Upgrading in smallholder pig
value chain in Vietnam
Nguyen Thi Duong Nga
Hung P.V, Hung N.V, Huyen, NTT, Nhuan NH, Giang Huong, Pho NV,
Quang BV , Trang NTH

Introduction
Vietnam: 3.3 million of pig producers in 2016
(smallholders); abt. 38% of total number of ag. households
Improve in value chain is needed
- changing market places
- changing business environment
- production resources

Objectives
1. Review of selected upgrading activities in
smallholder pig value chain in Vietnam
2. Implications for further upgrading in pig
value chain in Vietnam

Methodology
Data collection
- Survey (2013, 2015)
- FGDs, In-depth interviews
(2018)
All actors in pig value chain
Case study: 2 cooperatives

A broad context: smallholder pig value chain

Overview of pig sector
Pig stock (millions)
Total pork production >3.8 M ton in 2018
16.3
20.2
27.4 27.4 27.8 27.4
1995 2000 2005 2010 2015 2018

Changes in market places
Demand side
Rising population
1.3 % /annum (1995-2017)
Rising income
(per capita): 6 – 49 M VND
(2000-2017)
China market
Supply side
Breeding, Feed
More than 300 MF
Integrated Firms in food
Prohibited residuals in
pork (2005)
Substitutes
Emerging niche markets and export market (live)

Down price in 2016 (VND/kg)
0
10,000
20,000
30,000
40,000
50,000
60,000
2013 2014 2015 2016 2017 2018 2019
6.2
9.1
12
2.41
2013 2014 2016 2017
Live pigs exported to China (in
M heads)

Upgrading activities
• Product (>4)
• Process
• Functional
• Distribution channel

Products
Herbal pork
Product upgrading: herbal pork
Mr. Chuyen (Red River Delta)
- Feeds: Agricultural produces
+ herbal leaves
- Herbal medicine for treating
diseases

Products
Product upgrading: Organic pork
Mr. Tuan (Central of VN)
- Use feed without antibiotic
and hormone
- Biomass
- Herbal medicine for treating
diseases

Products
Product upgrading: Que pork
Ms. Lien (Ha Noi)
- 4 farms (3 contracted)
- Perionyx excavates mixed
with agricultural feed

Product upgrading: VietGAHP
Initiated by LIFSAP in 2012, 12 provinces (farm, Piglet
Hygiene, Feed, Water, Disease, Waste, Human, Records & Traceability)
Ms. Hang (Central of VN)
- Feeding with commercial feed + Agricultural
produces
- Apply VietGAHP protocol

Product upgrading: others
• Crossbred local pig x wild pig;
Mong Cai pig x indigenous pig
• Conventional feeding
pig fed with
spirulina
pig fed with snail+
Perionyx excavates
Traditional feeding (no
concentrated feed)

Functional upgrading
Small farm get bigger and do
processing, retailing (self-integrated
farm)
Mr. Duc, Nghe An
- Produce feed (introduced
by Jica)
- Build SH
- Contracted to
supermarket, schools
Mr. Tuan, Nghe An –
Slaughter house
- Build SH
- Cooling, packing meat
- Sell to school

Functional upgrading
Forming of cooperatives
• Buy feed in Bulk with cheaper price
and quality
• Collect pigs to sell to SH, big traders
• Processing (slaughtering pigs) and
supply supermarket and
institutional buyers
Mr. Dau Ngoc Hoa, Chair
Canh Nong Cooperatives
• Founded 2016
• 62 pig producers
• VietGAHP

Functional upgrading
Duc Thang Coop.
Founded in 2017
16 members
- Feed
- Veterinary
- Selling pigs
- Plans to set
up a SH
Mr. Vu Minh Chien, Chair

Contract farming farmers and integrated
companies
• Involved in big integrated feed, food
companies: Masan, CP, DABACO

Process upgrading
• Apply of VietGAHP in pig production
• Total production cost/100 kg live weight
Item
VietGah
p (1)
Non_VietGah
p
Gahp (2)
Non_VietGah
p
(1-2) (1-3) (2-3)
Total cost 2942.7 2863.5 3252.1 79.2 -309.4** -388.6***
Total
revenue
3700 3561 3976.7 139.0* -276.7*** -415.7***
Gross
margin
757.3 697.5 724.6 59.8 32.7 -27.1

Distribution channel upgrading
• China market demand increased (2011-
2016) then down
• Emerging of new distribution channel
– Supper market
– Food chain
– Convenient store

Upgrading in channel distribution: Super market

Upgrading in channel distribution: Convenient
Store

Upgrading in channel distribution: Food chains

Upgrading activities
Product Process
Functional Dist. channel
Changing demand
quality, safe meat
Substitutes
Large integrated
food chains
Consumer behavior
change

The upgrading
• Special pork: for niche market, in modern
retailing system
• VietGAHP pork: potential for a large number
of consumers

Challenges in VietGAHP pig value chain
• Synchronization of market infrastructures
and others (processing, retailing)
• Business environment (price; food safety
monitor)
• Consumer awareness and trust

Implication: need incentives for the VC
upgrading
- Favorable for GAHP products to be marketed (esp.
institutional buyers; organize meeting bt. Producers
+ buyers)
- Communication to consumers about the product
- Production and market infrastructure upgrading
- Create a fair competitive environment for actors
(Food safety law; inspection of illegal food trading;..)

This work is financed by
ACIAR
It is implemented in a partnership with
MARD and its various research institutions and line
agencies in Vietnam
It contributes to the CGIAR Research Program on
Livestock
Acknowledgements

This presentation is licensed for use under the Creative Commons Attribution 4.0 International Licence.
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