Create an ecosystem between management agencies and livestock associations

Spoke at the Conference on Building the Livestock Industry Value Chain on the afternoon of October 27, Deputy Minister of Agriculture and Rural Development Phung Duc Tien said that the livestock industry has a relatively complete institutional framework, including Law on Livestock, 3 Decrees Decision, 5 Circulars, 1 Strategy for Sector Development, 1 Strategy for Sustainable Development of Agriculture and Rural Development.

The livestock industry is developing relatively quickly. In more than 10 years, from 2010 to 2021, meat production of all kinds increased 1.7 times, eggs increased 2.7 times, fresh milk increased 4 times, and industrial animal feed increased more than 2 times. The output of meat, eggs and dairy meets the needs of nearly 100 million people and 17 million tourists annually.

"Livestock accounted for 25.2% of the total value of the entire agricultural sector, growing steadily from 4-6% over the past 10 years. Basically, we have formed a space for the livestock industry but for development. Sustainable development requires consensus between associations and state management agencies," said the Deputy Minister.

In addition, our country's livestock production also faces challenges in infectious diseases, climate change and natural disasters, fluctuations in the raw materials for the animal feed market, and fluctuations in markets.

Another situation mentioned by the Ministry of Agriculture and Rural Development leaders at the conference is the disparity between FDI and domestic enterprises. The report of the General Statistics Office shows that the annual investment budget from the FDI sector is nearly US$ 4 billion. This group is also the primary source of trade surplus of the entire agriculture sector, while the domestic sector is in a trade deficit.

Through the conference, Deputy Minister Phung Duc Tien expressed: "We need to discuss strategies and create an ecosystem between state management agencies and associations, helping to improve the position and role of associations to exploit the full potential of the sector".

By the end of the first quarter of 2022, the whole country had 69 associations and associations under the state management of the Ministry of Agriculture and Rural Development. In which, in the field of animal husbandry and veterinary medicine, there are 14 associations and associations, accounting for 20%. In recent years, associations have played a particular role in policy criticism as a gathering place for businesses and as a bridge between state management agencies and businesses and breeders.

At the conference, Mr. Nguyen Xuan Duong, Vice Chairman of the Vietnam Livestock Association, suggested that the livestock industry should focus on developing at the forefront, based on large chains of high-value commodities such as pork, poultry and cattle.

The livestock industry is also affected by imported products in the trend of deeper integration with the world economy. Therefore, Mr. Duong suggested that the Ministry of Agriculture and Rural Development and the Department of Livestock Production must have a specific assessment of each product line, clearly determining the size and consumption trends in the new era.

Having the same opinion, Mr. Nguyen Van Trong, Vice Chairman of Vietnam Farms Association stated that domestic enterprises have not yet seen the benefits when joining the association, making the number of members of many units shrinking tendency. This is different from the international operating model. For example, businesses in Denmark will be supported in terms of authentication and quality inspection stamps upon release when businesses join a pig farming association.

To overcome this bottleneck, Mr. Trong made three proposals. Firstly, associations promote horizontal linkages, especially with cooperative groups and smallholder farmers. Second, coordinate with the Department of Livestock Production to soon develop identifiers for livestock establishments, ensuring traceability. Third, state management agencies have more orientations to regulate the market, avoiding too much emphasis on export value to increase competitiveness in the domestic market.

Before the association's sharing, Deputy Minister Phung Duc Tien emphasized the spirit of "Do not let any association stand out, leave no business behind". With a commitment to take the initiative, coordinate and stand side by side with the association, he suggested that businesses producing the same product group and businesses in the same value chain strengthen their connection and cooperation and achieve their goals set in the industry development strategy. 

Mr. Duong Tat Thang, Director of the Department of Livestock Production, assessed that associations played an important role in regulating output, standardizing and homogenizing products, and initially linking production and livestock product markets.