1. 1 Value Chain Analysis of Free Range Chicken Presented by Sim Kong, General Director of CEDAC Agri based Enterprise Support Program June 2008

2. 2 PRESENTATION OUTLINES 1- Chicken Supply Chain 2- Market demand/size 3- Value Chain 4- Information/ capital flows 5- Enabling Environment 6- Industry Coordination 7- Conclusion 8- Recommendations/Intervention Action Plan

3. 3 1.Supply Chain Product Flow Farmers/ProducersMiddlemen Whole Sellers Retailers Food processors Consumers

4. 4 Sources of Supply PHNOM PENH KG. SPEU KG. CHHNANG TAKEO KG.THOM SVAY RIENG KANDAL KG.CHAM PREY VENG

5. 5 2- Market demand/size of chicken Phnom Penh : 10,000-12,000kgs a day. 80% are free range chickens Provincial/district towns: 200-600kgs a day Substitute products: pork, sea food, fish and beef Final consumers: all Cambodian classes Frequency: approx. 2 times per week Quantity : approx. 1 kg per time

6. 6 Middl emen Farmers/ Producers Whole sellers / Proce ssors Retail ers Consu mers Food proces sors Consum ers Cost: 7,730R Cost: 13,200R Cost: 18,700R Cost: 19,500R Price: 20,500R Price:13,000R Price: 14,000R Price: 19,500R Price: 20,500R Cost:21,300R-26,300R Price: 24,000-32,000R 3- Value Chain

7. 7 4- Information/ capital flows Target farmers are trained by CEDAC on chicken raising skill through its Bird Flu prevention program. Farmers do not have much market information Selling price is mostly set by middlemen Small farmers never calculate their production cost They do not need much investment cost

8. 8 5- Enable Environment Chicken raising is part of culture and livelihood improvement Local consumers prefer the taste of chicken products produced by farmers Less price competition among protein market No mass production by giant company that leads a strong competition with small farmers Many farmers are raising chicken...make the market supply regular and stable

9. 9 6- Industry Coordination Interaction between farmers with consumers was organized by CEDAC Middlemen and farmers are working closely Rarely interaction between farmers and whole sellers In some cases, farmer collective sales was facilitated by CEDAC staff

10. 10 7- CONCLUSION Small farmers are not getting much benefit from chicken through current market No market intermediation mechanism is made to help small farmers No interaction between producers and consumers though many local people support the product Limited implementation of government policies and regulations on food safety and slaughterhouse management

11. 11 8- RECOMMENDATIONS To benefit small farmers, CEDAC initiated a market intermediation mechanism for small farmers as following: CHICKEN PRODUCER GROUPS COMMUNITY CHICKEN SLAUGHTERHOUSES AUCTION FARMERS MARKET COUNTRY BIRD RESTAURANTS NATURAL AGRI- PRODUCT SHOPS OTHER RESTAURANTS CONSUMERS WHOLE SELLERS RETAILERS /FOOD PROCESSORS

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