Production Efficiency Analysis of Indigenous Pig Production in Northwest Vietnam

Nguyen Cong Tiep,Sven König,Tong Yin,Tran Ba Tuan,Tran Huu Cuong

doi:10.31817/vjas.2020.3.4.11

Abstract

This research was conducted to investigate the production efficiency of Ban pig production in northwest Vietnam between October 2016 and January 2017. Primary data obtained from 171 producers were analyzed by applying cost-benefit analysis and stochastic frontier production function. The benefit-cost ratio per litter was 1.24, indicating that the enterprise was profitable. Compared to other farms, the farms focused on farrow-to-finisher attained the highest net return (EUR 213.71/litter), while inputs were used most effectively by the mixed farms. The results from the Cobb-Douglas production function revealed that labour, feeding costs, stocking density, and pigpen structure had positive effects on the production output. Additionally, farms with the phase of farrow-to-nursery obtained less total revenue, while farms focused on the farrow-to-finisher phase achieved higher production outputs than the mixed farms. The level of technical efficiency for each farm ranged between 0.62 and 0.98, with a mean of 0.88. The number of live-born piglets and depreciation cost had positive effects, whereas the nursery interval had a negative impact on the technical efficiency. Ban pig producers could increase technical efficiency by efficiently utilizing available resources and improving managerial skills.

Highlights

The availability of different domesticated animals, e.g., pigs, cows, sheep, and chickens, enriches the household economy because livestock production is a significant element of livelihood strategies for the poorest people in the world (Anderson, 2003)
The total cost consisted of the variable costs and the fixed costs, in which the average variable cost accounted for 97%, and the fixed cost accounted for 3%
The feed costs variable was the most important because it covered the highest proportion of the variable costs of production (78%), followed by the labour costs of 20%, the health care costs of 1%, and other costs of 1%

Summary

Introduction

The availability of different domesticated animals, e.g., pigs, cows, sheep, and chickens, enriches the household economy because livestock production is a significant element of livelihood strategies for the poorest people in the world (Anderson, 2003). The pig sector is an integral part of mixed farming systems (VAC) in Vietnam as a way to utilize household leftover food and agricultural byproducts. Pig production is an efficient way to improve protein utilization because, compared to cows, sheep, and goats, pigs grow faster and are more productive (Etim et al, 2014). In northwest Vietnam, one of the main development opportunities for small holders under conditions of increasing land scarcity and environmental degradation is pig production

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Conclusion