Financial analysis of poultry commodity chains in Hanoi Suburb, North of Vietnam

Poultry production plays an important role in the structure of familial incomes in
Vietnam but this activity is currently met with difficulties caused by the great influence of
inputs/outputs on the markets and the risks of epidemic diseases. This research was conducted
for interviews and records according to book keeping among 280 poultry smallholders; 100
intermediary agents of poultry meat supply chains at the various scales of poultry supply
chains and the diversification of poultry markets (poultry producers, private hatcheries,
collectors of live poultry, slaughter houses and distributors of poultry meat) in Hanoi Suburb
between 2009 and 2010. This research aimed at addressing to improving the income of small
poultry producers and identifying the intermediary economic agents and its economic
distributions. Furthermore, this research would like to solve restoring the poultry production
and the various restraints faced of food contamination in poultry meat supply chains.
Institutional organization and financial analysis approaches in different agents was used to
calculate the value-added and to explain this problem in poultry meat commodity chains.
Institutional organization of poultry meat supply chains is really complex with diverse
economic agents. There are not many poultry meat products have a good traceability. These
recent years, broiler industrial chickens and ducks met with some difficulties with the profits
were very unstable or loss-making. But this industrial broiler chicken still occupies more and
more an important role for the demand of domestic consumers. In addition, color broiler
chickens were chosen for more satisfying the Vietnamese taste. In fact, local or color crossbred
broiler chickens have a good economic performance but the output is still instable.
Traders of live poultry and manual slaughter-house have a good economic performance
caused by using the source of familial labor and selling directly to consumers. The systems of
automatic skill of live poultry have still limited. The consumers do not be informed the useful
information on food safety standards.