Quality Control Fresh Milk

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    FOR DAIRY SMALLHOLDERS

    A COOPERATION BETWEEN

    2008

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    ,

    BE COMMENSURATE WITH ITS QUALITY

    But in the North

    ALWAYS MADE ON THIS BASIS.

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    ContentsContents

    1.Raw milk collection of processing companies in

    the North

    2.Contents & significance of milk payment

    sc eme o armers3.Advanta es & Disadvanta es

    4. Q & A

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    1. R1. Raw milk collection in the North

    ProcessinProcessin

    FarmersFarmersco ec onco ec on

    Point (MCP)Point (MCP)companiescompanies

    This approach shows that PC work directly only

    w t m emen : Signing purchasing contracts with MCP only

    Providing feedback on bulk tank milk quality at the

    end of a ment eriod

    Group payment (bulk tank quality)

    Paying directly to the MCP only

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    1.1. Raw milk collection in the North

    - Good points: Minimizing management costs for raw milk

    collection of factories

    Reducing investment cost for milk collection

    Enablin rocessors to com ete in raw milk

    collection

    payment are not separate (MCP do not have to

    pay tax for collection service)

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    1.1. Raw milk collection in the North

    -- Weak points:

    but have too much power/privilege from the

    contract with rocessors

    Milk collectors are not trained in quality control

    risks One milk payment for all farmers or the payment

    ...

    Group milk quality feedback is not valid for

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    1. Raw milk collection in the North1. Raw milk collection in the North

    Farmers sell milk to processors without any contractFarmers sell milk to processors without any contractby delivering milk to MCP. In case of difficult output,by delivering milk to MCP. In case of difficult output,

    processors refuse to buy milkprocessors refuse to buy milk Farmers will beFarmers will be..

    Farmers depend on MCPFarmers depend on MCP cannot choose whatcannot choose whatprocessor ey can se m oprocessor ey can se m o..

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    2. Incentive milk payment scheme:2. Incentive milk payment scheme:

    Target

    --

    - Stricter milk quality control

    -

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    2. Incentive milk payment scheme:2. Incentive milk payment scheme:

    FarmersFarmers

    ProcessinProcessincompaniescompanies

    MCPMCP

    s approac ma es a un amen a c ange n previous relationships in the milk collection matrix

    Adapting this approach has brought about theAdapting this approach has brought about the

    uniformity in milk collection of VINAMILK both in theuniformity in milk collection of VINAMILK both in the

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    2. Incentive milk payment scheme:2. Incentive milk payment scheme:

    Change in structure:

    Raw milk purchasing contract Farmers sign

    contracts to sell fresh milk to the processor

    Price of 1kg of fresh milk = Basic price + %FAT x 17,000VND/kg + %SNF xPrice of 1kg of fresh milk = Basic price + %FAT x 17,000VND/kg + %SNF x

    8,500VND/kg8,500VND/kg

    milk collection service with processors and has

    commission:

    Commission = Service fee + bonus

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    2. Incentive payment scheme: Contents2. Incentive payment scheme: Contents

    controlcontrol

    -- ne qua y con ro s ane qua y con ro s a(processor): do daily milk(processor): do daily milk

    base for milk paymentbase for milk paymentTake 2 milk sam les: One to check certainTake 2 milk sam les: One to check certain

    onon--site qualities and the other to analysesite qualities and the other to analyseat the factorys lab with FT2 (FOSSat the factorys lab with FT2 (FOSS--DENMASK which can do 180DENMASK which can do 180analyses/shift)analyses/shift)

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    2. Ni dung ca chng trnh thanh2. Ni dung ca chng trnh thanh

    -Quality control staff: Give feedback on daily milk

    quality to farmers Orient individual farmers in dairy

    - ,

    be applicable. Good dairy farming-> High milk price->

    encouraging dairy farming development

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    3. Incentive milk payment scheme:3. Incentive milk payment scheme:

    Advanta es:

    Supported by the leaders of the company as it

    ,

    sustainable dairy development. Create a uniformity

    in milk collection in the North and South

    Supported and partly sponsored by Vietnam

    Bel ium Dair Pro ect when im lementin the

    scheme

    No standard government legislation on raw milk

    loop-hole for cheating & unsound businesses

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    3. Incentive milk payment scheme:3. Incentive milk payment scheme:

    No su ort from animal health offices in herd

    management and disease control

    privileges and benefits

    not meet the requirements of professional

    farmin .

    Funding: a big concern (Most in the north are

    -

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    4. Questions & Answers4. Questions & Answers

    Q - A