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Update on pig value chain
 development in Vietnam
          Lucy Lapar (ILRI)

   CGIAR Research Program on Livestock and Fish
     Value Chain Development Team Meeting
            Nairobi, 5-8 March 2012
Why pigs in Vietnam?
 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;
 Changing nature of pork demand, e.g., emerging food safety, quality
  concerns need to be assessed and properly understood
 Dominance of smallholders in pig production, importance in
  employment generation, significant contribution to HH income
 Smallholder competitiveness (vis-à-vis other suppliers, e.g., large
  farms, imports) remains a development policy challenge (rising feed
  prices, animal disease risks)
 Enabling policy environment, willingness of policymakers,
  development partners, and stakeholders to engage in R4D initiatives
 Building on previous ILRI work with various partners.
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%                                                    sector
o
h
e
a
g
S
r
f
l




           0   1   2   3   4    5     6   7   8   9   10
                               Year
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
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)
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?)
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)
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.
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.
Project
                    Hanoi, Ha tay             survey sites
Phu Tho
                                              across 6
                                              agro-
                  Nghe An                     ecological
                                              regions of
                                              Vietnam




                                    Dak Lak

HCMC, Dong Nai,
  Tien Giang
Update on pig value chain development in Vietnam

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Update on pig value chain development in Vietnam

  • 1. Update on pig value chain development in Vietnam Lucy Lapar (ILRI) CGIAR Research Program on Livestock and Fish Value Chain Development Team Meeting Nairobi, 5-8 March 2012
  • 2. Why pigs in Vietnam?  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;  Changing nature of pork demand, e.g., emerging food safety, quality concerns need to be assessed and properly understood  Dominance of smallholders in pig production, importance in employment generation, significant contribution to HH income  Smallholder competitiveness (vis-à-vis other suppliers, e.g., large farms, imports) remains a development policy challenge (rising feed prices, animal disease risks)  Enabling policy environment, willingness of policymakers, development partners, and stakeholders to engage in R4D initiatives  Building on previous ILRI work with various partners.
  • 3. 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% sector o h e a g S r f l 0 1 2 3 4 5 6 7 8 9 10 Year
  • 4. 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
  • 5. 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)
  • 6. 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?)
  • 7. 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)
  • 8. 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.
  • 9. 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.
  • 10. Project Hanoi, Ha tay survey sites Phu Tho across 6 agro- Nghe An ecological regions of Vietnam Dak Lak HCMC, Dong Nai, Tien Giang