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 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.
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.
Projected share of pork supply
from large-scale producersShare of large-scale modern sector in pig production 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 4% High income elasticity of modern High income elast and tech 2% growth in modern Worst case for traditional 0% sector 0 1 2 3 4 5 6 7 8 9 10 Year
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 safety1. ACIAR: Reducing health risk in smallholder pigsystems (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 20122. EcoZD: identify priority zoonoses in SouthVietnam; evaluate risk factors
R4D efforts to date Feeds1.
IFAD-CIAT: Improving forage-based feedingsystems (ongoing in CLV) Vietnam component to include assessment of feeding options in smallholder pig systems Genetics1. GEF-Asia: Conservation through utilization ofanimal genetic resources (ongoing) Vietnam component on pigs and poultry, market surveys?
R4D efforts to date Development
initiatives1. 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 practices3. Heifer Project International in Vietnam – provincial leveldevelopment projects, pigs starting in 2013
Strategic partners Development initiatives and
policy advocacy1. WB, MARD (DLP, DAH), provincial DARDs2. CIDA and VN partners3. FAO3. Private sector – AsVELIS4. NGO – Oxfam, IDE, Heifer (Vietnam) Research1. HUA, HSPH2. MARD and associated research institutes (NIAS, NIVR, IPSARD)3. ACIAR and links with other ACIAR-funded projects
Impact pathway and outcomesPathway: 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 Priority Outcomes & Outputs
2012 2013 2014Outcomes CRP3.7, local and 1. Partners have capacity to Evidence base in each international partners have use basic set of tools for VC target VC for best-bet established an R&D alliance toassessment pro-poor VC transform target VC in each 2. Stakeholders in each development country country are increasingly interventions is aware of potential, influencing constraints and initial development options for pro-poor investment decisions development of target VC
Proposed Priority Outcomes & Outputs
2012 2013 2014Outcomes R&D alliance 1. capacity to use tools Evidence base 2. Stakeholders aware influencing decisionsResearch 1. Scoping study to develop an 1. Inventory and evidence base 1. Best-bet interventionOutputs inventory of feed technology (literature review) for key strategy formulated and options and identify stakeholders constraints and proposed tested, ready for scaling and potential partners. solutions compiled up and out. 2. Rapid assessment of target VC 2. Quantitative assessment of to inform design of in-depth VC performance assessment of animal health constraints, and to identify 3. Technical and economic preliminary priority constraints assessments of key VC and best-bet upgrading strategies components to target for to test. upgrading (e.g. farm-level: husbandry, feeds, breeds, 3. Selected best-best options on health, environmental issues; feeds, animal health (biosecurity, market-level: institutional diagnostics) and possibly breed, environment, food safety, identified and piloting initiated in demand characteristics; selected sites (e.g. with LIFSAP) overall: policies, organizational strategies)
Proposed Priority Outcomes & Outputs
2012 2013 2014Outcomes R&D alliance 1. capacity to use tools Evidence base 2. Stakeholders aware influencing decisionsResearchOutputs 4. Basic toolkit for VC assessment 4. Pig feed ration decision compiled for testing (with CRP 2) support tool – to inform feeding options under a range 5. Analytical framework for of feed types, nutrient value, assessing VC performance and feed prices (build on CIP- established (with CRP 2) LifSim model?)
Current Activities & Resources/Potential LinkagesACIAR
Improving competitiveness of pig producers in an adjusting Vietnam market (recently completed, ongoing engagement with national partners on policy advocacy, outreach); completed Supporting small-scale pig production in Vietnam through reducing risks, enhancing productivity, and upgrading value chains (with CRP 4.3); 2012- 2017 Integrated risk and economic assessment for food safety and nutrition (with CRP 4.3)(Vietnam is one of three sites); June 2013GEF-Asia Development and application of decision support tools to conserve and(Vietnam) 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)USAID ARCC Mekong Climate Change Impact AssessmentsCRPs Humid Tropics (Mekong Region)
Identified Priority Gaps for Resource
Mobilization VC assessment of productivity constraints from animal diseases, prioritization. ACIAR risk assessment and food safety (late 2012 – early 2013) 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; integration in Vietnam team’s work plan; more activities in 1st Q 2013 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.
2012 Activities Inception workshop Pig
Risk Project (August) Rapid value chain assessments prep work Stakeholder engagement RVCA and RIA tools for rapid assessment – development and testing Research on breeds and reproductive performance