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1 PIG PRODUCTION IN VIETNAM Cap team. 2 Content Classification of production systems and scales Profit and gross margin of pig production Cost structure.

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Presentation on theme: "1 PIG PRODUCTION IN VIETNAM Cap team. 2 Content Classification of production systems and scales Profit and gross margin of pig production Cost structure."— Presentation transcript:

1 1 PIG PRODUCTION IN VIETNAM Cap team

2 2 Content Classification of production systems and scales Profit and gross margin of pig production Cost structure of pig production

3 3 Classification of production system and scales Pig production system Farrow to wean (FW- system 1) Farrow to finish (FF- system 2) Grow to finish (GF- system 3) Have sow(s) Sell piglets Have sow(s) Sell slaughter pigs Do not have sow Sell slaughter pigs Small scale: 1-15 slaughter pigs Medium scale: slaughter pigs Large scale: >40 slaughter pig Large scale: >3 sows Medium scale: 2-3 sows Small scale: 1sow

4 4 Farrow to wean Farrow to finish Grow to finish SMALLMEDIUMLARGETOTALSMALLMEDIUMLARGETOTALSMALLMEDIUMLARGETOTAL Ha Tay (n=140) Phu Tho (n=99) Nghe An (n=138) Dong Nai (n=121) Tien Giang (n=97) Overall (n=693) Production systems and scales by provinces

5 5 Gross margin is statistically higher in system 1 and 2 than in system 3 Farrow to weanFarrow to finishGrow to finish small medium large overall Profit per kilogram by production system and scales Standard deviation of profit per kilogram Source: Pig producer survey in CAP Surprisingly, there is no statistical difference in profit per kilogram among scales of each system, even farrow to wean. Standard deviation of small scale is too large. And that index of system raising sows is higher than that of system does not. It is implied a high risk for the formers The main possible reason is that number of piglets which sow can bear is different, depends on breed, feed system and raising technique

6 6 Ratio profit/revenue, production efficiency measure, of farrow to wean is the lowest, followed by farrow to finish and then is grow to finish Source: Pig producer survey in CAP Gross margin by production system and scales Grow to finish is the most efficient system for small scale pig producers, farrow to wean for large scale and both system 1 and 2 for medium scale

7 7 Small scale producers profit could not compensate for the opportunity cost of household members Profit of medium scales in system 1 and 2 and large scales in system 2 and 3 is higher than the total cost including household labor, Profit of medium scale in grow to finish system are appropriate to total cost Cost per kilogram live weight output to produce pig in farrow to wean system is highest while that of two slaughter pig output systems are equal Cost and profit per kilogram by production system and scales Source: Pig producer survey in CAP

8 8 Profit per kilogram of Ha Tay is the highest, Dak Laks is negative and the 4 provinces are similar Cost and profit per kilogram by production system and provinces Source: Pig producer survey in CAP

9 9 Feed account for more than 80% of production cost in system 1 and system 2, source of stock account for more than 30% in system 3 Cost structure by production system and scale

10 10

11 11 Industrial feed price which small producers pay is usually higher than the larger

12 12 Summary


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