and marketing channels of fish products. The study results have described four freshwater SSA models operating freshwater fish farming which have played an important role to the contribution of rural households’ on-farm income, home consumption, and employment in the local province. These freshwater SSA models are named under their typical characteristics as (FS) single commercially-intensive fish production system, (AF) Animal Fish system, (New VAC) the hybrid system of the original VAC model and the traditional VAC system. The New VAC model has the best net returns of fish among four identified SSA models. While the traditional VAC model can produce the highest yield of fish outputs, the fish yield of the FS model is recorded as the poorest number. However, the fish income of the FS model occupies for an approximate 90% of the total on- farm income due to the largest scale of fish production. The AF model can generate the highest amount of the total on-farm income including a large contribution of 70% of the fish income. Therefore, study results have reflected the highly profitable level of fish production in the agro-aquaculture system. i The marketing channels of freshwater SSA models’ products have comprised the direct and intermediated marketing channels which market the fish outputs available at both local and suburban markets. Fish farmer-collector takes a farm gate wholesale of fish products from fish farmers. Commission wholesalers, merchant wholesalers and retailers play an important role in the marketing chain of fish products from the production to the end consumer at urban and suburban areas in northern Vietnam. Keywords: economic analysis, freshwater, aquaculture, VAC, fish production, marketing channels, Hai Duong, Vietnam ii Résumé Van Huong NGUYEN. (2020) Analyse économique de la production aquacole en eau douce à petite échelle et des circuits de commercialisation de ses produits dans l'agro système de la province de Hai Duong, au Vietnam (thèse de doctorat en anglais). Gembloux, Belgique, Gembloux Agro-Bio Tech, Université de Liège, 202 pages, 44 tableaux, 24 figures, 03 images. Résumé L'acronyme vietnamien VAC correspond aux trois premières lettres de trois mots : Jardin (V), étang (A), cage (C), faisant référence à un modèle d'écosystème agricole intensif à petite échelle pour résoudre les pénuries de nourriture et développer l'économie rurale au Vietnam. Il a été façonné et développé pendant près de quatre décennies depuis la fin de la Guerre du Vietnam et la réunification du pays en 1975. Au début, l'économie du VAC pouvait sembler petite, et n'être qu'une "économie informelle", mais il est progressivement devenu un modèle important pour les ménages agricoles ruraux, leur permettant de produire leur nourriture et leurs revenus de manière autonome, en tant qu'outil stratégique de subsistance recommandé aux pauvres pour surmonter la pénurie de nourriture avec des ressources limitées de production agricole au cours de la dernière période de transition. Depuis que le Vietnam a approuvé le rôle autonome de l'économie des ménages après la révolution du "Doi Moi" en 1986, le modèle VAC a été largement promu et exploité par de nombreuses autorités provinciales locales et par les agriculteurs dans tout le pays. La province de Hai Duong est l'une des provinces qui a encouragé les ménages agricoles à développer le modèle VAC depuis le début des années 1980, lorsqu'il a été introduit pour la première fois dans le Delta du fleuve Rouge au Vietnam. L'introduction du modèle VAC pour l'aquaculture à petite échelle a eu un impact sur de nombreux ménages agricoles de la province de Hai Duong, qui ont pratiqué la production de poisson d'eau douce à partir de rizières récemment transformées en zones de production aquacole concentrée en eau douce. Les résultats de l'étude ont décrit quatre modèles d'ASS d'eau douce exploitant la pisciculture en eau douce qui ont joué un rôle important dans la contribution des ménages ruraux "aux revenus des fermes, à la consommation domestique et à l'emploi dans la province locale". Ces modèles de pisciculture en eau douce sont typiquement caractérisés en tant que système de production piscicole commercialement intensif (FS), système de pisciculture animale (AF), système hybride du modèle original (New VAC) et système traditionnel de VAC. Le modèle New VAC a le meilleur revenu net de poissons parmi les quatre modèles SSA identifiés. Alors que le modèle VAC traditionnel peut produire le rendement le plus élevé de poissons, le rendement de poissons du modèle FS est le plus faible. Cependant, le revenu de poissons du modèle FS occupe environ 90 % du revenu total de l'exploitation en raison de la plus grande échelle de production de poissons. Le modèle AF peut générer le montant le plus élevé du revenu total de iii l'exploitation, y compris une contribution importante de 70 % du revenu de poisson. Par conséquent, les résultats de l'étude ont reflété le niveau hautement rentable de la production de poisson dans le système d'agro-aquaculture. Les canaux de commercialisation des produits issus des modèles d'SSA d'eau douce comprennent les canaux de commercialisation directe et intermédiaire qui commercialisent les produits de la pêche disponibles sur les marchés locaux et suburbains. Un pisciculteur-collecteur achète en gros les produits de la pêche aux pisciculteurs. Les grossistes de la Commission, les grossistes marchands et les détaillants jouent un rôle important dans la chaîne de commercialisation des produits de la pêche, de la production au consommateur final, dans les zones urbaines et suburbaines du nord du Vietnam. Mots-clés : analyse économique, eau douce, aquaculture, VAC, production de poisson, circuits de commercialisation, Hai Duong, Vietnam. iv Acknowledgements To complete this PhD dissertation, I have received great support and attention from many different people, institutes and organizations to whom I would like to express my deepest gratitude. First of all, it is my greatest debt of gratitude to my promoter, Prof. Philippe LEBAILLY for his intellectuality, continuous encouragement and special support to facilitate my study at every stage. His inspiring consultation on the formulation of this thesis has opened widely my knowledge and skills. I learned a lot about research methodology and personality from him. I would also like to extend my great gratitude to my co-promoter of the thesis, Assoc. Prof. TRAN Huu Cuong, who especially encouraged and inspirited me to pursue and complete my Ph.D. studies in Belgium. He gave me good advice and kind hearted support during my studies. I would like to present my great appreciation to the members of my thesis committee, Prof. Philippe BURNY and Prof. Thomas DOGOT for their priceless comments and constructive advice on the thesis content to improve its quality. I am thankful to Doctor Hossein AZADI, Doctor HO Thi Minh Hop - Gembloux Agro Bio-Tech for sharing their research experience and supporting me in articles and thesis publications. I thank them very much for all of their kind support. My thesis could have never been finished without the warm help of the local authorities, fish farmers in Tai Son, Hung Dao, Cam Dong, Cam Doai communes in two districts of Hai Duong Province as well as middlemen, traders and retailers at the markets in Hanoi City and Hai Duong province.
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