Presented by Lucy Lapar at the Vietnam Smallholder Pig Value Chain Team Meeting, Delhi, India, 30 April 2012.

1. Pig Value Chain in Vietnam
CGIAR Research Program 3.7
Vietnam Smallholder Pig Value Chain Team Meeting
Delhi, 30 April – 1 May 2012
Lucy Lapar

2. 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

3. Dominance of pork in livestock total
output
Year Pig Chicken Cattle Others Total
1990 65 11 14 10 100
2000 68 14 9 9 100
2005 72 12 8 8 100
2009 62 13 11 14 100
Source of data: FAOSTAT 2009.
Household pig production supply at least
80% of Vietnam’s pork.
But growth in supply has failed to keep
pace with rising demand, resulting in
accelerated increase in real pork prices.

4. Supply of pork in Vietnam
Most Vietnamese pigholding households keep very few pigs but
on average the size of their herds is slowly rising. Although not
shown, the percentage of pigholding households with 21 pigs or
more rose from 0.3% in 2001 to 1.75% in 2006.

5. Projected share of pork supply from
large-scale producers
Share 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

6. Share of pig income in total household
income
9.2% Crop
Pig
20.2% 38.2%
Non-pig
livestock
Other
agriculture
11.6% Non-agriculture
production
13.9% Wage and salary
3.6%
3.3%
Income from pigs accounts for about 14%
of rural household income, or 24% of rural
household income from agriculture.

7. Value added along the pork supply
chain where household producers
participate
Pig Consumers
Producers Butchers Retailers
Feed
Suppliers
• +2400V
ND • +1800
($0.13) • +6200 • +1300
VND VND
• 21% VND ($0.09)
($0.33) ($0.07)
• 15% • 11%
• 53%
Value added generated in pork value chains
where household pig producers participate is
about 11,700 VND per kg liveweight (or $0.62)

8. Structure of Feed Cost
by Production System and Scale
Purchased feed Own produced feed
100%
80%
60%
40%
20%
0%
Small Medium Large Small Medium Large Small Medium Large
Farrow to Wean Farrow to Finish Grow to Finish
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.

9. Feed-use efficiency (in maize
equivalent)
Kg maize
equivalent/kg
liveweight gain
6
5
4
3
2
1
0
Medium
Medium
Medium
overall
Large
Overall
Large
Overall
Large
Small
Small
Small
Farrow to wean Farrow to finish Grow to finish
Purchased feed Own produced feed

10. Cost per unit output in household-based pig
production
25
20
15
Small
Medium
10
Large
5
0
Farrow to Wean Farrow to finish Grow to finish
Economies of scale in piglet production; no
significant difference across scale full cycle
slaughter hog production and pig fattening

11. Gross margin (‘000 VND per kg output)
16
14
12
10
Small
8 Medium
Large
6
Overall
4
2
0
Farrow to Wean Farrow to finish Grow to finish
Household-based pig production can
generate gross margins ranging from 4,000
to 15,000 VND/kg liveweight of pig produced.

12. 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

13. R4D efforts to date
 Animal health and food safety
1. ACIAR: Reducing health risk in smallholder pig
systems (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 2012
2. EcoZD: identify priority zoonoses in South
Vietnam; evaluate risk factors

14. R4D efforts to date
 Feeds
1. IFAD-CIAT: Improving forage-based feeding
systems (ongoing in CLV)
 Vietnam component to include assessment
of feeding options in smallholder pig
systems
 Genetics
1. GEF-Asia: Conservation through utilization of
animal genetic resources (ongoing)
 Vietnam component on pigs and
poultry, market surveys?

15. R4D efforts to date
 Development initiatives
1. 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 practices
 Others?
 ?

16. Strategic partners
 Development initiatives and policy advocacy
1. WB, MARD (DLP, DAH), provincial DARDs
2. CIDA and VN partners
3. FAO
3. Private sector – AsVELIS
4. NGO – Oxfam, IDE
 Research
1. HUA, HSPH
2. MARD and associated research institutes
(NIAS, NIVR, IPSARD)
3. ACIAR and links with other ACIAR-funded projects

17. Impact pathway and outcomes
Pathway: 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%)

18. Proposed Intermediate Outcomes
 Priority VC constraints resolved and/or relaxed
 Increase in farm level productivity (30%)
 Evidence and mechanism for scaling out are in place.

19. Value Chain Outcomes: Inputs and Services
 Increased access by smallholders to good quality and cost-
effective inputs such as appropriate feeds and breeds.
 Improved access by smallholders to efficient and cost-effective
veterinary and extension services.
 Increased availability of cost-effective feeding options.
 More efficient markets for inputs and services in place.

20. Value Chain Outcomes: Production
 Improved productivity from adoption of good quality, cost-
effective feeding options.
 Increased survival, growth, and disease resistance of sows and
piglets.
 Enhanced production cost-efficiency from adoption of suitable pig
breeds.
 Reduced incidence of pig diseases (e.g., PRRS, classical swine
fever, diarrhea, cysticercosis, among others).
 Improved uptake by smallholders of appropriate pig husbandry
and animal health practices.

21. Value Chain Outcomes: Transport and Processing
 Reduced incidence of food-borne and water-borne diseases
associated with pork consumption.
 Increased public and private sector investment in upgrading of
slaughtering and marketing facilities.
 Better trained slaughterhouse operators, carcass
transporters, and other pork supply chain actors.

22. Value Chain Outcomes: Marketing
 Increased availability of safe and hygienic pork supplied by
smallholders or household producers.
 More efficient marketing system and arrangements in place and
accessible to smallholder pig producers.
 Increased share of pork retail price accruing to smallholder pig
producers.
 Higher proportion of women participation in pork supply
chain, and improved income opportunities for women from these
activities.

23. Proposed Priority Outcomes & Outputs
2012 2013 2014
Outcomes 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

24. Proposed Priority Outcomes & Outputs
2012 2013 2014
Outcomes R&D alliance 1. capacity to use tools Evidence base
2. Stakeholders aware influencing decisions
Research 1. Scoping study to develop an 1. Inventory and evidence base 1. Best-bet intervention
Outputs 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)

25. Proposed Priority Outcomes & Outputs
2012 2013 2014
Outcomes R&D alliance 1. capacity to use tools Evidence base
2. Stakeholders aware influencing decisions
Research
Outputs 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?)

26. Current Activities & Resources/Potential Linkages
ACIAR Improving competitiveness of pig producers in an adjusting Vietnam
market (recently completed, ongoing engagement with national partners
on policy advocacy, outreach); completed
New project: Supporting small-scale pig production in Vietnam through
reducing risks, enhancing productivity, and upgrading value chains (with
CRP 4.3, likely 2012);
GEF-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)

27. Identified Priority Gaps for Resource Mobilization
 VC assessment of productivity constraints from animal
diseases, prioritization.
 ACIAR risk assessment and food safety (2nd half 2012)
 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;
likely integration in Vietnam team’s work plan (being
discussed)
 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.

28. 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.