The study provides a comprehensive picture of the animal feed sector in Vietnam (both supply and demand side) upon data collected from 2 main surveys: feed mill survey investigating the supply side and producer survey investigating the demand side. The results show that, on the supply side, SMEs appear to have less competitiveness than large ones. That is reflected in some aspects such as higher production costs per kg output, using more labor, limited quality control, limited access to capital and land, and many small enterprises have losses. However, small and medium enterprises also have strategies to maintain their share in the market. Several strategies are. | Collaboration for Agriculture and Rural Development CARD Program ENHANCING THE COMPETITIVENESS OF RURAL SMALL AND MEDIUM ENTERPRISES IN THE AGRO-FOOD CHAIN THE CASE OF VIETNAM S ANIMAL FEED INDUSTRY Project title Developing a strategy for enhancing the competitiveness of rural small and medium enterprises in the agro-food chain the case of animal feed Project code CARD 030 06 VIE Authors Dr Nguyen Do Anh Tuan1 Pham Thi Lien Phuong1 Nguyen Thi Thinh1 Sally Marsh2 Dr Donna Brennan Prof John Pluske2 Project Implementing organisations 1 Center for Agricultural Policy CAP - IPSARD 2 University of Western Australia SUMMARY The study provides a comprehensive picture of the animal feed sector in Vietnam both supply and demand side upon data collected from 2 main surveys feed mill survey investigating the supply side and producer survey investigating the demand side. The results show that on the supply side SMEs appear to have less competitiveness than large ones. That is reflected in some aspects such as higher production costs per kg output using more labor limited quality control limited access to capital and land and many small enterprises have losses. However small and medium enterprises also have strategies to maintain their share in the market. Several strategies are used including focusing on production of concentrate feed rather than complete feed as the large enterprises do selecting plant locations in rural areas to use domestic supplies of raw material inputs supplying products mainly for small producers provision of credit delivery services. On the demand side larger pig and chicken producers are more likely to use a higher percentage of industrial feed in their livestock diets. In term of production cost industrial feed is shown to be a more cost-effective diet for chicken producers. However there is some evidence supporting the cost effective use of mixed feed - particularly for pig production. Another noticeable result is that few surveyed producers were .
