Livestock and Fish Vietnam smallholder pigs value chain: What has been achieved

Lucy Lapar

Smallholder pigs value chain strategy and implementation planning meetingBuon Ma Thuot, Dak Lak, Vietnam

25-26 September 2014

Achievements in Vietnam

• Research on smallholder competitiveness and market access helped bring livestock policy focus back to issues around small producers

• Shaping livestock sector policymaking through policy advocacy carried out by partners

• Partnerships across a range of institutions from government, universities, research institutes, civil society, development partners

• Capacity development through internships and graduate students

Projects / activities linked to L&F• REVALTER (CIRAD) – systems analysis of potential

livestock development scenarios in Vietnam – Dong Nai• Management of indigenous pigs and poultry in Vietnam

(GEF, NIAS, MARD) – Son La• Situation analysis and scoping of Vietnam pig VC

constraints and opportunities (HUA, TNU, CIAT)• Reviews – feed technology (IASVN); lab inventory (HSPH)• Vietnam pig sector model updating (CAP) - continuing• VC assessment on breeding and genetics (NIAS) - 2014• Pig Risk Project (ACIAR-funded, 2012-2017) – animal

health/zoonosis (link with A4NH)

Components and actual outputs for Vietnam Value chain

1 Site selection completed2 Rapid VC Assessments; focus on animal health and food

safety3 In depth assessments; focus on animal health and food

safety4 Situation analysis 5 Value Chain scoping study, central highlands6 Review of pig feed technologies7 Lab inventory review (pig disease and zoonoses)8 Updated pig sector model9 SD Framework developed for VC performance

assessment (to be used for evaluating effects of food safety interventions on VC performance)

10 Impact pathway (narrative)

Site selection completed: Northern cluster (Son La, Hoa Binh,

Nghe An, Thanh Hoa)Southern cluster (Dak Lak, Dak

Nong, Lam Dong, Dong Nai)

ProvincesSelectedin two clusters- North- South

Criteria:• Pig density• Poverty• Market

access

Orange: Provinces listed underR2R/ R2U

Hatched: Provinces listed under U2U

Orange and Hatched: Provinces listed under both R2R/R2U and U2U

VC assessments:• Nghe An (ACIAR-funded Pig Risk

Project); Rural – Rural and Rural – Periurban/Urban VC gradients

• Dak Lak and Dak Nong (L&F seed fund)

Characterizing pig value chains in Vietnam: descriptive analysis from survey dataDuong Nam Ha1, Nguyen Thi Thu Huyen1, Ninh Xuan Trung1, Tran Van Long1, Nguyen Anh Duc1, Vu Khac Xuan1, Nguyen Thi Duong Nga1, Pham Van Hung1, Fred Unger2, Karl M. Rich3, Lucy Lapar4

1 Vietnam National University of Agriculture (VNUA), 2 International Livestock Research Institute (ILRI), Kenya, 3 Lab 863 s.r.o., Czech Republic, 4 International Livestock Research Institute (ILRI), Vietnam

• The traditional pig sector plays a significant role in Vietnam’s economy where more than 90% of pork consumed is supplied by conventional wet markets;

• However, the traditional pig sector is under threat from animal health and food safety risks that impact both its profitability and future viability;

• Nonetheless, little research exists on defining key intervention points that could manage risks in a pro-poor, cost-effective manner.

•The role of middlemen may imply a potential control point for risk management in response to diseases transmitted in the short-term as well as (pro-poor) profit distribution over the longer-term•Information from this study will provide more insightful understanding of these existing value chains and serve as the base for further economic and risk analysis (i.e. the System Dynamic (SD)

analysis).

Duong Nam Hadnha@vnua.edu.vn and duongnamha@gmail.com ● Vietnam University of Agriculture (VNUA), Hanoi, Vietnamhttp://www.vnua.edu.vn ● http://pigrisk.wikispaces.com

Acknowledgements: The CGIAR Research Programs on Livestock and Fish (L&F) and Agriculture for Nutrition and Health (A4NH), ILRI, and VNUAFunding: The Australian Center for International Agricultural Research (ACIAR), L&F, and A4NH This document is licensed for use under a Creative Commons Attribution –Non commercial-Share Alike 3.0 Unported License September 2014

Photo: VNUA/Duong Nam Ha

• Semi-structured questionnaires: about 400 pig producing farmers and 400 pork consumers in both provinces during July and August 2013, paying particular attention to typologies of production and consumption in rural, semi-urban, and urban zones;

• Semi-structured and In-depth interviews: 200 other intermediary value chain (VC) actors.

Introduction

Materials and methods

Results

Research into use

ObjectiveTo highlight and contrast between pig value chains (VCs) in two provinces that represent different levels of economic development in Vietnam (Hung Yen and Nghe An).

Figure 1: (Proportional) Sample size of each province selected for the study

Source: The PigRISK report of PRA/FGD findings, 2013;And updated findings from field surveys, Jul & Aug 2013

Hung Yen province:(i) 15 Input suppliers;(ii) 212 Producers;(iii) 4 Traders;(iv) 23 Slaughterhouses (SH);(v) 11 Processors;(vi) 34 Retailers;(vii) 208 Consumers

Nghe An province:(i) 16 Input suppliers;(ii) 208 Producers;(iii) 7 Traders;

(iv) 28 Slaughterhouses (SH);(v) 11 Processors;

(vi) 40 Retailers;(vii) 208 Consumers

COMPARISONS OF THE TWO VALUE CHAINS (VCs)• Similar in terms of:

• Actor typology in which middlemen are often multi-functional and are the most powerful actors because of their better access to information and dominance in value-added activities;

• Pig-pork flows;• Feeding practices of pig smallholders: collecting leftover food, locally-available feed resources;

• Different in terms of:• In Figure 2: Differences between 2 VCs are highlighted in red (texts and arrows); Other

functions of actors are ranked by number of observations;• Scales of production and marketing (Hung Yen is often larger);• Behaviors of actors as a result of differences in production scale, knowledge, attitude and

habits;• Actors in Hung Yen are more likely to be more market-oriented and commercialized;• Nghe An operates its chains more “self-sufficiently”, with own-produced inputs, particularly

feeds.

Figure 2: Typical pig value chains in the two provinces (scope of the study is within orange background)

Reviews:• Feed technology reviews• Laboratory (diagnostics) inventory

review

Best-bet selection and testing:• Production (GAHP) and market

interventions (upgrading) (WB-funded LIFSAP implemented by MARD), 2015?

Vietnam pig sector model:• Updated with new data (2012-

2013)• New simulation on import tariffs

for pork

Use VPM to answer policy questions• How will rising income & urbanization affect total

pork demand and the composition of pork demand?

• How will shifts in pork demand influence pig producers, particularly small-scale producers ie will small-scale pig producers be squeezed out of the market?

• How will growth of pig production affect maize markets – will imports grow?

• How would alternative policies, institutions, and technologies influence evolution of pig sector?

Ex ante assessment of VC interventions:• System Dynamics model framework

Thi Thu Huyen Nguyen1, Nam Ha Duong1, Van Hung Pham1, Thi Duong Nga Nguyen1, Fred Unger2, Karl M. Rich3, Lucy Lapar4 1 Vietnam National University of Agriculture, 2 International Livestock Research Institute (ILRI), Kenya, 3 Lab 863 s.r.o., Czech Republic, 4 International Livestock Research Institute (ILRI), Vietnam

Figure 2: Herd demographics and marketing

Figure 1: Representation of the pig value chain

Figure 3: Meat demand and price formation

Figure 4: A model of producer adoption

Materials and methods• Data from a sample of 1000 farmers and value chain actors including all actors in the pig value chain;• A system dynamics (SD) analysis framework is used for investigating ex-ante disease risks, impacts, and policy options (Rich et al. 2011).• SD model looks at the whole value chain (figure 1), including herd demographics and marketing (figure 2), pig demand at a cut level (figure 3), and feedbacks from

producer profits and adoption behavior (figure 4)Results• The SD model highlights contrasts in marketing, breeding, and production practices in three systems (farrow-wean, grow-finish, mixed) in two different provinces of

Viet Nam (Hung Yen, Nghe An)• Key intervention points include improved productivity, cost-effective technologies, and efficient marketing channels • Future simulations to highlight cost-effectiveness of different interventions and system-specific differences.

Contact: Thi Thu Huyen Nguyen, Vietnam National University of Agriculture, huyenquyet2002@gmail.comFunding: The authors acknowledge funding provided by the Australian Center for International Agricultural Research (ACIAR), the Livestock and Fish CGIAR Research Program, and the Agriculture for Nutrition and Health CRP

Using a System Dynamics Framework to Assess Risks of Pig Value Chains in Vietnam

Background Over 4 million households produce pigs, representing 57% of the quantity of meat consumed; The most critical constraints are animal diseases such as FMD, PRRS, CSF, and food safety issues, such as pork borne diseases; How might changes in consumption behavior in response to diseases affect smallholders?Objectives To develop a framework that explores the public health, animal health, and livelihoods impacts of pig diseases and assesses options for

appropriate, pro-poor policy response.

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Priority Activities for Vietnam VC until 2017 Pilot testing of best bets (animal health and food safety constraints),

evaluating their viability for uptake Identify appropriate intervention options, evaluate viability and

effectiveness Development and testing of diagnostic tests for identified priority pig

diseases Assess options for optimal breeding strategies to conform to demand

for breeds in smallholder pig systems Pilot test options for optimal feeding strategies in smallholder pig

systems Capacity development of national partners on all aspects of value

chain research Policy analysis building on developed pig sector model and refining

its structure, parameters & policy scenario Technology dissemination, uptake, and scaling out

CGIAR is a global partnership that unites organizations engaged in research for a food secure future. The CGIAR Research Program on Livestock and Fish aims to increase the productivity of small-scale livestock and fish systems in sustainable ways, making meat, milk and fish more available and affordable across the developing world.

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