Drivers for Highly Pathogenic Avian Influenza Risks. A review of cross-border poultry value chain studies in South- and Southeast Asian Countries.

Transcription

1 Drivers for Highly Pathogenic Avian Influenza Risks A review of cross-border poultry value chain studies in South- and Southeast Asian Countries.

2 The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views of FAO. FAO encourages the use, reproduction and dissemination of material in this information product. Except where otherwise indicated, material may be copied, downloaded and printed for private study, research and teaching purposes, or for use in non-commercial products or services, provided that appropriate acknowledgement of FAO as the source and copyright holder is given and that FAO s endorsement of users views, products or services is not implied in any way. Acknowledgement The reviewed poultry value chain studies were funded by the United States Agency for International Development (USAID) and the Asian Development Bank (ADB). For a correspondence, please contact: Jan Hinrichs Animal Health Economist Emergency Centre for Transboundary Animal Disease (ECTAD) FAO Regional Office for Asia and the Pacific (RAP) 39 Maliwan Mansion, Phra Atit Road Bangkok 10200, THAILAND jan.hinrichs@fao.org FAO Homepage: ECTAD Homepage: 2 P a g e

3 Drivers for Highly Pathogenic Avian Influenza risks A review of cross-border poultry value chain studies in South- and Southeast Asian Countries. Prepared by: Jan Hinrichs Emergency Centre for Transboundary Animal Disease (ECTAD) FAO Regional Office for Asia and the Pacific (RAP) FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS REGIONAL OFFICE FOR ASIA AND THE PACIFIC Bangkok, P a g e

4 1 Table of contents 1 Table of contents List of Tables List of Figures Summary Economic and social drivers for poultry trade Economically driven trade Local level trade Culturally related trade Material and Methods Cross-border trade maps and value chain approach Cross border trade examples Cambodia Lao PDR Viet Nam East and West Kalimantan provinces, Indonesia Myanmar Tripura, Manipur and West Bengal State of India Nepal Conclusions Capacity building impact of the value chain approach Identification of control points for surveillance and risk reduction References Annex List of Tables Table 1: Prices for poultry products at Cambodia - Viet Namese border points Table 2 Confiscation of poultry and poultry products Table 3: Products and volumes for assessed border crossing points List of Figures Figure 1 Regional cross-border poultry value chain map... 6 Figure 2 Cambodia cross-border duck trade P a g e

5 Figure 3: Cross-border egg trade Cambodia Figure 4: Importation of duck eggs from Viet Nam, cross-border point Kampong Trabek district Figure 5: Import of chicken products from Thailand at Salakrav and Kamrieng district Figure 6: Chicken parts supply routes from Thailand into Cambodia Figure 7: Live chicken trade flows Figure 8: Map of the main poultry trading routes in northern Lao PDR Figure 9: Champhone district poultry trade map Figure 10: Chinese poultry inputs to a chicken layer production unit in northern Lao PDR Figure 11 Spent hen cross border trade chain from China to Viet Nam Figure 12 Movements of poultry and poultry products within Tripura and Sonamura Figure 13 Movements of poultry and poultry products from Jaigaon to Bhutan Figure 14 Movements of live chicken through Moreh border P a g e

6 4 Summary This paper reviews FAO commissioned poultry value chain study reports to describe poultry trade patterns and to assess the risk of Highly Pathogenic Avian Influenza (HPAI) spread via cross-border poultry trade in South- and Southeast Asia. Poultry value chain information was mapped by involving traders and other actors in a participatory way. Information on roles, responsibilities and trading practices was gathered through participatory workshops and expert interviews. The gathered information was used to assess risk for identified risk pathways. Although live poultry trade has officially been banned by most South and Southeast Asian countries since the onset of HPAI in early 2004, informal poultry trade links are well established. Examples of cross-border trade corridors, products and respective estimated volumes can be found in Figure 1 and in Table 3. Many countries lack the required enforcement capacity to stop poultry trade at their long and often porous borders. Figure 1 Regional cross-border poultry value chain map A large variety of poultry and poultry products is traded across borders. Poultry sectors in neighbouring countries have developed at different paces of specialization. The import of specialized breeds is often vital to developing commercial poultry production systems in countries which lack capacity to produce improved Day old Ducks (DoDs) and Day old Chicks (DoCs). Consumer price differentials for poultry meat and eggs are another strong economic driver for the continued informal trade. Informal imports of live ducks and spent hens from countries with at least sporadic reports of HPAI outbreaks have been identified as high HPAI incursion risk factors. Other live poultry trade between areas or production systems also pose a risk for HPAI spread either via the 6 P a g e

7 poultry or transport utilities. However, domestic trade between areas of unequal AI risk within a country is equally efficient in spreading HPAI. Although considerable HPAI incursion risks can be identified for several types for crossborder trade, further investments in trade ban enforcements are not likely to be cost-effective means to control HPAI spread into importing countries. Economic driving forces are both very strong and an indicator of the potential welfare losses for poultry producers and/consumers if required poultry products are not available as a result of effective trade bans. Targeting disease control investments at critical control points such as hatcheries and markets appear more cost-effective and would also likely reduce domestic disease spread risks from poultry trade. 5 Economic and social drivers for poultry trade South and Southeast Asian countries continued to report HPAI outbreaks. Some outbreaks were suspected to be linked to trade and therefore the movement of infected birds becomes of critical importance in terms of understanding disease dynamics. Poultry movements are mainly commercially driven either for the purposes of supplying replacement breeds for specialized production systems or movement of finished birds and eggs for consumption. Therefore understanding the movement of poultry products is a critical component of any disease control program. 5.1 Economically driven trade Price differentials that are larger than the transport costs for specific products represent the main driving force for cross-border trade. Poultry sectors as well as the general economic sector have developed at different paces in neighboring countries, which let to different levels of poultry sector specialization. Countries with less specialized poultry sectors depend on specialized breed imports. A shortage of improved input breeds such as DoDs and DoCs for intensive production systems results in not only a strong economic force for cross-border trade but is vital to the survival of the poultry sector. Consumer price differentials for poultry meat and eggs are another strong economic driver for trade. Production and consumption centres are supplied via border points, sometimes from production to production sites with specialized breed inputs. Examples of price differentials can be found in the respective country sections. 5.2 Local level trade Communities close to border areas are often engaged in trade of poultry and other products. This has been shown to have risks for example the spread of disease from Lao PDR to Thailand in However, the risks of wider spread are only great if detection is slow and the local markets and farms are linked into larger national trading patterns. 5.3 Culturally related trade Immigrants in a country utilize their family or business links to their home nation for the trade of poultry and other products. These are disperse long-distance poultry movements and appear to be related to the introduction of disease into Lao PDR and Myanmar in the recent past. 7 P a g e

8 6 Material and Methods 6.1 Cross-border trade maps and value chain approach A combination of methods were used in the cross border studies. Primary data was gathered through field studies with surveys and questionnaires. Workshops and key informant interviews were used to develop functional and geographic poultry value chain maps. Value chain mapping is a tool used in economics to study the linkages and connections between different actors from production to consumption. Within animal health they have also been used to understand the flow of products between different people involved, in an effort to understand the potential transmission of diseases, the risk points and the actors which need to be targeted for interventions (RVC 2010, FAO 2011, FAO 2012). The initial information on the trade flows was gathered during expert consultations at borders, where stakeholders and experts were invited to draw out the value chains of specific poultry products and to draw the movement of poultry products on local, regional and national maps. Where it was possible there was also a request to include volumes of products and risk points. There were two very clear added benefits of doing such a workshop, it allowed people who were linked to meet each other, and it built a certain capacity amongst participants to analyse disease problems through an interconnected lens. Most of this poultry value chain analysis work was done under the Management of HPAI Risk in Cross Border Movements in the GMR project. This was followed up with specific studies at the border supported by local research teams under ADB and USAID funding for identifying the risk factors related to cross border trade. 7 Cross border trade examples Selected border points were used as an initial reference point for studying the trade situation and the risk of HPAI spread between countries. A description of the trading patterns, products, involved actors and their respective roles and responsibilities can be found in the following sections. 7.1 Cambodia Poultry sector Extensive poultry production systems with local breeds dominate the poultry sector. Specialized, intensive production systems developed after 1995 with the support of foreign companies. These specialized broiler and layer chicken production systems are concentrated around the consumption centres Phnom Penh and Siem Reap in the provinces of Kampong Speu, Kandal and also in Siem Reap (CENTDOR 2010 & Stoliaroff 2009). The domestic capacity to produce DoCs is insufficient to supply the demand for DoCs by the specialized layer and broiler systems. These DoCs are therefore imported from Thailand and Viet Nam. Scavenging layer duck flocks are a dominant production system for duck egg and meat production. Takeo and to a lesser extend Battambang, Kampot and Preah Sihanouk are the leading provinces for the production of ducklings, laying ducks and duck eggs. With the 8 P a g e

9 exception of Battambang, these provinces are located in Southeast Cambodia. Close trade and production links for live ducks and duck eggs have been reported in several studies (Heft- Neal et al. (2009), Stoliaroff (2009), Thy et al. (2012) Disease situation Since the onset of HPAI in Cambodia, poultry and humans cases have been reported in provinces bordering Viet Nam and Thailand. HPAI has become endemic in Viet Nam. HPAI vaccination of poultry has been done with differing coverage levels in the provinces and production systems. The relatively large duck population is representing a reservoir for HPAI. Thailand only reported sporadic outbreaks of HPAI after the first waves in 2005 and/2006. No outbreaks have been reported since Institutions & regulations Although the import of poultry and eggs from Viet Nam and Thailand is banned since January 2004, cross-border trade of these products is continuing. Borders are porous and check point officers are usually not responsible for mobile controls of trade activities outside the official check points (CENTDOR 2010). Bordering countries focus the enforcement of the bilateral poultry trade ban on reducing the risk of disease incursion via imports and pay less attention to the exports in to Cambodia (CENTDOR 2010) Border points - Southeast Cambodia - Viet Nam Cross-border trade with Viet Nam has been assessed in the Cambodian provinces Kampot, Takeo, Svay Rieng, Kampong Cham, Prey Veng. The Viet Namese bordering provinces are: Kien Giang, An Giang, Dong Thap, Long An, Tay Ninh and Binh Phuoc Stakeholders & Roles Some duck eggs are imported through the official check points from Viet Nam, but larger amounts are imported from illegal check points. Importers only pay at the cross border check points according to the rates determined by the officers Chicken According to CENTDOR (2010) the movement of live, native chickens from Cambodia to Viet Nam is of small scale and focussed on supplying household consumption in Viet Nam (CENTDOR, FAO 2010). From Kampot province, Kompong Trach district about 240 live local chicken per day are exported to Viet Nam. Kompong Cham province receives daily about 110 kg live chicken from Viet Nam, mainly through the Southern districts located close to the border: Memot, Ponhea Kraek, Ou Raing Ov, Tbuong Khmum, Surng and Krong Kompong Cham (see Figure 7) Ducks About 50 live ducks per day are exchanged between Banteay Meas in Kampot province and Ha Tieng province in Viet Nam. Another 40 ducks are imported from Ha Tieng, Viet Nam to Krong in Kampot province (Figure 2). Live ducks are taken to Kampong Cham from Viet Nam through Prey Veng province mainly by boats but the volume is unknown. Around 9 P a g e

10 November and December there is a supply of 300 ducks per year from Viet Nam to Prey Veng. Duck hatching clusters are located in Takeo and Kampot provinces. The ducklings and fertile eggs are not only supplied to markets and duck raisers within the provinces, but also transported to Phnom Penh consumption centre and duck raisers in Kandal and Kampong Speu provinces. Prey Veng is not a main hatchery place but mostly receives ducklings from Kampong Cham and Viet Nam. Figure 2 Cambodia cross-border duck trade Thailand 150 H S.Reap Battambang K.Thom Kratie Thailand Source: Stoliaroff (2009) Pursat Duck Duckling Pekin duck Irregular flow Circulation inside province H/D per day H/M per month H/Y per year K.Spe u small ~80 H / ~100 H 280 H /D sma K.Chnang H H 360 H 50 P 300 H/D /D Kanda 3 8- l 0 10 P.Veng Takeo H /D Viet Nam H /M 300 H / Y Viet Nam?? Viet Nam Before crossing the border from Viet Nam to Cambodia many small duck flocks are combined into one large flock as a cost savings effort. Once duck flocks cross the border, they are grazed between 1-2 months up to 7-8 months. Duck flocks cross the border by land through rice fields and by water traveling approximately up to 10 km into Cambodia or Viet Nam for grazing. Opportunities for mixing and interaction with other birds are plentiful for duck flocks crossing the border as they encounter other free-grazing flocks, scavenging birds, and wildlife in both Viet Nam and Cambodia. Layer duck flocks have more chance to mix 10 P a g e

11 because in general, they are grazed for longer periods of time. When layer duck flocks return to Viet Nam they acquire vaccination certificates which are required to permit onward interprovincial movements. Meat ducks return to Viet Nam and are immediately sent to slaughter houses or live bird markets. Generally, ducks are sold to middlemen once returning to Viet Nam and then taken to smaller traders, slaughterhouses or live bird markets (Thy et al. (2012)) Eggs An unknown volume of duck eggs is imported from Viet Nam into Kampot province through the districts Kompong Trach and Bantey Meas close to the border. Kompong Cham imports 50,000 duck eggs per day in the rainy season and 70,000 eggs in the dry season from Viet Nam. Figure 3: Cross-border egg trade Cambodia Thailand /D 800 /D 500 /D /D 1200 /D 3000 /D S.Reap 6000 /D K.Thom? Kratie Battambang Thailand smal l /D / D Chicken egg Duck egg 600- Embryonic duck eggs Chicken + Duck eggs Irregular flow Pursat 400 /D Circulation inside province Quantity per day K.Sp 1000 /D K.Chnang /D 4 1 P 3500 /D Takeo 2 3? Kan? 30% P.Ve 70% Viet Nam? Viet Nam /D Rainy season: /D 900 /D D Source: Stoliaroff (2009) 11 P a g e

12 Figure 4 shows some examples of duck egg transport vehicles on roads connecting to the Viet Nam Cambodia border. Figure 4: Importation of duck eggs from Viet Nam, cross-border point Kampong Trabek district Source: CENTDOR and NaVRI, date: July Drivers for cross-border trade Income generation is the key economic driver for people involved in cross border trade. Small traders who transport duck eggs by motorbike can earn about 45,000 KHR/day. For example, on the cross border points of Prey Veng province, traders purchase duck eggs in Viet Nam for 250 KHR/egg and sell them in Cambodian markets for 280 KHR/egg (Neak Leung market). They transport 2, eggs during one motorbike trip and earn a gross margin of 75,000 KHR to 90,000 KHR. Traders have to pay about 30,000 KHR to the cross-border officers and other related costs. Therefore, they earn a net margin of about 45,000 60,000 KHR/day. This is a significant income in comparison with other sources of income such as driving a motor-taxi in which people can earn about 15,000-20,000 KHR/day (CENTDOR 2010). Some more price differentials can be found in Table 1. Table 1: Prices for poultry products at Cambodia - Viet Namese border points Poultry commodity Takeo Kampot Prey Veng Eggs (KHR/Egg) Fertile eggs (KHR/Egg) Duck layer (KHR/Head) Duckling (KHR/Head) Cambodia Viet Nam Cambodia Viet Nam Cambodia Viet Nam Cambodia ,000 15,000 15,000 13,000 14,000 14,000 1,500 1,500 1, P a g e

13 Viet Nam 1,250 1,250 1,250 Source: Data collected by the study team of CENTDOR and NaVRI in July and August Note: 1 USD = 4,200 KHR Conclusion Mainly ducks and duck eggs as well as quail and quail eggs are imported from Viet Nam into Cambodian provinces (e.g. Kompong Cham, Prey Veng, Svay Rieng and Kampot). The relatively high prevalence of HPAI in Viet Nam represents a high risk for HPAI incursion into Cambodia. Considering that mainly inputs into the hatcheries or scavenging duck production systems are imported, the risk of onward spread to domestic production systems and upstream within the value chain is relatively high. Stark price differentials for duck products are the main driver for these imports via porous borders and are therefore not likely to be stopped by border controls Border points Northwest Cambodia - Thailand Cross-border trade with Thailand has been assessed in the Cambodian provinces Bantey Meanchey, Pailin and Batambang. The Thai bordering provinces are: Trat, Chanthaburi and Sa Kaeo Roles & stakeholders Importation of commercial chicken products from Thailand to Cambodia is facilitated through unofficial crossing points since it has been officially banned (Figure 5). However, at the unofficial check points, importation is very active particularly before the commencement of working hours of the government staff (early morning from 02:00 am to 06:00 am). Figure 5: Import of chicken products from Thailand at Salakrav and Kamrieng district Source: CENTDOR (2010) and NaVRI Government officials often confiscate chicken meat cuts at the border crossing and at road check points and fine the importers. However, the illegal import of poultry products still continues at night time. 13 P a g e

14 Chicken From Thailand parts of slaughtered commercial chicken are imported into the Cambodian provinces Pailin and Battambang. Pick-up cars are used to transport commercial poultry products for sale at the cross border markets (CENTDOR 2010). The imported commercial chicken parts supply poor villagers who are living at the borders. Street food sellers also buy wings, bones and knees to sell them grilled at street food restaurants. Approximately 1,000 kg of chicken parts are imported into Banteay Meanchey per day. Figure 6 shows the schematic geographical flows of products within Thailand that are supplying the cross-border trade with Cambodia. shows the trade flow of chicken from Thailand and Viet Nam. 1,300 live commercial chicken are imported daily into Bantey Meanchey province and 1,000 per day are redistributed to Siem Reap and Phnom Penh. Figure 6: Chicken parts supply routes from Thailand into Cambodia Source: Narit, field trip brief, November P a g e

15 Figure 7: Live chicken trade flows Thailand 1,300 H / D H/D 500 H S.Reap Battambang K.Thom Kratie 200 kg /D Thailand Pursat 500 H/D K.Chnang 690 kg/d? 1450 kg/d 80 H/D 25 H /D 50 H /D K.Speu 50 H /D 250 H/D P Takeo 200 kg/d H/D Kandal P.Ven g 50 kg/d 110 kg Viet Nam small 10% of total H/ D Live local chicken Commercial chicken Irregular flow Circulation inside province Heads per day Heads per day 350 H/D 160 H/D 240 H /D Viet Nam small Viet Nam Source: Stoliaroff (2009) Eggs Bantey Meanchey province receives about 13,000 chicken eggs per day from Thailand. 15 P a g e

16 Conclusion At the Cambodian Thai border mainly commercial chickens, chicken parts and chicken eggs are imported into the Cambodian provinces: Bantey Mencheay, Koh Kong, Battambang and Pursat. It is most likely that those chickens and related products are then spread to the rest of the country, in particular consumption centres like Phnom Penh and Siem Reap. Thailand receives small proportions of duck embryonated eggs through Bantey Meanchey province. The HPAI risk from importing slaughtered products is relatively low and HPAI is well controlled in Thailand Conclusion Poultry products from Thailand and Viet Nam are redistributed within Cambodia. The Cambodian poultry sector is dependent on imports from both neighboring countries. Especially the duck production systems and value chains are closely linked with duck egg and DoD imports from Viet Nam. Hatcheries and live bird markets within Cambodia represent critical control points for the detection of HPAI infected poultry originating from both within Cambodia and from Viet Nam. Formalizing the import from Cambodia and Thailand would enable better tailored surveillance and response approaches. 7.2 Lao PDR Poultry sector The poultry sector in Lao PDR is characterized by extensive, scavenging poultry production with native breeds. There has been limited development of commercial poultry production in the country with about 2 million industrial poultry around urban centres. Several Chinese producers have settled in the North and are engaged in commercial duck and poultry production, with strong links to China regarding inputs. The most important consumption centres for poultry are Vientiane, Luang Prabang, Oudamxay and Savannakhet. Much of the small scale local poultry production systems produce native chicken and eggs. Yet in most cases these products have to compete with cheaper imported poultry from China and Thailand. Since there are only two feed mills near Vientiane and none in the North of Lao PDR, feed is relatively expensive. In some instance raw materials are exported to China to be processed to be re-imported Disease situation Lao PDR has had sporadic reports of H5N1 HPAI outbreaks in poultry between 2004 and Most events were reported during the 2004 season Institutions and regulations In principle, there is a prohibition by local veterinary authorities on the import of poultry products through all of the international borders. However there are two confining factors, in periods where there are no HPAI outbreaks, the control is less strict. Similarly, there is a recognition that most borders are relatively porous and that there is a lack of inspectors, and informal trade is present. 16 P a g e

17 7.2.4 Border points Northern Laos and Vientiane district Eggs Eggs are transported most consistently, and with the highest numbers into Lao PDR from China and Thailand. Eggs from China are likely to reach Vientiane. An estimation in Oudomxay is that about 216,000 eggs per month arrive from China. Eggs are also imported from Thailand into Vientiane, though Vientiane has a certain amount of producers around which also supply the capital. The exact ratio between these different sources is very difficult to determine Chicken There is a limited amount of live chickens moving across the border from Laos to China or vice versa. The majority of this trade is small scale and using local transport. On the border with Thailand, there is a clear importation of fighting cocks, ducklings, chicken carcasses, and chicken offal Day old ducks and Day old Chicks Day old ducks and day old chicks are imported both formally and informally from Southern Yunan, mainly Kunming. Some farmers of Lao origin prefer to source their DoC from Vientiane. Figure 8: Map of the main poultry trading routes in northern Lao PDR Source: Generated in a FAO workshop in Oudomxay 17 P a g e

18 7.2.5 Border points Southern Laos from Thailand and Viet Nam Eggs Both chicken and duck eggs are moving from Thailand into Laos, about 50,000 eggs crossover per day. The majority are informally brought via the river. Duck eggs are mainly imported from Viet Nam, as well as, fermented eggs (Figure 9) Chicken Fresh meat and visceral organs also move over the border, though amounts are unknown. Figure 9: Champhone district poultry trade map Drivers behind cross border trade One of the main drivers behind trade across the border is the inadequate local supply of poultry products. In the North of Lao PDR, local veterinary officers were aware of this issue, and understood it was difficult to prevent, due to the demand. Across the country feed is traded widely, with raw materials traded from Lao PDR to China, and mixed feed and concentrates imported from China and Thailand into Lao PDR. There are no large scale feed producers in the north of Lao PDR. The feed produced by these mills is relatively expensive compared to the cheap poultry. Low quality feed is imported from China and the better quality feed from Thailand. The largest commercial poultry enterprises are small, and the deficit in supply from these unit is made up by imports of poultry, e.g. DoC, DoD, chicken and duck eggs from China, Thailand and Viet Nam (Figure 10). These imported poultry commodities are cheaper than locally produced products. 18 P a g e

19 Figure 10: Chinese poultry inputs to a chicken layer production unit in northern Lao PDR Feedmills Parent Flock Egg China Trays Feed DOC Layer Unit Local Market Eggs and egg trays Lao PDR Thailand 1 Eggs and egg trays Source: RVC (2010) Vientiane Market 7.3 Viet Nam Poultry sector Major poultry producing areas are situated in the two large delta regions. Chickens predominate in the North while ducks predominate in the South. In 2005, there were 220 million poultry in Viet Nam. Extensive scavenging production is by far the most common production system in Viet Nam. About 8 million households are engaged in this extensive poultry production, with an average flock size of 32 birds. Intensive production systems with exotic breeds and low structural biosecturity levels have quickly developed since the late 1990s. These intensive production systems are predominantly found in the delta areas supplying urban consumption centres with low cost meat and eggs. Live birds and eggs from these intensive and low structural biosecurity systems are marketed through traditional systems using motorbikes and live bird wholesale markets. Ducks account for more than one quarter of Viet Nam s poultry, with around 2 million households engaged in duck production. Extensive, scavenging duck production systems are predominant in small to large scales exploiting feed resources in rice fields (Burgos et al. 2008) Disease situation HPAI has become endemic in Viet Nam. HPAI vaccination of poultry has been implemented with differing coverage levels across provinces and production systems. The relatively large duck populations represents a reservoir for HPAI. Several outbreaks of HPAI have been reported from China. Mass vaccination campaigns of poultry against HPAI are implemented in China. National surveillance systems detect HPAI in poultry and poultry markets. 19 P a g e

20 7.3.3 Institutions & regulations Poultry trade is banned between Viet Nam and China. Viet Namese authorities frequently confiscate spent hens, DoCs and DoDs. In order to prevent poultry smuggling from China, the Viet Namese authorities have formed controlling belts with several responsible agencies, i.e.: border defending post, customs, market control, veterinary station, police, local authorities at district and commune levels, inter-branch station, fixed and temporary quarantine stations, team 127 and sub-department of animal quarantine of the region (RUDEC 2009). The anti-smuggling activities of responsible authorities are too weak to cover 253 km of border and five border districts. In addition, their functions do not only focus on anti-poultry smuggling, but also smuggling of other goods. Once poultry is confiscated it takes time to receive the permission to destroy the poultry which leads to storage time that causes feed costs. The destruction of poultry costs on average 2 million VND/ton. Notably the poultry smugglers are fined with these costs, but most of them are jobless and do not have the required funds. Poultry smuggling provides income for local people at mountainous areas. A chicken porter can earn hundreds of thousands of VND per day, an income that is otherwise not available from other activities. Therefore several local people benefit from smuggling which makes the anti-smuggling activities very unpopular. China and Viet Nam had not yet signed a veterinary agreement which makes it difficult to control poultry trade across borders (RUDEC 2009) Stakeholders & roles The informal import of poultry from China involves several specialized service providers with a sophisticated organization (see Figure 11). Viet Namese border wholesalers contract porter masters to supervise the transport of poultry from border wholesalers in China. These porter masters hire local people as porters to transport the poultry via mountain crossing short cuts outside the official border control points. A well organized and large scale communication system with specialized informants screening the paths allows to optimally time the transport outside the patrolling time windows of anti-smuggling teams. Store houses for poultry are rented on small tracks in Viet Nam to store, feed and water the poultry before further transport by motorbike to inland gathering points. From there the birds are sold to wholesalers in Hanoi or other provinces. In Bac Giang Province an important accumulation point is situated where the spent hens are mixed with Viet Names birds and then certified by government veterinarians to legally enter the Hanoi market (RUDEC 2009) Border points North Viet Nam - China Key border areas for smuggling of mainly spent hens, DoCs and DoDs are: Lang Son in Lang Son province and Mong Cai in Quang Ninh province. Guangxi and Yunnan are the bordering Chinese provinces. 20 P a g e

21 Figure 11 Spent hen cross border trade chain from China to Viet Nam Source: RUDEC (2009) Spent hens Import volume of spent hens has been highest from October to March in Lang Son and Quang Ninh provinces, reaching 115 tons per day. These spent hens have likely been vaccinated for HPAI and could be sub-clinically infected without showing clinical symptoms. Chicken layer production centres are located in Northern China and traded to the Southern provinces. The required long travel distance might also have negative effects on the spent hens immune status. On the Viet Namese side the spent hens are gathered in several collection points (Figure 11) and mixed with domestic poultry which represents a considerable risk for onwards spread of HPAI into domestic poultry value chains Day old chicks and Day old Ducks Between March and July is the high season for DoC and DoD import with daily trading volumes of about 45,000 DoCs and DoDs into Lang Son and Quang Ninh provinces. The DoCs are normally already days old and enter the domestic production systems for breeding. If the birds or transport cages are infected with HPAI this informal import poses a considerable risk of onward spread of HPAI to domestic poultry Eggs About 60,000 chicken eggs per day are imported from China into Lang Son and Quang Ninh provinces Drivers for cross-border trade A considerable price differential for spent hens has been reported with the value of a spent hen in Hanoi being three times the price in China close to the Viet Namese border. 21 P a g e

22 Border wholesaler in Lang Son and Quang Ninh province occupy a powerful position within the informal spent hen import chain. They receive the highest trading margin of about VND 18,000/kg spent hen for the purchase of spent hens from Chinese wholesalers and selling them to wholesale markets in Hanoi. The average cost for transport, bribing, storage etc has been estimated at VND 6,500/kg to supply the spent hens to wholesale markets in Hanoi. Spent hens can be bought for VND 15,000/kg at the border and sold for VND 40,000/kg in Hanoi. Relatively high costs are borne by the informal import of poultry. Viet Namese consumers are paying for these costs with a higher price for poultry meat compared to a situation with formal import and more efficient transport systems Conclusion Considerable import volumes of spent hens, DoCs and DoDs represent potential risk of HPAI transmission into domestic production and marketing systems. Enforcing the ban on poultry trade is not realistic in view of the very strong economic drivers for the import of especially spent hens. Potential disease risk reduction options are: a) to slaughter spent hens before movement to Viet Nam; b) the establishment of a dirty compartment to guide live hens into dedicated processing facilities within Viet Nam. However, the economic incentives to change this trade may not be sufficient and it would also require bilateral and public-private sector collaboration. 7.4 East and West Kalimantan provinces, Indonesia Poultry sector Predominantly exotic breed broiler chicken (14 million birds) are produced by independently managed farms in West Kalimantan. These broiler farms as well as layer chicken farms are situated urban consumption centres. Breed inputs such as DoCs are received from West and East Java provinces. About 6 million native chicken and 420,000 ducks in extensive scavenging production systems are also present in West Kalimantan Disease situation HPAI is endemic in Indonesia. The investigated border provinces West Kalimantan and East Kalimantan experienced several HPAI outbreaks prior to the cross-border value chain study. Sporadic outbreaks for HPAI were reported for Malaysia during Institutions & regulations The Government of Indonesia enacted a law on import and distribution control of carcasses, meat and viscera that requires the respective animal health authorities to certify freedom of HPAI for all imported carcasses and mechanically de-boned meat. The local authority (livestock and quarantine offices) launched a special policy for imported frozen meats for supermarkets and live poultry which requires PCR testing for Avian Influenza virus by the veterinary authorities. In conclusion, the regulatory framework of control at the cross-border study sites is comprehensively established but the level of implementation and enforcement of the regulation is relatively low. 22 P a g e

23 7.4.4 Stakeholders & roles The import of poultry and poultry products from Malaysia into West Kalimantan via Entikong checkpoint is conducted legally and illegally by individual traders. In East Kalimantan owners of boats are directed by traders to transport from Malaysia to distributors in Tawau Border point East and West Kalimantan - Malaysia Indonesia has six existing cross-border areas with five countries (Malaysia, Singapore, Philippines, Timor Leste, Papua New Guinea). Two Indonesian border provinces (West and East Kalimantan) have been analyzed by ICASEPS (FAO, 2010). These provinces are bordering with two states in Malaysia (Sarawak and Sabah). The analysis was focussed on two cross-border districts, namely Sanggau district (established checkpoint in Entikong) in West Kalimantan and Nunukan district (established checkpoint in Sebatik) in East Kalimantan Frozen broilers About kilograms of frozen broilers are imported daily with pick-up vehicles from Malaysia through Entikong checkpoints to West Kalimantan border areas. Except for some local consumption the broilers are transported by trucks/lorries to supermarkets in Pontianak (capital province of West Kalimantan) Live birds Local trade of about live chickens and ducks daily is conducted in Sanggau district, West Kalimantan province. During social, cultural and religious ceremonies this trade can increase to live birds daily. In Nunukan district about 80% of the consumed broilers and eggs are imported from Malaysia Conclusion The regular live bird import from Malaysia poses a risk of HPAI incursion into the poultry value chains of East and West Kalimantan. However, only very few HPAI outbreaks had been reported from Malaysia in the past. Imported birds are slaughtered and therefore pose a small risk for onward spread of HPAI into production systems in East and West Kalimantan. 7.5 Myanmar Poultry sector The poultry population consists of more than 138 million chicken and 13 million ducks. Chicken production is mainly (92% of standing chicken poulation) done in backyard and small commercial production systems. Commercial layer and broiler farms are supplying the major consumption centres (Yangon, Mandalay, Lashio, etc.). Ducks production is concentrated in wetter areas where ducks thrive: Bago, Ayeyarwaddy and Yangon. More than 7 out of the 13 million ducks are kept in small scale backyard duck production systems (MLRDRT 2009) Disease situation Sporadic HPAI outbreaks have been reported for Myanmar. Several outbreaks of HPAI have been reported from China. Mass vaccination campaigns of poultry against HPAI are 23 P a g e

24 implemented China. National surveillance systems detect HPAI in poultry and poultry markets Institutions & Regulations Live poultry trade with China is banned. There is only one official check point, but more than ten informal crossings between Muse and China. Myanmar border gates are open from 6am to 6pm in weekdays and 6 am to 9pm in weekends. In addition, movement of poultry, except eggs, from Central Myanmar (i.e. Mandalay) to Lashio is banded since 2007 in order to stop the introduction of AI during the outbreaks in Mandalay (MLRDRT 2009) Stakeholders & Roles The border consists of a fence over which smugglers throw live and processed meat during the night. Dealers from the Muse and China organise this via telephone communications to circumvent border securities Drivers for cross-border trade The price of birds and eggs in China is considerably lower which results in an obvious economic gain from smuggling. In some border areas, Myanmar eggs are 100 MK/egg, while Chinese eggs are only 70MK for the same size and weight. If the ban of poultry imports from central Myanmar into Lashio was lifted, trade from Mandalay, especially for spent hens and broilers, could compete and potentially lead to a reduction in trade from China. Before the ban of poultry movement, birds around Lashio were produced at competitive prices compared to birds from China (MLRDRT 2009) Border points Myanmar - China The import of poultry products from Yunnan province, China into the Shan state, Myanmar was assessed. Within the Shan State, the official border checkpoints are in Muse and Laukkai Townships. Lashio and Kyaukme Townships are catchment areas of Northern Shan State. Namkham is the township that depends on food supply from Muse which is imported from China Live chicken, live ducks, spent hens, chicken meat parts and eggs Frozen meat, chilled poultry parts are imported from China into Monglar. Live chicken, live ducks and chicken meat are imported on a daily basis from China into Monglar. Pullet ducks are imported from China into Kyaingtong township. The produced duck eggs are then used for local consumption and also sold to Monglar Township. Chicken eggs are imported into Monglar from China (Han 2013) Border point Myanmar - Thailand Within the Eastern Shan State the border area with Thailand comprising of the townships Tachileik, Monglar and Kyaing Tong have been assessed. Tachileik, is a border town in the Shan State of eastern Myanmar. It has two official cross-border check points and trade points at the Friendship Bridge across the small Mae Sai river links Tachileik with the northern Thai border town of Mae Sai, Chaing Rai District. The area is currently being developed for tourism and cross-border trade via two bridges with Laos, Thailand and China. One of the 24 P a g e

25 bridges is actively used for border crossings where many people and goods from both sides pass through every day and the other newer one is an official cross border trade point for container trucks (MLRDRT 2009). Cross border poultry trade has also been assessed in Myawaddy and Hpa An townships bordering Thailand Live chicken, spent hens & chicken meat parts Live broiler, spent hens and chicken meat enter Tachileik daily via informal points from Maesai, Thailand. People in Myawaddy township have to rely on chicken from Thailand such as live poultry (spent hen and broilers), frozen fresh meat, chilled poultry parts, fresh commercial chicken eggs, duck eggs, salted and century eggs which are distributed not only in Myawaddy but also to Kaukareik and Hpa-an townships (MLRDRT 2009) Chicken eggs Chicken eggs are imported from Maesai, Thailand. Six egg dealers in Myawaddy buy eggs from one dealer in Mae sot, Thailand. Plastic egg trays are sent back unwashed Conclusion Most of the imported poultry into Monglar are live birds, and therefore the HPAI incursion risk is high but transmission risk into native chicken. There is also a high risk of virus transmission from live ducks when they are driven through Monglar down to Kyaing Tong. This once caused the 3rd wave of HPAI outbreaks in Myanmar which wiped out 30,000 native chicken and reportedly caused one human case in Kyaing Tong, Eastern Shan State (MLRDRT 2009). Tachileik and Kyaing Tong receive poultry from Mae Sai (Thailand) where HPAI outbreaks occurred in In Mae Sai many commercial farms are concentrated and the risk level of HPAI transmission can be assumed high if HPAI was present in these farms. In Kyaing Tong, the imported pullet ducks are a major threat for the risk of virus transmission to the poultry farms. 7.6 Tripura, Manipur and West Bengal State of India Poultry sector In the studied areas of Tripura, Manipur and West Bengal State two distinct poultry production systems have been identified: (i) Intensive production with commercial broiler and Kuroiler (local cross-breed) chicken, (ii) free range scavenging native chicken (FARMER 2010) Intensive production system clusters The capacity of the majority of farms in the studied areas range from However, there are about 70 to 80 farms with capacities ranging between 500 to 1000 in Sonamura. Kuroiler (colored crossbreed birds) farming is comparatively more prominent in the Jaigaon and Manipur. Grown up chicks (after a brooding period of about 20 days or above) are purchased by backyard farmers and reared as backyard poultry in Jaigaon area. A small 25 P a g e

26 number of (10-20) birds are sold in the market after being reared for 3 to 6 months as native birds (FARMER 2010). In Sonamura sub-division of Tripura State the areas Kathalia block, Sonamura, Melagharh block, N.C. Nagar, Bishalghar, and Bisramganj have been identified as production clusters for live broiler chicken. DoCs are mainly sourced from Agartala. In Jaigaon of West Bengal State the following areas have been identified as sources for live broiler chicken: Falakata, Birpara, and Alipurduwar Free range or scavenging system Almost every household in the studied villages kept backyard poultry (chicken, ducks, Muscovy, geese) in their houses. Flock sizes ranged from 5 to 50 chicken, 5 to 50 ducks, and 1 to 6 geese. The average flock size ranged from 3 to 15 native chicken and 7 to 10 ducks. Usually all species of poultry scavenge during daytime in homestead areas and nearby agricultural lands or available water bodies. No vaccination or medication was observed. Backyard poultry are reared for both, for egg and meat purpose to meet local demand (FARMER 2010) Disease situation H5N1 HPAI outbreaks were reported for Tripura, West Bengal and Manipur State during before the value chain study had been implemented Border points Sonamura, West Bengal Bangladesh Trade of poultry and poultry products have been banned between India and Bangladesh during the time period of the value chain study. The border security force is posted on duty in different points at Sonamura at Indo-Bangladesh border but the quarantine station is not functional. Based on the report of FARMER (2010) mainly DoCs are transported across the border into Bangladesh. These are mainly sourced from hatcheries in Bangalore, Hyderabad, and Kolkata. As per estimate of July 2010, approximately 10,000 DoCs per day are transported from India to Bangladesh with help of local residents at zero point of Indo- Bangladesh borders. Mini trucks/vans are used to transport DoCs from Agartala to Sonamura. Water is provided to DoCs at an aggregation point at the zero point of the Indo-Bangladesh border (Figure 12). Common modes of transport for DoC from there are hand carts, threewheeled cycles, rickshaws, carrying on the head. 26 P a g e

27 Figure 12 Movements of poultry and poultry products within Tripura and Sonamura. Source: FARMER (2010) Border points Jaigaon, West Bengal Bhutan There is legal trade of frozen chicken from India to Bhutan through a quarantine station at the border crossing point at Pheuntsholing. Consumers from Bhutan come to the villages of Jaigaon bordering Bhutan to purchase live ducks from October to November. Contract farms for broiler production located at Falakata, Birpara, and New Alipurdurar (approximately 40 to 60 km away from Jaigaon) supply live broilers via dealers to the two main markets of Jaigaon (Figure 13). 27 P a g e

28 Figure 13 Movements of poultry and poultry products from Jaigaon to Bhutan Source: FARMER (2010) Border points Moreh, Manipur Myanmar The border is managed by defence personnel from India and Myanmar. No legal trade of poultry and poultry products or confiscation of poultry had been recorded between India and Myanmar (FARMER 2010). Live native chicken and broiler in small quantities are sourced through small traders from Imphal (Capital city of Manipur) and transported on bicycles, tricycles and small auto carriers via Moreh border to Myanmar (Figure 14). There are 5 to 8 traders in the Moreh border importing about number of chicken every day (FARMER 2010). 28 P a g e

29 Figure 14 Movements of live chicken through Moreh border Source: FARMER (2010) 7.7 Nepal Poultry sector Extensive small scale, rural, family-based poultry systems are supplying the largest share of poultry product consumption in rural areas. However, urbanization and economic growth have fueled demand for poultry products which are increasingly supplied by industrialized production systems of large and medium size using improved exotic breeds. Demand for improved exotic breeds is not met by the internal supply from parent stock farms which are sourcing parent stock from international poultry breeding companies. More than one million parent stock DoCs were imported in 2011/12 (FAO 2014) Disease situation There had been a total of 4 HPAI outbreaks until mid All the outbreaks were detected through the passive surveillance. Mechinagar of Jhapa district recorded Nepal s first HPAI outbreak in January Border points Jhapa, Nepal India 10,000 to 14,000 DoCs per month enter into Jhapa via five cross border points (Satighatta, Nakalbanda, Bahundangi, Mohanpur and Prithvinagar) and are delivered by feed or chick suppliers to farmers in other areas. The DoCs are sourced from 3 hatcheries in Silguri, India. 29 P a g e