Beef Value Chains in the Mekong Region Recent Developments and implications for smallholders HELVETAS Swiss Intercooperation PO Box 81, 298F Kim Ma Street, Hanoi, Vietnam Tel +84 4 3843 1750 Fax +84 4 3843 1744 helvetas.vietnam@helvetas.org
Mekong Region China Burma Laos Vietnam Hoang Sa Thailand Cambodia Truong Sa
Cattle numbers Cattle number (million head) 16 14 12 10 8 6 4 2 14.99 140 120 113.5 100 80 60 5.16 40 3.43 20 1.70 Bovine numbers in China (million head) 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0 Sources: Country statistics Cambodia Laos Myanmar Thailand Viet Nam China (right axis)
Slaughter/turnoff numbers Slaughter/turn off numbers (thousand head) 2000 1800 1600 1400 1200 1000 800 600 400 200 0 45.0 1769 526 271 Sources: Country statistics 108 0.0 2000 Vietnam* 2001 2002 Laos 2003 2004Cambodia 2005 2006 2007 Myanmar 2008 2009 Thailand 2010 2011 2012 China* 2013 (right axis) 1% 50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 Turnoff numbers China (million head)
Cattle meat production 350.0 7.0 Thousand tonnes 300.0 250.0 200.0 150.0 100.0 285.4 160.0 6.0 5.0 4.0 3.0 2.0 Million tonnes 50.0 1.0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 13.0 0.0 Sources: Country statistics, FAO Vietnam Laos Cambodia Thailand China (right axis)
Beef Prices 7 Producer price cattle meat (USD/kg)* 6 5 4 3 2 1 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Vietnam Laos Cambodia Myanmar Thailand China * FAO data
Cattle Prices
Mekong Region China Burma Laos Vietnam Hoang Sa Thailand Cambodia Truong Sa
One Integrated Region Highly Interlinked Large movements of cattle Long value chains Price transmission is relatively quick Even in the face of official barriers, the trade is flourishing
Informal Nature of Trade Country Official Protocol China Vietnam Thailand (General) Thailand (ex Myanmar*) Cambodia Laos Myanmar Import Permit required. Imports from FMD-endemic countries are not approved. Slaughter only. Import Permit required (?). Pre-entry Quarantine. Post-entry Quarantine 15 days. FMD & HS vaccination during post-entry Q. Test during postentry Q for TB, Lepto, Brucella, with ve results. Cattle/Buffalo Breeder. Import Permit required. Imports from FMD-endemic countries are not approved. Import Permit required (?). Post-entry Quarantine 21 days. FMD vaccination during post-entry Q. Import conditions not known. Import Permit required. Specific import conditions not known. Live cattle exports generally not permitted
Northern Value Chain China Burma Laos Vietnam Around 150,000/year Hoang Sa Thailand Cambodia Truong Sa
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Southern Value Chain China Burma Laos Vietnam Around 100,000/year Hoang Sa Thailand Cambodia Truong Sa
Australian Value Chain China 2011 <1,000 2012 9,000 Burma Laos Vietnam 2013 68,000 2014 160,000 2015 360,000 Hoang Sa Thailand Cambodia Truong Sa
Potential Positive Implications for smallholders It is reasonable to expect that smallholders would become more specialized in different stages of production Burma backgrounding Thailand backgrounding and conditioning Vietnam integrated cow/calf and fattening, finishing Poor people involved in cattle transportation and handling in Cambodia and Laos Big opportunities in animal feed/fodder production to meet huge demand in Vietnam
Potential Negative Implications for smallholders Intial investment needed for cattle fattening is large and risks are high Increased cattle movements mean that disease transmission rates are higher and outbreaks are more frequent Increased exports of cattle from Burma has driven up the cost of cattle for draft The increasing profitability of cattle trading has encouraged the involvement of larger companies which has squeezed out small traders External risks are high and there is a lack of reliable information and analysis
Some Examples of Risks If China opened the border trade in live cattle with Burma, most of the cattle travelling in the Northern value chain would travel directly to China from Burma, rather than through Thailand, Laos and Vietnam Implementation of ESCAS traceability systems in the Australian live cattle export chain means that smallholders cannot fatten Australian cattle for slaughter and are thus at a disadvantage comared to commercial feedlotters. Much of the cattle movement through South East Asia now is informal and therefore could be closed down relatively quickly by changes in policy.
Takeaway messages Regional cattle trade is developing rapidly and the region is becoming increasingly interlinked. There are many opportunities for smallholders, but also many risks All key stakeholder groups government, industry and development organizations need access to accurate and timely information to make well informed decisions Much more accurate data and information is needed, especially in the area of consumption.
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