Measure Vertical linkage effectiveness between fish farmers and processing/export enterprises in pangasius hypophthalmus (Tra catfish) industry in An Giang province
Abstract
Tra catfish are the most common aquatic object in An Giang province. Annual export turnover of this object occupies more than 20% of total Tra catfish export turnover
of Vietnam. However, Tra catfish export industry in Vietnam generally and An Giang in particular are still facing many difficulties and barriers, which prevent the development
of this sector, from 2011, vertical linkage model – one of value chain approaches is turned into real practice by two pioneering companies – TAFISHCO and ANVIFISH and have created the initial positive results in balancing Tra material demand and supply, contributing to sustainable development of Tra catfish exports in the province as well as improve the benefits of linkage fish farmers. This study is conducted using five structural elements of Kaplinsky and Morris to evaluate vertical linkage effectiveness between fish farmers and processing/export companies on mutual beneficial relationship, knowledge transfer, quality standards, embedded services and payment. Focus and in- depth interview is conducted to collect data. This study aims to: (1) evaluate the vertical linkage effectiveness between fish farmers and enterprises, (2) find out the areas for improvement, (3) point out disadvantages of fish farmers who don’t participate in the linkage chain, and finally, (4) record orientations from local authority and experts in the field for sustainable development of vertical linkage in An Giang province. After analyzing focus interview results on 70 fish farmers, it is clearly to confirm the important role of vertical linkage for linkage fish farmers’ benefits as well as the entire Tra catfish industry, of which mutual beneficial is the most influent factor to vertical linkage effectiveness. However, knowledge transfer needs to be improved better in order to help fish farmers respond timely to market changes and positively contribute to linkage effectiveness. In general, the vertical linkage must be built in trust and cooperation basis between fish farmers and processing/ export enterprises and toward the common goal of building a brand name for An Giang’s Tra catfish.
Key words: vertical linkage, Tra catfish export, linkage fish farmers