Poultry herbsx3; New opportunities for livestock farmers

"With the commitment and experience of raising chickens with herbs, our partner is developing this very good chicken raising model," said Pham Thi Ngoc Ha, director of San Ha Limited Company (SanHaFoods). ), said. Currently, SanHaFoods is cooperating with Phu Ngoc Cooperative in Dinh Quan, Dong Nai to develop the herd of over 100,000 chickens according to VietGAP standards. Unlike industrial chickens, the herring of chickens is widely used in the environment to enable the chickens to move around in order to reduce fat and to help keep the meat firm. In particular, the diet was prepared according to its own formula, besides basic ingredients such as rice, corn, bran, and various herbs, including a medicinal ingredient imported from Taiwan. Increases immunity as a substitute for the use of antibiotics and weight gainers, and on the other hand helps the chicken to have a unique herbal flavor.
Chicken herbs are receiving positive signals from the market. Each month, the business provides the market about 30,000 chickens, peak occasions such as Tet may be even higher. At the current price of VND120,000 / kg, sales of this product line may exceed VND4.5 billion per month. With a net profit margin of the processing industry currently at 12-15%, it is estimated that the profitability of this product line may range between 500-700 million VND per month. It is known that Vietnam Animal Industry Joint Stock Company (Vissan) also intended to develop herbal chicken, but in the implementation process, the farmer did not follow the process set by the company. The project was stopped. In fact, not all businesses have the potential to develop this high quality chicken.
First and foremost, enterprises must have the financial resources to buy products for farmers right from the beginning so they can develop peacefully. Businesses also need to find mentally minded and experienced breeders in chickens, as the mishandling of the chickens is just a mistake. It is not easy to find a farming area that is large enough for the processing plant, especially when the scale of livestock farming is small. Enterprises have to set up cooperatives and guide their children in the process. Not to mention that businesses have to spend money to promote products or sell at preferential prices to attract consumers. Therefore, SanHaFoods is now a rare enterprise that successfully grows and distributes herbal chicken products to consumers.
New link model
In fact, the model of linkage between enterprises and cooperatives is not new, but the number of successful enterprises is not much. Another successful example is the Go Cong chicken. This breed was developed by livestock engineer Nguyen Quoc Kiet, Director of Go Cong Fisheries - Aquaculture Cooperative. Mr. Kiet said that the cooperative has signed a product purchase contract with SanHaFoods so the farm households with herd size from 1,000 or more can earn interest about 20 million for each crop. In the years 2012-2014, cooperative profits increased continuously from VND1.3 billion to VND2.9 billion and VND4.5 billion respectively. At present, co-operative models such as Go Cong are supplying 60-70% of input materials to SanHaFoods factories.
According to the Vietnam Chamber of Commerce and Industry (VCCI), demand for meat in the Vietnamese market is growing strongly. It is estimated that, by 2019, meat consumption would be more than 4 million tons. In particular, demand for poultry and beef is forecast to increase by 3-5% per year. However, supplies only increase 1-3% per year. In addition, in terms of supply structure, while pork is expected to meet domestic demand, poultry and beef may be severely depleted due to lack of animal husbandry and investment. The private sector is limited and the livestock model is small.

Therefore, besides stabilizing the raw material area, investment in upgrading processing facilities to increase supply to the market is necessary, "Ha said. Currently, besides 3 slaughter plants in Long An, Dong Nai and Ho Chi Minh City with the supply of more than 60 tons per day, SanHaFoods is still investing in a processing plant. Other in Long An with modern equipment and processing lines with a processing capacity of up to 50,000-70,000 per day.
It can be seen that the livestock and poultry processing sector is involved in many big enterprises such as CP, Vissan, Japfa, Emivest Feedmill and Hung Nhon. Compete for the product. It is forecasted that, along with the increase in demand for poultry meat, competition in the industry will become more drastic. On the other hand, according to Ms Ha, Vietnam's participation in free trade agreements is accompanied by the removal of barriers to protection, enabling foreign poultry meat at 15-20% Enter the domestic market. In 2015, US chicken has dropped to nearly 1 USD / kg, about 20,000 VND / kg, causing many households to breed industrial chickens, have to remove farms.
Therefore, SanHaFoods has focused on finding new ways for businesses through investing in traditional chicken and specialty of each region such as Go Cong chicken, Huong Thao chicken, Tay Ninh poultry, Tien Giang Bamboo Chicken. At the same time, the Company participates in safe agricultural markets and programs "Market Stabilization" to introduce the product to consumers. Meeting food safety requirements and certification is also one of the prerequisites for enterprises to compete with foreign firms.
Currently, SanHaFoods products have received the certificate of VietGAP Green Chicken Safety Certificate and Ho Chi Minh City food chain certification. SanHaFoods is also one of the few companies to invest in distribution trucks with specialized equipment such as cold storage and storage system to ensure the quality of products when it reaches the consumers. SanHaFoods has also built a nationwide distribution network through traditional markets, convenience stores, restaurants, hotels, corporate units, schools and 12 supermarkets.
One of the highlights of SanHaFood's distribution strategy is the opening up of retail outlets in rural and outskirts of the city to tap the market of more than 60 million people. However, the number of stores is modest and difficult to compete with the big men like Vissan with more than 130,000 points of sale across the country. In addition to diversifying processing products as well as improving product quality, SanHaFoods also identifies its customers and distribution partners as the focus of its sustainable development strategy.
Models such as SanHafoods are developing that can help overcome the limitations of the livestock sector, which is a breakthrough in building a linkage model in the industry value chain.