Pig Biosecurity and Health Farm in Vietnam
In his visit to the Netherlands at the time, de Minister of MARD indicated that Vietnam needs farm systems where the animals are housed at a highly hygienic level, which prevent infections and drastically reduce the use of antibiotics. The Netherlands livestock sectors have achieved notable results in antibiotic reduction, up to minus 75% use in the past decade. This Dutch approach can be of added value to Vietnam’s need. Hence, Agricultural Counsellor Willem Schoustra assigned a feasibility study for a pig biosecurity and health demonstration farm with low antibiotic use in Vietnam.
Partners
Four companies had expressed their interest to explore the options for a demonstration farm. They know each other in the Vietnamese market. In several meetings detailed questions were addressed. Unfortunately, due to the ongoing Covid pandemic, only online meetings took place.
Farm characteristics
Farm functionality
Central function of the demonstration farm would be a SHOW CASE of the Dutch way of pig farming, exhibiting the direction forward for Vietnam. Next to this, the farm could be a SALES CHANNEL for the concepts, products, or services the partners offer in achieving the Dutch production model. Because, in the end, the demonstration farm will be used to generate new customers.
Farm size
Vietnam holds about 2.0 million sows (Table). The demonstration farm directs to the future proof larger-scaled farms of over 200 sows and must itself be at least this size. In terms of technical management, it is better to calculate in units of 300 sows. A 600-sow farm is then preferred. It can operate a 1-week batch system, with the advantage that every week there is something for visitors to see at all animal groups and ages.
|
Type of farm |
Size |
Share |
|
Backyard |
< 50 sows |
32% |
|
Scaled farm – commercial production |
50-200 sows |
13% |
|
200-500 sows |
10% |
|
|
> 500 sows |
8% |
|
|
Scaled farm – integration |
37% |
Data source: internal research
Farm solutions
Themes that are estimated to become of importance in the near future in Vietnamese pig farming are: Environment, Energy use, Biosecurity, Animal health, and Labour. The farm design and the technology of partners should provide solutions on these themes. Implementation of these solutions should be achievable within 2 years for a small group of financially strong entrepreneurs. A larger group of entrepreneurs should be able to follow within 5 years.
Farm labour
Labour is a chapter in itself. The general practice in Vietnam is that employees do not leave the farm but stay at the farm for a longer period. A system of, for example, “4 weeks on, 1 week off” is common in Vietnam. During these 4 weeks, the employee is without family or friends. In practice, this system only works for younger employees; not for employees with young families, or employees who take care of (grand) parents. A challenge in the advancement of the demonstration farm is to develop an innovative concept in which employees do live outside the farm, but where biosecurity is not compromised. This may also make pig farming more attractive for the job market.
Farm ownership
It became very quickly clear that ownership of the farm would be complex and a factor of concern for the partners. In Vietnam, it is hard for a Dutch company or consortium to own land for constructing and operating a pig farm. It is not uncommon to work with a 100% Vietnamese investor, taking care of the location, the investment capital and the construction of the stable. In return the investor will ask a decent financial compensation. The tenant(s) must be a Vietnamese entity.
Limited partners are eligible to operate as tenant. Furthermore, substantial capital is needed for a 600-sow farm. As the idea concerns a demonstration project with long term aim to promote the Dutch pork sector in Vietnam, supportive financial instruments of RVO might be applicable (DHI, PIB) to realize the idea.
Course of meetings
The technical discussions amongst the partners on farm characteristics were energetic. Partners could bring in their own specific knowledge of importance for the farm design and layout. They generously expressed their ideas through online meetings. When it came to funds, where the situation is more complex, it did not help that the talks could only take place online. In creating partnerships needing to last for a long time, it is necessary to have a more comfortable environment to exchange ideas.
Wrap-up
It can be concluded that, though sufficient willingness of the partners to explore a Dutch demonstration farm in Vietnam, in this current Covid-limiting situation it was not the right moment to talk about all aspects. For the time being the discussions are halted. If markets open again, it might be the right moment to restart discussion once more. The demand in Vietnam for a demonstration farm has not changed.
Please feel invited to contact The Agricultural Team at the Embassy in Hanoi/Consulate-General in Ho Chi Minh city for further information or any agro-related question you might have.
Contact details
Embassy of the Kingdom of the Netherlands
BIDV Tower, 7F, 194 Tran Quang Khai street, Hoan Kiem district, Hanoi, Vietnam
T: +84 24 3831 5650
Consulate General of the Kingdom of the Netherlands in Ho Chi Minh City
Saigon Tower, Suite 901, 29 Le Duan Blvd, District 1, Ho Chi Minh City, Vietnam
T: +84 28 3823 5932