Value chain analysis of fresh potato in Bac Giang Province, Vietnam

This study attempted to analyze the value chain of fresh potato in Bac Giang province, Vietnam. Results of logit regression analysis showed that the volume of production and the transportation cost were the significant factors that affected the potato growers' decision in choosing a particular marketing channel. Under gender analysis, findings of the study revealed that about 61 percent of the total production activities were performed by female growers. Of the total labor employed for sorting and packaging activities, about 85 percent was done by female growers. In terms of the transportation function, 75% and 67% of this function were employed by female growers and female retailers, respectively. Regardless of marketing channel, the potato growers were found to obtain the highest mean net income (VND 3,895/kg) while the Institute of Agrobiology received the lowest mean net income (VND 110/kg). The study found that the value addition along marketing channel 1 (via wholesalers) was also highest among the potato growers (VND 1,779/kg) as compared to those of the retailers and the wholesalers. In terms of the share of the value added of each marketing participant to the total value added in marketing channel 2 (via local collectors), the potato growers posted the highest share of 85 percent (VND 2,131 per kilogram), followed by the local collectors with 11 percent share, and lastly, the Institute of Agrobiology with four percent share. Policy recommendations to address the production and post-production/marketing problems in the fresh potato value chain were as follows: 1) allocate more research funds for potato breeding work; 2) increase public investments on cold storage facilities and farm-to-market roads; and 3) promote market contract arrangements between the potato growers and food processing companies.