Báo cáo khoa học nông nghiệp " Developing a strategy for enhancing the competitiveness of rural small and medium enterprises in the agro-food chain: the case of animal feed " docx

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Ministry of Agriculture & Rural Development

Project Progress Report

FIRST SIX-MONTHLY REPORT

CARD Project 030/06 VIE

Developing a strategy for enhancing the competitiveness of rural
small and medium enterprises in the agro-food chain: the case of
animal feed


Date: 1
st
January 2008

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1. Institute Information
Project Name
Developing a strategy for enhancing the
competitiveness of rural small and medium
enterprises in the agro-food chain: the case of animal
feed
Vietnamese Institution
Institute of Policy and Strategy for Agriculture and
Rural Development
Vietnamese Project Team Leader

Dr Nguyen Do Anh Tuan
Australian Organisation
University of Western Australia
Australian Personnel
Ms Sally Marsh, Dr Donna Brennan, Professor John
Pluske, Dr Greg Hertzler, Dr Jo Pluske
Date commenced
1
st
May 2007
Completion date (original)
30
th
April 2009
Completion date (revised)

Reporting period
1
st
May – 31
st
October 2007

Contact Officer(s)
In Australia: Team Leader
Name:
Ms Sally Marsh
Telephone:
+61 8 6488 4634
Position:

Senior Research Officer
Fax:
+61 8 6488 1098
Organisation
University of Western
Australia
Email:


In Australia: Administrative contact
Name:
Ms Jan Taylor
Telephone:
+61 8 6488 1757
Position:
School Manager
Fax:
+61 8 6488 1098
Organisation Agricultural and Resource
Economics, University of
Western Australia
Email:
In Vietnam
Name:
Ms. Pham Tuyet Mai
Telephone:
+84-4-7280493
Position:
Researcher – Market Analysis
Unit

Fax:
+84-4-7280489
Organisation
Center for Agricultural Policy –
Institute of Policy and Strategy
for Agriculture and Rural
Development (CAP-IPSARD)
Email:


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2. Project Abstract

3. Executive Summary
Contract signing for this project was delayed, but work commenced not long after the
scheduled project implementation date of 1
st
May 2007. Australian team planning meetings
commenced at UWA on a regular basis from the second week of May, and joint planning by
the Vietnamese and Australian teams for the Project Inception Workshop and first training
activities commenced in June 2007.

Team meetings were held in Hanoi at the Centre for Agricultural Policy (CAP) between 2
nd
–
10
th
August. Ms Sally Marsh, Dr Donna Brennan, Professor John Pluske and Dr Jo Pluske
travelled to Hanoi for these meetings. Highlights of these meetings included:
• A half-day workshop held at IPSARD on 7
th
August to scope issues facing the
livestock feed sector attended by a range of industry stakeholders and others.
• Field trips to a range of feedmills and livestock farms, and meetings with industry
representatives.
• Training activities linked to the workshop and field visits focussed on identifying
problems and issues, developing researchable questions, identifying data required to
address research questions, and developing the survey instrument (questionnaire).

Dr Jo Pluske has completed a draft report entitled “A desktop review of the animal feed
sector at a global scale” which will contribute to the identification of both key policy and
operational issues in the feed sector. This report is being reviewed by the project team prior
to its finalisation.

Work is progressing steadily in several areas including:
• Development and testing of the survey instrument for livestock producers and
livestock feedmills and distributors.
The objectives of this project are to: 1) Build capacity at IPSARD in agricultural marketing
research, specifically the value chain, industrial organization and production economics; 2)
Understand the role and performance of SMEs in the animal feed sector in other countries and
draw lessons for Vietnam; 3) Provide a quantitative assessment of the factors affecting the
competitiveness of the animal feed industry in Vietnam; and 4) Provide policy recommendations
to the government with regard to the efficiency of firms operating in the livestock feed sector, and
provide advice to SMEs competing in the livestock feed sector. Standard agricultural economics
techniques will be used to quantify the characteristics of the animal feed industry, and to identify
issues and opportunities for small enterprises in the animal feed supply chain. Activities include a
combination of training courses, and supervised research exercises combining collection of
secondary data, field work, analysis and synthesis of findings. Activities during this first six
months of the project have focussed on scoping the issues facing the livestock feed sector in
Vietnam by: 1) collecting available secondary data and reports; 2) conducting an implementation
workshop involving industry stakeholders; 3) field visits and stakeholder meetings; and 4)
planning sessions for the desktop review and survey instruments.

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• Continued industry liaison activities by the Vietnamese team and work on the report
on key issues identified from consultations with major industry stakeholders.
• Compilation and documentation of available secondary data.
• Investigation and documentation of the policy environment facing the sector and
SMEs in Vietnam.
• Planning for future training activities and the study tour to Thailand.

The team has endeavoured to strengthen links with an ACIAR funded project on the pig
industry being conducted in collaboration with the International Livestock Research Institute.

Several joint meetings have been held with visiting ILRI scientists, Dr Donna Brennan, and
the Vietnamese team to build on synergies between the projects. The Director of ILRI
recently visited Vietnam and was briefed on the CARD project activities.

4. Introduction & Background
The underlying aim of this project is to investigate the circumstances under which SMEs in
Vietnam can operate at an efficient level and compete with other firms or not, especially in
the context of the globalization process. This project seeks to gain benefit from Australian
collaboration in designing methodology that can be used in ongoing work at IPSARD. In this
study the animal feed industry is being used as a case study, but the methods and lessons
learned will be applicable in other areas of agricultural marketing. The proposed training and
supervised research exercises will provide the IPSARD/MARD with a suitable methodology
for ongoing work in quantitative policy analysis.

The project will be carried out using a combination of training courses, and supervised
research exercises combining collection of secondary data, field work, analysis and synthesis
of findings in reports and policy briefs. Training will focus on building skills and experience
in market analysis, including value chain analysis, production economics, and industrial
organisation. Field work will be undertaken in several sites incorporating the three regions,
Mekong Delta, South East region and Red River Delta, to cover a broad cross section of
performance of animal feed enterprises. Local stakeholders will be involved throughout the
process, and findings communicated through a workshop held in each region.

Specific activities and outputs under the project objectives will include:
Objective 1: Build capacity at IPSARD agricultural marketing research, specifically in
analysis of the value chain, industrial organisation, and production economics
• Training workshops at IPSARD on survey and data collection techniques; and market
analysis, including value chain analysis, production economics, and industrial
organisation.
• On-the-job training for IPSARD staff on assessment of competitiveness of SMEs and

other firms in the Vietnamese animal feed value chain.
• Development of a manual on how to conduct a study of competitiveness of SMEs that
can be used in other studies to be implemented by IPSARD in the future.
Objective 2: Understand the role and performance of SMEs in the animal feed sector in other
countries
• Desk-top literature search and review of the nature, experiences and lessons of the animal
feed industries in other countries, and the role of SMEs in the animal feed sector globally.

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• A study tour to Thailand to assess the organization of the livestock feed sector, and its
applicability to Vietnam.
Objective 3: Provide a quantitative assessment of the factors affecting the competitiveness of
the animal feed industry in Vietnam
• Collection of secondary data to provide an up-to-date assessment of the animal feed
industry in Vietnam, and, opportunities and challenges facing the sector.
• Field investigation in three regions to examine the value chain of the animal feed industry
including an assessment of characteristics and costs of production, the nature of
information and product flow, quality control standards and processes.
• Compilation of a detailed report on the research work.
Objective 4: Provide policy recommendations to the government with regard to the efficiency
of firms operating in the livestock feed sector, and provide advice to SMEs in the sector.
• Writing of policy briefs.
• Workshops in study regions and in Hanoi, to report and discuss the findings of the
research work with local stakeholders and with policy makers.
5. Progress to Date
5.1 Implementation Highlights
Team meetings were held in Hanoi at the Centre for Agricultural Policy (CAP) between 2
nd
–
10

th
August. Sally Marsh, Dr Donna Brennan, Professor John Pluske and Dr Jo Pluske
travelled to Hanoi for these meetings. Highlights of these meetings included:
• A half day stakeholder workshop held on 7
th
August to scope issues facing the
livestock feed sector with a range of industry stakeholders and others. Opportunity
was given to key people in MARD, the Animal Feed Association and from the
processing sector to address the workshop. The workshop program, participant list
and workshop report are included as Appendix I.
• Field trips to a range of feedmills and livestock farms.
• Meetings with Mr Le Ba Lich, Chairman of the Animal Feed Association, and Dr
Tran Cong Xuan, Chairman of the Vietnam Poultry Association.

Dr Jo Pluske submitted a final draft report to the project team, “A Desktop Review of the
Animal Feed Sector at a Global Scale”, in September 2007. This report is currently being
reviewed by the project team.

Dr Donna Brennan and Sally Marsh held further working sessions with members of the
Vietnamese project team in late October/early November to progress the questionnaire
design.
5.2 Smallholder Benefits
At this stage of the project no smallholder benefits have been achieved, but this remains an
objective of the project, through increased efficiency and competitiveness in the livestock
feed sector.

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5.3 Capacity Building
Capacity building activities at IPSARD/CAP have commenced. Activities in this first six
months have been designed to:

• Establish baseline capacity within IPSARD/CAP. The surveys used for this are
included as Appendix II.
• Ensure that IPSARD/CAP had input into the planning of the desktop review.
• Identify perceived training needs with IPSARD/CAP, including what tangible outputs
they would like to see from this project.
• Scope and discuss issues facing the livestock feed sector in Vietnam (e.g. mill
operations, nutrition issues, supply and storage issues, economic and institutional
issues), with the aim of emphasising the importance of this process before
commencing research and survey work.
• Identify problems and issues, develop researchable questions, discuss and identify
data required to address research questions, and develop the survey instrument
(questionnaire).
5.4 Publicity
Publicity for the project was achieved through the inception workshop, which was attended
by representatives from MARD, Hanoi Agricultural University, the World Bank, and the
livestock feed processing and the livestock animal industries.
5.5 Project Management
The project was late commencing because of difficulties in addressing budget issues
identified by the CARD PMU, and hence there was a delay in signing the Contract between
UWA and Hassall & Assoc. This resulted in a delay in establishing the budget line at UWA
(obtained on 31.07.07), and a corresponding delay in transfers of funds to IPSARD/CAP.
Accordingly, this first six monthly report is late and we envisage that Milestones 2 and 3 will
also be slightly late. We expect to be on track with Milestone Reports by mid 2008.

Dr Greg Hertzler had been scheduled to attend the project meetings and workshop in Hanoi
in August 2007, but at the last minute (3 days before scheduled departure) had to change his
plans and travel to America on bereavement grounds. This has reduced the time that Dr
Hertzler has contributed to the project during this reporting period.

There have been a number of changes in the Vietnamese personnel working on the project.

There have been a number of changes in the Vietnamese personnel working on the project.
Firstly, Mr. Phung Duc Tung has been in Germany since August 2007 in order to pursue his
PhD study, therefore, could not continue joining the project. Dr. Nguyen Anh Phong then
was assigned to replace Mr. Phung Duc Tung as technical supervisor for the CAP team.
Second, Mr. Hoang Dinh Quoc is also involved in a PhD preparation that makes him
unavailable for the project. Ms. Pham Tuyet Mai took over the work of Mr. Hoang Dinh
Quoc. Also, Ms. Nguyen Le Hoa and Ms. Tran Thu Ha was assigned to be in charge of other
work, and Ms. Pham Thi Lien Phuong and Ms. Nguyen Thi Thinh in the Market Analysis
Unit were assigned to do the work instead.

(See Personnel Inputs table in the Statutory Declaration for more details on the contribution
of each team member).

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6. Report on Cross-Cutting Issues
6.1 Environment
Questions addressing environmental issues and concerns are being included in the survey
instrument, and scoped in the Desktop Review.
6.2 Gender and Social Issues
Questions addressing gender and social issues and concerns (e.g. females working in
livestock and livestock feed businesses, health and safety issues in the sector) are being
included in the survey instrument, and scoped in the Desktop Review.
7. Implementation & Sustainability Issues
7.1 Issues and Constraints
The late start to the project has put pressure on timing of training activities from the
perspective of both the Vietnamese and Australian team members. However, these activities
will be able to be accommodated as the project progresses. The Australian team wants to
work with the Vietnamese team to ensure that training being delivered is relevant and
needed.

7.2 Options
The location of Dr Donna Brennan with CAP in Hanoi since October 2007 will mean that it
is possible to deliver shorter training sessions with key CAP people. This approach could be
useful because it can fit in more easily with the busy work schedule of CAP team members.
Accordingly, Dr Brennan will conduct a 3-day training course in December on analysing
feedmill costs, with an emphasis on linear programming techniques to investigate least cost
feed rations and the influence of the price of feed ingredients on feedmill costs.
7.3 Sustainability
The location of Dr Brennan in CAP will contribute to the sustainability of the skills and
knowledge being applied by the project team in this project, by enabling more frequent
follow-up and feedback on activities.

8. Next Critical Steps
Activities for the next six months include:
• Comment on the Desktop Review from Vietnamese and Australian team members,
revision if necessary, and submission to CARD as a Milestone Report – by the end of
the year.
• Continue work on the quantitative description of the supply chain (from GSO and
secondary data).
• Finalisation of the survey instrument and submission to CARD as a Milestone Report
– by early 2008.

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• Training on analysing feed production costs planned for early December 2007 to be
conducted by Dr Brennan.
• Training planned for late-January to identify and discuss key issues from the Desktop
Review, particularly those that will be relevant for the study tour to Thailand (e.g.
policy environment), and specify learning objectives for the study tour, to be
conducted by Sally Marsh.
• Piloting the survey and commencement of surveying.

• Study tour to Thailand in March 2008.

9. Conclusion
Activities during this first six months of the project have focussed on scoping the issues
facing the livestock feed sector in Vietnam by: 1) collecting available secondary data and
reports; 2) conducting an implementation workshop involving industry stakeholders; 3)
hands-on training in research-scoping skills conducted through field visits and stakeholder
meetings; and 4) planning sessions for the desktop review and survey instruments.

The late start to the project has put pressure on timing of training activities from the
perspective of both the Vietnamese and Australian team members. However, these activities
will be able to be accommodated as the project progresses. There have been some difficulties
in developing a comprehensive survey that will provide the needed data, yet at the same time
not be too difficult or lengthy for firms to complete.

Activities for the next six months are planned and progressing.


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9
Project Progress Against Proposed Objectives, Outputs, Activities And Inputs
Project Title: Developing a strategy for enhancing the competitiveness of rural small and medium enterprises in the agro-food chain: the case of animal feed
Vietnamese Implementing Institution: Institute of Policy and Strategy for Agricultural and Rural Development
PROPOSAL PROGRESS REPORT
Narrative Information Required Performance
Measures
Assumptions Information Required
OBJECTIVE 1:

Build capacity at IPSARD in research of
value chain, industrial organisation and
production economics

Staff at IPSARD/CAP will be the primary
beneficiaries of this Objective. Increased
capacity at IPSARD/CAP has the potential
to improve policy at the national level and
hence impact on the livestock feed industry
as a whole.

Improvement in
capacity as assessed
against benchmark
indicators by end of
project


1. Capacity assessment
is possible
2. Training and research
will build capacity in
needed areas
3. Australian team
members have adequate
knowledge in needed
areas

This objective is still very relevant – as IPSARD/CAP have many
commitments to the Ministry and need capacity (e.g. problem
formulation into researchable questions, data collection and analysis
skills) to deliver useful information.


OUTPUT 1.1

A training manual is developed over the life
of the project, incorporating experience and
knowledge gained during the training and
case study

This output will be a hardcopy and
electronic resource and so contribute to both
institutional capacity within IPSARD/CAP,
and also sustainability of the knowledge and
skills gained in the project.

Training manual is
developed and
approved by IPSARD



1. Case study provides
useful information for
manual.
2. Manual will be
relevant for future

IPSARD research and
policy work.


Structure of the manual is being planned, and documentation of
activities commenced. The research project will provide a suitable
framework for a manual of this nature.



ACTIVITY 1.1.1

Develop a training manual that describes
the relationships between input and output
markets in agri-industrial enterprises, the
influence of government policies, scale
economies and other cost factors on
competitiveness.

This activity will last the length of the
project and is primarily the task of the
Development of the training manual will be ongoing over the life of
the project.




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Australian team.

The Australian team met with the
IPSARD/CAP team during August 2007 to
discuss and investigate issues relevant to the
training manual such as:
• Tangible outcomes from the project
expected by IPSARD/CAP.
• Overview of other livestock projects
being undertaken by IPSARD/CAP and
needed knowledge/skills for these
• Key factors/indicators for feed-mill
operations
• Factors affecting competitiveness
• Factors affecting the supply/value chain

INPUTS
Time and expertise of Australian team
members, direction on useful manual
content from Vietnamese team members.




Australian team members have provided guidance in the scoping of
issues and problem identification, and survey design (specifically
identification of critical data needed) during the reporting period.

The input of Professor John Pluske during this period was critical to
building capacity of the team in relation to key indicators and
operations of feedmills, and aspects of nutrition and livestock feed
safety.

OUTPUT 1.2
Staff at IPSARD are trained in research
methods for assessing the competitiveness
of the animal feed chain

This output is designed to build institutional
capacity in linking problem formulation and
data collection, and the results of
quantitative analysis to policy advice.
IPSARD staff are
able to carry out
research work to
achieve Objective 3 –
and Outputs 3.1 and
3.2 are achieved.
Training meets
IPSARD/CAP and
CARD project research
needs.
The concept of the training has been rethought to ensure that the
training addresses specific capacity gaps in IPSARD/CAP, rather
than just delivering “material-on-hand” from the Australian
institutions.

ACTIVITY 1.2.1
Provide a training course at IPSARD in
survey and data collection techniques to be
used in the field work.

IPSARD/CAP staff already had a great deal
of practical survey experience in the field.
Active participation
by IPSARD staff in
training courses;
Learners understand
the method, and can
use the techniques in
On-going hands-on supervision of the survey process is planned as
being part of the training in this area.



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However, they lacked skills in more
fundamental areas. The planned workshop
on survey data collection, was re-planned to
address more fundamental issues such as:
• identification of problems and issues,
• developing researchable questions,
• identification of data required to address
research questions, leading to
• development of the survey instrument
(questionnaire)

Team meetings and training in these areas
took place from August 3-8. Training was
provided by Dr Donna Brennan, Sally
Marsh and Professor John Pluske. The
training was interactive and linked with

industry consultation – field visits and
meetings were followed by debriefing and
discussion.

A report on the training is included as
Appendix III. No formal evaluation of this
training was conducted.

survey and
quantitative analysis

Training courses held
- Short report on
implementation of
training course
- Report of
evaluation of
learners.
- Marks of learners in
the training course

ACTIVITY 1.2.2
Provide a training course at IPSARD in
quantitative techniques to be used in the
analysis of the animal feed industry.
The first quantitative techniques training course will be held in early
December 2007.
INPUTS
Time and expertise of Australian team
members, commitment to training activities

by IPSARD/CAP staff.

OBJECTIVE 2 Understand the role and performance of
SMEs in the animal feed sector in other
countries, draw lessons from their
experiences

Staff at IPSARD/CAP will be the primary
beneficiaries of this Objective. A better
understanding of the role and performance
of SMEs is of significant interest to the
While this Objective is still relevant, outputs and activities under this
objective are designed to deliver more than just information on
SMEs in the sector. Work being undertaken in activities under this
objective will provide information on developments in the global
animal feed sector, and address issues such as competitiveness,
efficiency, and feed quality and safety.




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Vietnamese government for policy in the
rural sector.

OUPUT 2.1
A report on the world animal feed sector
and the role and performance of SMEs in
other countries

The report being compiled is expected to be
of use to the project team in identifying
relevant research issues/questions for this
and other projects. The draft report is
already being utilised by the CAP team for
other project work and will be used to help
identify learning objectives for the study
tour to Thailand.


A report about world
animal feed sector,
clear lessons from
other similar
conditions countries

Report can answer
questions of concern
to Vietnam such as:
- contributions and
capacity of labour
use of SMEs in the
economy
- the role and
position of SMEs in
feed industrial sector
- the policy
environments that are
helpful for
development and

effectiveness of
SMEs
- role of the poor in
the value chain


Information on SMEs in
other countries
accessible and relevant
It has proved difficult to obtain information about SMEs in other
countries. The reviewer (Dr Jo Pluske) has been able to access
information on SMEs mainly from China, the Philippines and Japan.
The draft report has not addressed the role of the poor in the value
chain to any great extent.

A draft report is already completed and is being reviewed by the
project team.


ACTIVITY 2.1.1
Undertake a desktop review of the animal
feed industry at the global scale, with
special attention to the nature of demand
for feed in industrial and in extensive
animal industries, economies of scale in
feed production, the role of SMEs; and the
role of public policy in supporting the
development of a competitive sector.

Desktop review is

undertaken,
completed and report
written

A draft report is already completed and is being reviewed by the
project team. The report is structured under the headings:
• Drivers for animal feed requirements
• The global feed industry
• Small-medium enterprises
• Feed components
• Feed quality and production efficiency
• Supply chain
• A competitive feed sector

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Dr Jo Pluske travelled to Vietnam from
August 5-9 for meetings and discussions
with the Vietnamese team and industry
stakeholders, and data collection activities.
On 6
th
August Dr Pluske discussed her ideas
about the review with the project team, and
the Vietnamese team members provided
input into the ToR for the review. A follow-
up discussion was held on August 9.

• Considerations for feed-related industries

It is envisaged that the report will be submitted as a Milestone

Report in December 07 or January 08.


INPUTS
Dr Jo Pluske has already contributed the
time allocated to her for this work.
There will be further input from Dr Pluske to the review following
feedback from the Vietnamese and other Australian team members.
OUTPUT 2.2
Study tour report on the animal feed sector
and the role of SMEs and other producers
in Thailand

The study tour is in the planning stage.
Study tour
undertaken by project
team

Study tour report
written
Relevance of Thai
situation to Vietnam
The study tour is expected to be a valuable learning experience for
the project team. One issue that has arisen (after work done for the
desktop review) is that the livestock feed sector in Thailand appears
to be dominated by large firms. This may affect learning outcomes
related to SMEs from this tour. However, it is expected that the trip
will still be valuable for increasing understanding of factors
influencing competitiveness in the sector.

ACTIVITY 2.2.1
Liaise Thailand Ministry of Agriculture
and/or VCCI re study tour, design tour and
specify learning objectives

The CAP team has discussed briefly on the
Vietnamese delegation to be for the study
tour.

The Australian team is pursuing possible
feedmill contacts in Thailand through a
university colleague in Bangkok.



Design a plan of
working and study
tour effectively,
learning objectives
clear
A good working plan
in Thailand, resulting
in a useful Study
Tour Report about
SMEs in the animal
feed sector of
Thailand, and lessons
from Thailand’s
experiences

VCCI has good
relations with Thailand
Business Association
and can help in liaise
and organize study tour

A 2-3 day team session is scheduled for January 2008 to identify
learning objectives for this tour. A facilitated process will encourage
team members to use issues raised in the Desktop Review and
stakeholder consultations to identify the learning objectives.
ACTIVITY 2.2.2
Undertake study tour to Thailand


The study tour is scheduled to take place in late Feb/early March
2008


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INPUTS
Australian team leader and 5 Vietnamese
representatives (including 2 industry
representatives) will need to be available for
the study tour. The project team as a whole
will contribute to formulating the learning
objectives.

OBJECTIVE 3 Provide a quantitative assessment of the
factors affecting the competitiveness of

the animal feed industry in Vietnam
Data able to be
collected from firms
operating in the
livestock feed sector

OUTPUT 3.1
Detailed data collection strategy for
livestock feed production is developed
Development of
questionnaires
suitable for data
collection from firms
in the livestock feed
sector

Questionnaires for
use in the data
collection completed
using data from
activities 3.1.1, 3.1.2
and 3.1.3
Questionnaires
accurately collect data
needed for analyses

ACTIVITY 3.1.1
Industry liaison: For each major industry
stakeholder (SME, foreign-owned and joint
venture, SOE, small-scale and large-scale

intensive animal farms) consult with key
stakeholders to identify their key concerns
regarding competitiveness, prices, and the
impact of policy. Identify production and
quality issues for different industry
stakeholders.

Industry stakeholders were invited to a half-
day workshop held on August 7
th
2007 (see
Appendix II for program and report). While
the Australian team were in Vietnam in
August 2007, meetings were held with Mr
Le Ba Lich, Chairman of the Animal Feed
Consultations held
with major industry
stakeholders

Key issues from
consultations with
major industry
stakeholders
documented
- Cooperation from key
stakeholders
- Key issues able to be
identified
The industry liaison activities conducted so far have enabled the
team to identify key issues. Documentation of these is in a draft form

and the report should be ready to submit for Milestone 3.

Cooperation from industry has been good, although there are still
reservations on the ability to get detailed cost data from firms in the
survey. We are considering ways to address this.

One issue that has arisen is that many small domestic feedmills are
not registered as feedmill businesses. This has affected our ability to
locate these businesses. The majority of registered feedmill
businesses can be classified as either large or medium sized.



15
Association, and Dr Tran Cong Xuan,
Chairman of the Vietnam Poultry
Association, and field trips were conducted
to DABACO feed mill and livestock farms
(Vietnamese-owned), East Hope feed mill
(foreign-owned), an intensive poultry farm
(medium size), and small domestic feedmill
and distributor.

Meeting with several feed mills (SOEs and
small-scale private ones) in the An Khanh
industry zone – Ha Tay province were held
by Ms. Pham Tuyet Mai in late August
2007. The information was used as input for
questionnaire design.

While involved in the MARD survey on
Animal Feed Sector, Ms. Nguyen Thi Thinh
got to meet several feed mills, feed agents
and feed buyer (pig producers) in Hanoi.
The draft report of MARD survey is already
available in Vietnamese.

ACTIVITY 3.1.2
Secondary data collection: Drawing on
information from GSO and industry groups,
compile a quantitative description of the
supply chain

The only surveys in which the data on feed
mills could be found is the Annual
Enterprise Survey carried out by the GSO.
Indicators available are:
• Total capital
• Total labor
• Total asset
• Business performance
• Income of labors

Data collected is
suitable for the
objectives of the
research

Quantitative
description of the

supply chain for
animal feeds in
Vietnam
Secondary data are
relevant and available

It has become apparent that available secondary data is not enough to
provide a quantitative description of the supply chain for animal feed
in Vietnam, since:
• There are not enough indicators for a quantitative description of
the supply chain (information on capital, labor, asset and
general business performance only), and
• The data do not distinguish clearly between feed trading firms
and feed mills.
ACTIVITY 3.1.3
Develop questionnaires for the collection of
- Number of Activities 3.1.1 and
An important consideration in the development of the survey

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detailed data on major industry players,
including firms of different sizes producing
animal feed, and intensive and small scale
animal producers

Following the activities designed to identify
issues and data requirements, the team has
put considerable effort into the initial
development of a survey instrument for
livestock feed firms. We have drawn on

experiences from previous surveys
conducted by IFPRI and MARD. This
survey is now close to being piloted.


questionnaires
- Questionnaires are
developed based on
information from
activities 3.1.1 and
3.1.2
- Questionnaire
developed and have
unanimity of experts
- Questionnaires
meets requirement of
the analysis
framework


3.1.2 provide adequate
information to develop
suitable questionnaires

instrument has been to try and avoid it being too long and too
complicated, and yet still be able to capture enough data to
adequately map the supply chain and identify factors affecting
competitiveness. The diversity of feedmill operations (identified
through the industry consultation) has also been another
complicating factor, as some mills also operate as livestock

producers and distributors of both feed and raw materials.

The survey has taken longer to develop than expected, however it is
essential to spend the time to try and ensure that it will collect the
data that is needed for the analyses.

It is planned that the pretest will take place in Jan 2008, and followed
by the full survey in 6 provinces from Feb to the end of May 2008.
INPUTS
The whole project team is contributing to
the activities for this objective.

OUTPUT 3.2
Report containing descriptive statistics on
the components of the animal feed industry
in Vietnam, and results from analyses of the
livestock feed sector.

Activities linked to this output have as yet
not commenced as it is dependent on the
survey data.
Data collected and
analysed and report
written

OBJECTIVE 4 Provide policy recommendations to the
government with regard to the role of
SMEs in the livestock feed sector, and
provide advice to SMEs competing in the
livestock feed sector.

Skills in using data to address policy issues
was identified by IPSARD as an area where
they need improvement in the baseline
capacity survey, so this aspect of the project
is very important.
Most of the work for this objective will take place later in the
project. We have only reported on the work currently being done.
OUTPUT 4.1
Policy briefs written on economics of the
livestock feed sector and the role of SMEs
Policy briefs written
and circulated
Policy directions clear
after completion of
Policy briefs will not be written until the research work is more
advanced.

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research
ACTIVITY 4.1.1
Study of the policy environment affecting
the industry, including: policies affecting
costs of inputs, investment; corporate
organization; supply of traditional
agricultural science and extension services
for animal feed production and use;
regulation and certification.

Questions raised at the Project Inception

Workshop identified this as an important
issue. Many industry participants identified
taxes and regulation as key issues in the
sector. One of the workshop presentations
was an “Overview of the Policy
Environment in the Animal Feed Sector”
and building from this, work on a summary
report is underway.

- Policy briefs and
study results match
project design and
answer project
research questions
- Consolidation of
findings on the policy
environment and
summary report
written
Policies clear and
accessible to IPSARD
staff




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