Presentation of cassava value chains 04 mar 2013_english

CASSAVA VALUE CHAIN IN SCC VIET NAM & INTERVENTION FOR IMPROVEMENT

Presented by Ho Cao Viet

Quy Nhon, 5-6 March 2013

Institute of Agricultural Sciences for Southern Vietnam

PPRODUCTION & CONSUMPTION OF RODUCTION & CONSUMPTION OF CASSAVA IN GLOBAL MARKET & VIETNAM CASSAVA IN GLOBAL MARKET & VIETNAM

PRODUCTION OF CASSAVA IN THE WORLD

Source: FAO, 2011

TRADE OF CASSAVA IN GLOBAL MARKET

Source: FAO, 2011

PRICE OF CASSAVA CHIP AND STARCH

Source: FAO, 2011

CASSAVA PRODUCTIVITY IN SCC PROVINCES

0

50

100

150

200

250

300

350

2005 2006 2007 2008 2009 2010 2011

Pro

duct

ion

(100

0Ton

) Bình Định

Phú Yên

Ninh Thuận

Source: General Statistic Office (2011 & 2012)

CASSAVA PRICE – CULTIVATED AREA IN BINH DINH

Source: calculated from survey data 2009-2012

0

1000

2000

3000

4000

5000

6000

2006 2007 2008 2009 2010 2011

VND/

ha

12.6

12.8

13

13.2

13.4

13.6

13.8

14

14.2

1000

ha

Root price

Chip price

Cultivated area

Log. (Cultivated area)

METHODOLOGY & METHODS

METHODOLOGY OF RESEARCH

Describe & positioning structure of

chain

Financial & cost-benefit

analysis

Agents & overall chain

Strategy & Intervention

to improvement

of chain

Feedback of local

beneficiaries

New projects/programs

Qualitative & Quantitative

methods

FINANCIAL PARAMETERS IN VALUE CHAIN OF CASSAVA

Inputs Total production (P)

Intermediate costs (I.C)Value of main products

Value of by-products

Input materials

Added Value (VA)

Hired labor cost Financial cost Taxation

Gross Profit(GPr)

Depreciation

Net Profit (NPr)

VALUE ADDED ANALYSIS OF OVERALL CHAINS

IC Farmer

IC Processing

IC Trading P Farmer

P Processing

P Trading

VA Farmer

+

VA Processing

+

VA Trading

IC Farmer

IC Processing

IC Trading

GPr Trading

VA chain

DESCRIPTION AND POSITIONING CASSAVA VALUE CHAIN

SUPPLY CHAIN OF CASSAVA FOR EXPORT

Product line

Production stage

Marketing stage

Cassava producers

Collectors Starch factories Export market

Fresh root Fresh root Fresh root Starch

SUPPLY CHAIN OF CASSAVA IN DOMESTIC MARKET

Product line

Production stage

Marketing stage

Cassava producers

Collectors Processing units

Dealer Fodder manufactures

Chips Chips Chips Cassava dried powder

DESCRIPTION CASSAVA VALUE CHAIN IN SCC

Starch processing factories

Export market (80% exported

to China)

Agri-product

companies

Fodder manufactur

es

30% starch

100% bait (fibre)

Midlemen in district &

province

7% rootCassava

producers (100% root)

Collectors in village

7% root

12% root

Small-scale husbandry

10% chip

Collectors in

commune

Midleman in district &

province

60 % chip

20%chip

Flour processing unit in local

40% chip

20% chip

Domestic market (local markets in

district)

40% dried flour

11% root

CONTRIBUTION OF AGENTS IN CASSAVA VALUE CHAIN

FINANCIAL ANALYSIS OF AGENTS IN CASSAVA CHAIN

Parameters

Farmer Local collectorDealer Process

ing unit FactoryRoot Chip Root Chip

P 28 30 1.5 3.2 3.4 4.04 6.36

IC 9.16(32.7)

9.16(30.5)

1.4(98.0)

3.03(94.9)

3.21(94.4)

3.45(85.5)

5.55(87.2)

VA 18.84(67.3)

20.84(69.5)

0.1(2.0)

0.16(5.1)

0.19(5.6)

0.59(14.5)

0.81(12.7)

GPr 12.42 12.26 0.03 0.14 0.12 0.33 0.46

Unit: 1,000 VND

Source: Survey data, 2010-2012

SHARING CONTRIBUTION OF AGENTS IN EXPORTATION CHAIN

Exportation of starch

VA GPr NPr1,000VND % 1,000VND % 1,000VND %

Whole chain 4,455 100 2,738 100 2,504 100

-Farmer 3,298 74 2,174 79.4 2174 86.8-Collector 350 7.9 102 3.7 98 3.9-Factory 807 18 462 16.9 232 9.3

Source: Survey data, 2010-2012

SHARING CONTRIBUTION OF AGENTS IN DOMESTIC CHAINDomestic

consumption

VA GPr NPr

1,000 VND % 1,000

VND % 1,000 VND %

Whole chain 3,005 100 1,838 100 1,758 100

-Farmer 2,105 70.1 1,239 67.4 1,239 70.5-Collector-Middleman

162 5.4 143 7.8 139 7.9

-Wholesaler 190 6.3 124 6.7 88 5.0-Enterprise 548 18.2 332 18.1 292 16.6

Source: Survey data, 2010-2012

FEEDBACK OF BENEFICIARIES ON CASSAVA VALUE CHAIN INTERVENTION FOR IMPROVEMENT

12 questions relating to strategy and solution for improvement of chain

14 samples of beneficiaries: 7.1% farmers; 7.1% local collector; 14.3% processing unit; 21.4% factory; 50% officer/staff in DARD/local government

INTERVENTION FOR IMPROVEMENT OF CASSAVA VALUE CHAIN IN SSC

Applying new varieties (high productivity & starch), short duration (7.1 & 92.9%)

Coordinating farmer-to-farmer (in self-help group) (28.6 & 71.4%)

Applying & transferring technologies (chemical & manure fertilizer application) (7.1 & 78.6%)

TECHNICAL SOLUTIONS TO INCREASE PRODUCTIVITY ON-FARM

Training farmers processing and storage techniques, using cassava by-products for animals & beef-cattle (not suitable: 42.9%; very suitable: 57.2%)

Training on marketing skill (35.7 & 64.3%)

Using available media means to inform timely market information

TECHNICAL SOLUTIONS TO INCREASE PRODUCTIVITY ON-FARM (CONT.)

IMPROVE VALUE CHAIN & MARKET INFORMATION

Investing on high added value processing technologies (pharmaceuticals, cosmetic, industrial chemicals, bio-fuels, etc) (35.7 & 64.3%)

Transparence of market information & transaction mode farmer-factory (root sampling) (35.7 & 57.1%)

Contracting farmer-factory (28.6 & 71.4%)

IMPROVE VALUE CHAIN & MARKET INFORMATION (CONT.)

Doing market study & master plan for cassava supply chain (50 & 35.7%)

Diversifying market, both domestic & exportation . Avoid depending on Chinese market (42.9 & 50%)

THANKS FOR YOUR ATTENTION !