Value Chain Development of Avocado in Vietnam

HANOI – Rapid economic development, urbanisation and rising income levels, in Vietnam offer potential for pro-poor development, by creating new market opportunities for producers, traders and retailers. This article describes the process of value chain development, which involves all actors in the broad chain of avocado.

The project

Dak Lak, a province in the Central Highlands of Vietnam, is an important coffee producing area. Many poor ethnic minorities are engaged in coffee farming. Their dependence on coffee cultivation only at a time of decreasing coffee prices made income diversification an urgent necessity. Dak Lak area is also known for producing the best quality avocados in Vietnam. Because avocado trees are grown within coffee plantations to provide shade, and because demand for avocado was growing, avocado was defined as a potential crop to diversify the coffee dominated agricultural sector in Dak Lak. Avocado was also considered because of its high nutritional value and its potential to improve the poor-quality diet of the local rural communities, and of children in particular.

This product choice was made in cooperation with local research institutions and local farmers. The aim of the intervention plan was to create a professional value chain for avocado, in which the different chain actors cooperate to supply consistent quality avocados to urban sales channels across Vietnam. The objectives were to: (1) create a professional avocado chain; (2) increase awareness of and demand for avocado (avocado is relatively unknown in Vietnam and consumers are not familiar with its nutritional values and its uses); (3) develop a high quality avocado brand.

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Source: Urban Agriculture magazine

Publication date: September 2010Also interesting to read:

Paper: Avocado in Vietnam. Value chain development beyond donor support

HANOI – Numerous initiatives implemented by international donors in Vietnam aiming for elevation of rural communities out of poverty, predominantly focus on farmers.

Paper contents:

Authors: S.C.O. Wertheim-Heck, P. Quaedackers, Nguyen Trung Anhb, M.S. van Wijk

1. Introduction

1.1 VCG literature in relation to the case under study

1.1.1 Global value vs. local value chains for pro-poor development
1.1.2 International lead firm vs. local lead firm
1.1.3 The role of the retail in relation to a new product introduction

1.2 Donor practices: Short term impact vs. long term business sustainability

1.3 The VC development facilitator

2. Case study – Avocado Value Chain Development in Vietnam

2.1 Methodology

2.2 Background

2.3 Participatory value chain analysis

2.4 Focus beyond farmers

2.4.1 Farmers
2.4.2 Collectors
2.4.3 Traders
2.4.4 Modern urban sales channels

2.5 The identification of a traditional trader as ‘lead firm’

2.6 Incorporation of the consumer perspective

2.7 Step by step approach

2.8 Results

3. Discussion: sustainable success: despite of or thanks to the differences?

3.1 Recommendations for further research

+ Avocado in Vietnam (306 KB)


Source: Fresh Studio

Publication date: April 2010Also interesting to read:

Successful avocado information event organized in Dak Lak Province

DAK LAK – A special DAKADO information day (D-Day) was organized, to share the experiences of the DAKADO project with the main stakeholders of the avocado sector.

About 100 people participated in the event which was covered by several national and regional TV stations and newspapers. During the seminar, presentations described how the DAKADO brand was created, and how the DAKADO value chain was formed. Technical presentations and discussions about avocado cultivation practices and post-harvest operational procedures were also made. To promote the use of avocado in Buon Ma Thuot city, the capital of Dak Lak Province, an avocado cooking competition was organized in which hotel and restaurant chefs participated.

For many participants in the seminar it was the first time they had seen and taste avocado as used in salads or as the main ingredient for a sauce. To date, most Vietnamese consume avocados only in milk shakes.

For more information about the DAKADO project please visit the project website:

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