1. Third Steering Committee Meeting, Rome 14-15 June 2005
Output 4: Establishing Mechanisms for Effective Stakeholder Representation in the Negotiation of Policy and Institutional Changes PPLPI
Third Steering Committee Meeting, Rome
14-15 June 2005

2. PPLPI Purpose and Outputs
Strengthened capacity of FAO, member nations & international organizations to formulate (livestock) sector policies & implementation plans that reduce poverty whilst…
Increased awareness and consideration of potential contribution of livestock to poverty reduction
Portfolio of livestock-related policy interventions for poverty reduction whilst…
Mechanisms for stakeholder representation in the negotiation of policies and inst’l changes
Effective systems for livestock policy information, analysis, and decision support and M&E

3. Country level activities
5 Hub Focus Countries:
Viet Nam
India
Uganda
Senegal
Peru
Structure of Presentation:
The strategic sector chosen for intervention (one)
Our strategic Partners & Activities, and rationale
Outcomes (so far); Indications of policy shifts; Challenges & follow up

4. VIET NAM
Pig Sector

5. Pig has largest contribution in livestock sales
Rural household types

6. Significance to rural HH of income from pigs (VLSS 1998; Maltsoglou, et al., 2005)
Among all types of households (diversified or agri-dependent):
Livestock Income: % comes from pig
Source of Cash Income: 94-99% of pig (value) is marketed

7. Pathway out of poverty linkages: (VLSS 1998; Maltsoglou, et al., 2005)
The larger the stock holdings (per capita), the less likely to fall into poverty
The stronger the market engagement of the HH, the more likely to climb out of poverty

8. PPLPI Policy Goal for Pig Sector - Viet Nam
A livestock policy that promotes growth and development of the pig sector with gainful participation of smallholders
Desired Impact:
A broader-based income improvement involving rural households
A reduction in rural poverty (poverty largely a rural phenomenon)

9. Focus of Current VN Policy Environment
To develop pig farming for export, through the creation of industrial/commercial zones to produce high quality pigs
(Policy document: Decision 166/2001/QD-TTg)
To promoting contact farming between enterprises and farms in support of the industrial/commercial strategy
(Policy document: Decision 80/2002/TTg)

10. Semi-SOE Industrial/ commercial farms
Implications of an Export-oriented Strategy on Allocation of Government Resources
Government resources
High quality pig/meat
Market access
Specific support infrastructure
Semi-SOE Industrial/ commercial farms
(20% of output)
Incentives: tax holidays, subsidized credit, duty-free imports
Export Market
Livestock and Institutional Services
Contract farms

11. Spillover effects on Local Market
Government resources
High quality pig/meat
Market access
Specific support infrastructure
Semi-SOE Industrial/ commercial farms
(20% of output)
Incentives: tax holidays, subsidized credit, duty-free imports
Export Market
Livestock and Institutional Services
Domestic Market
Contract farms
Smallholders

12. Bypassed in Modernization Strategy

13. Consigned to residual local markets…

14. Alternative configuration of gov’t resources
Improved breeds for domestic market
Lower tariffs & deregulated trading on feedgrain
Legal & Institutional framework on Contracts
Animal Health Services (CAHWs)
General rural-urban mkt infrastructure

15. Other Econ Opportunities
Policy & Inst’l Change for Expanding Mkt Linkages & Opport. of Rural Smallholders
Improved breeds for domestic market
Lower tariffs & deregulated trading on feedgrain
Legal & Institutional framework on Contracts
Traders/ Input-Service providers
Domestic Market
Smallholders (mixed farms) (80% )
Animal Health Services (CAHWs)
Other Econ Opportunities
General rural-urban mkt infrastructure

16. Sights on export markets can still be integrated
Industrial/ commercial farms (20% )
Improved breeds for domestic market
Export Market
Lower tariffs & deregulated trading on feedgrain
Legal & Institutional framework on Contracts
Traders/ Input-Service providers
Domestic Market
Smallholders (mixed farms) (80% )
Animal Health Services (CAHWs)
Other Econ Opportunities
General rural-urban mkt infrastructure

17. Weighing the Balance of Current Policies
PROS
Rapid modernization of the industrial/commercial sector close to cities; capacity to produce quality meat
Growth in industrial sector will create income and employment opportunities (direct and 2nd round impacts)
Access to export markets brings FOREX earnings; contributes to trade balance position of Viet Nam
CONS
Smallholder producers in the rural areas will remain backward, producing low-priced pigs
Slow growth, low income and employment opportunities in the rural areas (direct and 2nd round impacts)
Not even improvement in access to domestic markets (little public resources to improving market infrastructure & institutions, and livestock services)

18. Weighing the Balance of Current Policies 2
PROS
Contract farms (medium- commercial) obtain ready markets for their output
Distribution of gains???
Output unsold in the export market can be profitably sold in the mainstream DOMESTIC market
CONS
Smallholder ‘household production’ activities are not included in the definition of ‘farms’ in VN livestock policy
Smallholders are in a disadvantaged position to compete with government-assisted commercial suppliers

19. Strategic Partners Activities
2. PPLPI Engagement in Viet Nam for Building Stakeholders’ Capacity to Negotiate for Policy & Institutional Change
Strategic Partners
Activities

20. Strategic Partners – National Government 1
FAOR - VN
MARD
(Vice-Minister)
Information & Endorsement of activities
FAO
PPLPI

21. Strategic Partners – National Government 2
Info & Endorsement
FAOR - VN
MARD
Rubrics of policy & inst’l change
Organizes collaborative activities;
Direct link to bureaucracy;
Source of ‘authoritative’ data and information
FAO
PPLPI
DOA
Livestock

22. Strategic Partners – National Government 3
Info & Endorsement
Endorses policy &
inst’l changes for
Party consideration
FAOR - VN
MARD
Rubrics of policy & inst’l change
FAO
PPLPI
DOA
Livestock
Organizes activities; Direct link to bureaucracy; Source of ‘authoritative’ data
Info, local view & analysis of stakeholder & government concerns
GSO
NIAH
VASI

23. Collaborative Activity:
Contract Farming and Other Market Institutions for Equitable Pig Farming in Northern Viet Nam

24. International Partners + VN Univ.: Market Study
FAO
PPLPI
ILRI-IFPRI
Joint Program
Contract Farm’g
& other Inst’ns
for Smallholder
Mkt Integration
HAU
(National
Collaborator)

25. International Partners + VN Univ.: Mkt Study (2)
ACI
(MMW4P)
FAO
PPLPI
Breaking barriers to mkt participation
Keys to effective market institutions
Entrypoints for change
Key stakeholders along mkt chain for policy & inst’l change
ILRI-IFPRI
Joint Program
Contract Farm’g
& other Inst’ns
for Smallholder
Mkt Integration
HAU
(National
Collaborator)

26. Parallel work by ACI on ADB-MMW4P

27. Local International Partners with Local Footing
Likemindedness with PPLPI on Smallholder concerns
Credibility with the Bureaucracy

28. International/NGO Partners: Stakeholder Organization
IFPRI
(VN Liaison Ofc)
FAO
PPLPI
ACI - VN
AVSF - VN
L’stock Work’g Grp

29. International/NGO Partners: Stakeholder Org’n
IFPRI
(VN Liaison Ofc)
FAO
PPLPI
ACI - VN
AVSF - VN
LWG
Solid groundwork among rural smallholders; Catalyst for smallholder org’n

30. International/NGO Partners: Stakeholder Org’n
IFPRI
(VN Liaison Ofc)
FAO
PPLPI
ACI - VN
AVSF - VN
L’stock Work’g Grp
LWG
Parallel work with “Making Markets Work for the Poor” (ADB) Insights into bureaucracy & policy making

31. International/NGO Partners: Stakeholder Org’n
IFPRI
(VN Liaison Ofc)
FAO
PPLPI
Poverty, Livestock & Mkt environment mapping
ACI - VN
AVSF - VN
LWG

32. International/NGO Partners: Stakeholder Org’n
Task Force
DOA
Livestock
IFPRI
(VN Liaison Ofc)
FAO
PPLPI
Poverty, Livestock & Mkt environment mapping
- Stakeholder characteriz’n- Stakeholder grouping Stakeholder organization
ACI - VN
AVSF - VN
LWG
Parallel work with “Making Markets Work for the Poor” (ADB) Insights into bureaucracy & policy making
Solid groundwork among rural smallholders; Catalyst for smallholder org’n

33. Activity: Stakeholder Groups Alliance Identification and Formation
Vietnamese Task Force (with DOA - Livestock)

34. Stakeholder Alliance Identification
Commercial
pig/piglet
producers
Lower feedgrain tariffs;
Quality feed
Lower feed prices
Smallholder
producer
associations
Commercial
feed millers

35. Stakeholder Alliance Identification
AH care workers
(CAHW)
Commercial
pig/piglet
producers
Financing AH services
Credit with production & mktg contracts
Lower feedgrain tariffs;
Quality feed
Lower feed prices
Smallholder
producer
associations
Women’s
Union
Commercial
feed millers
Pig/piglet traders
& feed suppliers

36. Stakeholder and Policy Workshop
Assembling the Pieces
Stakeholder and Policy Workshop
Collaborators
AVSF & ACI
Task Force
Stakeholder
Groups
Stakeholders
Constraints
& Policy Impacts
Contract Farm’g
&
Mkt Institutions

37. Assembling the Pieces POLICY DIALOGUE & NEGOTIATIONS
Stakeholder and Policy Workshop
Collaborators
AVSF & ACI
Task Force
Stakeholder
Groups
Stakeholders
Constraints
& Policy Impacts
Contract Farm’g
&
Mkt Institutions

38. 3. EXPECTED OUTCOMES, CHALLENGES, HARNESSING PRESSURE FOR CHANGE TOWARD OUTPUT 4

39. Expected Outcomes
Heightened awareness among stakeholders of how their constraints can be addressed by policy and institutional change
Recognition by stakeholder groups that they have common interests with other stakeholders
Alliance with them can develop into a ‘pressure group’ that can influence policy and institutional shifts in their favor
Demonstration of capacity among stakeholders to negotiate with policy makers for policy and institutional change

40. Opportunities Indications of Winds of Change
Growing recognition and restlessness among lower ranks of government bureaucracy of the need for policy and institutional shifts toward less anti-poor stance
Challenge:
Harnessing into a common stand; and bridging the disconnect between lower-level bureaucracy tendencies toward reform and Party-level Policy Pronouncements and Decision Making

41. Opportunities (2) External pressure from WTO Membership
Necessity of legislation of more liberalized trade in meat and feedgrains
Challenge:
Getting domestic stakeholder and pressure groups in a position so that input side import restrictions are removed
Getting international pressure groups to ensure that proposed legislative changes get the desired impact of addressing constraints of smallholders