On the economics of small-scale pig production in Vietnam: survey results, analysis, and assessment Ma. Lucila A. Lapar, Nguyen Ngoc Que, Clement Tisdell, Nguyen Ngoc Toan, Nguyen Que Nga, Nguyen Thi Tam Ninh, Mohammad Jabbar and Steve Staal 7 th ASAE Conference Hanoi, Vietnam
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in Vietnam: survey results, analysis, and assessment
Ma. Lucila A. Lapar, Nguyen Ngoc Que, Clement Tisdell, Nguyen Ngoc Toan, Nguyen Que Nga, Nguyen Thi Tam Ninh, Mohammad Jabbar and Steve Staal
7th ASAE Conference
14 October 2011
HCMC, Dong Nai, Tien Giang
Project survey sites across 6 agro-ecological regions of Vietnam
Vietnamese consumers have a strong preference for fresh, unchilled pork; this provides natural protection from imported pork.
The majority of Vietnamese consumers indicated preference for lean pork compared to other types of pork.
No significant change in lean meat consumption from 10 years ago, but significant reduction in consumption of high fat meat from 10 years ago.
Traditional market outlets remain the most preferred purchase outlets for fresh pork by Vietnamese consumers.
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.
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.
Production system definition:
Farrow to wean – piglet production
Farrow to finish – full cycle slaughter hog production
Grow to finish – pig fattening operation
Household-based pig producers earn revenues that can cover costs and generate some positive profits.
Household-based pig production can generate gross margins ranging from 4,000 to 15,000 VND/kg liveweight of pig produced.
Economies of scale in piglet production; no significant difference across scale full cycle slaughter hog production and pig fattening
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.
Income from pigs accounts for about 14% of rural household income, or 24% of rural household income from agriculture.
Value added along the pork supply chain where household producers participate
Value added generated in pork value chains where household pig producers participate is about 11,700 VND per kg liveweight (or $0.62)
Share of retail price that accrues to producers (based on average pork retail price of 40,000VND/kg in 2007)
Producers receive at least half to two-thirds of the retail price of pork. This share increases with scale.
Smallholder pig production generates employment estimated at about 4 million full-time labor along the pork supply chain, valued at about $3.3 billion or approximately 5.5% of Vietnam’s GDP in 2007.
Household labor constitutes the main labor inputs in household pig production.
Women labor accounts for at least half of total labor days in household pig production.
Better lives through livestock
Animal agriculture to reduce poverty, hunger and environmental degradation in developing countries
Project website: www.vietpigs.com.vn