Báo cáo nghiên cứu khoa học " Developing an Agricultural Research and Development Priority Framework for Vietnam Livestock Sub-Sector Workshop " pptx

ARDO 1: LARGE ANIMALS1.1 National Goal To increase the contribution of domestic production to overall domestic demandsthrough the intensification of beef, dairy and buffalo production in

and Development Priority

Framework for Vietnam

Livestock Sub-Sector Workshop

Data and Information Sheets:

Areas of Research & Development

Opportunity (ARDOs)

December 2007

ARDO 1: LARGE ANIMALS

1.1 National Goal

To increase the contribution of domestic production to overall domestic demandsthrough the intensification of beef, dairy and buffalo production in regions withcomparative advantages to produce high quality and high value products, createemployment in production and processing industries and improving income andlivelihoods of farmers Production Targets are:

 Buffalo: 3.07 million head by 2010 and 3.23 million by 2015; buffalo meat production 72.000 tones by 2010 and 88.000 tones by year 2015.

 Beef: 7.1 million head by 2010 and 9 million by 2015; meat production 210,000 tones by 2010 and 310,000 tones by 2015.

 Milk: 200,000 head by 2010 and 350,000 by 2015; fresh milk production 350,000 tones by 2010 and 670,000 tones by 2015 The dairy industry sets the target of meeting 33% of the milk demand by 2010 and 42% by 2015

to using local feed resources, and are often a means of saving money, and a source ofcredit for the farmers As the mechanization process has been developed, the role ofsupplying draught power was reduced, a part of buffalo population moved to meatproduction

Though the cattle production systems have been established long time ago, it was notuntil 1960’s that the Government issued the first National policy to promote thedevelopment of the cattle production systems In order to shift from the production

system for draught purpose to specialized meat and milk production systems, Vietnamhas been implementing a number of research projects and programs to improve thequality of beef and dairy cattle breeds However, the quality of beef and dairy cattlebreeds is still poor which results in beef and dairy production systems with a lowproductivity and hence profitability.

In a production system, improving productivity and quality of meat or milk products isclosely related to profitability and sustainability of the system However, in order toachieve the target of producing foods of quality, hygiene and safety in the smallhousehold-based system, it requires adequate investments of both finance andtechnology

2.2 Industry Characteristics and Prospects

Source: Department of Animal Husbandry, MARD (2006)

 Over the last 6 years, the total buffalo population increased 4%; however, there was aslight decline in some zones while increased in the others

 The percentage of the buffalo population in each region is North East (42%), NorthCentral Coast (25%), North West (16%), South Central Coast (5%), Red River Delta(4%), South East (3%), Central Highlands (3%), and Mekong River Delta (1%)

Beef Cattle

 Compared with 2000 cattle numbers have increased by approximately 58%

 Cattle are raised in all 8 ecological zones i.e Red River Delta, North East, NorthWest, North Central Coast, South Central Coast, Central Highlands, South East, andMekong River Delta The cattle population differs from region to region and theCentral Region (North Central Coast, South Central Coast, and Central Highlands)has the biggest herd- 2.488 million heads or 37.6% of the total population

 The statistics shows a slight reduction in the population of cattle over the 2001-2002period, followed by a steady but rapid increase thereafter.

 The Mekong River Delta experienced the highest growth rate (344%)

Source: General Department for Statistics

 Total dairy cattle population is 113,215, an increase of 3.78 times the number in2001

 Dairy cattle are raised in all 8 ecological zones but some areas such as North Eastand North Central Coast only established the dairy industry in 2001, yet the dairyherds in these two zones in 2006 were 5325 and 3261 heads, respectively

 The dairy herd in Mekong River Delta had increased by approximately 5.7 timesduring the 201-2006 period

 According to the statistics the increase in the dairy herd was greatest during the 2002

to 2004 period as provinces and/or cities issued policies to promote dairy production.However, this resulted in a high demand for dairy cows which in turn created abubble in price of breeding animals

 The subsequent rush into crossbreeding between improved native cows and HFsemen (with a poor selection of the cows) had resulted in dairy herds with lowperformance

 In addition, several companies had imported pure HF and Jersey cows from America,Australia, and New Zealand, with a poor consideration on the animal’s performanceand adaptability, to sell to provinces and/or cities Many among these provinces didnot meet the minimum condition required for raising such dairy breeds, yet rushedinto the industry Consequently, the dairy herd had a low milk yield and reproductionrate, and hence a low economical efficiency

 During 2004 to 2006 period, the dairy herd increased at a rate of approximately 8.7%per annum and this better reflected the actual capacity of Vietnam in developing the

dairy industry This population growth rate will create favourable conditions for adeeper selection program of dairy breeding cows and hence a more profitable andsustainable industry.

 Most dairy cows are in the South East (66%) and Red River Delta (21%) zones, andthese two areas are also the two main economic centres of Vietnam and the majormarkets for dairy products Therefore processing facilities for milk and dairyproducts are mainly located in these areas

 Dairy production has tended to be established in areas that have a large market andprocessing facilities for milk and dairy products and some areas that have a potentialfor dairy production such as Central Highlands, North West and North East regionsonly have small dairy herds (some 2.6 – 4.7% of the whole herd) due to its longdistance to the big cities

2.2.2 Breeds

Buffalo

 Local buffaloes are of the Swamp type (different areas have different names e.g Ngobuffalo (big size) and Gie buffalo (small size) with a total population of nearly 3million In general, Vietnamese Swamp buffaloes have small body size, slow growthrate, late maturity, long calving interval and low milk yield, but are adapted very wellwith our ecological conditions and they have good disease resistance

 In the 1970s dairy Murrah buffaloes were imported from China, Bulgaria, and India

to improve productivity of local buffaloes Murrah buffaloes were well adapted andraised in many places and crossed with Swamp buffaloes The number of Murrrah andcrosses are still small; they have been kept in state farms and used mainly for research.The crossbred F1 have improved body size, growth rate, draught power, milk yieldand also reproductive performance, but at present the number of crossbred buffaloes

is small

Beef Cattle

 Native or Yellow cattle make up approximately 70% of the total beef cattlepopulation The breed is small in frame and light in carcass weight, but is welladapted to extensive production systems in small households and high inreproduction rate

 Crossbred animals with more than 50% Zebu blood account 30% of the herd.Crossbreds have a heavier liveweight (35% heavier than Yellow cattle), highercarcass to liveweight ratio (3-5% higher) and adapts well to the householdconditions The calving interval, however, is longer than the Yellow breed

 Pure breeds of large-frame beef cattle such as Brahman and Drought Master havebeen imported and raised in several places through out the country since 2002 Theyare less than 1% of the beef animals Imported animals have heavier liveweight andhigher growth rate, but require better quality feeds and feeding practices than nativecattle Therefore, they may not adapt to some places in Vietnam (e.g Tuyen Quang)

Dairy Cattle

Table 5 Breakdown of dairy breeds

Breed Region

1/2HF 3/4HF >3/4HF Pure

imported

Whole country (heads) 25,826 27,948 36,798 16,437

Whole country (% of total) 24.2 26.1 34.4 15.4

Source: National Dairy Development Project (2005)

 85% of the dairy herd are crossbred Holstein Friesian (HF) with just over 60% ofcrossbreds being ¾ HF

 Pure dairy breeds imported to Vietnam such as HF and Jersey are kept mostly in MocChau, Lam Dong, Thanh Hoa, and Tuyen Quang provinces

 The total number of imported dairy cattle in 2002 to 2004 is 10,000 cows

 Apart from provinces with a long tradition of raising pure HF cattle, some provinceswith relatively hot climate such as Can Tho and Ho Chi Minh City are now raisingsuch animals The milk yield of the pure HF cows in these provinces, however, islower and averaging approximately 80-85% of those animals raised in suchtemperate climates as Moc Chau and Lam Dong

 Crossbred animals with a lower HF blood percentage withstand the poor feedingcondition and heat stress better than those with higher blood and/or imported purebreeds

Total buffalo meat (1,000 kg) 51,380 51,811 53,061 57,457 59,800 64,317

Percentage of buffalo meat in total

meat production (%)

Source: Department of Animal Husbandry, MARD (2006)

 Buffalo meat is only about 2% of the total meat production and the annual growthrate of meat produced by buffalos is also low (0.8-8.3%) Because of this proportion

of buffalo meat to total meat production falls year by year

 However, according to FAO, the total buffalo meat production of Vietnam is at sixthposition in the World

 Annual beef production increased at a high rate of 11 to 18% The total beefproduced in 2006 was 70% higher than that in the year 2000 However, the totalbeef produced annually still accounts for only a small proportion (4.6-5.2%) of thetotal meat produced The potential for beef domestic market is large

Buffalo

 Buffalo have been kept mainly for draught, meat is product of old (culled) or thinones They were slaughtered without fattening, the meat percentages were low andthe quality was not good

Table 7 Buffalo meat production in different zones (2002-2006) Unit: 1,000 kg

Location 2001 2002 2003 2004 2005 2006

Whole country 51,380 51,811 53,061 57,457 59,800 64,317 Red River delta 3,709 4,107 4,675 5,223 5,239 5,990 North East 18,444 19,101 17,562 19,028 19,884 19,449

North Central Coast 8,168 8,816 10,077 11,675 12,726 13,794 South Central Coast 2,147 2,016 2,225 2,380 3,246 3,377 Central Highlands 1,227 2,288 2,441 2,211 1,948 1,899

Mekong River Delta 3,847 1,533 1,920 1,826 1,718 1,724

Source: Department of Animal Husbandry, MARD (2006)

 Buffalo meat has increased each year with a 25% increase over 6 years (av 4%/year)

Table 8 Meat percentages of local swamp buffalo

(culled)

Young buffalo (24 months of age)

 Source: Vu Duy Giang et al., 1999

 Clearly culled buffaloes have very low dressing percentages Young buffalo producehigher dressing and lean meat percentages and this could be improved by a shortfattening period before slaughter

Table 9 Growth rate and meat percentages of fattened young Swamp buffalo

Source: Nguyen Cong Dinh et al (2007)

Beef

Table 10 Growth rate and percentage of carcass weight (in liveweight) of some cattle

breeds

Breed Parameter

Unit Yellow

cattle

Laisind cattle

Sahiwal x Yellow cattle

Brahman x Yellow cattle

Pure Zebu cattle

Source: Department of Animal Husbandry, MARD (2005)

 The growth rate and carcass percentage of crossbred animals is higher than Yellowcattle The mature weight and carcass percentage of these groups is 38.8 to 61.1%and 5.3 to 5.8% higher than those parameters of the Yellow breed Crossbred cows

have been further crossbred with bulls of high carcass-weight-potential and this iscontributing to the improvement of both quality and productivity of the beef cattle inVietnam.

Dairy Production

Table 11 Changes in number and production of the dairy herd and milk

production per capita (2000-2006)

2000 2001 2002 2003 2004 2005 2006 Population (1000 heads) 35.0 41.2 55.9 79.2 95.8 104.1 113.2 Total milk produced (1000 tones) 52.2 64.7 78.7 126.7 151.3 197.7 216.0 Population (million people) 77.63 78.7 79.7 80.9 82 83.1 84 Milk produced/capita (kg) 0.67 0.82 0.98 1.57 1.84 2.38 2.57

Source: Department of Animal Husbandry, MARD (2007)

 Number and milk production of the dairy herd has continually increased with a 3 foldincrease in numbers and 5 fold increase in milk production over the last 6 years.Higher growth rate of milk production as compared to the growth rate of dairypopulation is attributed to a higher breed quality of the dairy herd and better nutritionand feeding practices

Table 12 Average milk yield (tones/cow/lactation) of pure and crossbred HF cows

2000 2002 2003 2004 2005

Source: Department of Animal Husbandry (2006)

 Average milk yield of the crossbred HF cows in 2005 was 24.2% higher than in 2000and for pure HF cows was 21.1% higher

2.3 Value and Markets

 Buffalo Beef, milk and dairy products are mainly sold in the domestic market

 Consumption of all meat has increased by 44.58% and that of beef by 53.23% overthe 2001-2006 period However, beef consumption still accounts for a smallproportion in the total meat consumption (only 5-6%)

 Buffalo meat consumption is low (0.6-0.7 kg/person/year) and the proportion in thetotal meat consumption is about 2%

 The beef consumption per capita in Vietnam is approximately 45.86 and 17.78% thatconsumption per capita of the South East Asia region (2.95 kg/capita) and Asiacontinent (8.43 kg/capita), respectively

 As the quality of beef produced in Vietnam is relatively low it is mainly consumed

by low and medium income consumers

 In the top markets such as hotels, restaurants, and big supermarkets, imported beefaccounts for the majority even though the price is always higher (2.5 to 3 times) thanthe local products

 Milk produced by the dairy industry in Vietnam is approximately 30% of the demandsince the average milk consumption in the year 2000 was 5.2 kg per capita and in

2005 7.9 kg while milk produced in 2005 was only 2.38 kg per capita

 Farm gate price for high quality fresh milk is 4500 VND/kg The comparative pricefor reconstituted milk (including import tax and VAT) is 4760 VND/kg (excludingfreight)

2.4 Comparative Advantage

 According to FAO assessment, the trend of animal production in the world towards

2020 is that production of animal products will be moving from developed todeveloping countries It is expected that Asia will become the biggest animalproduction continent

 Because of the low level of production of meat and milk, compared with domesticdemand there is a large domestic market to be developed

 The Vietnamese farmer has a saying “take your labour as your business profit” theprice of animal products is relatively flexible and hence very competitive

 The milk yield of dairy cows in Vietnam is comparable to that of dairy cattle in othercountries in South East Asia such as Thailand (3.2 tones/lactation) and Indonesia (3.1tones/lactation)

 Cattle can use agro-industrial by-products and small and poor quality grasslands andfarmers consider cattle production a business with minimum daily investment andoften lower risk as compared with other animals

 Membership of WTO is likely to increase competition from imported beef meat anddairy products with many competing countries having lower costs per kg ofproduction and higher quality standards

2.5 Government Policies

 Decision 167/2001/QĐ –TTg issued by the Prime Minister stating policies and measures for the development of dairy industry over the period from 2001 to 2010Associated with this a number of policies such as giving free AI equipment andmaterials, free vaccine for contagious diseases prevention to the dairy producer,provision of low rate or free interest loans to dairy households, provision ofeducation and training to farmers, and transferring advanced technology into dairyindustry has been issued

 Resolution 142/2005/NĐ –CP issued by Prime Minister on 14 Nov, 2005 on land and waters lease for cattle production

 Resolution NQ 3/2000-NQ-CP, 09/2000-NQ-CP and Decision 167/2001/QĐ –TTg issued by Prime Minister encourage localities to use a part of arable land for grass

plantation for dairy cattle and allow milk producers to have long term land lease tobuild animal house and grow grass/pasture.

 Two state farms keep a small number of breeding buffaloes, mainly for research

 In some places, middle men collected thin and old buffalo for fattening in feedlots,but they did not last and the number of buffalos was low

Beef and Dairy

 Cattle production in general and dairy production in particular occurs mainly in smallhouseholds with 1-5 head/household

 In 2005, there were 3404 commercial beef cattle farms in the whole country, ofwhich 1064 farms were in the North (31.26%) and 2340 farms in the South(68.74%) Farms raising beef cattle often cultivate other crops in order to effectivelyexploit by-products of such crops as roughage source for the animal

 The total number of dairy farms is 19,639 (average 5.3 head/household), of which12,626 farms (64.3%) are located in the South (6.3 head/household) and 7,013 farms(35.7%) in the North (3.7 head/household) The number of farms having 1-5 heads is17,676 (90% of the total) but the size of dairy herds in the households is changingtowards increasing the number of households with 5 to 10 cows and decreasing thethose with less than 5 animals

Table 4 Breakdown by size of the number of cattle farm in Vietnam (2006 Data)

 92% of beef herds are under 200 head and 96% of dairy herds are below 50 head

 The number of farms having more than 500 head is very low (0.31% for beef and0.06% for dairy cattle) Thus the size of both beef and dairy farms is small and need

to be enlarged if the cattle production is to become an industry producing marketoriented beef and dairy products with high quality The size appropriate forproducing market oriented commodities will allow profitable investment into andapplication of advanced technologies in the farm

3.2 Supporting Infrastructure

 Moncada breeding bull centre: the centre built in 1972 and upgraded recently (JICAproject 2001-2005) now applies the Japanese procedure for production of bovinesemen straws

 AI system established in 1972 (Cuba assistance) to provide AI services to cows inprovinces and/or cities through out the country At present, most dairy cattle areserved by AI but beef cattle in a much smaller scale

 A number of pure breeding companies for beef cattle in Ho Chi Minh City, KhanhHoa, Son La and Tuyen Quang provinces

 Four pure breeding companies for dairy cattle in Moc Chau, Lam Dong, Thanh Hoaand Tuyen Quang provinces

 Two beef processing plants with a high capacity in Hai Phong and Ho Chi Minh

cities and many small scale slaughter houses in other cities and/or provinces.

 Milk processing companies including Dutch Lady in Binh Duong, Nestle in Ha Tay,

Hanoimilk in Ha Noi, Vinamilk (with a number of milk processing facilities in HoChi Minh, Can Tho, Binh Dinh, Nghe An, and Ha Noi), milk processing factory ofLam Son sugar company in Thanh Hoa, and Moc Chau dairy company in Moc Chau

3.3 Future Market Trends and Key Issues

 All beef and milk products produced in Vietnam are for domestic consumption asVietnam imports most of its dairy and beef meat

 Consumption of milk and dairy products is increasing as income increases It isestimated that the growth rate of milk consumption will increase by 8-9% per annum

if GDP growth continues at around 7%

 Currently Vietnam imports approximately 470,000 tones of milk annually which willincrease to 710,000 tones by 2010 Milk produced in Vietnam can only meet 33% ofthe demand Thus there remains a huge market for milk and dairy products

 According to FAO, in the whole world, there is one cattle for every 4.7 people andthe beef consumption is 5.5 kg per person In Vietnam there is one cattle for every12.9 people and the beef consumption is only 1.9 kg/capita Beef accounts for only5.19% of the total meat consumption and beef price is more stable than othermammal and poultry meat

 The cost of beef and milk production that relies on imported feeds is likely toincrease significantly as world feed grain prices increase due to increasing emphasis

on bio-fuel production

 The demand for quality and safety in beef and milk production is likely to increase asincreased consumption is associated with an increase in the number of people withhigher disposable incomes

4 R&D INFORMATION

4.1 Main Research Areas

 Tabulation of nutrient requirements at different ages, body weight and productionrates Consolidation of feed tables for dairy and beef cattle and buffalo

 Development and application of new and/or modified techniques for betterproduction, processing and utilization of roughage and supplement sources, betterfeeding practices, herd management and healthcare

 Establishment of large scale and medium size of intensive buffalo, beef and dairyfarms to enhance the producing of commercial buffalo meat with bigger amount tomeet domestic consumption and exportation in future

 Research projects on feeds and nutrition, animal production and animal health, andprojects which aim to (1) improve breed quality of beef and dairy cattle; (2) upgraderesearch facilities; (3) educate and train extension workers and farmers

 Implementation of research activities on market and marketing systems to developappropriate strategies for production and sale of beef and dairy products

 Application of advanced technologies such as embryo splitting, embryo transferring,molecular genetics technique and traditional methods into selection and creation ofnew beef and dairy breeds with higher yield and quality potential

4.2 Major Research Providers

Ministry of Agriculture and Rural Development (MARD)

 National Institute of Animal Husbandry (NIAH)

 Centre for Livestock Research and Development in Mountainous Area,

 Centres for Research and Transferring Advanced Technologies for LivestockProduction in Ho Chi Minh city and Central Coast Region

 Ba Vi Cattle and Forage Research Centre

 Southern Institute for Agricultural Science and Technology

 Tay Nguyen Scientific Institute for Agriculture and Forestry in DakLak province

 Northern and Mountainous Institute for Agriculture and Forestry Studies in Phu Thoprovince

 National Institute of Veterinary and Medicine

Agricultural Universities including

 Hanoi Agricultural University

 Ho Chi Minh Agricultural and Forestry University

 Hue Agricultural and Forestry University

 Thai Nguyen Agricultural and Forestry University

 Tay Nguyen Agricultural and Forestry University

 Department of Animal Husbandry

 Animal Breeding Centre in all provinces and/or cities,

 Vietnam Livestock Corporation

4.3 Funding

 Buffalo: Total funds for 2006 R&D activities was approximately 3 billions VND

 Beef and Dairy: In 2006, Central and local Governments approximately 6 billionVND, International Organizations approximately 3 billion VND, with a totalfunding of approximately 9 billion VND

4.4 Major R & D Achievements to date

Buffalo

 Improving the quantity and quality of buffalo meat to meet human demands

 Use of locally available feed resources such as cassava root meal, cassava leaves,leucaena leaf meal, molasses, urea-treated rice straw and ensiled maize stover forfattening young buffalo (18 to 21 months of age)

 Selection of large size bulls and good dams to improve body size of local smallbuffalo Vietnamese Swamp buffaloes have small body size, slow growth rate, latematurity, long calving interval and low milk yield, but they are adapted very well tothe ecological conditions in Vietnam and they have a good resistance/tolerance to thelocal diseases Using large bulls (500-600kg) body size of local small buffalo wasincreased more than 10% compared to local small buffalo at all ages (from birth to

24 months of age)

 Crossbreeding with Murrah bulls to improving body size and meat production.Crossing with local Swamp females, produced crossbred F1 buffaloes with bodyweights higher by about 20% After fattening, the buffaloes were slaughtered at 24months of age and slaughter weights and meat percentages of crossbred F1 werehigher than local swamp buffalo Compared with young swamp buffaloes at 24months of age, the crossbred F1 increased about 50% in quantity of meat

 Use of locally available feed resources such as cassava root meal, cassava leaves,leucaena leaf meal, molasses, urea-treated rice straw and ensiled maize stover, forfattening young buffalo (18 to 21 months of age) For buffaloes with body weight ofapproximately 200 kg, the ration was about 5.5 to 6 kg of dry matter, in which 20-25% was from concentrate and 75-80% from roughage The feed supplied 500-600gcrude protein and 50-55MJ metabolisable energy After 2 months of fattening, bodyweight gain was 500 to 700 g/day, and the dressing percentage and lean meat contentwere also increased

Beef and Dairy

 Improvement of liveweight and carcass percentage of Yellow cattle Crossbreedingbetween Native cows and Zebu bulls showed F1 crossbred animals were 35-40%

heavier in liveweight, 5-8% higher in carcass percentage (carcass weight/liveweight),and 3-5% higher in lean meat percentage (lean meat weight/liveweight).

 Crossbreeding to create beef specialized cattle Investigation of beef quality andproductivity of crossbred animals born from improved cows inseminated with semen

of Bos indicus and Bos Taurus meat specialized bulls Results showed that progenyresulting from crossbreeding between improved native cows and Brahman, Brangus,Limousine, Santa Gertrudis, Charolais, and Simental semen had higher growth rates,heavier live and carcass weights and higher beef quality than those of Yellow orLaiSind cattle The result also indicated that F1Charolais x Lasind crossbred animalshad the highest performance The averaged liveweight of these crossbred animalswas 360 kg at 24 months old with carcass and lean meat percentages of 52 and 44%,respectively

 LaSind crossbred animals had the highest performance The averaged liveweight ofthese crossbred animals was 360 kg at 24 months old with carcass and lean meatpercentages of 52 and 44%, respectively The animals also had gentle temperamentand were able to withstand poor quality feeds and hot and humid weather conditions

 Crossbreeding to create dairy specialized cattle Crossbreeding between LaiSindcows and pure HF semen and HF and Brown Swiss bulls showed that LaSind cowsand semen of HF bulls were the most appropriate to Vietnam Results fromsubsequent research programs on dairy cattle which have been continuallyimplementing since 1980s indicate that crossbred dairy cows with 75% of HF blood,achieving an averaged milk yield of  4000 kg/lactation, are the most adaptable tofeeding conditions of small households in all ecological zones in Vietnam

 Research to improve milk quality and productivity of the pure HF dairy herds usingimported bulls and cows from the USA that produced an average milk yield of 6036

kg for the first lactation and 6546 kg for the second, calving interval of 14.3 monthsfor the second calving and 12.9 months for the third calving

 Formulation of nutritionally balanced diets for beef and dairy cattle at differentgrowth stages and production rates Tabulation and/or update tables of chemicalcomposition and nutritive values of animal feeds, digestibility of ruminant feeds, andTables of dietary formula for beef and dairy cattle

 Development of methods for processing, preservation, and utilization of roughagesand/or agro-industrial by-products, and manuals introducing good feeding strategies,good managing practices and finishing skills to beef and dairy herds

 Biotechnology: Production of bovine semen straws and procedure for embryotransferring Technologies of In vitro insemination, embryonic cleavage, and earlydetermination of embryo’s gender are also being investigated but as yet the resultsare limited

5 SWOT ANALYSIS

 Monsoon climate is favourable for growth of

grass and fodder trees for cattle, especially in

the rainy season.

 Agro-industrial by-products are abundant and

can be a valuable source of feed for cattle.

 Native and crossbred cattle and swamp

buffalo are well adapted to geographic and

climatic conditions.

 Abundant labour force in rural areas with a

high proportion literacy will assist in transfer

of advanced technologies into cattle

production systems.

 Strong Government support for development

of beef and dairy industries and credits and/or

loans for development of cattle production are

available and easy to obtain.

 International Organizations also provide

active support for household based cattle

production development projects.

 There is a huge and stable domestic market

for beef and dairy products.

 Buffalo are main source of draught power for

land preparation and transportation in the rural

area, and supply a huge amount of fresh organic

manure for cultivation.

 The mechanization process has been

developed, the role of supplying draught

power was reduced, a part of buffalo

population moved to meat production.

 Substantial feed deficits in dry seasons

 Hot and humid climate leads to heat stress in dairy herds with high levels of HF blood and milk yield, especially those with a HF blood of

>75%.

 The small scale of cattle farms creates difficulties in breed improvements and planning for roughage production and preservation in the dry season.

 Tropical grasses have relatively low nutritive values and proportion of legumes in grasslands

is low, especially in natural pastures.

 Farmer preference for maroon colour, pronounced humps and large dewlaps may also impact on productivity improvement

 Native breeds have a small size and hence liveweight and productivity.

 Knowledge and skills of the farmer is still limited Farmers are not yet professional beef and/or milk producers.

 The network for transferring advanced technologies to the farmer is still weak

 Relatively poor cattle husbandry and management systems.

 Cooperatives and Associations of beef and dairy cattle are still weak and incapable of protecting the right and/or benefit of the farmer against unfair treatments from traders and milk collectors and processors.

 There is no certified agency for grading and ratifying beef quality and thus the difference in price between high and medium quality beef is very marginal.

 The national system for quality control of milk and dairy products is relatively poor.

 There is a huge potential for development of

the domestic market for beef and buffalo meat

and dairy products.

 Major research opportunities in development

of more productive feed management systems

involving conservation and storage to

overcome problems in the dry season

 Improved production through development of

larger and more intensively managed herd of

 Competitiveness of beef and dairy industries in Vietnam is low due in part to their small scale.

 Vietnam entry into WTO and reduction of import tax for animal products will increase competition in the domestic market from imports.

 Disease, particularly FMD will have impacts

on production and the movement of animals

beef and dairy cattle.

 Improvements in the health and husbandry

systems through development of on-farm

production monitoring systems

 Improved quality of beef and milk products

through improved growth rates, milk

collection and transport systems and

slaughtering and post-slaughter handling

systems

 Improvement in genetic merit through

crossbreeding and selection and development

of livestock recording systems

 Multiplication of proven genetically superior

livestock through more targeted use of AI,

development of progeny testing systems and

in the longer term embryo transfer techniques

 Collaborative work to improve the production

and digestibility of forages and legumes.

ARDO 2: SMALL RUMINANT ANIMALS

1.1 National Goal

Increasing productivity, quality of products (meat and milk) and product diversifythrough processing enhance market competitiveness of small ruminants, contributing toimprovement of livestock sector’s percentage contribution to the national GDP

1.2 R&D Scope:

Research including: (i) Genetic improvement through selection and crossbreeding toincrease meat and milk productivity; (ii) Development of management and goodhusbandry systems in different ecological regions; (iii) Identification of economicallyimportant diseases, and development of prevention, treatment and management systems

to minimize impacts; (iv) development of forage production ,conservation and use oflocal feed resources to improve yield and quality of meat and milk production; (v)Development of small-scale meat and milk processing practices that ensure food qualityand safety and development of appropriate supply chains for marking small volumes ofproduct; (vi) Development of financial model for herd production systems to optimisereturns

1.3 Coverage

 Domestic breeds: Goats Co(Co), Bach Thao (BT)

Sheep: Phan Rang

 Exotic breeds: Goats: Barbari (Ba), Jumnapari (Jum), Beetal (Be), Boer (Bo),

Alpine (Alp), Saanen (Sa)Sheep: Dorper, Suffolk

 Cross-breeds: Bach Thao*Co (BTCo); Boer*Bachthao (Bo*BT);

Boer*Jumnapari (Bo*Jum); Boer* Beetal (Bo*Be)

Targets

 By 2010 need to achieve, 4.2m head producing 1.26m tons milk and 25.36m tonsgoat/lamb meat Small ruminant production to be considered “organic meat” forhuman consumption

2 INDUSTRY STATISTICS

2.1 Introduction

Small ruminant production is based on smallholder production (about 90%) with a focus

on food production for human consumption Production is suitable for poor farmers, inareas where it is difficult to grow cash crops and production systems do not require highinvestment, labour cost is low and cash flow is generated early in newly establishedherds It is a much lower risk from of livestock production compared with largeanimals The industry is based on small herd sizes, reliance on extensive grazing andfeeding systems and consequently has low productivity and low quality productproduced At present, there are 5 zones that can supply breeding goats with dairy and

meat production Sheep were also imported from Australia (Dorper and White Suffolkbreeds) but the number is low (60).

2.2 Industry Characteristics and Prospects

*Whole country 572.448 621.913 780.354 1,020.196 1,314.189 1,525.260 Source: Department for Animal Husbandry, MARD (2006)

 In 2005, the number of goats and sheep accounted for 3.49 percent of the totaldomestic livestock and 13.29 percent of the ruminant herd

 Over the last 6 years, the total goat and sheep population increased 166% (3.71 timescompared to cattle) The average annual growth rate is 27.6 Highest growth rate ofpopulation in the whole country was found in Mekong River Delta area (62.24%) andopposite Red River Delta area (12.61%) is slowest

 Nearly 53% of the goats and sheep are located in 10 provinces (Ha Giang, NinhThuan, Nghe An, Son La, Thanh Hoa, Binh Thuan, Ben Tre, Tien Giang, Bac Can,Dak lac

 Goats and sheep are mainly raised for meat production (98.84%) Dairy goats raisedfor milk production are low (0.15%)

 Sheep flocks are only distributed in 7 provinces and at the Goat and Rabbit Research

Centre, Son Tay, Ha Tay Total population has increased from 4.000 heads (1976) to

56.827 heads (2005) Highest population is found in Ninh Thuan (42.000 heads)

 Target sheep numbers are 2.48m (2010) and 4.18m (2015) The flocks will beconcentrated into Northeast, Southeast and North-Central regions Crossbreeds willconsist of 45% of total herds in 2010 and 50% for year 2015

 Three other specialized breeds Boer, Saanen, Alpine were imported from United States

of America They were also adapted well to local conditions The crosses with localgoats were also shown good performance in milk, meat or milk and meat production

 There are 5 breeding areas in the country: Ha Tay-Hoa Binh produced dairy-meatbreeds; Thanh Hoa-Ninh Binh produced meat breeds; Ninh Thuan-Binh Dinh isdairy-meat breeding area; Song Be-Tay Ninh, Ho Chi Minh City- Binh Phuoc isdairy-meat breed area and South East-Tien Giang-Tra Vinh_Hau Giang produceddairy-meat breeds

Meat Production

Goat and Sheep Meat Production (2001-2005)

Percentage of goat and sheep meat in total

meat production (%)

Total goat & sheep population (head) 572,448 621,913 780,354 1,020,196 1,314,189 Number goats & sheep slaughtered (head) 160,285 174,136 218,499 285,655 367,973

Source: Department of Animal Husbandry, MARD (2006)

 Goat and sheep meat production increased continuously during the period from 2001

to 2005 with the high rate The total goat and sheep meat produced in 2005 wasalmost three times higher than that in 2001

 Although in 2005, goat and sheep contributed about ten thousand tons of meat fordomestic consumption, average goat and sheep meat per capita is still very little(only 0.115 kg/person/year)

 The annual growth rate of goat and sheep meat production is quite high in recentyears (about 13%) and by comparison, is much higher than the growth rate of totalmeat production in the whole country

 Demonstration on development cross goats (BT*Co; BT*India breeds) for meatproduction in Ha Tay, Lac Thuy district and in Hoa Binh have earned from 3-4.5million/year with herd size less than 10 female, from 5-8.5 million/year with herdsize range from 10-20 females and 6-12 million for herd size of more than 20females

 Target meat production is, 25.360 tons in 2010 and 42.604 tons in 2015

 The income from dairy goats could achieve 7-8 million VND/year, milking 3does/farm all year

Dairy goat population and milk production

Reproduction dairy goats (head) 1199 1362 1982 208 503 1906

Pegnancy does yearly (head) 1019 1158 1684 144 428 1620

Milk production yearly (kg) 98.573 112.006 162.964 17.142 41.367 156.782

Total milk production in the country (From Ha Tay and HCM city)

Total milk production (kg) 115,715 153,374 319,746

Average milk consumed per person/year

(litter) 0,001 0,002 0,004

Source: Department of Animal Husbandry, MARD (2007)

 Target milk production in 2010 is be 1.259 tons and in 2015 is 2.473 tons

Small Ruminant Productivity

 Small ruminant productivity is measured by live weigh gain and reproduction

through generations compared to the breeding potential and number of new breeds

created to supply for production’s demands

Body weight (kg) (Female

Milk production, (litter/day)

Average milk yield

Lactation length (days)

Reproductive performance

- First kidding age (days

- Kidding intervals (days)

- Litter size in average

(kid/litter)

- Single born rate, %

- Twinborn and over rate, %

Feed conversion efficiency

(kg DM/kg gain) from birth

to 9 month

2.49-2.84 - 18.3-22.6 29.2-40.0 42.8 30.0 1.51 148

346 217 2.09 26.5 73.5 4.49

1.76-1.92 - 9.2-10.25 16.1-19.1 45.8 33.4 0.32 105

330 257 1.35 70.5 29.5 5.34

2.08-2.21 - 15.0-18.0 23.2-25.5 44.6 32.8 0.81 115

300 213 1.75 44.6 55.4 4.34

2.1-2.3 9.1-9.4 13.5-15.8 19.3-24.3 45.1 29.0 1.3 155

250 281 1.55 37.2 62.8 6.07

2.9-3.5 10.7-13.2 17.4-20.9 25.8-35.6 47.8 30.6 2.1 179

401 316 1.39 69.7 30.3 6.89

3.4-3.9 11.7-13.1 17.6-19.5 24.2-34.2 46.0 28.7 1.9 186

435 312 1.36 68.8 31.2 6.60

2.8 - 3.1 15.1 - 16.3 25.8 - 28.1 41.9 - 48.6 -

- -

-618 325 1.8 - - 6.47

2.99-3.28 12.7 - 14.5 17.5 - 24.4 29.4 - 35.8 -

2.8-3.0 275-300

-476 362 1.65 - - 6.71

2.58 - 3.12 11.6 - 13.7 15.2 - 22.9 26.4 - 32.5 -

2.4 - 2.7

-250 - 280

467 336 1.60 - - 6.55

Sheep breed

Phan Giang Phan Rang sheep belong thin-short tail group, the age of first oestrus is at 7-8 month of age, the oestrus cycle

ranges from 18 to 21 days, Pregnant time is 5 months, body weigh at born is about 1.8-2.4 kg, body weight of mutual ewes range from 39 to 41 kg and lambs/rams is 43 to 50 kg.

Value and Markets

 Goat and sheep meat and milk is all sold in the domestic market

 In 1996, the live goat price was 8000 VND per kg, in 2003 was up to 23,000 VND

per kg, nearly twice as high as that of pork which was 11,000 – 12,000 VND per kg

In 2005, the live goat price increased to 35,000 VND per kg

 Livestock prices of goat/sheep breeds are relatively high, usually at 4-5 million

VND/doe or ewe

Comparative Advantage

 Small ruminants compete well against other large red meat animal production as thecapital cost and operational costs of livestock are lower than for cattle The ability ofsmallholders to manage risks and to produce acceptable income levels is also greaterthan for large animals

 According to FAO assessment, Asia will become the biggest animal productioncontinent and as incomes rise domestic demand for red meat and milk will rise

 The largest producers are China (1,5m tons/yr); India (0.48m tons/yr); and Pakistan(0.37m tons/yr) Vietnam produces about 3000 tons, so competition from otherproducers if it occurs is more likely in the domestic market

 Goat and sheep production in small households of Vietnam can still be competitive

in the International market because of its labour advantages and the domestic marketfor goat and sheep meat still has a huge potential for expansion

Government Policies

 (No of 06 - NQ/TW, No of 03/2000/NQ-CP, No of 14-CP, No 106/2004/NĐ-CP dated 01/4/2004) and 4 Decisions (No 02/2001/QĐ - TTg, No of 167/2001/QĐ-TTg,

No of 125-CT dated 18/4/1991; No of 225/1999/QĐ-TTG dated 10/12/1999) for approving the programs of animal and plant breeding in the period of 2000-2005

 Decree-law No of 3166, 4676, and 4677 on admitting of new breeding andtechnologies transfer to the practice were issued and contributing the increase of newbreed and the technologies accepted

 MARD related Decisions on animal breeds and new techniques in production (No of

64 -NN-TCCB dated 12/12/1989, No of 66-NN-TCCB-QĐ dated 2/4/1993, No of 2107/QQD/BNN/TCCB, No of 83/QĐ/VCN - TCHC dated 4/8/2004 by director of National Institute of Animal Husbandry,

 Decision No of 2903 QD/BNN-KH on September 22nd, 2004 by MARD forestablishment and operation of a Sub-Research Centre for Breeding Goats and Sheep

in Ninh Thuan and setting up a project of developing goat and sheep breeds under theprogram of animal breeds 2006-2010

3 Industry Analysis

3.1 Structure

Households and Size of Holdings

 Goats and Sheep have been kept extensively by small farmers There is noinformation on the number of farms keeping goat and sheep At present, there aresome state farms keeping breeding goats and sheep

 Herd size ranges from 10-20 heads in most of goat farms in the North About 10% ofgoat farms have herd size of 30-50 head found in Ha Giang, Nghe An, Hoa Binh andNinh Binh Larger herd size (50-75 head) is located in Ninh Thuan, Binh Thuanaccounts 63-75% and very big herds of goat and sheep exist in these regions

 Goat and sheep production in Vietnam is based on small farms and extensive farmingsystems In most small-holder systems, goats are either grazed around the house androad sides or taken to grazing commons during the day, then housed at night In this

case, the quality and quantity of feed available will vary with the incidence andintensity of rainfall, and with the distance of the grazing reserves from the village.

 Goat/sheep farmers usually use only one male for mating for many generations, withratios of 1 male/50 females for sheep and 1/20-60 for goats

 High livestock prices mean that most does and ewes are kept for breeding withoutselection, resulting in relatively low quality of breeds and the likelihood ofinbreeding

 There are no larger scale improvement programs based on open nuclear breed herd

Animal Health Status

 Goats are often infected by endemic diseases of national and internationalsignificance, such as foot and mouth disease

 A second group of regional infectious diseases which lead to significant productionand economic losses through morbidity and mortality (eg Pleuropneumonia,Pasteurellosis, Caprine Arthritis Encephalitis (CAE))

 The third level of intervention is associated with local production diseases, whichmay be controlled by better animal management and the strategic use of drugs andtraditional medicines These diseases include internal and external parasites, as well

as bacterial (mostly Clostridial), mycoplasmal and viral diseases of sporadicoccurrence

 A fourth category of diseases of concern are those that are known to be alsotransmissible to humans (eg Leptospirosis), Q fever, Brucellosis

 Liver fluke is a big problem for sheep production at present time

Feed supply

 Mainly from native sources (grasses/plants) consequently resulting feed shortage indry/winter season

 Small ruminant raisers have to use by-agro products and planted multipurpose trees

as Jack fruit, and forage trees (Acacia etc) with low nutritive value

 Processing and conservation feed resources for animal in dry season is not a generalpractice but would have potential for overcoming seasonal feed shortages indry/winter

 Uncontrolled grazing of goats in forests and national parks is a contentious issue andthe limited amounts of quality roughage combined with intensive crop productionhave led to a heavy dependence on forest fodders and eventually leading to the loss

of plant species diversity and forest reserves especially in remote areas and is nowbanned

 There is a need to increase small ruminant production from a forage base, to developforage resources, which will provide a continuous supply of high quality feed to meetthe needs of an expanding small ruminant population

Housing

 Local materials mainly used for making small ruminant houses Cost forconstruction is low, but housing standard is not good enough to ensure animal health.

 Animal housing is generally small and unhygienic due to lack of capital and land Asthe result, the pen becomes muddy and crowded causing worm infection and otherdiseases for animals High humidity combining with under nutrition promotes themultiplication of various disease-causing organisms and deaths in cold or rainyseasons

 Inoculation against disease epidemics is not fully implemented with only 30-35% ofanimals vaccinated More importantly, outbreaks of diseases such as goat poxoccurred and are recurrent in many goat farms in Centre Region

 Vaccine availability and poor vaccination practices limit the success in prevention ofinfectious diseases

 In recent years initiatives to control the diseases for goats and sheep such as pink eyedisease, mastitis, and parasitic diseases have been developed by to date these haveonly been applied in national units, research centre, or some demonstrationssupported by Government

Processing

 Small scale Technologies on collecting, preserving and processing goat milk into thecheese has been introduced to Vietnam Goat cheese, at present, is a high qualityproduct This product is processed and consumed in the country at a competitiveprice with the world market

 80 demonstration farms collecting the goat milk for processing were established at

Ba Vi and Son Tay, Ha Tay At present, sterilized milk and yoghurt are not sufficient

to meet domestic demands

 Milk liquid (whey), a by-product in processing goat cheese, is food for pigs andgoats

 There are no facilities for processing meat, skins, fibre of goat and sheep There aremany small slaughter units but control and management of slaughter operations, andthe standard of hygiene in slaughter houses is poor, affecting food safety, spread ofdiseases and adverse environmental effects

3.3 Markets

World Markets

 World market demand for sheep and goat products is high, and goat productionaccounts for about 1.6% of the total meat demand of 249,851,017 tons.

 Developing countries produce about 4 million tons of goat meat (95% of total goatmeat produced) About 75% of this is produced by Asian countries

 Goat milk accounts for about 2% of total world milk production (600 m tons)

 Nearly 80% of goat milk is produced by developing countries (mainly Asia) Theleading countries in producing goat milk are India (2,610,000 tons) Bangladesh(1,312,000 tons) and Pakistan (1,312,000 tons)

 Goat raising in the world in 2003 also provided 824,654 tons of skin (including thecontribution of Asia and South Pacific of 421,673 tons - 51.13 percent), and 103,210tons of hair (FAO, 2004)

 The UK’s Meat and Cattle Committee predicts that said, the global meatconsumption rate will increases by 35 percent from 2000 to 2010 and most of thisincrease will occur in developing countries

Domestic Markets

 Goat meat has high nutrition value and low-cholesterol level, which is good forhuman health

 Prices for live goats have increased from 8000 VND/kg to 35,000 VND/kg, from

1990 to 2005 - nearly twice as high as that of pork, which was 11,000 – 12,000 VNDper kilo

 Demand for goat milk has also increased because milk goat proved to be of highnutrition value

 Prices for goat milk have increased from 7000 VND/litre to 16,000 VND/l in Hanoiand 20,000 VND in HCMC This compares with cow milk of around 10,000 VND/l

 Cheese produced from goat milk receives 170 000 VND/kg It requires 4-5 kg milk

to produce 1 kg cheese, relating to a milk price of 30,000 VND/l

3.3 Future Trends and Key Market Issues

 Domestic consumption of milk, cheese and meat from goats (and sheep) is likely tosignificantly

 Milk processing, currently uses handicraft processing methods, there is little productdiversification or “trade names” and this and improved packaging and quality islikely to increase demand

 Over the last few years, average income per capita of the Vietnamese increasedrapidly and total meat consumption per capita in 2005 increased by 30% compared to

2001 However, goat and sheep meat consumption is small (0.115 kg/person/year)and the proportion in the total meat consumption is about 0.2-0.3%

4 RESEARCH AND DEVELOPMENT INFORMATION

4.1 Main Research Areas

 Selecting, pure-breed, importing new genes and crossbreeding to improve meat andmilk productivity

 Development small ruminant production based on the local feed resources indifferent ecological regions (feed resources, feeding value, feeding systems andsetting up optimum feeding standards for different stage of age)

 Technologies for preventing and treating the diseases of small ruminants, housingand husbandry

 Technology for goat milk processing

4.2 Major Research Providers

Ministry of Agriculture & Rural Development

 National Institute of Animal Husbandry

 Goat and Rabbit Research Centre in Son Tay, Ha Tay

 Centers for Research and Transferring Advanced Technologies for LivestockProduction in Ho Chi Minh City and Central Coast Region

 Song Be Ruminant Research Centre

 Vietnam Agriculture Science Institute

 Tay Nguyen Scientific Institute for Agriculture and Forestry

 Northern and Mountainous Institute for Agriculture and Forestry Studies in PhuTho province

Universities

 Hanoi Agriculture University

 Hue University

 Can Tho University

 Thu Duc Agriculture University

 Tay Nguyen University

 Ho Chi Minh Agricultural and Forestry University

 Thai Nguyen Agricultural and Forestry University

Others

 Department of Agriculture and Rural Development in the provinces (TwoResearch Centres in Ha Tay and Binh Duong province)

 National Institute of Veterinary and Medicine

 Department of Science and Technology in the provinces

 Vietnam Livestock Corporation

4.3 Funding

From the national budgets and international project, Central and local GovernmentsSIDA-SAREC project, FAO and the poverty and hunger alleviation project funded by

WB and ADB

Total funds for 2006 R&D activities was approximately 3 billion VND

4.4 Major R&D Achievements to Date

 Research to determine the nutritive value of perennial plants suitable for ruminant

feeds such as Acasia, China trees, sugar cane and leguminous trees as Flemingia

Macrophilla, leucaenas (KX2, K636), Stylosanthes Yields of up to 65-75 tons of

foliage/year (Approximately 13 tons dry matter with crude protein levels of 1.5 –2.6%)

 Determination of the nutritive value of different kinds of feeds using in vitro, in vivo

and biology tests

 Processing and use of locally available feed resources, including use of MolassesUrea Blocks as feed additives

 Development of local diets such as 25% dried cassava foliage+25% dried Flemingiamacrophylla+11% cassava root meals+11% rice bran+28% molasses to replace up

to 80% of amount of green Paragrass in the diet for growing goats in the dry season

 Use of whole sugar cane to replace Guinea grass as a basal forage for growing goatswithout affecting performance Animals fed with whole sugar cane chopped intoslices (1-3cm) attained a higher feed intake and better growth rate than those fed withwhole sugar cane chopped into 20 cm lengths and split into 4 parts

 Development of specific production diets such as for late pregnant ewes, the dietwith forage species combination of Jackfruit, Cassava and Flemingia gave the bestewe and lamb performance, and

 Methods for processing and preservation of local feeds for small ruminants

 Crossbreeding of local breeds (Co x Bacthao) to improve reproductive performance,milk yield and growth rates F1 crosses increased growth rates by approximately20%, milk production by 120% and litter size by 12-15% over the Co breed

 Crossbreeding of local goats (Co, Bacthao) with imported breeds (Barbari, Beetal,Jumnapri breeds from India, Boer, Saanen and Alpine from USA) to improve bodysize, liveweight gain, carcass weight and milk production

 Determination of heritability of the milk yield of Bachthao and Indian goats anddevelopment of a selection index to estimate breeding value to select nuclear herdsfor these goats breeds

 Tabulation of nutrient requirements for goats and sheep at different ages, bodyweight and production rates Consolidation of feed tables for goat and sheep

 Development and application of new and/or modified techniques for betterproducing, processing and utilizing roughage and supplement sources, better feedingpractice, herd management, healthcare for goat and sheep

 Establishment of large scale and medium size of intensive goat and sheep farms toenhance the producing of commercial goat and sheep meat, milk with bigger amount

to meet domestic consumption and exportation in future

5 SWOT ANALYSIS (Strength, Weakness, Opportunity and Threats )

 A long history of goat keeping

 Rapidly increasing in stock (2001-2005

average increased rate: 23,09%)

 Small size and can survive in very harsh

environments:

 Use marginal lands and browse and natural

feeds more effectively

 Are well suited for integration into perennial

tree crop systems

 Relatively easily managed, with low risk and

opportunity as food source and to build assets

for land less and very poor people

 Diverse range of products (meat, milk cheeses,

skin, fibre

 Comparatively high reproduction rates and

short production cycle with high proportion of

total edible and saleable products.

 Ability to utilize non-marketable crop residues

and available grazing to generate value-added

products such

 Skins are a growing source of value-added

income

 Dung and urine promote soil fertility especially

in the semi-arid and arid areas and as a

fertilizer for gardens

 Promote effective use of unpaid family labour,

with concurrent low labour requirements

 Low production inputs and capital investment

(breeding cost 700.000 - 1 million VND/does

compared to 10-15 million VND/cow) and

past investment rotation and high income

 Simple technologies and suitable with every

level knowledge of farmers (in rural areas

event with ethnic people)

 Small-scale extensive production systems

 Insufficient land and poor infrastructure.

 Low productivity in compared with natural potentiality of breeds

 Relatively poor animal health management practices and poor access to veterinary services

 Low level of feed availability in the dry season, limits overall stacking rates and individual animal productivity

 Lack of competitiveness with imported meat and milk in relation to quality and price

 Meat price high compared with pork and beef

 Small flock sizes and repeated use of males leads to inbreeding and low productivity

 Limited availability of improved breeds and limited application of improved breeding programs in small scale extensive systems

 Risks of un-controlled grazing may cause extensive environmental damage

 Poor processing facilities and formal markets

 Opportunity for high quality and natural or

organic production

 Development of larger scale more intensive

and higher profitability animal production

systems

 Small proportion of meat market with major

opportunity for expansion

 Feed conservation, storage and efficient

utilization of forage and processing

by-products

 Improved high yielding and high quality

forage production systems

 Improved disease diagnosis, prevention,

control and management practices

Development of processing facilities and high

quality meat as numbers increase

 Theft of animals and predator attack

 Risk of infectious disease outbreaks

 Uncontrolled grazing and exploit natural resources negatively effects the

environment

 Natural disaster, flood, and drought restricting feed availability

 Small ruminant research and development is

one of the primary priorities in MARD’s R&D

schedule from 2000 to 2010 Considerable

opportunities to accelerate research and

development efforts.

 International cooperative possibilities in R&D

(FAO, DED, ILRI, SAREC – SIDA, Holland,

USA, India

ARDO 3 PIG PRODUCTION

1.1 National objective

Medium-Large scale commercial pig production systems with high productivity, qualityand competitiveness produced using good agricultural practices with assurance ofsanitation, environment and food safety

1.2 R&D Scope

Research on breeding techniques, fostering and care technologies, animal health linkedwith productive organization and regional livestock projection in order to promoteregional comparative advantages in socio-economic and ecological conditions

Sustainable research and development are in 8 ecological regions nationwide

Pig production chiefly contributes domestic carcass production In 2006, domesticcarcass pig production was equivalent to 20.8 kg/capita/year, making up to 74% total ofall livestock carcasses of which 98-99% of the production was domestically consumed.This confirms that swine production plays an important role in supplying main proteinsource for daily meals

2 Industry Characteristics and Prospects

a) Pig inventory and growth rate (2001 – 2006)

b) Annual pork production

 National pork production has dramatically increased from 1.51 million tons in 2001

to 2.50 million tons in 2006, with an average growth rate of 10, 5%/year

 The highest region was the Red River Delta that produced 794.500 tons making up31.7% of the national total; Mekong River Delta, Southeast and Central North wererespectively 490.200 tons and 19.6%; 295.500 tons and 11,8%; and 282.900 tons and11,3%

 More intensive farming pig production has developed in recent years, from 3,534million farms in 2003 to 7,475 million farms in 2006 (an increase of 28.4%/year)with modern technology being applied

c) Productivity, Quality and Comparative Advantage

 Relatively low production with exotic sows producing an average of 18.2 hogs/year,with an average finished weight of 87.0 kg/head, hybrid sows 9.5 hogs/year and 58.7kg/head, and native sows 6.7 hogs/year and 35.6 kg/head

 Compared with China, USA, Canada and The Netherlands sows produce an average20.0-22.5 hogs/year with an average finished weight of more than 110 kg/head

 Relatively low quality, high production costs and weak competitiveness with anaverage ratio of lean meat of 46% whereas that of Canada and USA is more than63%

 Feed Conversion Rate (FCR) in Vietnam is 2.8-3.1/kg compared with Canada andUSA of 2.3-2.5/kg;

 Price of pig feed is 20 Euro/100 kg in Vietnam compared with 13-14 Euro forCanada, USA; 17 Euro for Brazil; 19 Euro for The Netherlands and Poland

Value and Markets

 Most pork products were domestically consume (98-99%)

 National pork production was about 19.3 live weigh kg/capita (around 15.3 kgcarcass/capita) in 2001 and about 29.8 live weigh kg/capita (around 20.8 kgcarcass/capita) in 2006

 Vietnam exports a small amount of pork products (14-18 tons for the period of 2006) mainly sucking pigs, growing pigs and small amount of cut pork However,

2003-an average qu2003-antity of exported pork was not high 2003-and stable

 Hong Kong, Taiwan, Malaysia and Russia are traditional markets

Government Policies

 Decision No 225/1999/QD-TTg and its revised Decision No 17/2006/QD-TTgdated January 20th , 2006 signed by the Prime Minister on breeding programs oflivestock, crops and forestry until 2010

 Decision No 166/2001/QD-TTg dated October 26th , 2001 signed by the PrimeMinister on development policy of pig production for export, period of 2001-2010

 Decision No 394/QD-TTg dated March 13th,, 2006 signed by the Prime Minister onencouragement of investment on new construction, expansion of the currentlivestock slaughtering, storing, processing facilities, intensive and industrial poultryproduction premises

3 INDUSTRY ANALYSIS

3.1 Structure

There are three main production systems

Traditional Production Systems

 Existing all most provinces traditional production systems accounts for 75-76% ofthe total pig population,

 Scale of 1-10 heads with feed feeds locally sourced, mainly crop residues, processedcrop byproducts and sideline byproducts (production sidelines of tofu, wine, bread)and household scraps

 Native breeds or breeds with high native blood ratio (F1 crossbred between a nativeand exotics ones) with low production efficiency

Semi-Commercial Household Production Systems

 Common in the Red River Delta (Thai Binh, Nam Dinh, Hai Duong, Ha Tay, HungYen, Ha Nam,) and has developed in recent years accounts for 10-11% of thenational pig population

 Scale of 10-30 sows or a hog inventory of 10-50 head

 Mainly fed by agricultural byproducts but about 40% of the diet consists ofcommercial pig feeds

 Breeds are mainly hybrids with 50-70% of exotic blood

 Greater attention is paid to animal health and housing conditions and productivity isimproved

Commercial Production Systems

 Has developed strongly over recent years and accounts for 13-14% of the total pigpopulation and 27-28% of pork production.

 In 2006, Vietnam had 7,475 pig farms (of which 2,990 were sow ones, 4,485 werehog farms) that made up 42,2% of the total livestock farms

 Out of the total national farms, the North had 3.069 (41.1%); the South had 4,406farms (58.9%) There were 2,604 farms (34,8%) for Southeast, 1,927 farms (25,8%)for Red River Delta, 1,029 farms (13,8%) for Mekong River Delta, 534 farms(7,1%) for Northeast, 495 farms (6,6%) for Central North and 422 farms (5,7%) forCentral Highlands The most undeveloped region of pig production was Northwestwith 113 farms (1.5% of the total national pig farms

 Scale ranges from 20 sows to more than 100 sows, with 100% commercial pig feeds

 Breeds are mainly exotic pigs crossbred by two or three exotic lines

 Housing technology more advanced with enclosed pens, farrowing pens, buildingwith two-way conditioners, feed tray systems, automatic water nipples, etc;

 High productivity and an average finished weigh of 85-95 kg/head

3.2 Supporting Infrastructure

3.2.1 Breeding Units

 Vietnam has 125 farms breeding GGP and GP with about 37,500 sows, of which 52farms with 10,700 sows (making up 41.6% of the total farms and 9.6% of the totalsows) are state-owner units, 12 farms with about 22.100 sows (making up 9.6% ofthe total farms and 58.9% of the total sows) belong to Joint-stock companies andforeign ones, and 61 farms with about 4,700 sows are managed by private sector

 The number of GGP and GP sows are as follow: 27.000 sows (72.2% of the totalnational sows) for Southeast, 4.200 sows (11.2%) for Red River Delta, 2.900 sows(7.7%) for Central sows (0.9%) for Coastal Central, 170 sows (0.5%) for CentralHighlands and none for Northwest

 Generally, the structure and quality of breeding sows has improved Exotic sowsincreased 10-17%/year for the period of 2001-2006 (an average of 15.2%/year); themost advanced breeds with high productivity and quality worldwide has beenexported to Vietnam

 Foreign breeds are mainly Landrace, Yorkshire, Pietrain, Duroc and their hybridcombinations In 2006, out of 4.3 million sows, foreign sows made up 10.2%, nativesow were 12.6% and 77.2% were hybrid sows (based on the survey in 8 ecologicalregions)

 There were differences in crossbred formulas as follows: Red River Delta, Northeast,Central North mainly used two-breed or three-breed crossbreeding amongYorkshire-Landrace-Duroc whereas Southeast, Mekong River Delta usuallyfollowed 2-breed, 3-breed or 4-breed crossbreeding among Yorkshire -Landrace-Duroc-Pietrain; some provinces in the Red River Delta, Central North as Ninh Binh,Thai Binh, Hung Yen, Thanh Hoa normally used a combination of 5-line

crossbreeding of L95-L11-L06-L19-L64 because these provinces are near Tam Diepswine breeding farm belonging the National Institute of Animal Husbandry.

 For hybrid sows (native x foreign), its common formula in Northern provinces isMong Cai breed sows or Lang sows (Pink Lang) crossbred with Yorkshire orLandrace The provinces in Mekong River Delta and Central Highlands mainly useslocal sows (Ba Xuyen, Thuoc Nhieu) hybridized with boars of Yorkshire orLandrace, Pietrain

 In Northern provinces, local sows as Mong Cai, Muong Khuong, Lang Groupcommonly use in pig production However, their productivity and quality are nothigh because these breeds has not selected and improved for many years They have

a daily weigh gain of 300 g, an average finished weigh of 35.6 kg/head, and leanmeat ratio of 37-38%

 At present, breeding population of boars is mainly foreign, hybrid, native with verysmall number (67.4% for foreign, 32.6% for hybrid, based on a survey in 8ecological regions) There are variation in boar structure in different regions: theSouth uses Pietrain and Pietrain x Duroc makes up 68%, the remainder is pureYorkshire, Landrace, Duroc crossbred Yorkshire x Landrace, Pietrain x Landraceand Master; the North use pure breeds as Landrace, Yorkshire, Duroc and some lines

700 boars producing 1.7 million semen doses/year (making up 5.3% of the totalunits, 19.1% of the total boars and 32.3% of total semen doses)

3.2.3 Feed Mills

 In 2005, Vietnam had 249 feed mills Of these, 110 feed mills (44.2%) in Red RiverDelta, 89 units (35.7%) for Southeast, 21 units (8,4%) for Mekong River Delta, 16units (6,4%) for Northeast, 8 units (3,2%) for Central North, and 2 units (0,8%) forNorthwest and Central Highlands

 213 units (85.5%) belong to national enterprises, 26 units with 100% foreigninvestment and 10 units of joint-ventures Both the joint-venture and 100% foreigninvestment make up only 14.5% of the quantity but they own 64.3% the totalproduction capacity

 Total production of animal feed in the period of 2000-2005 was 22.2 million tons, anaverage increase of 15.3%/year In 2005, feed production was 5.34 million tons(converted animal feed), of which swine feed contributes about 80%

3.2.4 Slaughter and Processing Facilities

 Vietnam has about 970 pig abattoirs of which 935 are small scale - 447 (47.8%) forSoutheast, 280 (30.0%) for Mekong River Delta, 102 (25.8%) for Central North, 54(13.7%) for Central Highlands, 24 (6.1%) for Central coasts; 18 (4.6%) for RedRiver Delta, 10 (2.5%) for Northeast and none for Northwest.

 35 are industrial abattoirs - 22 (62.8%) for Red River Delta, 3 (8.6%) for Southeast,Mekong River Delta and Central Coasts, only one (2.8%) for Northeast, none forCentral Highlands and Northwest

 Out of 35 industrial abattoirs, 12 are approved by the Department of Animal Health

of Russia and the Department of Animal Health of Hong Kong for meeting theirproduction standards for frozen pork cut imported their countries In 2005, two haveHACCP quality management certification (Vietnam Livestock ProductionCorporation)

 98-99% of pork produced is consumed domestically 70-80% of this is warm freshmeat and about 20-30% is processed into Vietnamese traditional meals such as pork-pie, grilled chopped pork, fermented pork rolls, roasted pork, etc; there are someother western meals as ham, sausages, smoked pork and salted pork

 A small ratio of processed pork is consumed in the domestic market anddiversification of pork products is still low, which makes it difficult to participateexport markets

3.3 Markets

Domestic market

 Pork is a traditional food The Vietnamese population of 83 million people isforecasted by the World Bank to increase about 88.5 million people in 2010 Thisincrease in people will drive up the need of pork consumption with an averagegrowth rate of 7.8% per annum

 After WTO accession, if domestically produced pork is not improved in quality,hygiene, food safety and the reduction of production costs, it will undergoes seriouscompetitiveness of imported pork

3.2 Export

 Russia is a traditional market for Vietnam pork cuts However, to increase and tostabilize the quantity of this product exported, it is important to improve quality, leanrate, assurance of hygiene and food safety, reduction of production costs andcompetitiveness enhancement

 Hong Kong and Taiwan are markets for growing pigs and sucking pigs Vietnamcould meet their requirements for quality standards through use of improved foreignbreeds and good hygiene and management practices

China is not able to meet demand through domestic production and its proximity toVietnam will provide a potential market for fresh and processed products

4 R&D INFORMATION

4.1 Main Research Areas and Results

Breeding Technology:

 The application of breeding index for productivity testing of Landrace and Yorkshirereplacement sows;

 Selection of improved pigs breeding through progeny testing;

 Harmon’s SPI in combination with the Standard TCVN 1280-85 used for thebreeding of nuclear sows;

 Crossbred Landrace and Yorkshire breeds to improve reproductive capacity;

 Component hybrid vigor and added genetics from hybrid combinations forimprovement of commercial pig productivity;

Animal Feed Technology:

 Methods for processing and utilization of compound feed for industrial hogproduction;

 Treatment of corn and use fo extrusion technology for piglet feed and use offermented soybean complemented 0.65% formic acid and 4.2% plasma for weanedpigs instead of milk powder

 Porcine concentrate feed LT1 for high lean meat pig production;

Animal Health Technology:

 Use of ELISA for diagnosis of classic swine fever;

 1% S.cereviac extract added in porcine feed for sucking piglets and weaned piglets

to prevent piglet diarrhea disease

 Use of Okazan with a dose of 15mg/1kg of live weigh and Levamizon 10mg/1kg oflive weigh for worming nematode and fluke worms;

Rearing & Caring technology:

 Limited feeding process for growing sows;

 Suitable energy and amino-acid for weaned piglets;

 Use of pig krave super pig krave and antibiotics added in piglet feed portion;

 Lysin and energy levels in hog feeds for Yorkshire and Thuoc Nhieu hybrids;

 Two-breed F1 (Landrace boars x Yorkshire sows) and foreign three-breed hybridDuroc x (Landrace x Yorkshire) and Duroc x (Yorkshire x Landrace); with a 20%reduction in feeding levels for fattening pigs between 65 – 90 kg;

 Lysine 0,65-0,55/MJ/DE in feed portion for hog Yorkshire production;

 Use of Porzyme 9300 complemented in basic corn and rice bran feed rations for meatproduction;

Management and Applied Technology:

 Use of the Viet Pig softare for pig production management

 Applied research projects at pig production units, from livestock components ofcomprehensive projects supported by NGOs and organizations:

 A study on farmers organization linked with a livestock cooperative at someprovinces in the Red River Delta

 Research on pig meat sub-sector in the Red River Delta (GRET)

 Research on commercial pig hybrid formulas in Vietnam conditions (CP Company)

 Studies on changes in feed mix formulas, product changes, label changes of pig feedproduced by enterprises and organizations

4.2 Major Research Providers

Ministry of Agriculture and Rural Development (MARD)

 National Institute of Animal Husbandry (NIAH)

 Institute for Agricultural Science of Southern Vietnam

Agricultural Universities including

 Hanoi Agricultural University

 Thu Duc Agro-forestry University (Nong Lam University)

Direct or indirect research staff is about 200 people of which NIAH makes up 50%

4.3 Funding

Most of the Annual budget invested in R&D in pig industry is from the state budgetprovided for research institutes through the Ministry of Agriculture and RuralDevelopment

Only small amounts from foreign organizations

In 2006, a total of national budget invested for R & D of pig production was 7.6 billionVND, of which:

- Breeding research : 0.9 billion VND

- Porcine feed research : 3.5 billion VND

(Animal health, environment, hygiene, quality and management)

5 SWOT ANALYSIS

 Traditional production systems and major

component of diets

 Cost of entry relatively low for small scale

semi-commercial production systems

 Already investment in large scale

commercial breding and finsihing units

through local and foreign funding resources

 Expectation of expanding domestic markets

(7%/year) and opportunities for export

 Predominantly small scale of pig production systems are not economically efficient amd make adoption of improved technology and improvements in quality difficult to achieve

 Lack of breeding structure and hybrid combinations suitable for a differing range

of socio-economic condtions in various ecological regions

 Most pigs sold in wet markets and

provided export standards are met.

 Capacity for slaughtering and processing.

 Recent development of larger abattoirs with

improved standards

 Research to provide access to improved

breeds and crossbreed and imporved

management systems to improve

reproductive capacity and profitability.

 Disease vaccines and control and

management techniques available (but not

universally applied).

 Introduction of Vet Pig management

software

 Strengths in research capability in NIAH,

HAU and Thu Duc Agro-forestry

University

 Many of the large scale commercial

production units will import international

research findings (and genetics) and they

may provide useful lessons for others to

 High cost of commercial feeds and low production levels may in the WTO environment enable imports of cheaper higher quality pig meat and processed products

 Poor application of vaccines and disease management practices especially for small scale producers increases the risk of spread of economically important contageous diseases

 Little use of livestock recording systems and development of on-farm or national databases to use to indentify reasons for poor performance and options for improvement.

 Although productivity has improved it is still low compared with regional countries because the quality of swine breeds, management-rearing systems and attention

to sanitary slaughter and processing.

 Production costs of national produced pork are still higher than that of regional countries because of high price of animal feed, high incidence of disease and low productivity.

 Pig slaughtering, and processing technologies are undeveloped, old and cannot assure hygienic and safe food.

 Further development of the commercial pig

production systems and application of

impproved technology to increase

productivity ,and profit

 Improvement in reproductive performance,

survival rates of young and mature pigs.

 Development of effective vaccination

systems , including improved timing,

delivery and farmer vaccine administration

practices

 Development of high nutritive value local

feeds and improvement of feed conversion

ratios through improved feeding systems

 Disease risks particularly FMD, CSF and Blue Ear.

 Development of large scale commercial pig production may see a continued reduction in traditional and production systems through improved productivity, lower prices and safer food This may have social impacts on poor households.

 Accession to WTO and the lack of competitiveness of Vietnamese production systems may result in competition for pig products in domestic markets.

 Failure to address effluent disposal from

 Further development and enforcement of

regulations relating to high quality

international standard slaughter and

processing facilities and to quality assurance

of pig meat and processed pork products.

 Continued breed improvement including

selection, crossbreeding and genetic

engineering.

 Development of livestock recording systems

for improved management and for animal

traceability from birth to the retail sector.

 Development and economic analysis of

production systems that differ in scale and

in agro-ecological and social environments

 Improved housing, hygiene and sanitation

systems, including good effluent disposal

systems for medium and larger scale

production units

 Research on conservation and restoration of

native pig breeds and maintenace of genetic

diversity.

 To meet WTO accession, research on

market forecast, technical trade barriers for

export and import control.

piggeries will impact on the environment, including the quality of water for human consumption.

 Poor hygiene, sanitation and lack of food safety assurance will affect development

of export markets and possible domestic markets.