The dominance of collectors in fresh green tea value chain: an empirical analysis from tea farming in Central Vietnam

Tea farming is highly significant for farmers’ livelihoods in Vietnam. Most tea is produced by smallholders who rely on collectors to market their tea, which can lead to strong, one-sided dependencies and unequal bargaining relationships. This research aims to explore the governance of fresh green tea value chains in Central Vietnam by analysing the relationship between collectors and small-scale tea farmers. Qualitative research was applied in this study: A total of 58 semi-structured interviews with small tea growers, collectors, and key informants were conducted in Thua Thien hue Province. In addition, publicly available documents and statistics were reviewed. The study uses the analytical framework of value chain governance to investigate the relationship between small tea growers and collectors. The research findings indicate a dominant bargaining position of collectors and the mutual relationship is simultaneously shaped by characteristics of captive and relational value chain governance types. Business relationships tend to be long-term and based on trust. The relative dominance of collectors leads to entrenched relationships with farmers, who have few options to develop independent marketing channels and capture only small shares of the generated value. Unless addressed by effective policy initiatives, the unequal relationship between farmers and collectors tends to be self-reproducing.