Food Quality and Safety Issues in Markets for High-Value Products in Thailand and Vietnam

Abstract: The production and marketing of high-value agricultural commodities – such as fruits, vegetables, and livestock products – has been an important source of cash income for small-scale farmers in the northern mountainous regions of Thailand and Vietnam. However, recently there has been increasing national and international competition, partly leading to significant price decreases. Given structural disadvantages of farmers in northern Thailand and Vietnam, it will be very difficult for them to achieve and maintain a competitive position in markets for undifferentiated high-value products. Therefore, product differentiation – in terms of health attributes (e.g., low-pesticide residues, free from diseases and pathogens), taste (e.g., indigenous livestock breeds), time (e.g., off-season production), or processing characteristics (e.g., packaging, drying, canning) – could be a promising alternative. Quality and safety attributes play an increasing role in domestic and international food trade. The additional value generated could lead to sustainable income growth in the small farm sector, but this potential will only materialize when appropriate institutional mechanisms help reduce transaction costs and allow a fair distribution of benefits. This project analyzes how the production and marketing of high-value agricultural products with quality and safety attributes can contribute to pro-poor development in northern Thailand and Vietnam. Interview-based surveys of farmers, intermediate agents, and consumers are carried out, to examine high-value supply chains, recent trends, and institutional implications.

Researchers involved: Christin Schipmann, Matin Qaim, partners at University of Hohenheim, and local partners at Kasetsart University (Bangkok), Hanoi University of Agriculture, and Central Institute of Economic Management (Hanoi).

Funding: DFG