Marketing Management Business Plan_My Sweet Creations
Field mission report in xiengkhouang
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ADB loan no.3198-LAO (SF): NSLCP
ADB Loan no. 3198 (SF) and IFAD Loan no.2000001743
Northern Smallholder Livestock Commercialization Project (NSLCP)
Field Mission Report
in Xiengkhouang province, Lao PDR.
Written by:
Phetsoulaphonh Choulatida
Geoffrey J. Q. Bastin
Agribusiness Development Specialists
Phetsomphone Kittiphan
Chief of Infrastructure Engineer
Vientiane, July 2017
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ADB loan no.3198-LAO (SF): NSLCP
Table of Contents
1. Introduction………………………………………………………………………………………………..…………………4
2. Objectives…………………………………………………………..………………………………………………………….4
3. Methodology………………………………………………………………………………………………………………….4
4. Location of field work………………………………………………………………………………………………….…4
5. Participants………………………………………………………………………………………….…………………………4
6. Length of time…………………………………………………………………………………..……………………………5
7. Results and Constructive Discussion……………………………………………………………………………….5
7.1 Stakeholder Orientation…………………………………………………………………………………………..6
7.2 Visit of Japanese Cattle Farm……………………………………………………………..…………………….7
7.3 Proposed site for constructing slaughterhouse………………………………………………………..8
7.4 Visit of Existing Slaughterhouse in Phonsavanh City………………………………..……………..10
7.5 NamNgam Wet Market in Pek District…………………………………………………………………….12
7.6 Wet Market (Agriculture market) in Pek District………………………………………………..…..14
7.7 Cattle Smallholder Farmer Group in Nong village, Phaxay district…………………..……..16
7.8 Wet market of Phaxay District………………………………………………………………………………..18
7.9 Nahoi Livestock Breeding and Husbandry Center……………………………………………………19
7.10 Cattle trading and Export Association……………………………………………………….……..21
7.11 Wet market of Khoun District……………………………………………………………………………22
8. Conclusion…………………………………………………………………………………………….……………………..24
9. Suggestion and recommendation…………………………….…………………………….….…………………25
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ADB loan no.3198-LAO (SF): NSLCP
Abbreviations
ADB : Asian Development Bank
CIE : Chief of Infrastructure Engineer
DAFO : District Agriculture and Forestry Office
DAEC : Department of Agriculture Extension and Cooperatives
DIU : District Implementation Unit
DLF : Department of Livestock and Fishery
DOIC : District Office of Industry and Commerce
HACCP : Hazard Analysis and Critical Control Point
IFAD : International Fund for Agriculture Development
LIC : Loan Implementation Consultant
NAFRI : National Agriculture and Forestry Research Institute
NSLCP : Northern Smallholder Livestock Commercialization Project
PAFO : Provincial Agriculture and Forestry Office
PIM : Project Implementation Manual
PIU : Provincial Implementation Unit
PM : Prime Minister
TOR : Term Of Reference
VPMO : Vientiane Project Management Office
XP : Xayphone
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ADB loan no.3198-LAO (SF): NSLCP
1. Introduction
The LIC team officially mobilized since beginning of March 2017 and following by
agribusiness development consultants started in June of this year. Up to now, there are
many tasks done by agribusiness development specialists, for instance revising and
understanding project documents, cross-check TOR and PIM, met with sector (DLF,
DAEC, NAFRI, UD farm, and XP farm) and share idea on livestock industry in Lao PDR,
had several visits few slaughterhouses and farms in Vientiane capital, and draw up the
concepts of key potential interventions to be done in 2017. In the meantime, business
situation in the project sites need to be discovered in order to outline how market
structure study could conduct aligning with project goal. Therefore, this field research in
Xiengkhouang province will be useful for our analysis due to there are many information
needs to find out in order to put in the agenda and should not delay submitting of the
proposed interventions to steering committee.
2. Objectives
The objectives of the field mission is to (i) visit and interview Japanese abattoir and its
strategic production and marketing plan, (ii) meet with cattle and pig smallholder farmers
in order to identify future business model, (iii) discuss with potential investors, collectors,
and traders, and (iv) discuss with PAFO/DAFO on the project situation to promote
livestock commercialization approach.
3. Methodology
This field mission activity applies a variety of methodologies depending on expected
outputs what it aims to have, there are: stakeholder orientation, field visit, field survey,
community dialogue, opened discussion and coming up with united agreement with
whole community.
To implement this mission, I would like to request counterpart person to join the mission,
particularly one project technical staff from Vientiane Project Management Office
(VPMO) and driver as refers from field mission’s schedule next page below.
4. Location of field work
Xiengkhouang Province, Lao PDR
5. Participants
Mr. Phongxay Yuer Xoingxiayae, Chief of Project Implementation Team of Phaxay district
Mr. Khamphay Phommavong, Chief of Provincial Project Implementation Team
Mr. Nilanh Somvichit, the Operation Manager of DLF
Mr. Phetsomphone Kitiphan, Chief of Infrastructure Engineer
Mr. Phetsoulaphonh Choulatida, National Agribusiness Development Specialist
Mr. Geoffrey J. Q. Bastin, International Agribusiness Development Specialist
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ADB loan no.3198-LAO (SF): NSLCP
6. Length of time
Field Schedule from 18 to 21 July 2017.
Day Activities Responsible Location
Day 1:
Tuesday
18 July 2017
Depart 9.00 am from
Vientiane capital and Arrive
Xiengkhouang province at
20:45 pm
Nilanh (DLF), PIU, DIU,
Phetsomphone (CIE).
Phetsoulaphonh
Geoffrey J. Q. Bastin
Vientiane
capital
Day 2:
Wednesday
19 July 2017
Meeting with PAFO staff to
discuss the situation of the
project. And Visit and
interview Japanese abattoir
manager at office to share its
strategic production and
marketing plan
Nilanh (DLF), PIU, DIU,
Phetsomphone (CIE).
Phetsoulaphonh
Geoffrey J. Q. Bastin
XiengKhouang
province.
Day 3:
Thursday
20 July 2017
Meet cattle and pig farmer
groups to identify business
models.
Meeting investors and
livestock traders to
understand market systems
Nilanh (DLF), PIU,
Phetsomphone (CIE).
Phetsoulaphonh
Geoffrey J. Q. Bastin
XiengKhouang
province.
Day 4:
Friday
21 July 2017
Return to Vientiane capital
and Arrive at 20:45 pm.
Nilanh (DLF), PIU, DIU,
Phetsomphone (CIE).
Phetsoulaphonh
Geoffrey J. Q. Bastin
Vientiane
capital
7. Results and Constructive Discussion
This activity of field mission will lead to build up long term income for the smallholder
farmers under the project intervention whenever appropriate system is in place.
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ADB loan no.3198-LAO (SF): NSLCP
7.1. Stakeholder Orientation
To ensure that our field mission program goes smoothly, brief discussion made after
arriving to Xiengkhouang between Mr. Khamphay Phommavong (Chief of Provincial
Project Implementation) and Agribusiness sub-team. On Wednesday 19 July 2017, the
agribusiness sub-team approached and had a short-meeting with Mr. Khamsy
Chanthavongsy known as Director of General PAFO, and Mr. Sanesavath Vanthala, the
deputy of PAFO in xiengkhouang. The objective was to introduce our field research
mission to the Provincial Project Steering Committee (PPSC), our team received
overwhelming welcome and a positive suggestion from Director of General PAFO.
Figure 1. Having a short introduction meeting with PAFO.
The key message of our discussion:
- Provincial authorities made a decision and Proposed Site Phonsavan Abattoir at the
former Taiwanese Timber Factory, it’s approximately 2 KM of distance from
Phonsavanh town goes down on the Northern road-13 on the way to Vientane
capital. Dr. Imori and Mr. Xayphone are both target investors for new
slaughterhouse in Xiengkhouang province.
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ADB loan no.3198-LAO (SF): NSLCP
- At high level of policy making dialogue, the slaughterhouse will be financing by
NSLCP said by head of PAFO.
- The feasibility study on slaughterhouse should be conducted as soon as possible
since PAFO of Xiengkhouang already submitted letter of request to VPMO a few
months ago and PAFO needs to follow up the progress.
Contact persons:
Mr. Khamphay Phommavong, Chief of Provincial Project Implementation in
Xiengkhouang, and he is also the head of provincial veterinary network
Mobile phone no. +856 (0)20 22207889
Email:
7.2. Visit of Japanese Cattle Farm
The representatives from Lao-Jagro Development Xiengkhouang Co.,LTD; it’s 100%
owned by Japanese. Luckily this farm accepted our request to visit the Japanese cattle
farm. By this time, Dr. Imori the owner of this business was not there, his background is
veterinary and he is fifth generation of cattle farm in Hokkaido in the north of Janpan
“Hokkaido is very cattle control”. Permission has given to Mr. Sengpanh Phetdara as
farm manager who provided good discussion. This Japanese farm started since 2014
including baseline survey and 5,000 hectares of land concession approved by local
government and currently they proposed another 5,000 hectares in Senlad area (former
Italian legume farm), soil texture is very poor “acidity” and need to improve with lime,
gypsum, molasses, and dried leaves application before growing forage that imported
from Australia including modernized farm equipment. Cattle also imported from
Australia by airplane 42 hours to Wattay International Airport in Ventiane capital and
transported by vehicles to Xiengkhouang. In the beginning, feeds and silage prepared
and brought hays from Australia and stock 3-4 months.
The Lao-Jagro Development farm heavily invested with 859 head of cattle, 250 Holstein
for dairy and 609 Black Angus for beef. The forage crop what they are growing such as
Oats, Corn, Napier and Ruzi for feed. The planned herd is 5,000 and up; it seems cross
breeding with local cattle from Laos it’s not plan, only pure varieties of Holstein and
Black Angus, my view is that this investment is an enclave which has nothing to do with
smallholder commercialization - the farm could be in Japan or Ireland for all it has to do
with Laos. It may well be a model for investment, but it is entirely different in every
respect from the smallholder approach and market. So they are some time away from
being able to consider actual production. They will do their own slaughtering (says the
manager - the PAF) after growing cattle herd for 3-5 years, it seems to think they will
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ADB loan no.3198-LAO (SF): NSLCP
operate the new slaughterhouse in this farm). Animal disease (Haemorrhagic
Septicaemia, Foot and Mouth Disease, etc ) is controlling by Lao Veterinary team with
backstopping by Dr. Imori, the advanced veterinary expert.
Market is not activated yet “Long term plan”, currently milks is giving free to
communities of Phonsavanh.
Figure 2. Japanese cattle farm in Xiengkhouang
Contact persons:
Mr. Sengpanh Phetdar (Mr. Noy), Farm manager
Mobile phone no. +856 (0)20 55870853
Email: noyxkhcowfarm@gmail.com
Dr. Imori, Cattle farm owner
Mobile phone no. +856 (0)20 55508022
Email: imorilrd@yahoo.co.jp
7.3. Proposed site for constructing slaughterhouse under NSLCP in Xiengkhouang
Suggested by Mr. Khamsy Chanthavongsy known as Director of General PAFO, and Mr.
Sanesavath Vanthala, the deputy of PAFO in xiengkhouang. Agribusiness sub-team went
to the Proposed Site Phonsavan Abattoir “ former Taiwanese Timber Factory “
Location: latitude is 19.473193; longitude is 103.159542
Name: former Taiwanese Timber Factory
Area: 3-5 hectares as same size as Hungarian abattoir in Namxouang
Facilities: Old building with no any equipment left at all
Produce: none
Business Model: stopped operating
Cost of production: None
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ADB loan no.3198-LAO (SF): NSLCP
Revenue: None
Net Profit: None
Management: None
Training and extension: None
Investment: None
Figure 3. Proposed Site of New Abattoir in Phonsavan
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ADB loan no.3198-LAO (SF): NSLCP
Figure 4. Proposed Site Phonsavan Abattoir – former Taiwanese Timber Factory
7.4. Visit of existing slaughterhouse in Phonsavanh city
To understand the beef market structure, our team visited and interviewed Phonsavanh
city slaughterhouse operator and some findings showed below:
Location: this slaughterhouse located at Phonsavang village, Pek district, Xiengkhouang
province. This slaughterhouse site locates in close proximity of residential areas, leading
to noise, smell and local waterway pollution and probably affecting local residents and
businesses adversely. Addressing pollution and site selection will require major
investment but needs to be considered and addressed to replace by new
slaughterhouse.
Name: Phonsavan City Slaughterhouse.
Area: 0.5 hectare.
Slaughter facilities and staff: all facilities what we visited did not adhere to any
systematic, poor hygienic slaughtering and processing of animals. There was no
inspection and weak management of resources and staff since the site was open,
allowing free access of people, wild and domestic animals during the day and night
when slaughtering occurred.
Produce: carcass products of cattle, buffaloes, and pigs.
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ADB loan no.3198-LAO (SF): NSLCP
Business Model: Mr. Phayvanh Phommaxay has been operating this slaughterhouse for
five years which inherit from his mother since the slaughterhouse business was 20 years
operating by his mother. His business model is to provide slaughtering service to
livestock traders; the charge is 45,000 kip per head of cattle (7,000 kip per head paid for
DAFO), and 35,000 kip per head of pig (3,000 kip per head paid for DAFO). There are
four veterinarians from DAFO will be daily based in slaughterhouse. It is really
interesting that the pigs slaughtering here brought from CP in Vientiane and
Khammouane province.
Cost of production: estimated in amount of 420,000,000 Lao Kip (USD 52,500) for
electricity, water supply, fuel woods, transport, telecommunication, staff’s salary, tax
and equipment depreciation.
Revenue: 950,400,000 Lao Kip (USD 118,800) per year.
Net Profit: 530,400,000 Lao Kip (USD 66,300) per year.
Management: this slaughterhouse did not employ any standard operating procedures
or standards. Animals were kept for prolonged times at the facilities prior to slaughter
often on the slaughter floor contaminating the environment with faeces and urine.
Animals did not have individual permanent identification and no permanent records
were kept at the slaughter facilities. Hence the facilities and processes increase the risk
of infectious disease spread to the regions (i.e. Foot and Mouth Disease, Haemorrhagic
Septicaemia, Classical Swine Fever, Porcine Respiratory and Reproductive Syndrome)
and microbial and parasitic contamination of the sites, animals and carcass products.
Mitigation of those risks needs careful planning by detailed mapping in the HACCP
approach and focus on critical control points. While ‘best practice’ may be difficult to
achieve in the short term, across all slaughter sites there were many large risks
identified that if minimized or even eliminated will reduce to acceptable levels the risks
currently posed to food safety, public health, animal health, worker and animal welfare.
According to assessment recommendation and visited by ACIAR in 2011, it seems that
absolutely no change what our team could see today.
Training and extension: None
Investment: Initial capital was 200,000,000 Lao Kip (USD 25,000) for infrastructure plus
100,000,000 Lao Kip (USD 12,500) of newly registered capital in 2014.
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ADB loan no.3198-LAO (SF): NSLCP
Figure 5. Phonsavan City Slaughterhouse
Contact person:
Mr. Phayvanh Phommaxay, business owner
Mobile phone no.: +856(0)20 55660435
Email:
7.5. NamNgam wet market in Pek district
The NamNgam wet market is located in Phonsavanh city, the condition of existing
infrastructure of this wet market is old structure such as concrete columns, and roof
frame built by wooden and ordinary Zinc cover sheet especially at the meat section
areas. There were old table built by brick, the displaying of tables were concrete ceramic
tile, but mostly cracking down found many points, and no metal stainless hanging.
Moreover the wet market was very wet floor with simple design of market table and
low hygienic system. The meat section had not water tap for washing in each tables and
drainage system was so bad. But at least, a toilet was there.
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ADB loan no.3198-LAO (SF): NSLCP
Urban Market Profile:
1. Name of market: NamNgam wet market
2. Location: NamNgam village, Pek district, Xengkhouang province
3. Number of butchers: 60
-Fresh beef butcher: 12
-Fresh buffalo beef butcher: 0
-Goat beef: 0
-Fresh pork butcher: 48
-Poultry butcher: 9
-Fish: 10
4. Number of meats sold:
-Beef: 200-250 kg per day
-Buffalo beef: 0
-Goat beef: 0
-Pork: 2,500-3,000 kg per day
-Poultry: 100-150 kg per day
-Fish: 400-500 kg per day
5. Number of butchery shop displaying on tables: 60
6. Market toilet: one place
7. Washing hands place: pipes and buckets
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ADB loan no.3198-LAO (SF): NSLCP
Figure 6. Butchery shops in Nam Ngam wet market in Pek district.
7.6. Wet market (agriculture market) in Pek district
Early morning visit around 5 am, the Suangphoukham agriculture wet market is
urbanized market and it was selected in our project plan for improving hygienic and
food safety standard. Our observing was concluded that it is not great surprising the
condition of existing Phoukham agriculture wet market which presents of concrete
butchery tables for selling meat, but no metal stainless hanging at all. Along the
pathway of butchery shops is dirty wet, the floor paved by concrete with simple design
of market table and low hygiene. A good quality of roof frame built by steel tube roof
and Aluminum Zinc cover sheet and the meat section had done with water tap and good
water supply including toilet but the drainage system was so bad.
Urban Market Profile:
1. Name of market: Suanphoukham agriculture wet market
2. Location: Phonsavanh village, Pek district, Xengkhouang province
3. Number of butchers: 34
-Fresh beef butcher: 14
-Fresh buffalo beef butcher: 0
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ADB loan no.3198-LAO (SF): NSLCP
-Goat beef: 0
-Fresh pork butcher: 20
-Poultry butcher: 25
-Fish: 15
4. Number of meats sold:
-Beef: 400-500 kg per day
-Buffalo beef: 0
-Goat beef: 0
-Pork: 700-900 kg per day
-Poultry: 150-200 kg per day
-Fish: 600-700 kg per day
5. Number of butchery shop displaying on tables: 34
6. Market toilet: one place
7. Washing hands place: pipes and buckets
Endeavoring of district authority in cooperation with District Office of Industry and
Commerce (DOIC) strongly promote the Prime Minister’s decree no.474/PM, issued
date 18 November 2010 on commodity price and service fee. There are three categories
of meat products with price declaration on board and standardized scale were set up.
Category one: cattle and buffalo beefs per Kilogram
Grade A: 60,000 Lao Kip
Grade B: 50,000 Lao Kip
Offal: 50,000 Lao Kip
Bone: 20,000 Lao Kip
Category two: Pork per Kilogram
Native pigs (Grade A): 40,000 Lao Kip
Native pigs (Grade B): 35,000 Lao Kip
Factory pigs (Grade A): 35,000 Lao Kip
Factory pigs (Grade B): 30,000 Lao Kip
Offal: 30,000 Lao Kip
Bone: 15,000 Lao Kip
Pig feet: 20,000 Lao Kip
Lipid: 10,000 Lao Kip
Category three: Poultry meat per Kilogram
Native chicken carcass: 50,000 Lao Kip
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ADB loan no.3198-LAO (SF): NSLCP
Factory chicken carcass: 40,000 Lao Kip
Duck carcass: 50,000 Lao Kip
Offal’s chicken: 40,000 Lao Kip
Offal’s duck: 40,000 Lao Kip
Duck’s heads: 10,000 Lao Kip
Duck’s wings: 10,000 Lao Kip
But goat meat and aquatic meats are absent here, the price freely determine by traders
with closely monitor from District Office of Industry and Commerce (DOIC) in Pek
district.
Figure 7. Beef price board and certified scale set up in the public.
7.7. Cattle smallholder farmer group in Nong village, Phaxay district
Visiting of Nong village, Phaxay district, Xiengkhouang province was done on Thursday,
20 July 2017. Community dialogue conducted with 25 cattle member, the session led by
PAFO and DAFO staff, and following question raised by LIC team. Findings of community
discussion showed some key bullet points below:
• Location: 19.214254 N; and 103.197293 E
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ADB loan no.3198-LAO (SF): NSLCP
• 40 Km of distance from Phonsavanh city via Phaxay district capital
• Two groups were established in August 2016
• 25 members of cattle group (group one consists of 13, and 12 for group two)
• Forage crop planted 45 hectares of Ruzi, 1,5 tons per year of seeds sold to other
provinces
• Cattle: 443 heads
• Buffalo: 33 heads
• Calf production: 150 calves
• Annually sold: 14 cattle
• Price sold: 1,000,000-7,000,000 Lao Kip
• Max weight: 200 Kg with 8,000,000 Lao kip
• Use cattle at the age of 3-4 years old for fattening period of 1-2 years and sell
Figure 8. Landscape of Nong village where cattle raise and forage crop grows.
The cattle group of Nong village is really nice group formulation with clear vision and
mission. All members aim to produce calves and sell to other farmer groups for
fattening and sell. Since the location is preferable for animal breeding and husbandry.
The group leader has received training on cattle breeding provided by NAFRI. Cattle
member understood that they cannot grow their herd much more than 476 heads since
forage land limited. Currently he is able to breed his cattle and demonstrate to him
group member to prove ability. Member grow forage of Ruzi 45 hectares and annually
produce 1,5 tons of seeds and sold to other provinces but not enough as market
needed. Member sold cattle to traders individually that fail to meet fair price. In near
future, this group wish to have collective action trade by propose bidding in each three
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ADB loan no.3198-LAO (SF): NSLCP
month, this could increase farmer group’s bargaining capacity to reach fair price and
traceability said by Mr. Thong the group leader.
7.8. Wet market of Phaxay district
This wet market identified as district market, it supposed to be of good condition with
respect to efficiency of food and meat handling and sanitation. Our quick assessment
found that the condition of existing market infrastructure was simply old structure such
as steel roof and ordinary Zinc cover sheet and steel columns damaged at some poles,
roof structure are not strong enough. The meats displaying wooden tables in whole wet
market are mostly using as temporary purpose, the meat section had not water tap for
washing things. Besides, the wet market had lacked clean water and water drill with 45
m depth to underground soil. This market has no toilet. However, there are so many
things to improve meat section this market as describe below:
1. Pour concrete ground slab in meat section areas including make good drainage,
2. Replace some steel column and repair steel roof frame would rather do urgent,
3. To build suit of table for meat section only,
4. To build outside toilet,
5. And water drill.
Rural Market Profile:
1. Name of market: Muang Phaxay wet market
2. Location: Lathkay village, Phaxay district, Xengkhouang province
3. Number of butchers: 4
-Fresh beef butcher: 0
-Fresh buffalo beef butcher: 0
-Goat beef: 0
-Fresh pork butcher: 4
-Poultry butcher: 8
-Fish: 0
4. Number of meats sold:
-Beef: 30-50 kg per day
-Buffalo beef: 0
-Goat beef: 0
-Pork: 50 kg per day
-Poultry: 30 kg per day
-Fish: 100 kg per day
5. Number of butchery shop displaying on tables: 4
6. Market toilet: no
7. Washing hands place: no
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ADB loan no.3198-LAO (SF): NSLCP
Figure 9. Poor infrastructure rural market leads to further improvement.
Contact person:
Mr. Phongxay Yuer Xoingxiayae, Chief of Project Implementation Team of Phaxay district
Phone no.: +856 (0)20 22562679
Email:
7.9. Nahoi livestock breeding and husbandry center
This centre belongs to government; the main vision of this center is to improve livestock
varieties for marketable quality of beef sector in Xiengkhouang province. There is total
160 hectares of land area, 13 hectares of Ruzi forage crop that can harvest 17 tons of
green graze per hectare. Every year, this center welcome 10 college interns to do thesis
on animal breeding, and silage research. This center has 102 cattle (6 parent stocks for
red shindig, and 1 parent stock of Brahman), the heard manage by 11 staff.
Mr. Bounhom, deputy head of the center reported that the center established in 1997
with technical and financial supported from IFAD and ending in 2005. In term of heard
management, IFAD established cattle bank with 8,000 cattle for farmer groups, meaning
that each five year farmers who access to this cattle bank will give 2 calves to other
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household, currently this cattle bank has been grown 3 billion Lao Kip in the bank. This
money can be used with written proper project proposal and granting approval from
provincial governor only.
The centre was asking by private sector (Dr. Imori, Japanese investor, and Mr.
Xayphone, XP farm) to take over and run for better livestock business, but denied by
local government since breeding and husbandry are key part of livestock business.
Figure 10. Nahoi Livestock Breeding and Husbandry Centre.
Contact person:
Mr. Khambai, Head of Nahoi Livestock Breeding and Husbandry Centre
Phone no.: +856 (0)20 56832999
Email:
7.10. Cattle trading and exporting association
The live cattle trading and exporting association has been trading for 9 years but
established as association in November 2012. Total member is 30 traders, only six
traders export live animals to neighboring countries. The association employed
provincial trade system known as “Lump sum tax payment ” in amount of 6,000,000 Lao
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Kip per year, when member purchases animals from smallholder they will pay 50,000
Lao Kip per head of cattle to PAFO, this is what has been calling “agriculture commodity
movement tax”.
Export to China:
Vehicle type: 12 wheels truck
Number of cattle sold: 21 heads/trip
How frequently trade: 2 trips/month
Transport cost: 14,000,000 Lao Kip/round trip
Cattle price: 6,000,000 Lao Kip/60 Kgs of real meat weight
Buffalo price: 16,000,000 Lao Kip/230 Kgs of real meat weight
Chinese traders bought live animals from Laos and transport to Chinese farm for
fattening and slaughter in the province near the border.
Export to Vietnam:
Vehicle type: 6 wheels truck
Number of cattle sold: 15 heads/trip
How frequently trade: 3 trips/month
Transport cost: 6,000,000 Lao Kip/round trip
Cattle price: 12,000,000 Lao Kip/180 Kgs of real meat weight
Buffalo price: 13,000,000 Lao Kip/230 Kgs of real meat weight
Vietnamese traders bought from Laos and some part of animals slaughter in Nge
Anh province near border of Laos, and some animal sold to China.
How NSLCP benefit to this association?
The association is happy to work with NSLCP due to the project facilitates market
linkage for smallholder to traders by establishing producer group for bulk trade. Today
association member found difficulty to purchase animals and problem can be solved if
secured supply takes in place before contracting to buyers in neighboring countries.
If abattoir was built properly they are happy to export meats if quality accepted by
foreign buyers that could reduce tax and add value to beef products.
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ADB loan no.3198-LAO (SF): NSLCP
Figure 11. Dialogue arrangement with representatives of live cattle trading association
Contact person:
Mr. Kolakan, Chair of Association
Mr. Khamkeng Phommachanh, Vice-chair of Association
Mr. Ouma Vongprachanh, Representative of member
Phone no.:+856(0)20 55661079; 55235656
Email:
7.11. Wet market of Khoun district
On the way back to Vientiane capital via Paksan district, Bolikhamxay province. The
traveling to khoun district should pass road No.1D with 40 km of distance from
Phonsavanh city. Our team was taking opportunity to observe wet market for quick
assessment.
Rural Market Profile:
1. Name of market: Muang Khoun wet market
2. Location: Siphom village, Khoun district, Xengkhouang province
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3. Number of butchers: 41
-Fresh beef butcher: 3
-Fresh buffalo beef butcher: 0
-Goat beef: 0
-Fresh pork butcher: 35
-Poultry butcher: 3
-Fish: 0
4. Number of meats sold:
-Beef: 35-50 kg per day
-Buffalo beef: 0
-Goat beef: 0
-Pork: 70-80 kg per day
-Poultry: 40 kg per day
-Fish: 180 kg per day
5. Number of butchery shop displaying on tables: 10
6. Market toilet: two places
7. Washing hands place: no
The condition of market infrastructure consists of two buildings; one is old and one is
new building, the structure is good quality such as wooden roof and Aluminum Zinc
cover sheet including concreted column too. Actually, this market is newly
approximately 1 year construction. The displaying tables in whole wet market mostly
are using temporary purpose for local wooden displaying tables, the meat section had
not water tap for washing things like other markets above. In addition, the wet market
has already 2 toilets. Our project just builds a suit of table for meat section only.
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ADB loan no.3198-LAO (SF): NSLCP
Figure 12. butchery shops and market infrastructure in Khoun district.
8. Conclusion
Provincial authority has already firmly decided on the new abattoir site to be built at the
place of former Taiwanese Timber Factory. While Lao-Jagro Development Co.,LTD
known as “Japanese cattle farm” will build own abattoir after 5 years growing herd.
The Nahoi Livestock Breeding and Husbandry Center is key engine for commercializing
the smallholder livestock in Xiengkhouang. It supposes to operate private sector and
produce calves to smallholder fatteners. Since Nong village in Phaxay district could be
breeding site to increase numerous calves in upland and distribute to lowland for
fattening and selling to abattoir “Newzeland model”.
In terms of food safety compliance, the existing abattoir in Phonsavanh city is really
terrible practices, it’s impossible to improve rather builds the new one in the proposed
site as suggested by provincial authority mentioned above. Meanwhile, wet markets will
install stainless metal tables to demonstrate basic hygienic.
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ADB loan no.3198-LAO (SF): NSLCP
9. Suggestion and Recommendation
Present Agribusiness work plan 2017 to the project technical steering committee to
accept this plan and open green light to team to do as TOR.
Conduct feasibility study on slaughterhouse in Xiengkhouang and LuangPraBang in order
to understand whole picture of Lao beef sector.
Identify business models with LPMGs, and links between medium scale farmers and
smallholder farmers.
Prioritize on policy and regulatory assessment.
Vientiane Project Management Office (VPMO)
Contact:
Phetsoulaphonh N. Choulatida
Geoffrey J. Q. Bastin
Phetsomphone Kittiphan
Phet.choulatida@yahoo.com
gqb@foodworks.ag
phet36477@gmail.com
Agribusiness Development Specialists
Chief of Infrastructure Engineer
ADB loan no.3198-LAO (SF)
NSLCP