MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT

MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT DEPARTMENT OF LIVESTOCK PRODUCTION VIETNAM CURRENT STATUS OF SWINE PRODUCTION AND DEVELOPMENT PLAN IN COMING YEARS (Presentation at Workshop on Swine Production in Hai Phong 23- 25/6/2010)

CONTENTS Part 1. CURRENT STATUS OF SWINE PRODUCTION PERIOD 2001-2009 • Role of swine production as a food stuff supply chain • Total number of pigs, sows and pork productivity • Swine breeding system • Production categories • Slaughtering, Processing and Consuming • Constraints evaluation and causes Part 2. SWINE PRODUCTION OBJECTIVES AND DEVELOPMENT PLAN UNTIL 2015 • Objective • Solutions

Part 1 CURRENT STATUS OF SWINE PRODUCTION PERIOD 2001-2009

I. ROLE OF SWINE PRODUCTION AS DOMESTIC FOOD STUFF SUPPLY PERIOD 2001-2009 (Source: GSO)

II. TOTAL NUMBER OF PIGS, SOWS AND MARKETED LIVE WEIGHT PRODUCTIVITY IN PERIOD 2001-2009 (Source: GSO)

III. SWINE BREEDING SYSTEM 1. Current status and raising of GGP and GP herds • At present, there are about 130-140 breeding facilities of GGP, GP (core herds) amd raising approximately 321,000 sows. There are 9 out of those ones are managed by Ministry of Agriculture and Rural Development with 1.6 thousands GGP sows and 1.7 thousands GP sows, accounted for 20% and 0.6% of the national numbers of GGP and GP sows through out the country. • The biggest companies whether domestic or joint stock raising GGP and GP herds are CP Vietnam with 25.6 thousands sows (of which 3.6 thousands GGP sows and 22.0 thousands GP sows); Darby-JC with 5.0 thousands sows; others such as San Miguel, JAPFA, Kim Long, Dong Nai Agro-animal Joint-stock company are keeping from 1-2 thousands sows, respectively.

III. SWINE BREEDING SYSTEM(cont.) 2. Artificial Insemination facilities and their capacity • There are 549 boar stud farms across the country to serve for AI those are raising 4.56 thousands boars and producing about 5.77 million semen doses per annum Of which: • State Owned and Stocked Enterprises are 105 facilities with 2.05 thousands boars kept and 3.48 million semen doses produced per annum (accounting for 19.1% of facilities number, 45% of boars and 60.3% of produced semen doses) • Privatized farms are 444 facilities with 2.5 thousands boars are raised and 2.3 million semen doses are produced per annum (accounting for 80.9 % of facilities number, 55% of boars and 39.7% of semen doses produced) • Consummed semen doses are about 4.56 million, estimated that AI has been satisfied for 30.2% of total sow herds across the country.

III. SWINE BREEDING SYSTEM(cont.) 3. Swine breeds proportion and quality a) Sows In 2009, the number of sow herd was 4.17 million (an increase of 5.6% was made from similar period in 2008), of which exotic breeds accounted for 13.2%, hybrids were presented 74.4% and the rest was local. • Exotic sows: main breeds are Landrace, Yorkshire, Pietrain, Duroc and their hybrid combination (there is, however, a different hybrid formulation between the North and the South) • Hybrid sows (local cross exotic): the predominant formulation in the North is Móng Cái sow, or “roan” groups were bred with Yorkshire or Landrace boars; while in the South the formulation is local sow breeds (Ba Xuyên, Thuộc Nhiêu) crossed with Yorkshire or Landrace, Pietrain boars.

III. SWINE BREEDING SYSTEM(cont.) 3. Cơ cấu và chất lượng giống lợn (tiếp theo) b) AI boars: Currently apart from many AI facilities through out the country using pure breed and lines such as Yorkshire, Landrace, Duroc, Pietrain, Móng cái, Maxter 304, Maxter 19, 402,..many others uses hybrid boars (differentdemands in different regions): • In the North: boars are mainly Yorkshire (44.2%) then Landrace (29.8%), Móng Cái (16.5%), Duroc (3.7%), PIC boars (1.6%), hybrids of Landrace X Yorkshire and Pietrain X Duroc (2.1%). • In the South: the order is different as Landrace (24.2%), then Yorkshire (22.6%), Pietrain (13.1), Duroc (10.4%), hybrids of Pietrain X Landrace and Pietrain X Duroc (12.1%), Landrace X Yorkshire (10.1%), Duroc X Landrace and Duroc X Yorkshire (3.4%), France Hybrids (3.0%)

IV. PRODUCTION CATEGORIES 1. Traditional and saving raising: • Exist in almost all provinces through out the country; • Raising scale diversified from 1-10 heads; • Main feeds source is from agro and commercial by-products.

IV. PRODUCTION CATEGORIES(cont.) 2. Traditional and saving raising (cont.): • Breeds are local source, or high proportion of local breed (F1: local x exotic);low productivity. • Average marketed weight is low (less 50 kg/head).

IV. PRODUCTION CATEGORIES (cont.) 2. Home farming production: • Prevalent in Red River Delta and well developed in recent years; • Herd size is mainly from 10-30 sows, or permanent flock of 10-50 growers; • commercial and home made feeds are used;

IV. PRODUCTION CATEGORIES (cont.) 2. Home farming produciton (cont.): • hybrid pigs are produced manily with 50-75% of exotic breeds; • veterinary hygiene and housing are more considered; • Ave. marketed weight is about 70-75 kg/head.

IV. PRODUCTION CATEGORIES (cont.) 3. Intensive produciton: • this category of production has been developed for ten years. At present, there are about 8,500 farms across the country (of which, 3,500 sows farms; 5,000 growing farms) • Approximately, number of pigs at those farms accounted for 15-16% total herds and shared a percentage of 28-30% the total marketed wieght productivity of the whole country.

IV. PRODUCTION CATEGORIES (cont.) 3. Intensive production (cont.): • Flock size is from 20 sows or 100 growers permanently (specifically a farm has more than 10thousands PS sows ); • Fully use commercial feeds; • Exotic sows are mainly raised (2 lines, 3 lines or 4 lines); • New tech of housing and feeding are applied; • Ave. marketed weight is above 90 kg/head.

V. SLAUGHTERING, PROCESSING AND CONSUMING 1. Pigs slaughtering & processing facilities • Generally, there are plenty of slaughtering facilities through out the country, but they are mostly considered as handy operational ones, There are 935 handy facilities out of 970 slaughtering facilities across the country those accounted for 96.4%; 35 industrialized pig slaughtering facilities which accounted for 3.6%. • the distribution of industrial slaughtering facilities is scattered and unintegrated to large pig production regions. • Out of 35 industrial slaughtering facilities nationa wide, 22 ones are located in RRD, accounted for 62.8%; there are 3 facilities in each of the regions as Southeast, Mekong RD, Central North and Central Coast, accounted for 8.6%; the Northeast has only 1 facility, accounted for 2.8%. • Out of the 935 pig handy slaughterhouses there have been 447 ones in the Southeast which accounted for 47.8%; then the Mekong RD with 280 facilities, 30.0%; Central North with 102 ones, 25.8%; Central Highland with 54 ones, 13.7%; Central Coast with 24 ones, 6.1%; Red RD with 18 ones, 4.6%; Northeast with 10 ones, 2.5%.

V. SLAUGHTERING, PROCESSING AND CONSUMING (cont.) 2. Pork processing and consuming: • Generally, in-country live weight produces is mainly consumed domestically, the amount for export is very low Estimated that domestic consumption accounted for 98-99%, while the export was only 1-2%. • Consumming behaviour, fresh pork (unprocessed meat) is accounted for 70-80%, ready-to-eat processed products are only about 20-30% Within the existing processed pork products it is mainly traditional foods stuff such as pork pies, lean pork paste, fermented rolls, roasted pork, barbecue, etc, while others as hams, sausages, bacon, salined pork are not prevalent.

V. SLAUGHTERING, PROCESSING AND CONSUMING (cont.) 3. Products selling price: • Recently, feeds cost was increased resulting to high price of marketed live weight. However, the fluctuation of market price some times happened unarticulted with the inputs cost increment or unharmonized increases. (marketed light weight price is often increased in 2-3 weeks after the increase of inputs cost; sometime it is increased only 3-5% in live weight price but feeds cost increased 6-8%/month). • Swine production has been affected by diseases outbreaks widely, by consummers’ decision; different regions have different prices. In early 2010 live weight pigs price has been increased continually and there was a discrepancy between the North and the South (it is often higher live weight market price in the South than that in the North from 12-14%). Due to PRRS outbreaks have occurred widely in the North from April 2010, pork consumption has been decreased and so has the selling price of swine products.

VI. CONSTRAINTS AND CAUSES 1. Constraints • The productivity has been improved but still lower than that in regional countries and in the world. • Breeds quality and feeding technology are unmatched; production cost of pork is high. • Veterinary and environmental hygiene has been incapable to the requirements; diseases outbreaks are very complicated, out of control (e.g. PRRS re-occurence from 2007-2010), that makes swine production low effectiveness. • There is not a firm linkage between production and slaughtering & processing; poor technology in this area and outdated machines, unmatched with required food safety standards.

VI. CONSTRAINTS EVALUATION AND CAUSES (cont.) 2. Main causes • swine production is fregmented, scattered and oriented mostly to saving and that has become a traditional manner of the country people; • Lack of a master plan for swine production; • High feeds cost and low productivity lead to high product cost; • Farmers are lack of fund, land for building large- scale farms.

Part 2 MAIN OBJECTIVE AND SOLUTIONS FOR SWINE PRODUCTION DEVELOPMENT TO 2015

I. OBJECTIVES 1. Overall Objective. • To develop swine industry towards medium and large farming scale with new technology applied going to industrialization and modernization the industry; matching the more and moredomestic demands on pork consumption and for export. • To improve the effectiveness of swine production, productivity, pork quality and ‘competitiveness. • To establish a sustainable swine production with integration to reasonable exploitation of regional advantages of natural resources and socio-economic conditions

I. OBJECTIVES (Cont.) 2. Immediate Objectives. • To increase the pig population from 27.6 million heads in 2009 to 33.2 million ones in 2015 (ave. increase of 3.37%/year Of which, exotic pigs will increase from 4.74 millions in 2009 to 8.88 millions in 2015 (ave 11.0%/year). • Total quantity of marketed live weight will increase from 2.93 million tones in 2009 to 3.93 million tones in 2015 (ave. 6.6%/year). • Total number of sows herd through out the country will increase from 4.17 millions in 2009 to 4.83 millions in 2015 (ave. 2.5%/year). Of which, exotic sows will increase from 550.2 thousands to 990.2 thousands in 2015 (ave. 10.3%/year); hybrid sows from 3.10 millions to 3.29 millions in 2015 (ave. 1.0%/year).

II. SOLUTIONS 1. Solution of projection a) Projection of pig fattening, breeding and AI facilities: • To set up GGP and GP breeding farms in potential places for swine production development towards farming scale such as Northeast, Central Southern Coast (CSC) and Central Highland; To upgrade, supplimentary coinstruction of GGP, GP breeding farms for developed swine production region such as Southeast, Mekong River Delta (MRD) and Red River Delta (RRD). • To promote building more artificial insemmination (AI) facilities in localities where there are few similar facilities but there are more sows raised such as RRD, Northeast and CSC; To upgrade and extend existing AI facilities where they are existed in large numbers but small scale such as MRD, Cntral North and Southeast. b) To make a plan for farming and extensive production with integration to slaughtering and processing as a whole

II. SOLUTIONS (cont.) 2. Solution of breeds and techniques • Continue to implement Decision 2194/QĐ-TTg dated 25/12/2009 by the Prime Minister regarding Livestock Breeding Programme. • Upgrade, supplementary build GGP farms for regions where swine production has been developed such as Southeast, RRD and MRD. • To approve breeding programme supports in grading and expanding capacity of AI facilities in concentrated swine production regions. • To promote breedings facilities import high quality semen from other countries for AI, to refresh swine genetics of those gacilities; to push up breeding activity through out the country. • To increase selecting activity, enhancing imported swine breeds quality; to research effective breeding formulation for industrial production, to direct breeding formulation which increases exotic genetics in hybrids and be suitable to different regions. • To enhance appraisal activity, assessment, selection GGP GP breeds.

II. SOLUTIONS(cont.) 3. Solution of policy • To supplement legal documents of policy besides the existing and being effective ones with aims at • support favour loan interests for importation of GGP and GP swine breeds from abroad. • promote development of farming and industrial pig production. • policy to enhance effectiveness and ability of disease control and food safety within household production category /.

Thank you very much!

MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT