Neil Palmer / CIAT POLICY BRIEF
Building a sustainable business strategy for delivering 
Artificial Insemination service for cattle in the North-West 
Highlands in Vietnam 
Aura Bravo¹; Thinh Nguyen3; Phuong Nguyen3; Natalia Triana-Ángel¹; Thanh Huyen Le Thi³; Karen Marshall²; Stefan Burkart¹
1International Center for Tropical Agriculture, Tropical Forages Program 
2International Livestock Research Institute 
³National Institute of Animal Science
KEY MESSAGES
y The provision of an artificial insemination service for y Service providers face significant difficulties in 
cattle (CAI) is relatively new in the region (~10 years), accessing equipment and supplies (e.g., mother nitrogen 
and its operation depends significantly on a subsidized tanks, nitrogen, and semen) because the supply of these 
business model where government entities or NGOs assist implements is carried out through government programs 
technicians, i.e., with training and certification, salaries, or NGO initiatives or directly with partners located in 
connection between offer and demand, and the delivery of Hanoi, leading to high transportation costs.
inputs and equipment.
y A continued promotion of CAI services as a self-sufficient 
y The adoption rate of CAI is around 20% of the total cattle business, reaching more cattle farmers (men, women, 
herds in Son La province. The implementation rate drops to and ethnic minorities) and seeking scaling in the region, 
5-10% in those communes covered by the interviewed CAI still requires the support of other actor from the value 
service providers. The high preference of cattle farmers network (e.g., local authorities, farmer group leaders, 
for natural breeding can be explained by i) the prevalence input and equipment suppliers, and NGOs).
of free grazing practices, ii) timely access to the service, 
iii) unsuitable local breeds for crossbreeding schemes, iv) 
the high cost of the service (compared natural breeding), v) 
behavioral factors and social norms. 
CONTEXT SUSTAINABLE BUSINESS MODELS 
Political and socioeconomic changes in the last forty years in AND STRATEGIES TO PROMOTE CAI 
Vietnam have led to a boost in the demand for animal protein 
Business models and strategies are widely recognized 
and, with it, the modernization of livestock value chains 
(Hanh, 2022; Hansen, 2018; Quach et al., 2023). The “livestock for influencing the innovations towards the sustainable 
revolution” in Vietnam has followed a differential process transformation of agricultural systems (Amoussohoui et 
according to the animal product (beef, pork, and chicken) and al., 2022; Long et al., 2017; Santini et al., 2023; Zucchella & 
the spatial scale (north, center, and south) (Karimov et al., Previtali, 2019; Boons & Lüdeke-Freund). For the archetypes 
2016; Maltsoglou & Rapsomanikis, 2005). Notwithstanding of sustainable business models and strategies, the concept 
the efforts and measures implemented by the national of value becomes more complex towards a multidimensional, 
government and local authorities, beef production in the multi-relational, and multilevel concept, as it goes beyond the 
North-West Highlands (NWH) of Vietnam still relies mainly financial imperatives of particular interest to shareholders 
on small-scale mixed farms, with low levels of technology and incorporates at its core the approach of sustainability 
adoption (Hammond et al., 2021; Huyen et al., 2013). that equally considers economic, environmental, and 
Intending to enable large-scale beef production, national and social aspects (Schaltegger et al., 2012; Bocken et al., 
regional policies, jointly with NGO development programs, have 2015; Bierwisch et al., 2021; Velter et al., 2020). Underlying 
focused on capacity development and technology transfer this approach, we find the practical-conceptual models of 
in the NWH of Vietnam. This is how, in the last ten years, social value and stakeholder theory (Attanasio et al., 2021; 
programs have been carried out for the genetic improvement Bocken et al., 2015). These allow us to align the motivations 
of local breeds. This strategy promotes the implementation of the business with the value creation process that occurs 
of CAI for crossing with hybrid and specialized beef breeds in the value network to which it belongs, contrasting with 
while aiming to prevent and mitigate infectious diseases and the perspectives and efforts of other stakeholders, and 
improve the animals’ reproductive efficiency (Dung et al., recognize challenges and opportunities to leverage the 
2020). Numerous technicians (women and men) have been business in a broader framework (Geldres-Weiss et al., 2021).
trained and certified to offer the service, and during the 
To respond to the current limitations of CAI service delivery 
execution of the projects, offered the service free of charge 
in its contribution towards the sustainable intensification of 
to cattle farmers, received support for purchasing inputs and 
equipment, and a salary for providing the CAI service (Huyen beef production in the NWH of Vietnam, we approached the 
et al., 2020). Although the rate of artificially inseminated CAI service providers through the triple-layered business 
cattle in the region has increased in the last ten years since model canvas framework (Joyce & Paquin, 2016). We delved 
the introduction and promotion of the practice, the results into the economic and social layer due to the emphasis on 
still do not meet the expectations of development programs. the offer being accessible to men and women cattle farmers 
Obstacles that limit larger-scale implementation include the as well as those from ethnic minorities. Stakeholders, 
high fluctuation of beef market prices in local markets from understood as the actors who can influence or be influenced 
2020 to date, which has impacted producer motivation, and by the implementation of the CAI service and contribute 
the limited capacity of response from CAI service providers, to the flow of value (Attanasio et al., 2021), were classified 
among others (Huyen & Marshall, 2021). into local authorities (Agricultural Service Center of Mai 
This research evaluates the current offer of the CAI service Son district, Son La Sub-Department of Animal Health Sub-
and proposes a sustainable business strategy to overcome DAH), CAI input and equipment suppliers, farmer group 
supply barriers (encourage sufficiency) and promote service leaders, and farmers (women and men, users and non-
demand (re-orientate the business for society), articulated users of CAI). We used the value mapping tool (Bocken et al., 
with the different stakeholders interacting in the value 2015) and considered the different forms of value exchange 
network of sustainable intensification of cattle production among these actors. This allowed us to identify conflicting 
(local authorities, NGO, customers, and CAI input suppliers), values and opportunities for the redesign of the CAI service 
and to support technology adoption and upscaling. business strategy.
2 | POLICY BRIEF
MATERIALS AND METHODS MAIN CHALLENGES 
The OneCGIAR Initiative SAPLING is being implemented in Shareholders’ perspective: What people who are 
the NWH of Vietnam, especially in Son La Province, Mai Son involved in the CAI business think
district. Four communes were selected for the study: Hat Value proposition and social value
Lot and Muong Bon, which are located near National Road 
y Gender disparities: Compared to men CAI service 
No. 6 and classified as Region I communes (according to their providers, women face more difficulties in terms of mobility 
development level); and Chieng Chung and Chieng Luong, terms, which is associated with their roles in household 
located in remote and mountainous areas and classified activities, limiting their mobility to long-distance villages 
as Region II communes. The cattle herd in the Region I or providing the service at night.
communes is 70% crossbreed (between local yellow cattle y Missing knowledge: Structural limitations associated 
and Laisind) and has reached a large body frame, which makes with the development of animal genetic improvement 
AI suitable for reproduction. However, cattle farming there development and the adoption of CAI in the region include 
only contributes 10-20% to the average household incomes. the service’s fluctuating demand and reduced knowledge of 
In the Region II communes, cattle production represents 20- hybrid breeds and crossing schemes among cattle farmers. 
30% of the average household incomes, and yellow cattle is Furthermore, insemination failures are attributed mainly to 
the primary breed used: Type I with a large body frame and two factors: i) missed timing for insemination because of 
an average weight of 150-170 kg in Chieng Luong commune, inaccurate estrus detection or difficulties in coordinating 
and Type II with a small body frame and an average weight of it with the CAI service provider, and (ii) abnormality of cows’ 
100-130 Kg in Chieng Chung commune. In all communes, the reproductive tracts.
Hmong ethnic group has fewer cattle farming households than y Demand versus supply: There are too few CAI service 
the Thai ethnic group but possess a larger cattle herd. providers to meet the demand in the region. Furthermore, 
for most of them, the CAI offer is added to their functions 
We chose a qualitative approach, applying semi-structured as village veterinarians, linked to each province’s 
key informant interviews (KII) and focus group discussions governmental agricultural development agencies. Even 
(FGD) for data collection (Table 1). The tools were implemented though the agenda promoting CAI has included the training 
by enumerators from the National University of Animal Science and certification of more technicians, most of them do not 
(NIAS), and the obtained information was systematized continue with the activity once the project ends, and with 
in Vietnamese in an Excel template, anonymized through it, the support in terms of inputs, equipment, and salaries. 
codification, and content analysis was applied. This generates a shift in the providers’ motivations.
Table 1. Summary of surveyed participants.
Participants disaggregated  
Actor type Outreach/location Method Sample by gender
Men Women
AI service providers Son La Province KII 9 7 2
Local authorities Mai Son District KII 3 1 2
Farmer groups Chieng Chung, Hat Lot, and Muong Bon 
Communes KII 3 0 3
Input supplier Hanoi KII 2 1 1
CAI users
Farmers Chieng Luong, Chieng Chung, Hat Lot, and FGD and KII 1 per commune 24 13
Non-user Muong Bon Communes KII 19 11 8
Building a sustainable business strategy for delivering Artificial Insemination service for cattle 3
Customers and end-users: untimely heat detection, poor cow body conditions, 
untimely insemination, etc.). Farmers are more likely 
y Farm size: Large farms with the highest potential for 
adopting CAI practices only represent about 20% of the to link the failures with technician’s skills and the type/
market segment providers serve. Most clients served are quality of semen straws.  
small producers (2-5 cattle per farm). y Farmers do not know the CAI service’s full price, and 
when a project, where it was offered free of charge 
y Limiting factors for the adoption of CAI are: 
or at a low cost, ends, they tend to think providers are 
y Cattle farmers located in remote, mountainous villages overcharging them. 
face poor communication infrastructure, which 
worsens in the rainy season; y Gender disparities – domestic and farm workload: 
According to the service providers, the belief persists that 
y Untimely access to the service; mainly men are in charge of cattle production because 
y Raising local breeds with small body frames; physical strength is required. The domestic workload 
limits women’s interest in the reproduction method and 
y Free-grazing production systems; therefore, they are more hesitant to use CAI services, 
y CAI services price higher than natural mating recalling some men providers.
(substitute service and free of charge) y Gener disparities in CAI trainings: Among women, 
y Behavioral factor includes persistent farmers’ fear language and transportation barriers are more prominent 
of insemination failure, understood by actors as not and limit accessing CAI services, since many cannot 
conceiving or not developing expected traits in the speak Vietnamese nor know how to ride a motorbike, both 
animal. Besides, farmers are afraid when cows give required for accessing CAI trainings.
birth to bigger calves since it may affect reproductive Distribution channels and scale of outreach: 
tracts and disable cows for future deliveries.
y Infrastructure: Smallholder farmers are often located 
Customer relationships and societal culture: in remote areas where road infrastructure is poor and, in 
y Gender disparities in communication: There is a some cases, inaccessible during rainy seasons. Thus, using 
disconnection between CAI clients and service providers, motorbikes poses challenges in carrying CAI equipment, 
particularly in those households where husband and wife especially nitrogen flasks, because the liquid nitrogen 
participate in cattle production. In production systems can evaporate during long travel distances under adverse 
where cattle are held in sheds, women can keep close weather conditions.
contact with the cows which is also linked to their role as y Coordination: Opinions about future opportunities for the 
household care takers. This is how they can detect estrus CAI business can be divided between those concerned 
before their husbands, even though the skills for timely because of price drops in the output markets and those 
detection of the estrus stage in both men and female who believe the demand for the service still has not yet 
women are reduced. However, the technicians reported been fully met. This leads to differentiated efforts and a 
that mainly men communicate to request the service (60- lack of provider coordination, affecting service provision.
70% of orders are placed by men). The communication in 
the household for decision-making about the reproduction Key resources, activities, employees, and governance: 
method, whether the husband is responsible for this y Input supply: Challenges regarding the acquisition and 
decision or if it is discussed together, can thus potentially quality of semen and liquid nitrogen are of high concern. 
lead to delays in insemination and a reduced success rate There is no local supply source of semen and mother 
of the service. nitrogen flasks. Accordingly, these inputs come from Hanoi 
y Networking: Weakness and disconnection of the CAI (nitrogen), Hat Lot Commune, and Bacn Ninh Province 
provider network, which is currently based on occasional (Tu Son Station for semen), which increases costs for 
backups to serve demand or retail input purchases.  transportation. 
y High-risk factors that undermine trust between y Nitrogen: Added to the high cost of obtaining nitrogen, it is 
technicians and their customers are: consumed quickly, mainly when it is not used in time, and 
due to the long distances to reach the farms (in summer, the 
y CAI failure, even though the determinants are not level of loss increases). Estimates made by the CAI service 
controlled by the providers (including inaccurate/
4 | POLICY BRIEF
providers indicate that 15-20 cows must be served monthly ended, only a few technicians continued to offer the service 
to fully use the purchased nitrogen flask (up to twice their independently. This is related to factors such as 1) reduced 
current service offering). Not all providers can acquire a motivation among providers, 2) difficulties of accessing 
mother tank to store nitrogen. Only two providers have inputs and equipment independently previously provided 
invested in one after the end of the supporting project. by the project, and 3) a drop in demand for CAI services. 
y Response to CAI service requests: The providers either y Motivation for adopting CAI among farmers: Regarding 
work on development projects or run the business alone. the drop in demand, the actors agree that besides 
The limited response capacity of those providers who work responding to the structural situation of market prices, 
in government agencies or as commune veterinarians trust among technicians and customers has promoted 
reduces the possibility of timely response to the demand. the displacement of cattle farmers' motivations to use the 
According to reports, the number of services requested innovation. This has been affected by:
is concentrated between September and April, which y Risk of insemination failure. The innovation has been 
coincides with the cattle vaccination season and generates introduced recently in the region and consumers are 
work overloads in these months. susceptible to the information shared among their 
networks (neighbors, friends, family, etc.). Therefore, 
y Project support: The decision-making, links with other 
cases of failure significantly impact demand and shift 
stakeholders in the network, training, and capacity the motivation towards continuing with natural mating. 
development of CAI providers for contributing to the long- Likewise, consumers associate these unexpected 
term viability of service provision and its performance has results with the technician’s skills or input quality.
so far depended mainly on support programs from both 
government and NGOs. y Full fee service payment. When CAI was subsidized, 
farmers could acquire the service for free. At the end 
Key partners and local communities: of the projects, charging the full-service fee generates 
y Input suppliers: The main suppliers of semen and nitrogen distrust among farmers, given that they assume the 
are in other provinces, which implies long trips and costs technicians are overcharging them. 
for purchasing these supplies. The acquisition depends y Untimely service access. The number of active 
on purchases through the District’s Agricultural Service providers, workloads, and access to remote areas 
Center, retail distribution of other service providers, and, determine it. This situation discourages cattle farmers 
to a lesser extent, direct purchases made by autonomous from using the technology, leading to a loss of captured 
units. value.
Revenues and costs, and social impacts: y Gender disparities – workload: CAI adoption might increase 
women's workload inside the household. Even though cattle 
y Guarantee: As a service guarantee when insemination 
farming is an activity shared among household members, 
fails, providers offer a price reduction of the service, do men tend to decide on medical treatments, animal sales, 
it free-of-charge, or only charge for transportation and or establishing market contacts, while women tend to 
semen straws. The success rate of the first insemination carry out activities related to raising the animals, such as 
attempt ranges from 60-80%, and multiple factors affect feeding, monitoring, and care taking. Thus, if more cattle 
it, many of them not controlled by technicians. Therefore, are added to the household, the care activities under the 
although offering this service guarantee is beneficial for responsibility of women also increase.
building trust between provider and client, it reduces the 
value captured. y Farm size: At the current stage of cattle development 
in Son La Province, CAI services are more important for 
Stakeholders’ perspective: What other actors from large-scale production (commercial farms, cooperatives, 
the CAI network think livestock companies). For smallholder farmers that mainly 
raise local breeds and use free-grazing practices, it would 
Value destroyed: take more time to gradually improve gene traits and switch 
y CAI as independent business: The projects that promote rearing practices from free-range to confinement before 
CAI among farmers have offered different support ranging applying CAI. The change also requires the plantation of 
from capacity building among technicians and certification forages for feeding crossbred cattle. However, farmers 
to paying salaries for inseminated cows. Since 2018, when currently lack land resulting in feed shortage and a low 
many initiatives in CAI have reduced their influence or growth rate of cattle.
Building a sustainable business strategy for delivering Artificial Insemination service for cattle 5
y Gender disparities among CAI service providers: Although 
women service providers are recognized for specific skills RECOMMENDATIONS 
related to CAI, such as thoroughness, careful handling of Due to the complex context where the CAI service is provided, 
the cows, and good technique, physical limitations, such as we propose designing a holistic strategy comprising three 
strength and height, can be limiting factors when providing components to overcome supply bottlenecks and encourage 
the service. Accordingly, even though women can offer CAI demand. Both entry points are essential to make the business 
services, they are mostly offered by men. attractive to providers, expand the offer, improve service 
Value missed: accessibility, and reach more farmers. The central point of the 
strategy focuses on establishing a cooperative for CAI service 
y CAI service providers: According to the local authorities, providers. This organization would respond to various needs, 
trained and certified technicians are the primary namely i) serve as support for improving operational capacity, 
underutilized resource. Although supporting CAI projects ii) reduce the costs of acquiring inputs and equipment, iii) be 
have included a capacity-building component, few 
an articulating axis between providers and stakeholders (local 
providers are still active after project end. Currently there 
authorities, NGOs, input suppliers, and farmers), iv) disseminate 
are a total of nine providers in Son La province. 
technical knowledge of CAI and animal husbandry practices, 
y Cattle breeds: Actors recall that farmers and the market and v) provide veterinary services (vaccination, consultation 
prefer the BBB cattle breed. Although service providers and diagnosis, drug sales, etc.). Figure 1 summarizes the 
can access this genetic material, given the current level of cooperative’s business strategy components.
development of local breeds, the crossing scheme requires 
starting with hybrids such as Sind, Brahman, or Charolais, Operational capacity: Establishing a CAI services provider 
and with it, the physical conditions of local breeds get cooperative is not new. There have been cooperatives of 
suitable for larger breeds. agricultural technical assistants in the area that have reduced 
operating costs and strengthened the service network. This 
y Knowledge barriers: Farmers have poor knowledge component should consider the following:
of adequately caring for pregnant cows and calves. 
Consequently, despite having good gene merits, crossbred y Inputs and equipment – economies of scale: Centralized 
calves still grow slowly. The knowledge of farmers is mainly purchase and provision among members. Nitrogen mother 
from self-study, learning from neighbors, or attending tanks, nitrogen, and semen straws are essential inputs.
short trainings. Women are less likely to participate in y Recovery of human resources: Reestablish contact with 
training because of their household care workload. the technicians (men and women) trained and certified to 
Figure 1. Business strategy components for a CAI service provider cooperative.
6 | POLICY BRIEF
provide CAI service and identify their needs and willingness Chemical & Science Technology Equipment Company 
to offer it. It is recommended to establish a network (CTSTEC CO., LTD) are key partners dedicated to importing 
of communal cores, according to demand, so women and marketing different inputs for animal husbandry and 
providers can mobilize within a perimeter close to their AI, among others.
homes and provide the service.
y Support and legitimacy system: Communication 
y Increase the scope of services offered: Since most and connection with local authorities are essential to 
providers are veterinarians, this service is offered to farmers continue efforts to promote the adoption of CAI, make 
as part of the CAI value proposition. Likewise, diversifying the cooperative visible, and overcome structural barriers 
the cooperative's business lines can include retailing CAI to the transition towards intensified cattle production. 
inputs, vaccination, and veterinary medicines sales. Likewise, livestock development projects catalyze the 
Education of demand: Among the more significant limitations expected changes. The establishment of the cooperative 
to adoption, and therefore the reduced service demand, a will be led by NIAS and ILRI's SAPLING Breeding Work Team 
set of behavioral factors and social norms around CAI were (WP1), who, in addition to providing equipment and inputs 
observed that can be addressed through: for the start of operations, include in their intervention 
portfolio the execution of Social and Behaviour Change 
y Media campaigns for disseminating information and Campaigns (SBCC) to address the social and cultural 
technical knowledge: The highest potential for CAI barriers to adoption.
adoption is in large farms, which could be used to show 
success stories and serve as model farms to increase 
farmers' willingness to adopt CAI. Likewise, information ACKNOWLEDGEMENTS
on the conditions and price rates for acquiring CAI service This work was conducted as part of the OneCGIAR Initiative 
should be transmitted. The technical content on CAI on Sustainable Animal Productivity (SAPLING). We thank all 
practice shared with cattle farmers should focus on topics donors who globally support our work by contributing to the 
such as proper management and feeding of pregnant cows CGIAR System. CGIAR is a global research partnership for a 
and calves, knowledge about hybrid breeds and crossing food-secure future. Its science is carried out by 15 Research 
schemes, insemination risk factors and mitigation Centers in close collaboration with hundreds of global partners.
strategies, and timely detection of estrus.
y Identification of pioneer cattle farmers: In the REFERENCES
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8 | POLICY BRIEF
Neil Palmer/ CIAT
CONTACT
Stefan Burkart
    s.burkart@cgiar.org
alliancebioversityciat.org cgiar.org
December 2023