The UK Meat Trade News Daily reports on pork pathways out of poverty in Viet Nam.

‘Low labour costs and their ability to supply buyers with freshly slaughtered meat, a form most Vietnamese continue to prefer to the chilled or frozen meat from bigger piggeries.

These are the conclusions of a three-year research project led by the Kenyan-based International Livestock Research Institute (ILRI) and funded by the Australian Centre for International Agricultural Research (ACIAR) and the Consultative Group on International Agricultural Research (CGIAR).

ACIAR’s representative in Viet Nam, Geoff Morris, speaking at a final workshop of the project held in Hanoi on 5 October 2010, said that smallholder pig producers, who supply about 80 per cent of the pork marketed in Viet Nam, play a big role in the nation’s economy. The research project identified policies that would help Viet Nam’s many small pig farmers to raise their incomes and remain competitive in the face of growing imports of pork and official support for larger piggeries.

Another advantage small producers have over large ones is that the former spend less on feed for their animals. Lucy Lapar, an economist with ILRI, said that while feed accounts for two-thirds of the costs of raising pigs at small piggeries, this was much lower than at bigger farms because small operators tend to feed their pigs by-products from their own crops and to let their pigs forage. Bigger operators must buy relatively expensive, industrially processed, feed.

Household-based pig production generates gross margins ranging from 4,000–15,000 Vietnamese dong (US$0.21–0.78 based on current exchange rates) per kilogram liveweight of pig produced.

These are good indicators of returns to household labour and comparable to the current daily minimum wage of about 22,000 VND ($1.15). Among those employed in small-scale pig production are women and many others who would otherwise remain jobless.

Conducting a consumer survey of 1,650 households to investigate the demand for pork, the researchers found that it accounts for 40 per cent of household expenditure on meat and that fresh pork remains preferable to chilled or processed meat.’

Read the whole article at Meat Trade News Daily: Vietnam: Producing cheap pork, 6 November 2010.