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Reducing disease risks and improving food safety  in smallholder pig value chains in Vietnam:  What have we learned from p...
Demand for pork in Vietnam
Meat expendituresPork accounts for 40% of meat expenditures byVietnamese household consumers.
Preference rating for porkVietnamese consumers have a strongpreference for fresh, unchilled pork; thisprovides natural pro...
Changing nature of demand for               porkThe majority of Vietnamese consumers indicatedpreference for lean pork com...
Preferred market outlets for fresh              porkTraditional market outlets remain the mostpreferred purchase outlets f...
Supply of pork in Vietnam
Dominance of pork in livestock total             outputYear          Pig          Chicken Cattle   Others   Total1990     ...
Supply of pork in VietnamMost Vietnamese pigholding households keep very few pigs buton average the size of their herds is...
Projected share of pork supply from       large-scale producers     14%                                                   ...
Competitiveness of smallholders
Scale definition in household pig              production                      Small-scale         Medium-scale           ...
Rates of returnHousehold-based pig producers earn revenues   that can cover costs and generate some   positive profits.
Gross margin (‘000 VND per kg             output)Household-based pig production cangenerate gross margins ranging from 4,0...
Cost per unit output in household-based             pig productionEconomies of scale in piglet production; no    significa...
Feed-use efficiency (in maize        equivalent)
Increasing the proportion of own-produced feed    to total feed use can decrease total feed cost.     This provides cost a...
Cost-efficiency and economies of                    scale   Own produced feed is cheaper per unit of feed value.   As fa...
Contributions to household income and employment
Share of pig income in total        household incomeIncome from pigs accounts for about 14%of rural household income, or 2...
Value added along the pork supplychain where household producers           participateValue added generated in pork value ...
Share of retail price that accrues to producers (based on average pork   retail price of 40,000VND/kg in                  ...
Employment generation in     household pig productionSmallholder pig production generatesemployment estimated at about 4 m...
Emerging concerns of food safetyNearly half the consumers (43%) hadconcerns about pork.Most common was fear of disease fro...
Average ranking of major concerns         about meat safety                                      HN HCMC AllDiseases of li...
Consumer response to pig disease           outbreak•About half of consumers either stop or reduce porkconsumption; about o...
Proportion of pork samples that did not meet standards for different hazards•High level of microbial contamination in pork...
Hazards vs. RiskAlthough hazards were high, pork consumersreport low levels of gastro-intestinal disease(1 episode/person/...
Implications on production                       efficiency    Smallholder pig producers are competitive in producing    ...
Implications on economies of scale   Within smallholder piglet production, marginal    increases in scale can reduce cost...
Implications on food safety   Growing awareness among consumers about food    safety will shape emerging demand for pork ...
The New Project: Research Questions   What are the human health risks and economic costs    of pork-borne diseases in sma...
Goal of the Pig Risk Project To improve the livelihoods of rural and   urban poor in Vietnam through   improved opportuni...
Objectives of the Pig Risk Project   To assess impacts of pork-borne diseases on human    health and the livestock sector...
International Livestock Research Institute             Better lives through livestock          Animal agriculture to reduc...
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Reducing disease risks and improving food safety in smallholder pig value chains in Vietnam: What have we learned from previous work?

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Presented by Lucy Lapar at the inception workshop for the 'Reducing Disease Risks and Improving Food Safety in Smallholder Pig Value Chains in Vietnam' project, Hanoi, August 14, 2012.

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Transcript of "Reducing disease risks and improving food safety in smallholder pig value chains in Vietnam: What have we learned from previous work? "

  1. 1. Reducing disease risks and improving food safety in smallholder pig value chains in Vietnam: What have we learned from previous work? Ma. Lucila A. Lapar On behalf of the Project Team Project Inception Workshop Hanoi, Vietnam 14 August 2012
  2. 2. Demand for pork in Vietnam
  3. 3. Meat expendituresPork accounts for 40% of meat expenditures byVietnamese household consumers.
  4. 4. Preference rating for porkVietnamese consumers have a strongpreference for fresh, unchilled pork; thisprovides natural protection from importedpork.
  5. 5. Changing nature of demand for porkThe majority of Vietnamese consumers indicatedpreference for lean pork compared to other types of pork.No significant change in lean meat consumption from 10years ago, but significant reduction in consumption of highfat meat from 10 years ago.
  6. 6. Preferred market outlets for fresh porkTraditional market outlets remain the mostpreferred purchase outlets for fresh porkby Vietnamese consumers.
  7. 7. Supply of pork in Vietnam
  8. 8. Dominance of pork in livestock total outputYear Pig Chicken Cattle Others Total1990 65 11 14 10 1002000 68 14 9 9 1002005 72 12 8 8 1002009 62 13 11 14 100Source of data: FAOSTAT 2009.Household pig production supply at least80% of Vietnam’s pork.But growth in supply has failed to keeppace with rising demand, resulting inaccelerated increase in real pork prices.
  9. 9. Supply of pork in VietnamMost Vietnamese pigholding households keep very few pigs buton average the size of their herds is slowly rising. Although notshown, the percentage of pigholding households with 21 pigs ormore rose from 0.3% in 2001 to 1.75% in 2006.
  10. 10. Projected share of pork supply from large-scale producers 14% Base simulation 12% High income growth 10% High tech growth in modern sector 8% No tech growth in traditional 6% No tech growth in maize m High income elasticity of o u p n d e a g 4% c-s s r t i l modern High income elast and tech 2% growth in modern Worst case for traditional 0% sectoroheagSrfl 0 1 2 3 4 5 6 7 8 9 10 Year
  11. 11. Competitiveness of smallholders
  12. 12. Scale definition in household pig production Small-scale Medium-scale Large-scaleFarrow-to-wean 1 sow 2-3 sows 4 sows or aboveFarrow-to-finish 1 sow 2-3 sows 4 sows or aboveGrow-to-finish Less than 15 heads From 16 to 40 heads More than 40 heads Production system definition: Farrow to wean – piglet production Farrow to finish – full cycle slaughter hog production Grow to finish – pig fattening operation
  13. 13. Rates of returnHousehold-based pig producers earn revenues that can cover costs and generate some positive profits.
  14. 14. Gross margin (‘000 VND per kg output)Household-based pig production cangenerate gross margins ranging from 4,000to 15,000 VND/kg liveweight of pig produced.
  15. 15. Cost per unit output in household-based pig productionEconomies of scale in piglet production; no significant difference across scale full cycle slaughter hog production and pig fattening
  16. 16. Feed-use efficiency (in maize equivalent)
  17. 17. 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.
  18. 18. Cost-efficiency and economies of scale Own produced feed is cheaper per unit of feed value. As farm size increases: Proportion of purchased feed increases Effective unit cost of feed increases Feed costs account for at least two-thirds of total costs. Small producers can exploit this cost advantage to improve their competitiveness.
  19. 19. Contributions to household income and employment
  20. 20. Share of pig income in total household incomeIncome from pigs accounts for about 14%of rural household income, or 24% of ruralhousehold income from agriculture.
  21. 21. Value added along the pork supplychain where household producers participateValue added generated in pork value chainswhere household pig producers participate isabout 11,700 VND per kg liveweight (or $0.62)
  22. 22. Share of retail price that accrues to producers (based on average pork retail price of 40,000VND/kg in 2007) Farrow to finish Grow to finish 63% 61% 65% 65% 56% 60% Small Medium LargeProducers receive at least half to two-thirds of the retail price of pork. Thisshare increases with scale.
  23. 23. Employment generation in household pig productionSmallholder pig production generatesemployment estimated at about 4 million full-time labor along the pork supply chain,valued at about $3.3 billion or approximately5.5% of Vietnam’s GDP in 2007.Household labor constitutes the main laborinputs in household pig production.Women labor accounts for at least half oftotal labor days in household pig production.
  24. 24. Emerging concerns of food safetyNearly half the consumers (43%) hadconcerns about pork.Most common was fear of disease from pork,followed by fear of chemical contamination,un-fresh pork, and bad smell.Only 1% expressed nutritional concerns.
  25. 25. Average ranking of major concerns about meat safety HN HCMC AllDiseases of livestock 1.2 1.1 1.2Hormone used in animals 2.8 3.0 2.9Antibiotic use 3.0 2.9 3.0Hygiene in market outlet (including 3.8 2.6 3.2meat seller)Hygiene in slaughtering 3.9 2.8 3.4Concentrate feeding of animals 3.7 4.1 3.8Other 3.5 3.1 3.2 Animal diseases tops the list of major concerns of urban consumers about meat safety.
  26. 26. Consumer response to pig disease outbreak•About half of consumers either stop or reduce porkconsumption; about one-third substitute other meats.•More consumers in HCMC than in Hanoi shift tomodern outlets for pork.
  27. 27. Proportion of pork samples that did not meet standards for different hazards•High level of microbial contamination in pork soldin Hanoi and Ha Tay.•Fecal contamination is greatest contributor tobacterial load, likely to be at slaughter point.•Pork sold in supermarkets contains significantlyhigher hazards than pork sold in wet markets.
  28. 28. Hazards vs. RiskAlthough hazards were high, pork consumersreport low levels of gastro-intestinal disease(1 episode/person/year).There is no association between amount ofpork consumed and incidence of gastro-intestinal disease (p=0.60).There is strong positive association betweenconsuming vegetables and reporting illness(p=o.006).
  29. 29. Implications on production efficiency Smallholder pig producers are competitive in producing pork that meet the demand requirements of Vietnam’s fresh meat market. Household pig producers are able to generate incomes from pig raising by exploiting areas where they have cost advantage. Expanding options for own-produced feeds, in terms of choices and quality, can enhance their competitiveness, particularly in areas that are far from commercial feed sources, and complemented with improved access to extension. Limitations in available land and household labor will be constraints to scaling up by household pig producers.
  30. 30. Implications on economies of scale Within smallholder piglet production, marginal increases in scale can reduce cost and increase profitability (e.g., from 1 sow to 2-3 sows). Due to lack of economies of scale in household pig production (except in piglet production), continued support to household pig production will likely improve overall efficiency of the industry. It is not clear that policy support and investment in large scale operations will reduce unit cost of pork production or increase employment.
  31. 31. Implications on food safety Growing awareness among consumers about food safety will shape emerging demand for pork and supply response. Food safety policy should be based on evidence; currently risk to human health by pork is not fully understood. Food safety policy should be based on risk rather than hazards; risks must be distinguished from hazards. Risk is multi-source, and various transmission pathways for diseases including waste water and urban/peri-urban agriculture need to be considered.
  32. 32. The New Project: Research Questions What are the human health risks and economic costs of pork-borne diseases in smallholder pig value chains in Vietnam? What are the critical control points / opportunities for risk management? What is the added utility of risk-based approaches to food safety and pork-borne disease (that focus on human health impacts) compared with current hazard- based approaches (based on presence of pathogens in pork)? What is the most appropriate role for incentive-based innovations in improving management of human and animal health risks in these smallholder pig value
  33. 33. Goal of the Pig Risk Project To improve the livelihoods of rural and urban poor in Vietnam through improved opportunities and incomes from pig value chains as a result of reduced risks associated with pork- borne diseases.
  34. 34. Objectives of the Pig Risk Project To assess impacts of pork-borne diseases on human health and the livestock sector and identifying critical control points/opportunities for risk management. To develop and test incentive-based innovations to improve management of human and animal health risks in smallholder pig value chains. To sustainably improve capacity to assess and manage risks to smallholder pig value chains by engaging smallholders and co-generating evidence.
  35. 35. International Livestock Research Institute Better lives through livestock Animal agriculture to reduce poverty, hunger and environmental degradation in developing countries Project website: www.vietpigs.com.vn ILRI  www.ilri.org
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