Download - Pig value chains in Vietnam
Pig Value Chain in Vietnam
Vietnam Smallholder Pig Value Chain Team Meeting
Delhi, 30 April – 1 May 2012
Lucy Lapar
CGIAR Research Program 3.7
Overview of smallholder pig value chain in VN Pork is a significant component of the Vietnamese diet, per
capita pork consumption is likely to remain on the uptrend with rising incomes.
Strong demand for fresh pork that smallholders can supply through most preferred outlets by consumers.
Dominance of smallholders in pig production, importance in employment generation, significant contribution to HH income
Projections show that even with no growth from smallholders, large farms will likely account for only 12% of the VN pork market share
Smallholder pig systems can generate efficiency gains from low-cost locally-sourced feeding options
Enabling policy environment, willingness of policymakers, development partners, and stakeholders to engage in R4D initiatives
Dominance of pork in livestock total output
Year Pig Chicken Cattle Others Total
1990 65 11 14 10 100
2000 68 14 9 9 100
2005 72 12 8 8 100
2009 62 13 11 14 100
Household pig production supply at least 80% of Vietnam’s pork. But growth in supply has failed to keep pace with rising demand, resulting in accelerated increase in real pork prices.
Source of data: FAOSTAT 2009.
Supply of pork in Vietnam
Most Vietnamese pigholding households keep very few pigs but on average the size of their herds is slowly rising. Although not shown, the percentage of pigholding households with 21 pigs or more rose from 0.3% in 2001 to 1.75% in 2006.
Projected share of pork supply from large-scale producers
0%
2%
4%
6%
8%
10%
12%
14%
0 1 2 3 4 5 6 7 8 9 10
Shar
e of
larg
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mod
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sect
or in
pig
pro
ducti
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Year
Base simulation
High income growth
High tech growth in modern sector
No tech growth in traditional
No tech growth in maize
High income elasticity of modern
High income elast and tech growth in modern
Worst case for traditional sector
Share of pig income in total household income
38.2%
13.9%
3.3%3.6%
11.6%
20.2%
9.2%Crop
Pig
Non-pig livestock
Other agriculture
Non-agriculture production
Wage and salary
Other income
Income from pigs accounts for about 14% of rural household income, or 24% of rural household income from agriculture.
Value added along the pork supply chain where household
producers participate
Value added generated in pork value chains where household pig producers participate is about 11,700 VND per kg liveweight (or $0.62)
Increasing the proportion of own-produced feed to total feed use can decrease total feed cost. This provides cost advantage to small producers that use higher proportion of own-produced feed.
Small Medium Large Small Medium Large Small Medium LargeFarrow to Wean Farrow to Finish Grow to Finish
0%10%20%30%40%50%60%70%80%90%
100%
Structure of Feed Cost by Production System and Scale
Purchased feed Own produced feed
Feed-use efficiency (in maize equivalent)
Smal
l
Med
ium
Larg
e
Ove
rall
Smal
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Med
ium
Larg
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Ove
rall
Smal
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Med
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Larg
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over
all
Farrow to wean Farrow to finish Grow to finish
0
1
2
3
4
5
6
Purchased feed Own produced feed
Kg maize equiva-lent/kg
liveweight gain
Cost per unit output in household-based pig production
Economies of scale in piglet production; no significant difference across scale full cycle slaughter hog production and pig fattening
Farrow to Wean Farrow to finish Grow to finish0
5
10
15
20
25
SmallMediumLarge
Gross margin (‘000 VND per kg output)
Farrow to Wean Farrow to finish Grow to finish0
2
4
6
8
10
12
14
16
SmallMediumLargeOverall
Household-based pig production can generate gross margins ranging from 4,000 to 15,000 VND/kg liveweight of pig produced.
Current Issues Smallholder competitiveness (vis-à-vis other
suppliers, e.g., large farms, imports) remains a development policy challenge
rising feed prices
Volatile domestic pork prices
animal disease risks (production and markets)
Emerging quality and food safety concerns
Environmental issues
R4D efforts to date Animal health and food safety
1. ACIAR: Reducing health risk in smallholder pig systems (2012-2017)
Builds on previous project (Improving competitiveness of pig producers in an adjusting Vietnam market)
Phase 2 proposal under review; target start 3rd Q 2012
2. EcoZD: identify priority zoonoses in South Vietnam; evaluate risk factors
R4D efforts to date Feeds
1. IFAD-CIAT: Improving forage-based feeding systems (ongoing in CLV)
Vietnam component to include assessment of feeding options in smallholder pig systems
Genetics
1. GEF-Asia: Conservation through utilization of animal genetic resources (ongoing)
Vietnam component on pigs and poultry, market surveys?
R4D efforts to date Development initiatives
1. WB – Livestock competitiveness and food safety project (LIFSAP)
Potential partner for testing of interventions (GAP, improved slaughterhouse and market infra, training)
2. CIDA – Pig commodity chain quality assurance system
Focus: Testing interventions in medium-large pig farms and slaughterhouses, e.g., GAP; South Vietnam
Willing to share lessons on best practices
Others?
?
Strategic partners Development initiatives and policy advocacy
1. WB, MARD (DLP, DAH), provincial DARDs
2. CIDA and VN partners
3. FAO
3. Private sector – AsVELIS
4. NGO – Oxfam, IDE
Research
1. HUA, HSPH
2. MARD and associated research institutes (NIAS, NIVR, IPSARD)
3. ACIAR and links with other ACIAR-funded projects
Impact pathway and outcomes
Pathway: works with research and development partners and value chain actors to identify opportunities, test and validate best-bet options and strategies, and disseminate lessons for scaling up and policy advocacy for pro-poor upgrading of the value chain.
Outcome: increased marketable surplus (30%) from household pig production and sustained, viable participation by smallholders in pig production in the project sites (10%)
Proposed Intermediate Outcomes
Priority VC constraints resolved and/or relaxed
Increase in farm level productivity (30%)
Evidence and mechanism for scaling out are in place.
Value Chain Outcomes: Inputs and Services
Increased access by smallholders to good quality and cost-effective inputs such as appropriate feeds and breeds.
Improved access by smallholders to efficient and cost-effective veterinary and extension services.
Increased availability of cost-effective feeding options.
More efficient markets for inputs and services in place.
Value Chain Outcomes: Production
Improved productivity from adoption of good quality, cost-effective feeding options.
Increased survival, growth, and disease resistance of sows and piglets.
Enhanced production cost-efficiency from adoption of suitable pig breeds.
Reduced incidence of pig diseases (e.g., PRRS, classical swine fever, diarrhea, cysticercosis, among others).
Improved uptake by smallholders of appropriate pig husbandry and animal health practices.
Value Chain Outcomes: Transport and Processing
Reduced incidence of food-borne and water-borne diseases associated with pork consumption.
Increased public and private sector investment in upgrading of slaughtering and marketing facilities.
Better trained slaughterhouse operators, carcass transporters, and other pork supply chain actors.
Value Chain Outcomes: Marketing
Increased availability of safe and hygienic pork supplied by smallholders or household producers.
More efficient marketing system and arrangements in place and accessible to smallholder pig producers.
Increased share of pork retail price accruing to smallholder pig producers.
Higher proportion of women participation in pork supply chain, and improved income opportunities for women from these activities.
Proposed Priority Outcomes & Outputs2012 2013 2014
Outcomes CRP3.7, local and international partners have established an R&D alliance to transform target VC in each country
1. Partners have capacity to use basic set of tools for VC assessment2. Stakeholders in each country are increasingly aware of potential, constraints and initial options for pro-poor development of target VC
Evidence base in each target VC for best-bet pro-poor VC development interventions is influencing development investment decisions
Proposed Priority Outcomes & Outputs2012 2013 2014
Outcomes R&D alliance 1. capacity to use tools 2. Stakeholders aware
Evidence base influencing decisions
Research Outputs
1. Scoping study to develop an inventory of feed technology options and identify stakeholders and potential partners.
2. Rapid assessment of target VC to inform design of in-depth assessment of animal health constraints, and to identify preliminary priority constraints and best-bet upgrading strategies to test.
3. Selected best-best options on feeds, animal health (biosecurity, diagnostics) and possibly breed, identified and piloting initiated in selected sites (e.g. with LIFSAP)
1. Inventory and evidence base (literature review) for key constraints and proposed solutions compiled
2. Quantitative assessment of VC performance
3. Technical and economic assessments of key VC components to target for upgrading (e.g. farm-level: husbandry, feeds, breeds, health, environmental issues; market-level: institutional environment, food safety, demand characteristics; overall: policies, organizational strategies)
1. Best-bet intervention strategy formulated and tested, ready for scaling up and out.
Proposed Priority Outcomes & Outputs2012 2013 2014
Outcomes R&D alliance 1. capacity to use tools 2. Stakeholders aware
Evidence base influencing decisions
Research Outputs 4. Basic toolkit for VC assessment
compiled for testing (with CRP 2)
5. Analytical framework for assessing VC performance established (with CRP 2)
4. Pig feed ration decision support tool – to inform feeding options under a range of feed types, nutrient value, and feed prices (build on CIP-LifSim model?)
Current Activities & Resources/Potential Linkages
ACIAR Improving competitiveness of pig producers in an adjusting Vietnam market (recently completed, ongoing engagement with national partners on policy advocacy, outreach); completed
New project: Supporting small-scale pig production in Vietnam through reducing risks, enhancing productivity, and upgrading value chains (with CRP 4.3, likely 2012);
GEF-Asia (Vietnam)
Development and application of decision support tools to conserve and sustainably use genetic diversity in indigenous livestock and wild relatives (pigs)
CIAT Improved forage-based feeding systems in Vietnam (+Cambodia, Laos)
WB-MARD Livestock Competitiveness and Food Safety Project (development partner)
Identified Priority Gaps for Resource Mobilization
VC assessment of productivity constraints from animal diseases, prioritization.
ACIAR risk assessment and food safety (2nd half 2012)
Inventory of feeding options and assessment to identify best-bet options for testing and validation, both in terms of technical parameters and economic viability.
CIAT-IFAD forage-based feeding systems, started in 2012; likely integration in Vietnam team’s work plan (being discussed)
Assessment of innovation capacity at farm level (farmers, development partners on technology adoption) and along the value chain (best practices, institutions).
Assessment of VC performance (ex ante and ex post) of identified interventions.
2012 Priorities for Organisational, Capacity Development and
Communication Activities Restructure team to match CRP needs at the target VC (economist
time + some vet- epi time from CRP 4.3 + some feeds specialist time).
Identify gaps for priority recruitment and/or shared appointments (local research support, pig nutrition) and partnership.
Communications specialist (AYAD volunteer) in place to support communication activities
Research officer position being sought from funding through AVID
Identify strategy and mechanisms for working links internally with other CRP3.7 components, and externally with CRP2 and CRP 4.3.