Poultry Marketing in Northern Viet Nam & Demand-Side Approaches to HPAI Risk Management
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1 Poultry Marketing in Northern Viet Nam & Demand-Side Approache to HPAI Rik Management Joachim Otte & Sigfrido Burgo Friday, November 9, 2007 FAO, Rome, ITALY
2 Motivation HPAI mainly affect poultry and people in developing (low/low-medium income) countrie Not one endemic poultry dieae ha been eradicated from any developing country o far The propect for quick HPAI eradication in epicentre countrie are dimal becaue: the tandard tool are blunt the viru i mart poultry are virtually ubiquitou Need to explore additional avenue to manage HPAI rik
3 Outline Overview of Viet Nam Poultry Sector Poultry Marketing in North Viet Nam & the Ha Noi Poultry Supply Chain Ha Noi Conumer Preference Benefit of & Potential for Certification of HPAI-free Poultry
4 The Viet Nam Poultry Sector
5 Viet Nam Poultry 2005 Flock by Size Cla Poultry by Flock Size Cla 95% 7.9 million flock 5% 0% 0% 55% >118 million bird 16% 3% 26% Size Cla < >999 bird Flock Size Cla < >999 bird
6 Chicken PRODUCTION SYSTEMS: Traditional, extenive backyard /garden / houehold Semi-intenive, mall to medium, market-oriented, commercial Intenive, large cale, indutrial PRODUCTS: Broiler (meat) Layer (conumable egg) Breeder (day-old chick)
7 Duck PRODUCTION SYSTEMS: Scavenging ytem Mixed duck production ytem Confined ytem PRODUCTS: Egg (conumption & incubation) Meat (2-3 cycle/yr., ummer > winter) Duckling (for meat production) Feather (export to China)
8 Rice & Duck Farming Decription Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rainy Seaon Rice Planting Duckling Herding Weeding Harveting Duck Herding Duck are herded into rice field 20 day after tranplantation until tart of flowering and after harvet to cavenge on leftover. Thi ytem i alo ued to control pet that attack rice.
9 Spatial Differentiation of Sector Houehold with Poultry Average flock ize
10 FAO Sector 1 to 4 Share of producer Share of production
11 Poultry Marketing in North Viet Nam & the Hanoi Poultry Supply Chain
12 Market Flow: Reource & Income Supply Chain Reource Flow Producer A e m b l e r P Behaviour: Market r Participation Rik Management o c e o Incentive: r Quality o Technology Tranfer D i t r i b u Value Chain Income Flow t r R e t a i l e r Conumer
13 Poultry Flow in North Viet Nam Poultry Farmer 38% 47% 15% Itinerant Village Trader (farmgate) Neighbor/Villager (farmgate) Local/Community Market (18%) (64%) (18%) (19%) Wholealer (54%) (27%) 73% 27% Retailer 7% 93% Other intermediarie CONSUMERS
14 Volume & Margin Retailer Wholealer Aembler 8.7% margin 5.6% margin Procurement Marketing cot Sale value 3.3% margin Million VND / year Competition between actor in the chain enure reaonable margin, but collectively, chain actor alo have an interet in animal dieae control a their livelihood depend on the health and wellbeing of bird.
15 Market & Farm Supplying Ha Noi No. of farm by market Sector Monthly bird per ector by market ( 000) Sector Da Ton Ha Vi Bac Thang Ni Phu Lo Sui To Yen Thuong Da Ton Ha Vi Bac Thang Ni Phu Lo Sui To Yen Thuong
16 Trace-Back of Market Chain Commune Trader Pajek
17 Hanoi Poultry Supply - Summary Ha Vi: larget live poultry market (10,000 to 20,000 bird/day ~ 4.5 million bird/year) Bird traded: Broiler, Local Chicken, Duck, Mucovie Local bird (chicken and duck) upplied by around 300 mall to medium cale farm Broiler upplied by 25 commercial farm
18 Ha Noi Conumer Preference
19 Price Profile of Chicken Price by Chicken Type (VND in 000) Regular Price High Price Local Chicken Crobred Chicken Indutrial Chicken
20 Conumer Concern & Preference 5 Ranking of Safety Concern 5 Ranking of Chicken Attribute Marketplace condition Unknown ource Dieae rik Ditrut inpection 0 Price Tate Dieae rik Regular Supply
21 Willingne to Pay for Safety TYPE 5,000 5,700 10,000 12,500 VND VND VND VND Local 99% 91% 89% 74% US $ 0.62 Cro 92% 87% 70% 66% Bred Indutrial 93% 74% 69% 52% Approximately US$ 0.31 (or 10% of current price)
22 Benefit of & Potential for Certification of HPAI-free Poultry
23 Market Flow: Reource & Income Supply Chain Reource Flow Producer A e m b l e r P Behaviour: Market r Participation Rik Management o c e o Incentive: r Quality o Technology Tranfer Certification D i t r i b u t r Value Chain Income Flow R e t a i l e r Conumer
24 Certification & Rik Management Government gain Teting move downtream reducing cot More rapid dieae identification Lower control cot Conumer gain Food and dieae rik reduction Quality improvement Product differentiation Producer gain Market acce Extenion ervice & technology tranfer
25 Safe (Indutrial) Chicken Reaon for Not Regularly Buying Certified HPAI-free Chicken Percent Frequency Not taty Not conveniently available at regular hop Not important/only trying Didn't eem afer 7 15 Too Expenive 5 10 Prefer Freh Chicken 1 3
26 Potential of Certification Certification programme can overcome many introductory obtacle by delivering higher quality tandard along with exiting preferred product characteritic, and thu can be elffinancing. At the ame time, they can utain rather than undermine the long etablihed product marketing advantage of mallholder farmer, that i, the production of traditional local varietie
27 Next Step Pilot for Certified Local Chicken Supply Chain: Sytem of contract with: Exiting eller in 4 market upplied by regitered laughterhoue Selected laughterhoue Local trader delivering to thee laughterhoue App. 300 farmer raiing local chicken type (including crobred) External & local inpector (contract compliance) Local veterinary office (health inpection) Aim: Get 10,000 to 15,000 chicken through ytem
28 Reference: Pfeiffer et al. (2007) Vet J. 174(2): Ifft et al. (2007) PPLPI Reearch Report Soare Magalhae et al. (2006) PPLPI Report Tung & Cotale (2006) PPLPI Reearch Report Hong Hanh et al. (2007) PPLPI Reearch Report
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