Value chain and competitiveness of OCOP standardized clown knife fish products in Hau Giang province

Abstract

The study was conducted to analyze the competitiveness of OCOP standardized clown knife fish products in Hau Giang province. The data were collected from 73 observations involved in the clown knife fish value chain. The research results show that most farmers culture knife fish intensively and the feed cost shares the highest proportion of the total production cost. Processed products from knife fish are mainly boneless fish and fish balls. The OCOP knife fish value chain operated through four main distribution channels and included actors: fish farmers, traders, processors, and retailers. The farmers normally sell fresh knife fish to middleman, accounting for 80.15%. The processing factories create and share the highest proportion of added value. The distribution channel that farmers are linked directly with processors create higher added value than others. The study also analyzed the Porter’s five forces of the knife industry. The study found that there are many potential risks in the farming process, high competitive pressures from substitute products, and limited negotiation ability of both farmers and processors.

Review of agricultural value chain analysis

“…V. Nguyen (2012), analyzing the cassava value chain in Thua Thien Hue Province, shows four main actors involved: cassava farmers, small collectors, traders, and processing factories in the whole domestic consumption and export channels. The chili value chain in Dong Thap (L. T. T. Vo et al, 2015), cocoa in Ben Tre (T. H. Nguyen & Luu, 2014) also have similar results. Moreover, the number of actors is more than five, compared to the chains above that include retail actors in the domestic consumption channel.…”

“…Therefore, some value chain analysis has been implemented following this approach (Doan, Vo, Huynh, & Nguyen, 2015; N. Q. Nguyen, 2015;Phan & Nguyen, 2017; L. T. T. Vo & Nguyen, 2011; L. T. T. Vo et al, 2015;T. B. T. Vo & Nguyen, 2020).…”

“…The chain links are formed on a small scale, such as at the local or regional scale, to target development and poverty reduction. Therefore, many authors have analyzed the value chain of agricultural products according to the approach of GTZ (2007) (Doan et al, 2015; H. T. T. Nguyen & Mai, 2017;N. Q. Nguyen, 2015;S.…”

“…In the profit distribution of the chili value chain in Dong Thap, L. T. T. Vo et al (2015) also show that farmers have the highest percentage in all channels, over 80%, followed by the traders, wholesalers, and exporters only about 3.7%. In addition, households are the actors with the highest income distribution at 60% and 74%, in the value chain of Ninh Thuan garlic (S. P. and Ben Tre cocoa (T. H. Nguyen & Luu, 2014), respectively in the non-processing channel. In contrast, the analysis results of profit distribution on processing channels of the green apple value chain in Ninh Thuan (Nguyen & Le, 2013b), cocoa in Ben Tre (T. H. Nguyen & Luu, 2014), and Dong Thap lotus value chain (T. B. T. Vo & Nguyen, 2020) show that the processing company has the highest profit distribution (67 -85%), as fellow farmers.…”

“…Thus Porter's five forces analysis model will indicate the advantages and disadvantages of the actors' production and business and the basis for strengths and weaknesses in SWOT analysis. Some value chain studies have used this model as a basis for proposing solutions to upgrade the chain (Le, 2019;S. P. Nguyen & Nguyen, 2014;T.…”