1. CASSAVA VALUE CHAIN IN SCC VIET NAM
& INTERVENTION FOR IMPROVEMENT
Presented by Ho Cao Viet
Quy Nhon, 5-6 March 2013
Institute of Agricultural
Sciences for Southern Vietnam

2. PPRODUCTION & CONSUMPTION OFRODUCTION & CONSUMPTION OF
CASSAVA IN GLOBAL MARKET & VIETNAMCASSAVA IN GLOBAL MARKET & VIETNAM

3. PRODUCTION OF CASSAVA IN THE
WORLD
Source: FAO, 2011

4. TRADE OF CASSAVA IN GLOBAL
MARKET
Source: FAO, 2011

5. PRICE OF CASSAVA CHIP AND STARCH
Source: FAO, 2011

6. CASSAVA PRODUCTIVITY IN SCC PROVINCES
0
50
100
150
200
250
300
350
2005 2006 2007 2008 2009 2010 2011
Production(1000Ton)
Bình Định
Phú Yên
Ninh Thuận
Source: General Statistic Office (2011 & 2012)

7. CASSAVA PRICE – CULTIVATED AREA IN BINH DINH
Source: calculated from survey data 2009-2012
0
1000
2000
3000
4000
5000
6000
2006 2007 2008 2009 2010 2011
VND/ha
12.6
12.8
13
13.2
13.4
13.6
13.8
14
14.2
1000ha
Root price
Chip price
Cultivated area
Log. (Cultivated area)

8. METHODOLOGY
& METHODS

9. METHODOLOGY OF RESEARCH
Describe &
positioning
structure of
chain
Financial &
cost-benefit
analysis
Agents &
overall chain
Strategy &
Intervention
to
improvement
of chain
Feedback of
local
beneficiaries
New projects
/programs
Qualitative &
Quantitative
methods

10. FINANCIAL PARAMETERS IN VALUE
CHAIN OF CASSAVA
Inputs Total production (P)
Intermediate costs (I.C)
Value of main
products
Value of by-
products
Input materials
Added
Value
(VA)
Hired labor cost
Financial cost
Taxation
Gross
Profit
(GPr)
Depreciation
Net Profit
(NPr)

11. VALUE ADDED ANALYSIS OF OVERALL
CHAINS
IC Farmer
IC Processing
IC Trading
P Farmer
P Processing
P Trading
VA Farmer
+
VA Processing
+
VA Trading
IC Farmer
IC Processing
IC Trading
GPr Trading
VA chain

12. DESCRIPTION AND
POSITIONING CASSAVA
VALUE CHAIN

13. SUPPLY CHAIN OF CASSAVA FOR
EXPORT
Product line
Production
stage
Marketing stage
Cassava
producers
Collectors Starch factories Export market
Fresh root Fresh root Fresh root Starch

14. SUPPLY CHAIN OF CASSAVA IN DOMESTIC
MARKET
Product line
Production
stage
Marketing stage
Cassava
producers
Collectors
Processing
units
Dealer Fodder
manufactures
Chips Chips Chips
Cassava dried
powder

15. DESCRIPTION CASSAVA VALUE CHAIN IN
SCC
Starch
processing
factories
Export market
(80% exported
to China)
Agri-
product
companies
Fodder
manufactur
es
30%
starch
100% bait
(fibre)
Midlemen
in district &
province
7% root
Cassava
producers
(100% root)
Collectors
in village
7% root
12% root
Small-scale
husbandry
10% chip
Collectors
in
commune
Midleman
in district &
province
60 % chip
20%chip
Flour
processing
unit in local
40% chip
20% chip
Domestic market
(local markets in
district)
40% dried flour
11%
root

16. CONTRIBUTION OF
AGENTS IN CASSAVA
VALUE CHAIN

17. FINANCIAL ANALYSIS OF AGENTS IN CASSAVA
CHAIN
Parame
ters
Farmer Local collector
Dealer
Process
ing unit
Factory
Root Chip Root Chip
P 28 30 1.5 3.2 3.4 4.04 6.36
IC 9.16
(32.7)
9.16
(30.5)
1.4
(98.0)
3.03
(94.9)
3.21
(94.4)
3.45
(85.5)
5.55
(87.2)
VA 18.84
(67.3)
20.84
(69.5)
0.1
(2.0)
0.16
(5.1)
0.19
(5.6)
0.59
(14.5)
0.81
(12.7)
GPr 12.42 12.26 0.03 0.14 0.12 0.33 0.46
Unit: 1,000 VND
Source: Survey data, 2010-2012

18. SHARING CONTRIBUTION OF AGENTS IN
EXPORTATION CHAIN
Exportation of
starch
VA GPr NPr
1,000VND % 1,000VND % 1,000VND %
Whole chain 4,455 100 2,738 100 2,504 100
-Farmer 3,298 74 2,174 79.4 2174 86.8
-Collector 350 7.9 102 3.7 98 3.9
-Factory 807 18 462 16.9 232 9.3
Source: Survey data, 2010-2012

19. SHARING CONTRIBUTION OF AGENTS IN
DOMESTIC CHAIN
Domestic
consumption
VA GPr NPr
1,000
VND %
1,000
VND %
1,000
VND %
Whole chain 3,005 100 1,838 100 1,758 100
-Farmer 2,105 70.1 1,239 67.4 1,239 70.5
-Collector
-Middleman
162 5.4 143 7.8 139 7.9
-Wholesaler 190 6.3 124 6.7 88 5.0
-Enterprise 548 18.2 332 18.1 292 16.6
Source: Survey data, 2010-2012

20. FEEDBACK OF
BENEFICIARIES ON
CASSAVA VALUE CHAIN
INTERVENTION FOR
IMPROVEMENT

21. 12 questions relating to strategy and
solution for improvement of chain
14 samples of beneficiaries: 7.1%
farmers; 7.1% local collector; 14.3%
processing unit; 21.4% factory; 50%
officer/staff in DARD/local
government

25. INTERVENTION FOR IMPROVEMENT
OF CASSAVA VALUE CHAIN
IN SSC

26.  Applying new varieties (high productivity
& starch), short duration (7.1 & 92.9%)
 Coordinating farmer-to-farmer (in self-
help group) (28.6 & 71.4%)
 Applying & transferring technologies
(chemical & manure fertilizer application)
(7.1 & 78.6%)
TECHNICAL SOLUTIONS TO INCREASE
PRODUCTIVITY ON-FARM

27.  Training farmers processing and
storage techniques, using cassava by-
products for animals & beef-cattle
(not suitable: 42.9%; very suitable: 57.2%)
 Training on marketing skill (35.7 & 64.3%)
 Using available media means to
inform timely market information
TECHNICAL SOLUTIONS TO INCREASE
PRODUCTIVITY ON-FARM (CONT.)

28. IMPROVE VALUE CHAIN & MARKET
INFORMATION
 Investing on high added value processing
technologies (pharmaceuticals, cosmetic,
industrial chemicals, bio-fuels, etc) (35.7 &
64.3%)
 Transparence of market information &
transaction mode farmer-factory (root
sampling) (35.7 & 57.1%)
 Contracting farmer-factory (28.6 & 71.4%)

29. IMPROVE VALUE CHAIN & MARKET
INFORMATION (CONT.)
 Doing market study & master plan for
cassava supply chain (50 & 35.7%)
 Diversifying market, both domestic &
exportation . Avoid depending on Chinese
market (42.9 & 50%)

30. THANKS FOR YOUR
ATTENTION !