This document summarizes a presentation on improving the beef cattle value chain in southern central Vietnam. It provides background on global and Vietnamese beef production and consumption. It then describes the current beef cattle production system and value chain in southern central Vietnam. Key agents in the chain are identified as farmers, collectors, dealers, slaughterhouses, retailers and processing units. The document analyzes the financial parameters and value added at different stages of the chain. It identifies opportunities to increase productivity on farms and improve the supply chain and market information. Feedback from local beneficiaries supports interventions like improving breeding, pasture management, disease prevention, marketing skills, and market transparency.

1. BEEF CATTLE VALUE CHAIN IN SCC VIET NAM
& INTERVENTION FOR IMPROVEMENT
Presented by Ho Cao Viet
Quy Nhon, 5-6 March 2013
Institute of Agricultural Sciences for
Southern Vietnam

2. Production &
consumption of beef in
global market &
Vietnam

3. Source: Beef Industry Analysis. Agricultural Industries Group. 2012.

4. Source: Beef Industry Analysis. Agricultural Industries Group. 2012.
India is largest exporter in
2012 (1,68 mi.tons;
expected 2,16 mil. Tons in
2013)

5. Source: Beef Industry Analysis. Agricultural Industries Group. 2012.
4th largest importer; imported beef meat 300
tons per year

6. Beef-cattle production in SSC, 2005-2011
In 2011-2012:
Price of beef
meat: 180-320
thousand VND
(9-16USD)/kg
100
150
200
250
300
350
2005 2006 2007 2008 2009 2010 2011
Beef-cattle(1000head)
Bình Định Phú Yên Ninh Thuận
2009-2011: Trend
to move down by
4-5%
Source: General Statistic Office, 2011-2012.

7. Methodology
& methods

8. Methodology of research
Describe &
positioning
structure of
chain
Financial &
cost-benefit
analysis
Agents &
overall chain
Strategy &
Intervention
to
improvement
of chain
Feedback of
local
beneficiaries
New projects
/programs
Qualitative &
Quantitative
methods

9. Major supply chain of beef-cattle
in SCC
Farmers Collectors
Dealers,
distributors
Retailers,
processing units
Slaughter
houses
Beef-cattle Beef-cattle
Meat, Born & by-
products
Meat, Born & by-
products
Product line
Production
stage
Marketing stage

10. Description & positioning beef-cattle
value chain in SCC
70%B
eef
75%B
eef
25% Beef
Meat & by-
products
Meat
leather
Farmer
Slaughter
houses
Leathe
r (10%)
Meat
(30%)
Born,
bood
Slaughters in Dong
Nai & HCMC
Local
market
ProvincialD
ealer
Distributors
Factories
in HCMC
Retailers
Market in HCM city
30% Beef
Middle
men

11. Financial parameters in value chain
of cassava and beef cattle
Inputs Total production (P)
Intermediate costs (I.C)
Value of main
products
Value of by-
products
Input materials
Added
Value
(VA)
Hired labor cost
Financial cost
Taxation
Gross
Profit
(GPr)
Depreciation
Net Profit
(NPr)

12. Value Added analysis of overall chains
IC Farmer
IC Processing
IC Trading
P Farmer
P Processing
P Trading
VA Farmer
+
VA Processing
+
VA Trading
IC Farmer
IC Processing
IC Trading
GPr Trading
VA chain

13. India become beef-
meat largest exporter
in 2012, WHY ?

14. Major factors:
1-Competitive low price beef
2- Export-oriented slaughter units
3- Robust demand for lean
4- Provide halal product (exported
to Malaysia)
Source: Merco Press – South Atlantic News Agency (2012).

15. Intervention for
improvement of beef-
cattle value chain
in SSC

16. Prerequisites of a successful food
system
Source: CAPI, 2012.

17. Two approaches for marketing strategy
Source: CAPI, 2012

18. Feedback of beneficiaries
on beef-cattle value chain
intervention for
improvement

19.  18 questions relating to strategy and
solution for improvement of chain
 16 samples of beneficiaries: 18.8%
farmers; 18.8% local collector; 18.8%
slaughter house; 43.8% officer/staff in
DARD/local gevernment

20. Question on “farmer, local collector,
slaughter coordination in marketing in order
improve added value of chain”
no comment
very adaptable

21. Question on “efficiency credit program for
husbandry (amount of loan, relevant interest
rate, technical support)”
no comment
very adaptable

22. Increasing productivity on-farm
The key drivers of farm profitability are:
 Increasing pasture, forage and
supplemental feeds utilization rates
(Q5:62.5%; 37.5% very adaptable)
 Reducing mortality
 Increasing carcass rate
 Increasing price per unit sold
 Reducing feed costs per unit sold

23. Technical solutions to increase
productivity on-farm
 Higher performance programs for breeding &
artificial insertion (Q2:81.3%)
 Introducing high-biomass grass varieties &
adapting with extreme weather condition
(Q4:100%)
 Applying nutrients-balance, modify micro-
elements & mineral salt, fattening by cassava
products, fermented by-products (rice straw,
cassava leaf, etc.) (Q5:100%)

24. Technical solutions to increase
productivity on-farm (cont.)
 Increasing ratio of vaccination &
mapping for disease prediction
(Q10:93.8%)
 Training farmers on marketing skill
(Q8:93.8%)
 Applying husbandry technics towards
organic farming and GAP

25. Improve supply chain & market
information
 Transparence in price & transaction mode
(farmers-collectors-middlemen) (81.3%)
 Uploading website for market-price analysed
information
 Organizing auction systems for cattle (31.3%)
 Policies to encourage beef-cattle husbanry
towards high-quality, safety and competitive
price, target to high-income domestic market
and exportation (87.6%)

26. Improve supply chain & market
information (cont.)
 Improving size of herds & develop
specialized-farm in relevant regions (81.3%)
 Doing markert studies, finding out new
high-competitive markets , in term of
price and quality (organic farming,
natural grazing, non-use chemicals and
industrial feeds)

27. Thanks for your
attention !