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Smallholder Contract Farming of Swine in Northern Viet Nam: Type and Scale of Production

Pro-Poor Livestock Policy Initiative: A Living from Livestock

Year of publication 2006

Pages 13 p.

Publisher FAO ;

Product type Document

Series title Pro-Poor Livestock Policy Initiative (PPLPI) Research Report

Edition 1

Synopsis (short abstract) This brief report summarizes initial findings on the major types of production activities swine producers engage in, as well as their scale of operations, in relation to their institutional production and marketing arrangements.

Language English

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    Smallholder Contract Farming of Swine in Northern Viet Nam: Contract Types
    Pro-Poor Livestock Policy Initiative: A Living from Livestock
    2006
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    This brief report summarizes initial findings on the typology of contracts between different market actors on northern Viet Nam.
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    Strengthening Market Linkages of Smallholder Pig Producers through Informal Contracts in Northern Viet Nam
    Pro-Poor Livestock Policy Initiative: A Living from Livestock
    2007
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    Formal contracts with integrator companies are limited to large-scale pig producers in Viet Nam. There are, however, forms of informal contracts where smaller-scale pig producers establish stable links with their input suppliers or/and output buyers. Traders screen farmers with whom they could potentially engage into contracts. As relations become more established and stable, farmer reputation / reliability, rather than scale of production, becomes the more important consideration. Human and social capital factors of pig producers are found to be significant determinants of participation in contracts. Farmers engaged in informal contracts with cooperatives benefit from contract participation through higher average net returns per unit of output in the case they use ‘mixed breeds’ of pigs. The benefit is not clear cut with respect to the use of exotic breeds.
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    Document
    Determinants of Participation in Contract Farming in Pig Production in Northern Viet Nam
    Pro-Poor Livestock Policy Initiative: A Living from Livestock
    2008
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    The rapid growth in demand for pork in Viet Nam presents an opportunity for rural households raising pigs to improve their incomes. This market potential could be exploited to improve incomes of rural smallholders through institutional arrangements that provide improved access to livestock markets and services, through formal and informal contract arrangements. Contract arrangements, however, have explicit and implicit barriers to entry that tend to exclude smallholders, depending on the nature of the contracts. Based on data from a field survey conducted in four provinces in Northern Viet Nam in 2005-06, comprising a sample of 400 pig raising households (200 independent producers, 166 farmers with informal contracts, and 34 farmers with formal contracts with a large integrator), a multinomial logit model was used to identify the factors that determine the likelihood of engagement in formal or informal contracts. A simple probit model was subsequently developed for the determinants of engagement in informal contract arrangements.
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