Linking fodder to livestock markets in Vietnam – the Ea Kar experience

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Werner Stür & Truong Tan Khanh

FAP Symposium on Feed in Smallholder Systems, Luang Prabang, Laos, 18-19 November 2010

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Linking fodder to livestock markets in Vietnam – the Ea Kar experience

  1. 1. Linking fodder to livestock markets in Vietnam– the Ea Kar experience<br />Werner Stür & Truong Tan Khanh<br />FAP Symposium on Feed in Smallholder Systems <br />LuangPrabang, Laos, 18-19 November 2010<br />
  2. 2. Can smallholder farmers benefit from the growing demand for higher quality meat in urban markets?<br />Q:<br />Urban meat markets<br /> source meat from commercial producers and imports of live animals and chilled or frozen meat.<br />meat standards are growing; e.g. Ho Chi Minh City: <3 years old; body condition score 4-4.5; >300 kg slaughter weight). <br />Smallholder producers<br />Grow and sell animals for local markets, which have low meat quality standards. <br />Any age and size is fine, but producers receive payment for the estimated amount of meat on the carcass so fatter animals receive a higher price.<br />There is a huge gap between what urban markets demand and what smallholders (can) produce.<br />
  3. 3. The Ea Kar experience (1)<br />Situation in 2000:<br />Traditional cattle production had become less and less attractive as a farm enterprise: <br />decreasing grazing lands (feed resources)<br />increased labour requirements to supervise grazing<br />decreasing animal productivity<br />Cattle produced for and sold in the local market<br />Step 1 (stimulating interest): Planted forages<br />Farmers saved labour and were paid more for their fatter cattle on the local market<br />They could see a future for cattle production and many started to ‘Buy thin – Sell fat’<br />
  4. 4. The Ea Kar experience (2)<br />Step 2 (new markets): New markets for fat cattle in provincial urban centres such as Buon Ma Thuot<br />Saturation of local market? <br />Local traders found that urban provincial markets had strong demand for fat cattle <br />Producers continued to modified their production systems<br />Local government saw the potential of cattle production for the economic development of Ea Kar district, and invested in livestock development (ie. extension, policy, credit)<br />Scaling out<br />
  5. 5. The Ea Kar experience (3)<br />Step 3: Producing and marketing beef to city markets and restaurants<br />Traders developed marketing linkages with big city traders (high meat standards)<br />A local slaughter house started to deliver chilled meat to the restaurant market in Nha Trang<br />Production changes including new breeds and further management improvements<br />Farmers formed cattle production groups and signed supply contracts with city traders <br />Scaling out<br />
  6. 6. Ea Kar in 2010<br />3100 HH planted forages (30% of all cattle producers in the district)<br />532 HH were fattening cattle for urban and city markets, and 800 HH produced cross-bred and Laisind calves<br />44 farmers clubs had been established with a focus on cattle production, and 3 farmer clubs had contracts with city traders<br />Farmers formed the ‘Ea Kar Beef Cattle Producer Association’<br />Cattle and beef were sold to (1) local market, (2) provincial market, and (3) several city markets.<br />
  7. 7. Gaps, work still to be done<br />Assist the “Ea Kar beef cattle production association” to become an effective producer organisation<br />Trade mark development: ‘Ea Kar beef’<br />Continue scaling out to nearby districts<br />Provide support for research and development to enhance competitiveness of smallholder beef production<br />Strengthen AI capacity, build capacity for cattle breed planning and scale out improved beef production to more districts<br />Research on relationship between feeding, breeds and beef quality<br />
  8. 8. Conclusions<br />YES - smallholders were able to change their production system to produce cattle that meet the quality requirements of urban markets, AND - local traders were able to gain access urban markets<br />BUT - this transformation occurred in small increments with improvements in production and development of market opportunities going hand-in-hand.<br />

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