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

Developing an Agricultural Research and Development Priority Framework for Vietnam Livestock Sub-Sector Workshop Data and Information Sheets: Areas of Research & Development Opportunity (ARDOs) ARDO Large Animals ARDO Small Ruminant Animals ARDO Pig Production ARDO Poultry ARDO Productive Insects ARDO Veterinary Vaccines & Animal Remedies ARDO Animal Feed Processing & Conservation December 2007 ARDO 1: 1.1 LARGE ANIMALS National Goal To increase the contribution of domestic production to overall domestic demands through the intensification of beef, dairy and buffalo production in regions with comparative advantages to produce high quality and high value products, create employment in production and processing industries and improving income and livelihoods of farmers Production Targets are:   Beef: 7.1 million head by 2010 and million by 2015; meat production 210,000 tones by 2010 and 310,000 tones by 2015  1.2 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 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 R&D Scope  Genetic improvement through breeding and selection programs to generate beef, dairy buffalo cattle breeds with higher productivity  Research to develop profitable technologies for feeding and managing beef, dairy and buffalo cattle  Research to develop feeding standards and to formulate nutritionally balanced supplementary diets for beef and dairy cattle  Research activities to develop animal waste management programs for environmentally sustainable cattle production systems 1.3 Coverage Herds of beef, dairy and buffalo cattle owned by smallholders and state farms INDUSTRY STATISTICS 2.1 Introduction Cattle production is an important area of agriculture production in general and livestock production in particular With rice as a main crop buffalo played an important role in agriculture and in the life of Vietnamese farmers, they are often called “the beginning of inheritance” Buffalo are a multipurpose animal in agriculture production as they 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 They are also well adapted to using local feed resources, and are often a means of saving money, and a source of credit for the farmers As the mechanization process has been developed, the role of supplying draught power was reduced, a part of buffalo population moved to meat production Though the cattle production systems have been established long time ago, it was not until 1960’s that the Government issued the first National policy to promote the development of the cattle production systems In order to shift from the production Livestock Priority Workshop Data & Information Sheets system for draught purpose to specialized meat and milk production systems, Vietnam has been implementing a number of research projects and programs to improve the quality of beef and dairy cattle breeds However, the quality of beef and dairy cattle breeds is still poor which results in beef and dairy production systems with a low productivity and hence profitability In a production system, improving productivity and quality of meat or milk products is closely related to profitability and sustainability of the system However, in order to achieve the target of producing foods of quality, hygiene and safety in the small household-based system, it requires adequate investments of both finance and technology 2.2 Industry Characteristics and Prospects 2.2.1 Animal Populations Buffalo Table Buffalo Population (2001-2006) Unit: 1000 head Location Whole country 2001 2002 2003 2004 2005 2006 2,807.8 2,814.4 2,834.9 2,869.8 2,922.1 2,921.1 136.9 125.8 164.9 154.6 145.9 120.6 1,263.7 1,267.7 1,224.1 1,213.1 1,226.4 1,237.7 North West 381.2 390.3 399.3 437.8 453.1 465.1 North Central Coast 685.4 689.3 706.9 719,4 743.4 737.7 South Central Coast 127.8 129.8 136.9 134.4 139.5 156.5 47.4 47.6 65.9 68.7 71.9 79.0 125.2 126.4 106 105.4 103.3 85.6 40.2 37.2 35.8 36.4 38.8 37.8 Red River delta North East Central Highlands South East Mekong River Delta Source: Department of Animal Husbandry, MARD (2006)  Over the last years, the total buffalo population increased 4%; however, there was a slight decline in some zones while increased in the others  The percentage of the buffalo population in each region is North East (42%), North Central 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 ecological zones i.e Red River Delta, North East, North West, North Central Coast, South Central Coast, Central Highlands, South East, and Mekong River Delta The cattle population differs from region to region and the Central 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 Livestock Priority Workshop Data & Information Sheets  The statistics shows a slight reduction in the population of cattle over the 2001-2002 period, followed by a steady but rapid increase thereafter  The Mekong River Delta experienced the highest growth rate (344%) Dairy Cattle Table Changes in the dairy population (2001-2006) 2001 2002 2003 2004 2005 2006 *The North 6170 8216 17885 24151 26308 23335 Red River Delta 3543 5040 9033 11424 11975 10659 North East 2613 746 2910 4832 5458 5325 North West 14 2103 4044 5048 5058 4090 North Central Coast 35071 327 1898 2847 3817 3261 *The South 132 47632 61358 71643 77812 89880 South Central Coast 804 848 3532 5902 3014 1476 Central Highlands 32298 1007 1732 2119 2549 2901 South East 1837 41937 50098 56098 63939 75066 Mekong River Delta 41241 3840 4996 6823 8310 10437 *Whole country 41.241 55.848 79.243 95.794 104.120 113.215 Source: General Department for Statistics  Total dairy cattle population is 113,215, an increase of 3.78 times the number in 2001  Dairy cattle are raised in all ecological zones but some areas such as North East and North Central Coast only established the dairy industry in 2001, yet the dairy herds 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 times during 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 a bubble in price of breeding animals  The subsequent rush into crossbreeding between improved native cows and HF semen (with a poor selection of the cows) had resulted in dairy herds with low performance  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 performance and adaptability, to sell to provinces and/or cities Many among these provinces did not meet the minimum condition required for raising such dairy breeds, yet rushed into the industry Consequently, the dairy herd had a low milk yield and reproduction rate, 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 Livestock Priority Workshop Data & Information Sheets dairy industry This population growth rate will create favourable conditions for a deeper selection program of dairy breeding cows and hence a more profitable and sustainable industry  Most dairy cows are in the South East (66%) and Red River Delta (21%) zones, and these two areas are also the two main economic centres of Vietnam and the major markets for dairy products Therefore processing facilities for milk and dairy products are mainly located in these areas  Dairy production has tended to be established in areas that have a large market and processing facilities for milk and dairy products and some areas that have a potential for dairy production such as Central Highlands, North West and North East regions only have small dairy herds (some 2.6 – 4.7% of the whole herd) due to its long distance to the big cities 2.2.2 Breeds Buffalo  Local buffaloes are of the Swamp type (different areas have different names e.g Ngo buffalo (big size) and Gie buffalo (small size) with a total population of nearly million In general, Vietnamese Swamp buffaloes have small body size, slow growth rate, late maturity, long calving interval and low milk yield, but are adapted very well with 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 and raised in many places and crossed with Swamp buffaloes The number of Murrrah and crosses 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 yield and 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 cattle population The breed is small in frame and light in carcass weight, but is well adapted to extensive production systems in small households and high in reproduction rate  Crossbred animals with more than 50% Zebu blood account 30% of the herd Crossbreds have a heavier liveweight (35% heavier than Yellow cattle), higher carcass to liveweight ratio (3-5% higher) and adapts well to the household conditions The calving interval, however, is longer than the Yellow breed  Pure breeds of large-frame beef cattle such as Brahman and Drought Master have been imported and raised in several places through out the country since 2002 They are less than 1% of the beef animals Imported animals have heavier liveweight and higher growth rate, but require better quality feeds and feeding practices than native cattle Therefore, they may not adapt to some places in Vietnam (e.g Tuyen Quang) Dairy Cattle Livestock Priority Workshop Data & Information Sheets Table Breakdown of dairy breeds Breed 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 The North (heads) 10,231 6,061 2,963 11,116 The North (% of total) 33.7 20.0 9.8 36.6 The South (heads) 15,631 21,887 33,835 5,321 The South (% of total) 20.4 28.5 44.1 6.9 Region Source: National Dairy Development Project (2005)  85% of the dairy herd are crossbred Holstein Friesian (HF) with just over 60% of crossbreds being ¾ HF  Pure dairy breeds imported to Vietnam such as HF and Jersey are kept mostly in Moc Chau, 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 provinces with relatively hot climate such as Can Tho and Ho Chi Minh City are now raising such animals The milk yield of the pure HF cows in these provinces, however, is lower and averaging approximately 80-85% of those animals raised in such temperate climates as Moc Chau and Lam Dong  Crossbred animals with a lower HF blood percentage withstand the poor feeding condition and heat stress better than those with higher blood and/or imported pure breeds 2.2.3 Production Meat Production Table Buffalo and beef meat production and proportion of total meat production over 2001–2006 period (liveweight basis) Items 2001 2002 2003 Total meat produced (1,000 tonne) 1,939.3 2,146.3 2,328.9 51,380 51,811 2004 2005 2006 2,505.7 2,812.1 3,073.2 53,061 57,457 59,800 64,317 0.8 2.4 8.3 4.1 7.5 2.4 2.3 2.3 2.1 2.1 Buffalo Total buffalo meat (1,000 kg) Growth rate of buffalo meat (%) Percentage of buffalo meat in total meat production (%) Livestock Priority Workshop 2.6 Data & Information Sheets Beef Total beef produced (liveweight basis, 1000 tones) 97.78 104.45 107.54 119.78 142.16 159.46 Growth rate of beef production (%) 4.3 6.9 2.9 11.4 18.7 12.16 Percentage of beef (in total meat production, %) 5.03 4.64 4.59 4.75 5.05 5.19 Population (million people) 78.7 79.7 80.9 82 83.1 84 Production per capita 1.24 1.28 1.33 1.45 1.71 1.90 Source: Department of Animal Husbandry, MARD (2006)  Buffalo meat is only about 2% of the total meat production and the annual growth rate 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 sixth position in the World  Annual beef production increased at a high rate of 11 to 18% The total beef produced in 2006 was 70% higher than that in the year 2000 However, the total beef produced annually still accounts for only a small proportion (4.6-5.2%) of the total 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 thin ones They were slaughtered without fattening, the meat percentages were low and the quality was not good Table 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 West 5,106 5,230 6,139 6,284 6,919 7,554 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 South East 8,732 8,720 8,022 8,829 8,117 10,478 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 years (av 4%/year) Livestock Priority Workshop Data & Information Sheets Table Meat percentages of local swamp buffalo Items Unit kg kg % kg % Body weight Dressing weight Dressing percentage Lean meat weight Lean percentage Old buffalo (culled) 327 127.8 39 93.6 28.6 Young buffalo (24 months of age) 194 85.8 44.3 67.9 35.0  Source: Vu Duy Giang et al., 1999  Clearly culled buffaloes have very low dressing percentages Young buffalo produce higher dressing and lean meat percentages and this could be improved by a short fattening period before slaughter Table Growth rate and meat percentages of fattened young Swamp buffalo Items Average daily weight gain Slaughter weight Dressing weight Lean meat weight Dressing percentage Lean meat percentage Unit g/day Kg Kg Kg % % Average value 520 219 99.7 82.6 45.5 37.7 Source: Nguyen Cong Dinh et al (2007) Beef Table 10 Growth rate and percentage of carcass weight (in liveweight) of some cattle breeds Breed Unit Yellow cattle Laisind cattle Kg Kg 14 63.7 20.1 97.5 Kg 85 140 160 165 215 Kg 140 200 220 230 350 Kg % 180 44.2 250 49.6 280 49.5 290 50 450 55 Parameter Birth weight Weight at months old Weight at 12 months old Weight at 24 months old Mature weight Carcass percentage (in liveweight) Sahiwal x Brahman x Pure Yellow Yellow Zebu cattle cattle cattle 22 23 27 105 107.5 140 Source: Department of Animal Husbandry, MARD (2005)  The growth rate and carcass percentage of crossbred animals is higher than Yellow cattle 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 Livestock Priority Workshop Data & Information Sheets have been further crossbred with bulls of high carcass-weight-potential and this is contributing to the improvement of both quality and productivity of the beef cattle in Vietnam 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 fold increase in numbers and fold increase in milk production over the last years Higher growth rate of milk production as compared to the growth rate of dairy population is attributed to a higher breed quality of the dairy herd and better nutrition and feeding practices Table 12 Average milk yield (tones/cow/lactation) of pure and crossbred HF cows 2000 2002 2003 2004 2005 Crossbred HF 3.10 3.40 3.60 3.75 3.85 Pure HF 3.80 4.20 4.40 4.50 4.60 Source: Department of Animal Husbandry (2006)  Average milk yield of the crossbred HF cows in 2005 was 24.2% higher than in 2000 and 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% over the 2001-2006 period However, beef consumption still accounts for a small proportion in the total meat consumption (only 5-6%)  Buffalo meat consumption is low (0.6-0.7 kg/person/year) and the proportion in the total meat consumption is about 2%  The beef consumption per capita in Vietnam is approximately 45.86 and 17.78% that consumption per capita of the South East Asia region (2.95 kg/capita) and Asia continent (8.43 kg/capita), respectively Livestock Priority Workshop Data & Information Sheets  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 beef accounts for the majority even though the price is always higher (2.5 to times) than the local products  Milk produced by the dairy industry in Vietnam is approximately 30% of the demand since 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 price for reconstituted milk (including import tax and VAT) is 4760 VND/kg (excluding freight) 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 to developing countries It is expected that Asia will become the biggest animal production continent  Because of the low level of production of meat and milk, compared with domestic demand there is a large domestic market to be developed  The Vietnamese farmer has a saying “take your labour as your business profit” the price 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 other countries in South East Asia such as Thailand (3.2 tones/lactation) and Indonesia (3.1 tones/lactation)  Cattle can use agro-industrial by-products and small and poor quality grasslands and farmers consider cattle production a business with minimum daily investment and often lower risk as compared with other animals  Membership of WTO is likely to increase competition from imported beef meat and dairy products with many competing countries having lower costs per kg of production 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 2010 Associated with this a number of policies such as giving free AI equipment and materials, free vaccine for contagious diseases prevention to the dairy producer, provision of low rate or free interest loans to dairy households, provision of education and training to farmers, and transferring advanced technology into dairy industry 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 Livestock Priority Workshop Data & Information Sheets 73  Among 85 enterprises producing veterinary medicine, (7%) are ISO and GMP certified as the ISO and the GMP (about 7%); 15 enterprises (17%) are ISO 9001-2000 certified and enterprises have invested in new factories, equipments and manufacturing processes required to gain GMP accreditation Vietnam’s membership of international organizations has reinforced the need to comply with international regulations on GMP and accreditation  Certification includes GMP-ASIAN rise to GMP- WHO (the joint enterprises), BioPharmachimie, VEMEDIM Can tho, the joint venture ANOVA)  However most Vietnam veterinary medicine enterprises are small-medium enterprises with modest investments This has to some extend reduced productivity and quality due to poor manufacturing technology, low education levels of workers and inadequate quality control and inspection Vietnam veterinary medicine enterprises have developed in a similar way (but 30-50 years later) than developed countries through: - Gradual improvement the veterinary medicine, enhancement the quality of veterinary medicine through variety catalogues, formally labels, trademarks - Creating a new jobs and stable income for thousand labor workers Operating under an "Open door and world trade integration" policy environment  R&D INFORMATION 4.1 Main Research Areas  Research on common vaccines (bacterial, viral, parasitic)  Research on new vaccines (at molecular level, gene)  Research on bio-products (antiserum, diagnostic kit)  Research on treatment drugs and supporting drugs 4.2 Major Research Providers Ministry of Agriculture and Rural Development  National Institute of Veterinary Research  Animal Husbandry Department of IAS  National animal remedies Enterprise  Production Shop of Animal remedies Others  HANVET, NAVETCO and Limited companies Livestock Priority Workshop Data & Information Sheets 74  Faculties of Animal Husbandry and Veterinary under Hanoi No Agricultural University; Agricultural University No 2; Agricultural University No 3; Can Tho University and Tay Nguyen University 4.3 Resources Staff and Experience  Staff of National Institute of Veterinary Research: 151  Staff of National animal remedies Enterprise: 400 Funding  Budget from Government for National Institute of Veterinary Research in 2006 is about billion VND 4.4 Major Achievements to Date  Development and production of some vaccines: Classical Swine Fever, Hemorrhagic Septicemia, Swine Erysipelas, Fowl Cholera, Newcastle disease etc  Production of some bio-products: some antiserum, diagnostic kits, plant extracts, provitamins SWOT ALNALYSIS Weaknesses Strengths         Good experience in development of vaccines and animal remedies and in production systems Ability to be able to identify local strains (e.g FMD) and ensure vaccine design meets local needs Good capability to meet domestic needs for control and management of diseases that have been in Vietnam for a number of years (FMD, Newcastle etc) Growing market for veterinary products as the livestock sector grows and consumption of livestock products increases with increase incomes The veterinary medicine manufacturing establishments have started application of international standards (the GMP-and ISO) Lower prices from domestic production provides a competitive advantage in domestic markets Domestic production accounts for about 75% domestic requirements Some Vietnamese domestic companies have Livestock Priority Workshop       Relatively poor development of distribution networks and cool chains for good access and good quality of veterinary products Surveillance and information systems relatively weak Many of the vaccine production systems use imported technology and over 90% of veterinary medicine materials are imported Capacity to respond and develop vaccines for newer diseases (AI, Blue Ear BSE etc) still relies on importation of vaccines and for access to international technical support for development of new generation vaccines Emphasis on vaccine research and production has tended to underestimate the importance of research into production diseases Competition on quality and implementation of international standards will require significant investment in production infrastructure and may well reduce the ability to compete on price Data & Information Sheets 75 produced and exported their internal products to 18 countries in the world     Opportunities         Linkages between the livestock and seafood industries in development of new and improved disease treatments, management and control Improvement in the efficacy and quality of vaccines through further development of new vaccine production techniques Use of plant extracts and alternatives to drugs in the management of production diseases Design and operation of good disease surveillance techniques and systems, reference laboratories and diagnostic services Partnerships between national and international research and production companies to improve the relevance of vaccines and animal remedies and to build on Vietnam’s market opportunities and competitive advantage Economic research on the impact of clinical and sub-clinical disease on GDP and on producers’ productivity and income levels Development of bio-processes that will broaden the base of veterinary medicine products Development of new and improved delivery and application procedures for veterinary medicines to improve the cost-effectiveness of their use Livestock Priority Workshop The impact of vaccines and animal remedies on animal production is constrained by lack of farmer knowledge, poor access and quality of advice and relatively poor administration techniques Development of aquaculture in Vietnam is based on more intensive systems, with high use of treatments such as anti-biotics most of which are imported Concerns relating to food safety through overuse are now evident Supervision of the product quality, food safety levels and efficiency of veterinary medicines are weaknesses and need to be addressed Threats      The risk of pandemic type diseases (AI) if they occur will exhaust the ability of the research community to respond to research in other areas Small scale livestock production systems mean that adoption of national programs for disease management and control is difficult Multi-national companies will compete strongly and seek to extend their monopoly in the veterinary medicine field through pricing and unwillingness to share improved technology and products with research in Vietnam WTO membership may bring policies that reduce subsidization of domestically produced vaccines, thereby limiting competitiveness on price The ability to respond quickly to outbreaks of dangerous diseases is weak and the ability to prevent the spread of highly economic diseases is limited Data & Information Sheets 76 ARDO ANIMAL FEED PROCESSING & CONSERVATION ARDO DEFINITION 1.3 National Goal To increase animal feed resources and improve animal feed quality, to contribute to food security and increase competitive capacity in export and domestic markets for animal feeds 1.2 R&D Scope Research into: (i) improving the sustainability of livestock production through better use of locally available feed resources, (ii) Increasing feed resources and decreasing feed costs by processing, conservation and improvement nutritive values of industrial and agricultural-byproducts as animal feeds, (iii) Quality assurance of commercial feeds including improvement of feed safety, (iv) Use of additives to improve the nutrient status and digestibility of conserved feeds and agricultural byproducts, (v) Technologies for improved processing and conservation of animal feeds, and, (vi) Research animal feed market 1.3 Coverage Commercial and conventional feeds: Concentrate feeds (fish meal, soybean meal and cake, maize, cassava meal), forages and feed additives (micro and macro minerals, vitamins, Bio-technological products such as enzymes, and essential amino acids) Un-conventional feeds: Agro-industrial by-products (cassava leaf meal, groundnut vines, sweet potato vines, sugar cane top and leaf, rubber seed meal and cake, cotton seed meals, shrimp heads, rice bran, grain brewery waste and molasses, etc) Animal Feed Industry Statistics 2.2 Introduction Feed supply, especially adequate protein, is a major constraint for livestock production in Vietnam Feed cost often accounts for 60 to 65 % of livestock production costs, especially on poultry and pig production accounting for 70 to 75 % of the production cost of chicken meat and eggs Lack of feed, especially in the dry season limits both the intensity and productivity of ruminant production systems The main ingredients for animal feed in Vietnam are paddy rice (Oryza sativa), rice bran and broken rice, maize (Zea mays), sweet potato, cassava (Manihot esculenta Crantz), soybean and fish meals Commercial feeds are increasingly used for livestock production, even in small-scale systems but are expensive, especially for farmers in remote rural areas Although Vietnam is the second biggest rice exporter in the world, feed ingredients such as wheat bran, soybean meal and cake, maize, and feed additives are still imported About 300,000 tonnes of maize were imported in 2004 (FAOSTAT, 2005), and the maize price is 1.5 times higher than in the United States Soybeans and soybean products are the main protein sources in animal feeds and are mainly imported (620,000 tonnes, 2005), and therefore they are expensive for rural farmers Fish meal and other protein sources are scarce and expensive for farmers, especially in remote areas Agro-industrial by products are available, about 35 millions tonnes of rice straw Livestock Priority Workshop Data & Information Sheets 77 (1 paddy rice: rice straw) can be used as ruminant feed resources, and 5.4 millions tonnes of rice bran were used for livestock feed in 2005 (15 % of paddy rice) The primary constraint to improved efficiency of livestock production is the high cost of livestock feeds in Vietnam 2.3 Industry Characteristics and Prospects Natural pasture  Vietnam has very limited natural pasture (39,500 ha) and The quality of grasses in natural pasture is poor  Hilly land is too steep for cultivation , soil is poor and dry, it is considered to be bare "hills"  Over grazing makes serious damage - causes soil erosion  The improvement of natural pasture is expensive and with low efficiency (due to the lack of water and fertilizer) Cultivated Grasses and Legumes  There are three varieties of grass are commonly cultivated: Elephant grass (penisetum purperium); Guinea grass (Panicum maximum) and Pangola grass (Digitaria decumbens)  Para grass (Brachiaria mutica) can survive very well in low land areas in the Central parts  Legumes contribute very little in green fodder ration Leucaena leuconcephala and Stylo Luecacna Cunningham are promising legume tree with a yield of about 40 tons/ha Industrial and agricultural -byproducts  Rice straw occupies a very important place in feeding ruminants Over 35 million tons of rice straw is produced per year  Rice bran is also an important feed source (5.4 million tons)  Maize stems are mainly for fuel and rarely used as animal feed (10 millions tons)  Sweet potato and groundnut vines are mostly used for pigs rather than for buffalo and cattle (2.4-2.6 millions tons)  A special industrial crop in the country is sugar cane, pineapple Molasses is a high energy feed source and the sugar cane tops and leaves used as animal feed (1.6 millions tons of molasses and 1.6 millions tons of sugar cane tops and leaves)  Although the quality of most agricultural- byproducts is low, the large quantity makes them important for the ruminant production Table 1: Planted areas and production of main crops and industrial-agricultural byproducts in Vietnam (2000- 2005) Crops and byproducts Livestock Priority Workshop Planted area (1000 ha) 2000 2005 Production (000 tons) 2000 2005 Data & Information Sheets 78 Rice 7,666 7,326 Maize 1,043 - Maize stoves (stems) 5,400 2,006 3,756 7-7,300 730 32-35,000 4,950 - Rice bran(Estimated production) 35,790 30-32,000 - Rice straw (Estimated production) 32,530 10,000 Soybean 124 203 149 291 Sweet potato 254 188 1,611 1,460 2,600 2,400 1,986 6,646 1,500 2,800 15,044 14,730 - Sugar cane top and leaves 1,600 1,500 - Molasses (10 % production) 1,600 1,500 - Sweet potato vines Cassava 238 424 - Cassava leaves and tops Sugar cane Rubber 302 266 412 480 290 468 245 270 355 485 1,560 1,900 - Rubber seeds Groundnut (peanut) - Groundnut vines (Source: Vietnam Statistical Yearbook, 2005) Feed Ingredients for Commercial Feeds  Fish meal Domestic production accounts for about 10% of the total requirement as production is about 30,000 to 35,000 tonnes and requirement the total of 4.5 million tonnes of commercial feeds produced annually is calculated to be about 200-300,000 tonnes It is scarce for livestock producers in Vietnam  Soybeans: Soybean meal is the main protein source in poultry diets in Vietnam It is produced for human consumption as well as animal feed, the soybean price is high for inclusion in poultry feeds, and availability varies according to season Production is about 240,000 tonnes, and an additional 49,400 tonnes of soybean, and 620,000 tonnes of soybean cake were imported annually to use as animal feed in 2003 (FAOSTAT, 2004) What imported soybean cakes was about 30 % lower cost compared to the domestic production, it is about 3000 USD/tones compared to the 4000 USD/tones of soybean cakes  Maize (Zea mays): Total production in 2004 was about 2.5 million tonnes, almost all of which was used for animal feed However, about 300,000 tonnes were imported in 2003, mostly for poultry and pigs (Statistical Yearbook, 2004, FAOSTAT, 2004) Maize production cost in Vietnam about 20 % higher compared to the imported maize from United State (Nguyen Dang Vang, 2004)  Cassava and cassava leaf (Manihot esculenta Crantz) According to FAO (FAOSTAT data, 2005), the cultivated area of cassava in 2005 in Vietnam was 371,700 ha, with a total tuber yield of about 5.4 million tonnes, it is estimated about 30 % of cassava tuber (1.7 million tonnes) that was used as animal feed, about 70 % of the cassava tuber were used for starch production as human foods Livestock Priority Workshop Data & Information Sheets 79 Value and Markets:  The livestock sector currently uses around million tonnes of animal feed, of which 80 % goes to pigs, 18 % to poultry, and the rest to cattle (Vietnam Business Forum, 2006)  Local mills supply at most 4.6 million tonnes (40% of total demand), and more than 60% of raw materials for feedstuffs are imported annually In 2005  Feed costs are unusually high in Vietnam compared to other countries in the region (poultry commercial feed per tone = US$285 in Vietnam vs $175 in Malaysia; pig commercial feed per tone = US$225 in Vietnam vs $175 in Malaysia)  Imported values of feed ingredients in 2005 were approximately US$597 millions (World Bank, 2006) Comparative Advantage  As a member of WTO, AFTA the level of taxes and protection is falling for all export feed ingredients It is zero for exported feed ingredients executively  Animal feeds are 20-25% more expensive in Vietnam than elsewhere in the region  Assumptions that the livestock sector can grow at nearly double the rate of the crops sector (9.9% in 2002 when the crop sector grew at 5.5%), are primarily due to increases in inputs to production rather than increases in production efficiency  A lack of competitiveness in the livestock sector may largely be due to feed costs and technical constraints (breeding, delivery of health services, market development)  Current export tariffs are 0% for livestock products, aimed at increasing investment in production for exports, particularly pigs but exports of livestock products from Vietnam have declined since 1997, while domestic demand for meat increased  Outbreaks of high pathogenic avian influenza (HPAI) disease in poultry, foot-andmouth disease (FMD) in ruminants and pigs and Newcastle disease (ND) have had significant impact on the small export markets that exist for Vietnamese livestock production in general and animal feed industry in particular  The structure of the feed industry with a small number of very large producers and a large number of small producers and many intermediate traders compound the competitiveness problem Government Policies Several government policies have been and are being developed to address domestic feed industry development; for example:  Land policy (twenty years for annual crops; fifty years for multi-year crops; seventy years for multi-year crops in Government-approved projects)  Taxes imposed on agricultural raw material imports and agricultural exports have been reduced or removed, elimination of ad valorem tariffs on feedstuffs (recently reduced to 5%) Livestock Priority Workshop Data & Information Sheets 80  Development of Rural Credit Networks for livestock production (7million farm households have accessed credit including million poor, questions regarding technical support for wise use of credit)  Favorable tax relief and reduced capital input costs for development of local feed mills  Promotion of production of suitable crops for animal feed  Price policy (in some cases there is Government intervention in price control in order to stabilize the price of animal feeds to maintain food security, and control on export quotas of local exporters)  Creation of research centre for animal nutrition and feed processing Animal Feed Industry Analysis 3.1 Structure, Households and Size of Holdings The density of livestock is relative to cropland and grain production Regions of the country with significant livestock populations and available cropland could have competitive advantage over regions in which grains are less available, and hence more expensive to transport This requires a more detailed typology type of analysis but could be important in determining areas in which to invest in order to increase competitiveness of a livestock sub-sector In preliminary analysis, the density of livestock and the density of crops grown for animal feed (maize and soybeans for example) not appear to be highly correlated, suggesting there may be scope for realigning policy to promote better planning and development of crops-livestock production systems Such planning could capitalize on appropriate climatic factors favorable to crops and livestock, and increase efficiencies of production (and hence competitiveness) 3.2  Infrastructure Commercial feeds: Commercial feed processing factories are distributed in different provinces The most important issue is to determine the animal feed processing products having proper quality for the domestic market demands The commercial feed industry in Vietnam functions as an oligopoly, with very few main players Furthermore, ownership is dominated by foreign interest, which have higher labor and investment costs than domestic industry, and which export capital benefits through the purchase of inputs In 2003, more than 70% of feed mills had some element of foreign corporate ownership (CEG, 2004) With competition for land from industrial, residential, and high value crops other than livestock, the answer is not as simple as rezoning land for animal feed purposes 50% of village roads are in poor condition There are well over 150 companies involved in production of animal feedstuffs and many companies involved in the markets and distribution process Small feed processing companies come and go and have a very short business life This mean about 73 % feed of the total feed are produced by foreign investors with big animal feed mills Livestock Priority Workshop Data & Information Sheets 81  3.3 Industrial-agricultural byproduct feeds: Industrial–agricultural byproducts are produced following crop cultivated areas, for example rice straw, rice bran and broken rice are produced focused in Mekong and Red river delta, where the prices of rice byproducts are lower compared to the other areas The prices of the industrial–agricultural byproducts are various depended on cultivated areas, and also depended on proportion used as animal feed resources or were waste This mean that where have livestock development by better use of available industrial–agricultural byproducts where have good market for selling industrialagricultural byproduct feeds Markets  Feed ingredient prices are more than 57% higher in Vietnam than other SEA (Asian countries), despite a low import tariff (5%) on feed ingredients, suggesting opportunity for reducing feed costs through policy However, markets for the industrial-agricultural byproducts are depended on livestock farming systems, where have livestock production development by making better use of locally available feed resources will be get sustainable livestock development, this is also relatively with livestock development policy in regions  Soybean yields are low, except for the Mekong River Delta area (2-2.61 tones/ha) where agro-ecological factors are most favorable  Most areas of Vietnam exhibit weak competitive advantage in soybean production Table3 Feed prices in North and South Vietnam for several livestock groups and stages of production Livestock group and stage of production National North South Starter (1-15 kg) 7724 7048 8400 Pre grower (15-30 kg) 4305 4341 4200 Grower (30-60 kg) 4020 4140 3900 Finishing (60- off take) 3723 3596 3850 Pregnant Sow 3847 3894 3800 Lactating Sow 4168 4136 4200 Price of chicken feed (VND/kg) National North South Starter (1-21d) 5123 4993 5530 Grower (22-41d) 5038 4717 5460 Broiler (42-50+ d) 4855 4717 4813 Layer 4215 4784 6200 Price of duck feed (VND/kg) National North South Price of pig feed (VND/kg) Livestock Priority Workshop Data & Information Sheets 82 Starter (1-21d) 4147 4136 n.a Grower (22-50+d) 3919 3883 n.a Layer n.a 4092 n.a Price of feed ingredients (VND/kg) National North South Maize 2600 2543 2350 Broken rice 3615 3771 3516 Rice bran 2770 2200 2200 Cassava 2270 n.a n.a Wheat bran 2850 n.a n.a Soybean cake 3880 4600 5350 Soybeans 6000 4650 6200 Source: Primary data gathered by this study team from feed industry representatives in North and South Vietnam, February 2006 3.4 Future Trends and Key Market Issues  Livestock numbers are predicted to grow and the demand for processed feeds, agricultural byproducts and forages will also grow  The key issue is price of domestically produced feed – 1.5 to times the cost of feeds in other countries Unless feed ingredients can be grown more cheaply in Vietnam the competitive advantage for Vietnamese livestock is likely to be low  Trend towards the use of feed grains for biofuels has significantly increased the international price of feed grains and along with that international process of products that rely on processed feeds (e.g milk)  Agricultural byproduct is often not produced in areas of intensive livestock production Trends toward more intensive systems close to sources of feed may be a future development  A large volume of agricultural byproduct is wasted and cost effective conservation and feeding systems will enable these resources to be more competitive  As prices for processed feed increase the cost effectiveness of improved forage production and conservation will increase, especially in more intensive ruminant production systems R&D Information 4.1 Main Research Areas  Applying conventional and modern processing technologies to the industrial and agricultural byproducts as animal feeds are major priority for sustainable livestock production development  Transfer of technology on commercial feed processing needs strengthening to reduce costs Livestock Priority Workshop Data & Information Sheets 83  Improvements in post-harvest technologies and marketing will improve economic efficiencies of growing maize and soybeans  Promote feed ingredient production in advantage areas such as maize in Dak Lak and Son La, and soybean production in Dak Lak areas  Establishing and applying new technologies of post-harvest, processing and diversifying processing products  Establishing models of intensive cultivation of forage and animal feed crops 4.2 Major Research Providers Ministry of Agriculture and Rural Development  National Institute of Animal Husbandry (NIAH), Agricultural Scientific Institute of Southern (ASIS): Research on Animal Nutrition and Feed processing:  Local animal feed companies at provinces, foreign joint-venture feed companies: Research on commercial feeds: Universities  Hanoi Agriculture University  Thai Nguyen Agriculture and Forestry University  Thu Duc University of Agriculture and Forestry (HCMC)  Can Tho University  Hue University of Agriculture and Forestry Others Local organizations (Departments of Agriculture and Rural Development, Departments of Science and Technology and Provincial Agricultural Extension) Major collaborators include FAO/UNDP, CARD, CIRAD, Vietnam Animal Feed Association 4.3 Funding  Estimated research budget in 2007 is: VND billions (US$ 250,000) for commercial and additive feeds, VND billions (US$ 375,000) for processing and conservation of industrial and agricultural- byproducts, and VND billions (US$ 375,000) for forage processing and animal feed crop cultivation  Total funding approximately VND 16 billions (US$ 1,000,000) 4.4 Major Achievements to Date Research on animal feed ingredient processing  Fish meal processing: The processing technology of fish meal in Vietnam is not well developed, and therefore the nutrient contents of fish meals vary over wide ranges, for example 35 to 60 % in crude protein (CP) content and 20 to 35 % in ash content (Giang et al., 2001) Fish meals have a high proportion of calcium, phosphorus and trace minerals, including manganese, iron and iodine, and are a Livestock Priority Workshop Data & Information Sheets 84 good source of B-complex vitamins, particularly choline, B12 and riboflav This means that fish meal is also useful as a source of minerals and B-vitamins for poultry producers  Soybean processing: Soybeans are excellent sources of both protein and energy, with CP and Metabolisable energy (ME) contents are vary from 370 to 430 g/ kg dry matter (DM) and 3300 to 3900 Kcal/kg DM, respectively However, anti-nutritional factors are present in the raw material, such as trypsin inhibitors and haemagglutinins (lectins) Full fat soybean meal can be used at levels of 15 to 35 % in diets of growing poultry without any depressing effects on performance, and if DLmethionine is added in soybean meal, it is equivalent to fish meal in protein quality Economic savings from replacement of fishmeal by soybean meal can be up to 30 % in the poultry diets (Lung & Man, 1999)  Maize processing: Maize is a crop grown throughout the country, and can be harvested two or three times per year depending on the climate and farming system However, the yield of maize in Vietnam is only 60 % of the average maize yield in the United States (Vang & Son, 2000) Maize contains about 730 g starch/ kg DM, is very low in fibre and has high metabolisable energy (ME) content, although the crude protein (CP) is very variable ME and CP contents of maize varieties in Vietnam vary from 3300 to 3900 Kcal/kg DM, and 80 to 120 g/kg DM, respectively, depending on variety (NIAH, 2001) Maize meal quickly becomes rancid and is attacked by fungi under the conditions of high temperatures and humidity that are typical in Vietnam A particular problem is the development of aflatoxins that can induce loss of nutritive value and reduced palatability of the feed (Men, 2001) However, pigmented grain tends to colour the carcass fat, which in some countries is not considered desirable However, in Vietnam, maize is still the main ingredient in commercial diets of poultry and pigs  Cassava processing: The most important use of cassava is as a starch source for humans, with a production of million tonnes compared with 0.3 million tonnes for animal feed (FAOSTAT data, 2005) Industrial-agricultural by-product processing:  Rice straw is abundant in Vietnam but still underutilized as feed for ruminants Rice straw supplementation with locally available sources may be applicable for small farmers, thus contributing to improved utilization of rice straw as feed for ruminant feeding But the lack of suitable technology for processing to improve the nutritive value of rice straw and extension policy are constraints Sun dried rice straw was treated with % urea on a dry weight basis The urea solution (4 kg dissolved in 100 liters water) was used for 100 kg dried rice straw Urea treatment improves the nutritive value of straw, and urea treated rice straw can effectively part to replace from 10-20% roughage in diets for dairy cows containing relatively high levels of concentrates in small farm The research results show that there was non-significant different between control and experimental diets It is indicated that urea was improved quality of rice straw  Rice bran and broken rice are the main by-products of rice processing and are used widely in poultry diets in Vietnam CP and ether extract (EE) contents are high in Livestock Priority Workshop Data & Information Sheets 85 rice bran, up to 120 to 140 g/ kg, and 110 to 180 g/ kg, respectively (Giang et al., 2001) Rice bran is recognized as being variable in its composition, depending on the efficiency with which the rice is threshed and the extent to which the oil is extracted The oil is highly unsaturated and may become rancid very quickly It is therefore removed to produce a product with better keeping quality Both rice bran and broken rice can be used in poultry rations at fairly high levels if they are low in rice hulls In Vietnam, producers often use up to 70 to 100 % of whole rice grain or rice bran and broken rice as a supplement for both scavenging growing and laying poultry (Men, 2001)  Maize stovers There are about 909,000 of maize and the amount of maize stem after corn collecting is more than 10 millions tons per year Maize stems are mainly for fuel and rarely used as animal feed The production of silage from maize stem after collecting the corns adding 3% of molasses or maize meal, rice bran and cassava meal should give the good quality of feeds for the preservation as ruminant feed reserve for dry season  Sweet potato vines Sweet potato vines are mostly used for pigs rather than for buffalo and cattle Sweet potatoes (Ipomea batatas) are the staple food for many people in low-income countries and the vines are often discarded or fed to ruminant livestock Occasionally, they are dried under the sun and used to feed pigs and poultry but little is known of their nutritional value Yield of sweet potato vines may be up to 2.6 tons of dry matter/ha  Cassava leaf and tops After harvesting tubers, there are about 2.8 million tones of cassava leaves can use as animal feed (Table 1) The potential yields of cassava leaves as by-products at root harvesting may amount to as much as 4.64 tones dry matter per hectare If cassava is grown for foliage in the dry season, it can give 41 tones/ha of fresh leaves, equivalent to about 12 tones per of cassava hay Cassava leaves are known to be an excellent source of protein Cassava leaf meal (CLM) is a non-conventional animal feed and in Vietnam CLM and tops are sometimes included in diets for pigs and cattle The most important constraint in using CLM is toxins such as hydrogen cyanide (HCN) Sun-drying or ensiling reduces cyanide content in cassava foliage to levels which are considered safe for animals Unlike the tubers, cassava leaves are rich in protein, minerals and vitamins and the CP content of cassava leaves reportedly ranges from 230 g to 350 g/kg DM CLM was included in layer diets at up to 25 % of DM without adverse effects on egg production, egg quality or feed efficiency Cyanide and tannin contents in cassava foliage can be reduced by sun-drying and ensiling, and for example the cyanide content was reduced by 92 % in sun-dried cassava foliage and by 78 % in ensiled cassava foliage (Khang, 2004)  Biomass of groundnut leaves is 1.9 millions tons that can use as animal feed (57006800 kg/ha) The replacing 50% green grass with ensiled groundnut leaves in dairy cattle diets without effecting to the milk yield Using 1.5 kg will replace 0.5 kg concentrate on diets of growing pigs, that reduced 12 % feed cost of the pig production If better use of a total of 1,900,000 tons groundnut leaves will replaced 500,000 tons concentrate for growing pigs Livestock Priority Workshop Data & Information Sheets 86  The biomass production of 16,524,000 tons of sugar cane that can produce around 1,600,000 tons of molasses by product and 1,600,000 tons of sugar cane tops and leaf by products as feed source for animals that account for 10-12% of the total sugar cane biomass Sugar cane by-products such as cane tops, cane leaves and molasses are considered as important feed resources for ruminant in tropics Using ensiled sugar cane leaves or molasses treated sugar cane leaves for beef cattle with 12,6 kg/day will get daily weight gain 590g/day Better use of 1,600,000 tons of sugar cane tops and leaves will keep 400,000 beef cattle annually without using green grass This is conclusion that processing and conservation technologies of the industrialagricultural byproducts and forage crops are necessary to research SWOT analysis        Strengths Soil and climatic conditions are favorable for animal feed crop development Farmers quickly acquire new technologies for higher yielding feed crops Better use of locally available feed resources has significantly improved farmer income and profitability Foreign investment in feed mills and improved production systems Many research achievements successfully transferred to livestock production Low labor costs also increase competitiveness Some supply chains well developed             Livestock Priority Workshop Weakness Processing technology and equipment needs investment and upgrading Lack of long-term projection for industrial and agricultural byproducts processing as animal feed resources Small- scale production and lack of commercial production in livestock production Low quality of imported raw materials Low quality semi-processing by producer households Many small feed processors with variable quality and no trade/brand names of agricultural products in the international markets (only domestic markets) Weak systems of technology transferring to farmers The consumption per capita per year is still very low Marketing is a big concern A high feed cost and a low productivity, prices of products arc high (1.5-2 times the cost of feeds in other countries in the regions) There is a need for incentive policies (credit fund, tax.) for livestock production development, especially in the dairy and pig production sectors Local access to feeds of consistent quality and price is difficult High use of local available feedstuffs, generally of low to poor quality (e.g some small scale pig farmers feed only Data & Information Sheets 87 waste)           Opportunities Improved quality, food security to capitalize on market expansion after joining AFTA and WTO Soil and tropical climate to identify most suitable areas for expansion of area for all feed crops Development of intensive production systems with an emphasis on high yielding varieties, high quality of feed crops Huge industrial and agricultural byproducts can be use as animal feed Joint ventures to improve processing facilities Huge biomass production of the byproducts of the main crops Tropical climate with solar energy source and water sources are abundant for biomass production of the tropical crops Better use of the byproducts will contribute to protect environment The development of livestock production is well underway because of stimulation from the market systems The impact of extension service work seems to have improved recently Technology transfer has primary results A group of' young staff was trained during research and extension work They have learnt how to work on small farm with the poor farmers Livestock Priority Workshop      Threats Entry into WTO is likely increase costs of compliance to international market standards Competition with other cheaper feed resources in export and domestic consumption Competition from other producing countries especially in commercial feed processing Fluctuation of price due to change of the world supply and demand and disease out break Strict requirements of quality and food sanity and safety Data & Information Sheets ... Agricultural and Forestry University  Hue Agricultural and Forestry University  Thai Nguyen Agricultural and Forestry University  Tay Nguyen Agricultural and Forestry University Livestock Priority Workshop. .. technologies for feeding and managing beef, dairy and buffalo cattle  Research to develop feeding standards and to formulate nutritionally balanced supplementary diets for beef and dairy cattle  Research. .. (NIAH)  Centre for Livestock Research and Development in Mountainous Area,  Centres for Research and Transferring Advanced Technologies for Livestock Production in Ho Chi Minh city and Central