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ANIMAL FEED ASSESSMENT

FINAL REPORT

TASK ORDER NO. 04

JULY 2012

This publication was produced for review by the United States Agency for International Development. It was prepared by Dynamic Alliance Consulting (DAC Group Co., Ltd) for the Cambodia MSME project implemented by DAI.

CAMBODIA MSME 2/BEE PROJECT ANIMAL FEED ASSESSMENT

FINAL REPORT

TASK ORDER NO. 04

Program Title: Strengthening Micro, Small and Medium Enterprises in Cambodia

Sponsoring USAID Office: USAID/Cambodia

Contract Number: EEM-I-00-07-00009-00/04

Contractor: DAI

Date of Publication: July 2012

Author: Dynamic Alliance Consulting

The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

Table of Contents 1. INTRODUCTION ......................................................................................................................1

2. OBJECTIVES ............................................................................................................................2

3. Methodology and Activities.....................................................................................................2

3.1. Implementation ..............................................................................................................2

3.2. Questionnaires ...............................................................................................................2

3.3. Samples selection ...........................................................................................................3

4. Brief situation of feed industry in Cambodia.............................................................................4

5. Research Findings ...................................................................................................................7

5.1. Numbers of clients trained and feed mills .........................................................................7

5.2. Investment Capacity........................................................................................................8

5.3. Volume and Type of Feed Production ...............................................................................8

5.4. Feed formula and Raw Materials Used .............................................................................9

5.5. Training and Exchange Visit ...........................................................................................11

5.6. Marketing & Packaging..................................................................................................11

5.7. Economic Impacts .........................................................................................................12

5.8. Project Diffusion ...........................................................................................................13

5.9. Constraints and challenge..............................................................................................14

5.10. SWOT Analysis...........................................................................................................14

6. Feed users............................................................................................................................15

6.1. Reason of change to use local feed.................................................................................15

6.2. Type and volume of feed consumed ...............................................................................16

6.3. Perception on local feed ................................................................................................16

7. Case Study ...........................................................................................................................17

7.1. Case Study in Kratie.......................................................................................................17

7.2. Case Study in Kampong Cham ........................................................................................20

7.3. Case Study in Battambang .............................................................................................22

7.4. Case Study in Svay Rieng................................................................................................24

8. CONCLUSION........................................................................................................................26

9. RECOMMENDATIONS ...........................................................................................................27

10. REFERENCES .....................................................................................................................28

11. ANNEX .............................................................................................................................29

11.1. Evaluation Team ........................................................................................................29

11.1.1. Dr. Meak Pramol, Team Leader...............................................................................29

11.1.2. Mr. Heang Suo-Saravorn, Associate Team Leader ....................................................29

11.2. Scope of Work ...........................................................................................................29

11.3. Feed formulas of MSME project .................................................................................30

11.4. List of interviewed people ..........................................................................................32

11.5. Questionnaires ..........................................................................................................33

List of Tables

Table 1.Characteristics of provinces included in this study................................................................3

Table 2.Number and type of people involved in the study ................................................................4

Table 3. Numbers of feed mills in the studied provinces ...................................................................7

Table 4. Feed production by year and province (ton)........................................................................9

Table 5. Type of feed produced.......................................................................................................9

Table 6. Comparison of production cost between MSME formula and new formula.........................10

Table 7. Exchange Visit Program ...................................................................................................11

Table 9. Amount of money saved comparing with commercial feed ................................................13

Table 10. Constraints and challenge ..............................................................................................14

Table 11. Production Cost and Selling Price of Ms. Sam En .............................................................18

Table 12. Production Cost and Selling Price of Mr. Kou Ket .............................................................21

Table 13. Feed production of Snoeung cooperative........................................................................23

Table 14. Feed production (kg) .....................................................................................................25

Table 15. Profits from feed production ..........................................................................................25

Table 16. Formula for piglet (weaning to 20 kg) .............................................................................30

Table 17. Formula for fattening pig from 20 to 60 kg ......................................................................30

Table 18. Formula for fattening pig from 60 to slaughter ................................................................31

Table 19. Formula for Pregnant sow..............................................................................................31

Table 20. Formula for lactating sow ..............................................................................................31

List of Figures

Figure 1. Sales volume (ton/month) – Local factory..........................................................................5

Figure 2. Sales volume (ton/month) – Imported feed .......................................................................6

Figure 3. Sales volume in tons per year – local companies and imported feed ...................................6

Figure 4. Type of business (Number) ...............................................................................................8

Figure 5. Number of feed mills’ diffusion .......................................................................................13

Figure 6. Reasons of change of feed ..............................................................................................16

Figure 7. Type and volume of feed consumed ................................................................................16

Figure 8. Perception of feed consumers on local feed ....................................................................17

Figure 9. Feed production of Ms Sam En by year ............................................................................18

Figure 10. Feed production of Mr. Ket (by year) – for sell supply and for selling ...............................20

List of Pictures

Picture 1. Labeling and packaging of feed of cooperative in Battambang .........................................12

Picture 2. Labeling and packaging of feed of cooperative in Takeo province ....................................12

Picture 3. Mrs. Chi Sam En, feed maker in Kratie province ..............................................................19

Picture 4. Growing performance of pig raised with feed produced by Mrs. Sam En ..........................19

Picture 5. Feed mill of Mr. Kou Ket, Kampong Cham province .........................................................21

Picture 6. Growing performance of pig raised with feed produced Mr. Kou Ket ...............................21

Picture 7. Feed mill of group feed maker in Banan district, Battambang province ............................23

Picture 8. Feed mill of Pig Raising Development Cooperative in Svay Rieng .....................................24

List of Abbreviations

CWG Community Working Group DAC Dynamic Alliance Consulting Group DAI Development Alternatives Inc. FGD Focus Group Discussion Kg Kilogram MSME Micro, Small, and Medium Enterprise NGO Non-Governmental Organization PDA Provincial Department of Agriculture R Riel USD United States Dollar

EXECUTIVE SUMMARY The assessment on feed for swine of the MSME project has been carried out the Dynamic Alliance Consulting Group (DAC). The assessment has been conducted in six provinces namely Kratie, Kampong Cham, Takeo, Svay Rieng, Pursat, and Battambang. The DAC consultant team was mobilized into the field by March 21, 2011. The current animal feed factories in Cambodia include CP, Green Feed, Medivet, and New Hope Group. CP is the biggest factory established in the country since 1995 with production volume of 10,000 tons/month. Green Feed, the 2nd big feed factory can supply 5,000

tons/month. Medivet and New Hope Group take market share of 3,000 tons/month and 1,500 tons/month respectively.

Besides feed supply of local factories, there are also several imported feed from Vietnam

and Thailand such as PROCONCO (3,000 tons/month), BETAGRO (3,000 tons/month), DE HEUS (1,000 tons/month), GF, Dr. Nupak, Cargill, etc.

In 2009, the MSME project has trained 277 clients and 183 clients in 2010, and 150 clients in 2011 in the 12 target provinces on swine feed producti on. In the first year of project extension (2009), 44 feed mills have been established throughout the 12 targeted provinces. Due to the low price of live pig and disease outbreak, the numbers of pig raising decrease, this leads to the closure of some feed mills. As a result, 11 feed mills have stopped the operation. Feed production in Battambang has increased from 5.50 tons in 2009 to 26.70 tons in 2010

and 86.38 tons in 2011. In Kratie, feed production has increased from 25.60 tons in 2009 to 82.54 tons in 2010 and 127.74 tons in 2011. In Pursat there was a decrease of feed

production from 22.87 tons in 2010 to 16.78 tons in 2011.

Regarding the type of feed produced, 22% of feed mills produce piglet feed, 25% of feed mills produce fattening pig <60 kg, and 15% of feed mills produce fattening pig > 60 kg. So,

that means fattening feed is the majority feed for farmers. 16% of feed mills produce sow feed and only 8% of feed mills produce protein feed.

Marketing is the most important activity in order to expand the business and increase sale volume. The majority of traded feed mills in community lack the marketing activity. The promotion technique is from mouth to mouth and to show the performance and the quality of feed, feed makers demonstrate in their farms and inviting farmers to see the results. There is high demand on feed for swine in Cambodia, because huge quantity of commercial feed both local and imported on market. The increase of feed production in community helps increase added value of local agricultural products such as rice bran, broken rice,

soybean, corn, cassava, dry fish, etc. As feed produced by local feed mill is cheaper than commercial feed, it helps farmers to save around 40 USD per fattening cycle of one pig.

Feed users change to use community feed because the growing performance is not very

difference compared to commercial feed. Farmers consider the price is the important

criteria. The difference in price is from 700 Riels/kg to 800 Riels depending on the type of feed.

In operation of feed production, feed makers face some challenges and constraints such as

limited investment capital, accumulation of credit, access to good price and multiple choices of raw materials suppliers, decrease of pig raising (due to the low price of live weigh pig and

diseases outbreak), high competition with commercial feed, etc.

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1. INTRODUCTION

The MSME Project has been working with swine enterprises since 2005 in improving competitiveness through facilitation of embedded technical training, promotion of business

enabling environments, support of public-private dialogues, and strengthening the public sector. Over 4,000 swine clients have been in partnership with the project.

The MSME 2 project aims to improve the performance of firms in selected value chains,

support public-private dialogue and strengthen the public sector through targeted technical assistance. The objective is to assist enterprises to become and remain cost competitive relative to other national and regional firms, while improving quality and capabilities to provide a consistent supply of quality products to local and national markets. The project facilitates the development of business membership organizations (BMOs) among the MSME clients so that they can develop service-based associations that facilitate the delivery of technical and business training and help to lobby for improvements to the business enabling environment that will make their businesses more competitive and profitable.

One of the main areas for improvement of Cambodian swine industry competitiveness is in the reduction of production costs by using locally available resources to produce swine feed. In swine production, feed represents approximately 80% of input cost to swine raising.

Different types of commercial feeds sold in the Cambodian markets are imported and cost more than feed produced locally. In the country wide, there are few local feed

manufacturers of which none of them are producing enough to supply the demands throughout the country.

In an attempt to improve swine raising profitability, the MSME project, in its second phase, has introduced feed making activities to its swine component. The aim of these activities is to reduce swine production input costs for farmers and thus increase overall profits throug h building technical capacity amongst swine raisers to formulate feed on their own.

The project has reached out to private and community swine raisers and introduced technical and economic training on feed making. The trainings normally incorporate a

theoretical element, followed by demonstrations and then practical applications. To reinforce the trainings, the MSME project also facilitates cross provincial visits to successful

feed makers and visits to input suppliers.

From May 2009 to July 2011, the project facilitated 40 courses on feed making training in all

target provinces, 28 cross provincial visits, and 5 provincial workshops on feed improvement and diversified business linkages. In total, 610 swine value chain actors, mostly are swine producers, attended the training courses with an average of 15 trainees per course.

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2. OBJECTIVES

The objectives of this assessment were defined as following:

1. To identify feed making best practices and experiences, factors contributing to the

failure or stoppage of feed making and how to improve feed making operations.

2. To study the economic impact of swine farmers involved in their own feed making operations through application of new technology versus purchasing commercial feed.

3. To provide recommendations on how feed marketing can be adopted and applied in a sustainable manner in Cambodia.

4. To provide applicable recommendations on how feed making can be introduced as a marketable activity in rural communities.

5. Case studies of successful feed makers

6. Provide a SWOT analysis and identify constraints and issues contributing to inactivity or stoppage of feed making.

3. Methodology and Activities

3.1. Implementation

The DAC team has been divided into 2 teams working parallel in 3 provinces each. The first team conducted the field survey in Kampong Cham, Kratie, and Takeo provinces. The second

team conducted the field survey in Pursat, Battambang, and Svay Rieng provinces. In Annex, the logical framework of this study is presented more details the chronological process flow

of the tasks and activities.

The Field work was conducted from March 21 until April 6, 2012 in 6 Provinces namely Kampong Cham, Kratie, Takeo, Pursat, Battambang, and Svay Rieng. These provinces were

jointly selected by the MSME Project’s Team and the DAC consultants’ Team, out of a total of 12 provinces that are included in the MSME project. The reasons to include these

provinces are summarized in the table 1 below.

3.2. Questionnaires

By means of semi-structured interviews DAC collected information on: • Raw materials used in feed making • Production cost • Growing performance and economic impacts • Demand and supply capacity • Constraints and challenge

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Separated questionnaires on feed maker, consumers, and raw materials suppliers have been used for individual interview. The guideline has been used for focus group discussion with

consumers. In each province the Consultant’s Team has interviewed both feed makers who stop and still continue the activities of feed making. The term “traditional”, “commercial”,

and “improved” feed was addressed through to assess the different performance on growing and economic impacts. The details on each type of questionnaires and guideline for focus

group discussion are presented in the Annex.

3.3. Samples selection

The provinces were jointly selected by the MSME Project’s Team and the DAC consultants’

Team. Six provinces out of a total of 12 provinces in the MSME project were selected. The reasons to include these provinces are summarized in the table below.

Table 1.Characteristics of provinces included in this study

Province / Place Characteristics and reasons for inclusion in study All provinces Firstly all the six provinces are the more important for feed making.

Secondly these six provinces differ from each other on certain aspect explained below.

Pursat New production zone, resource available, strategic location near

major roads Phnom Penh and Battambang

Battambang Production potential; resources available; strategic location near major road. Apart from the city of Battambang, province could produce pig for Phnom Penh and Siem Reap

Svay Rieng Production potential, big demand on animal meat at Bavet special

economic zone

Takeo Near Phnom Penh, long experiences in associations/cooperatives

Kampong Cham Production potential, resources available, strategic location near major road (Phnom Penh and Siem Reap)

Kratie New production zone, resource available

Phnom Penh Raw material supply.

The following numbers of individuals (feed makers and consumers mainly) and groups of stakeholders have been interviewed or were invited for a group discussion by the Consultant’s Team in each Province.

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Table 2.Number and type of people involved in the study

Provinces Organization, community and stakeholders Numbers of samples

Takeo Feed maker 5 Feed user 4

FGD 2

Kg. Cham Feed maker 5 Feed user 7

PDA 1 FGD 1

Kratie Feed maker 10

Feed user 5

FGD 2 Pursat Feed maker 4

Feed user 4 PDA 1

FGD 1

Battambang Feed maker 6 Feed user 6

PDA 1 FGD 1

Svay Rieng Feed maker 3 Feed user 6

PDA 1 Phnom Penh Raw materials suppliers 3

Total samples: 79

The numbers of samples selected were different from the planning since the actual numbers

of feed makers are lower. In the study designed, the Consultant team planned to select 15 – 20 samples in each province, but these numbers were not reachable since some of feed

makers have stopped their activities. The detailed contacts on each person met are presented in the Annex.

4. Brief situation of feed industry in Cambodia

The swine feeds in the community vary according to availability, cost, region, raising plan

and raising system. Rice bran is the most common ingredient for pig diets in Cambodia. The main feeds used in

swine raising are rice bran and broken rice, fermented rice, water convolvulus, water lettuce, and other forages, waste fruits and vegetables and the kitchen waste.

Significant improvement could be made in pig nutrition by better use of locally available raw

materials, and targeting protein rich feeds to young pigs, as well as management of young pigs to reduce their mortality.

In the Cambodian animal livestock sector, feed for pig plays an important role. Feed for

chicken and duck is representing in some areas only and cannot compare with feed for pig.

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The current big companies for animal feed in Cambodia include CP, Green Feed, Medivet, and New Hope Group. As the local production cannot supply the demand volume of the

markets, several foreign companies are present in the Cambodian markets and some companies have planned to install the factory in the country.

Figure 1. Sales volume (ton/month) – Local factory

CP is the 1st feed factory established in the country in 1996. Its presence helped modernize the livestock sector. Currently CP stands in the 1st place in Cambodian market with the sale

volume of 10,000 tons/month. Green Feed, the JV Cambodian Vietnamese, presents in the country in the last 5 years, thanks to the new strategy of the company by offering good

services, product promotion, bonus and other benefits to dealers, can occupy the 2nd place in Cambodian market with the sale volume of 5,000 tons/month. Medivet (commercialize

the products under the brand name Vital, Super and Master feed), maintains the markets through its existing veterinary medicines channels. Medivet has an average sale volume

3,000 tons/month.

New Hope and SCF are new producers in Cambodia. Their markets are still low compared to other local players. New Hope has sale volume 1,500 tons/month and SCF 1,000

tons/month. Another Chinese company, East Hope (branch of New Hope) has planned to establish the new factory in the downtown of Phnom Penh. Worldvet is a Cambodian commercial feed mill and has operated in Cambodian market more than 10 years. Worldvet

has sale volume 500 tons/month. The total sale volume of six companies mentioned above is 252,000 tons per year. These

companies use also local products such as corn, rice bran, cassava, broken rice, etc. to produce feed.

Some other foreign companies such PROCON CO and BETAGRO are in the phase of feasibility

study of the establishment of factory in Cambodia.

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Among the imported feed, PROCON CO and BETAGRO absorb the big segment of feed markets in Cambodia with 3,000 tons/month each. PROCON CO commercializes feed of the

same quality under 2 brand names: AMI and CON CO. Feed is imported from the factory in Vietnam through 2 local distributors of which everyone commercializes different brand

names.

Figure 2. Sales volume (ton/month) – Imported feed

DE HEUS, Holland feed imported from Vietnam, is newly present in the Cambodian market. Even it is new, this feed can absorb an important segment of the market with the sale

volume of 1,000 tons per month. Thus Cargill is a very well known feed and present already in the country nearly 5 years still

cannot absorb an important market if compared to other imported feed. The sale volume is 500 tons/month.

GF is imported from Thailand and exists nearly ten years on the Cambodian market. GF has sale volume 700 tons/month.

Dr. Nupak is brand new product on the Cambodian market and sale volume 600 tons/month. The total sale volume of imported feed from different companies mentioned above is

105,600 tons per year.

Figure 3. Sales volume in tons per year – local companies and imported feed

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There are also other feed companies that were not mentioned above, as the sale volume is still low and not yet very active in the sector.

5. Research Findings

5.1. Numbers of clients trained and feed mills

The MSME project has trained 277 people in 2009, 183 people in 2010, and 150 people in 2011 in the 12 target provinces of MSME project on swine feed production. In the first year of project extension (2009), 44 feed mills have been established throughout the 12 targeted provinces. By the end of the year, some farmers have abandoned the activities and it remained 36 feed mills that maintained the production. In 2010 there were some new farmers took the new techniques of producing local feed. Including the existing feed mills established in 2009, the number of feed mills in 2010

increased to 40. Thus in 2011 due to the diseases outbreak (PRRS), certain farmers have stopped the activities and the numbers of feed mills remained only 33.

According to the data of the project, among the 12 target provinces, feed mills in Kratie province are the most active. Feed mills in Battambang, Kampot, and Kampong Cham provinces have maintained the activities and the numbers did not remarkably change. In 2011, the numbers of active feed mills in Kratie were 12.

Based on the results of the survey in the six selected provinces, currently there are 22 active feed mills and 11 feed mills stop temporally. There are several factors push to the closure of

feed making activities, but the main factor is the decrease of pig raising. The reason of decrease of pig raising is due to the decrease of pig’s price.

Table 3. Numbers of feed mills in the studied provinces

Province 2009 2010 2011 2012 Battambang 2 1 4 3

Kampong Cham 4 4 4 3

Kratie 7 9 12 8

Pursat 1 4 2 2

Svay Rieng 1 2 1 1

Takeo 3 4 5 2

Impressively the majority of feed makers interviewed are private. Among the 33 feed mills, 19 are private and 14 are Community Working Group (CWG). The formation of CWG

‘Community working group’ of feed mill production is to have more investment capital and get advantage from the cooperative status such as tax exemption of commercialization of

feed, import of raw materials, etc.

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Figure 4. Type of business (Number)

0

5

10

15

20

Private CWG

19

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5.2. Investment Capacity

Regarding the engineering aspect, feed making facility does not require sophisticated material. Farmers can install the facility with the 2nd hand engine which costs around 200 – 250 USD and the feed mill unit which is mainly imported from Vietnam and China and costs around 300 USD depending on the numbers and diameters of miller. So the investment on engineering is starting from 500 USD. Nearly 50% of farmers can find feed mill unit in their province and 24% of farmers bought feed mill unit from Phnom Penh.

Almost all farmers who install the new facility of feed making bought feed mill unit along with engine. This shows that the majority of them are new in adopting the techniques of feed making. We found out also that there were some farmers who started the milling activities already before the arrival of the project but they did not have formula to produce feed. They could only mill raw materials with concentrate feed. Feed formula is the key for success in feed making. Regarding the investment on raw material, for a small production of 1,000 kg per month, the necessary capital is around 370 – 400 USD depending on type of feed. Based on the formula provided by the MSME project, the production cost of piglet feed is around 670 USD per ton. The production cost of fattening feed varies between 300 to 350 USD per ton. The detail on sources of raw material will be presented in the chapter 5.4. Feed formula and Raw Material Used.

5.3. Volume and Type of Feed Production

From 2010 to 2011 there was a high increase of feed production in almost all provinces except in Kandal province. Thus in 2012, swine livestock sector suffers a big crisis of the

falling price of live pig. However we found out that the feed cooperative in Battambang is the only one who shows the increase of feed production since the cooperation with the

project. The table below shows the evolution of feed production in each province.

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Table 4. Feed production by year and province (ton)

Province 2009 2010 2011 2012 (est.)

Battambang 5.50 26.70 86.38 107.63

Kampong Cham 36.30 62.40 92.60 85.40

Kratie 25.60 82.54 127.74 115.4

Pursat 1.40 22.87 16.78 14.4

Svay Rieng 28.30 84.32 128.70 90.00

Takeo 31.30 57.20 57.32 26.70

MSME project provided technical training on six types of feed according to the raising stage the needs in protein and energy of pig. The six types of feeds are:

- piglet feed (from weaning to 15 kg), - fattening pig <60 kg, - fattening pig >60 kg, - lactating sow feed, - pregnant sow feed, and

- protein feed (high concentrate, over 30% of protein).

According to the results of the survey, there were 22% of feed mills produce piglet feed, 25% of feed mills produce fattening pig <60 kg, only 15% of feed mills produce fattening pig > 60

kg. Fattening feed is the majority for feed users in the community. 16% of feed mills produce sow feed and only 8% of feed mills produce protein feed.

Table 5. Type of feed produced

Type of feed produced Percentage

Piglet feed 22%

Fattening feed <60 kg 25%

Fattening feed >60 kg 15%

Sow feed 16%

Protein feed 8%

5.4. Feed formula and Raw Materials Used

Feed formulas for swine are common to most farmers in the 12 target provinces of the MSME project. Each type of formula composed of 10 or 11 raw materials including rice bran, maize, soybean, mungbean, dried fish, shrimp paste, cassava, cooking oil, salt, premix/basemix, and oyster shell. Therefore the formulas have been changed in order to

improve the performance and production cost. The details on each formula are presented in the Annex.

Feed formulas are very important for feed making operation, because if not good formulas produced feed, it leads to low performance, swine get diarrhoea, etc. and good feed

formulas with good raw materials bring good quality of feed and should be also flexible to the cost of raw materials.

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Formulas of swine feed are divided in 5 types as following: formula for piglet post-weaning (8 – 20 kg), formula for fattening 20 – 60 kg, formula for fattening 60 kg to slaughter, and

formula for sow (pregnant and lactating).

About 22% of feed mills in the studied provinces produce feed for piglet post-weaning. Piglet in this stage is very sensitive to diseases and need high quality feed. In community it lacks of

equipments to produce proper piglet feed. It needs high temperature for at least 60°C and if not produced properly, it can cause diarrhoea for piglet. Often for the better growth of

piglet in this stage, farmers are advised to use commercial feed. If we compare the production cost of this feed with commercial feed, there is not very different (2,700 Riels/kg

vs. 3,500 Riels).

For formula for fattening pig from 20 – 60 kg, there are around 25% of feed mills in the studied provinces produce it. The production cost of this feed is relatively cheaper than commercial feed. Comparing with the feed of CP, 10 – 30 kg, which is 2,200 Riels/kg, farmer can save 800 Riels/kg.

For formula for fattening pig from 60 kg to slaughter, there are only about 15% of feed mills that produce it because mainly farmers use only one type of feed (20 – 60 kg) to fatten pigs.

The production cost of this type of feed is relatively cheap. Without including other additional cost, this feed is produced at around 1,130 Riels/kg.

For formulas for sow, there are two types namely formula for pregnant sow and formula for

lactating sow. However, in the real practice; farmers produce only one type of feed for sow. According to the results of the survey, there are 15% of feed mills that produce feed for sow.

Around 70% of farmers feed sow with fattening feed of 20 – 60 kg stage.

Regarding the raw materials used in making feed, according to the results of the survey, the majority of raw materials such as milk powder, soybean meal, oily soybean, milled corn, fish

meal, mungbean meal, shrimp paste, premix, and basemix are purchased from Phnom Penh. More than 60% of feed mills in the studied provinces purchase the above raw materials from the company in Phnom Penh that provides also the training on feed making to farmers. The company provides the delivery service and credit from 1 to 3 months.

To improve the quality of feed and obtain the better performance of pig raising, the project has invited also other companies to provide training on feed making. Recently, we found out

that about 30% farmers in the studied provinces have improved the formulas, technical assistant of the project. However the production cost of new formula is found higher than

the production cost of formula trained by the MSME project. The production cost of new formula is about 20 – 25% higher.

Table 6. Comparison of production cost between MSME formula and new formula

Type of feed Formula of MSME project (R/kg)

New formula (R/kg)

Commercial feed R/kg

Piglet 2,400 3,000 3,500

Fattening feed <60 kg 1,400 1,700 2,200

Fattening feed >60 kg 1,150 1,600 2,100

Sow 1,100 1,500 2,300

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Even there is an important difference in production cost; farmers who has improved the formula seem satisfied with the new formula because they believe that the growing

performance is better. We can see until present swine feed mill cooperative in Svay Rieng produce feed with new formula. And according to the interview with feed users in Svay

Rieng, feed quality of new formula is good and the price is acceptable.

5.5. Training and Exchange Visit

According to the results of the survey, there are 23% of farmers interviewed have received

exchange visit programs to abroad. 70% of farmers interviewed received cross -provincial visits and 13% of farmers received exchanged visits in the province.

Table 7. Exchange Visit Program

Type of Exchange visit Percentage

In province 13%

Cross province 65%

Abroad 23%

Farmers received also trainings from other organizations and private companies which are mostly the suppliers of raw materials such as C.P.H Glory (raw material suppliers) and Hok

Hieng Company (veterinary medicines and feed additives supplier). PDA Kampong Speu and leading feed maker provide also training on feed making. According to the data of the project, 19 training courses were provided in 2009 and 12 training courses were provided in 2010. The training courses were provided by PDA Kampong Speu, Feed maker, C.P.H Glory Company, and Hok Hieng Company.

Gaining new knowledge and experience in feed making and improve livestock techniques, half of farmers interviewed reported the transfer of knowledge to other people in the

community and from other provinces.

5.6. Marketing & Packaging

In order to expand the business and increase sales volumes, marketing is the most important

activity. According to the results of the survey, we found out that the majority of feed mills

lack the marketing activity. There is no labeling, no advertising tools (leaflet, poster, etc.) . Feed is sold in a normal paddy bag.

Basically to promote their products, feed makers use traditional technique which is very

popular in the rural areas. This promotion technique is from mouth to mouth. The only way to show the performance and the quality of feed, feed makers usually demonstrate feed in

their farm and invite farmers to see the results.

However, we see there are few cooperatives that have some advanced activities in marketing such as the packaging with standard bags and labeling of feed and the name of

cooperative with contact address and telephone number. Some cooperatives advertise their

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products on radio, join trade fair, etc. Feed mill cooperatives in Battambang and Takeo package feed in bag with label and feed mill cooperative in Svay Rieng has also labeled bag

but feed is packaged with label of cooperative upon request only. It is not yet widely traded with labeling. Feed mill cooperative in Pursat is planning to package feed in the labeled bags

also.

Picture 1. Labeling and packaging of feed of cooperative in Battambang

Picture 2. Labeling and packaging of feed of cooperative in Takeo province

5.7. Economic Impacts

As presented in Chapter 4, there is huge quantity of commercial feed both local and

imported on the Cambodian market. This can explain clearly the high demand on feed in Cambodia. Moreover, the increase of feed production in community helps increase also

added value of local agricultural products such as rice bran, broken rice, soybean, corn, cassava, dry fish, etc. As feed produced by local feed mill is cheaper than commercial feed, it

helps farmers to save an important amount of money in each raising cycle.

On average, the duration of fattening pig is between 4 and 4.5 months and a pig consumes about 260 kg of feed. At the start phase (start to eat till 15 kg), piglet is fed around 30 kg per

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head. Based on these findings, we calculate the price different between feed from feed makers supported by MSME project and commercial one. By using this data (see table 9),

farmers can save money in total 178,000 riel/pig or 44.50 USD/pig for one fattening pig per cycle.

Table 8. Amount of money saved comparing with commercial feed

Type of Feed Local Feed Commercial Feed Money saved

Price per bag (Riel/kg)

Total price per cycle (Riel)

Price per bag (Riel/kg)

Total price per cycle (Riel)

(Riel)

Piglet 93,000 93,000 115,000 115,000 22,000

15 kg to finish 57,000 494,200 75,000 650,250 156,000 Total 178,000

NOTE: usually farmers mix completed feed also with rice bran and fed their pig.

5.8. Project Diffusion

According to the results of the study and in a line with the data of the project, we found out in general there are 1/3 of feed mills established by themselves, by learning the techniques from farmers trained by the project. Certain diffusion feed mills produce also feed for selling in the community. There is a remarkable number of feed mills’ diffusion in Kratie, Takeo and Battambang provinces. In Kratie province, the number of diffusion is higher than the number of project. The numbers of diffusion and project beneficiaries in Takeo and Battambang are almost equal. In Kampong Cham and Pursat provinces, the numbers of feed mills’ diffusion are low and no diffusion in Svay Rieng province.

Figure 5. Number of feed mills’ diffusion

0

2

4

6

8

10

12

14

16

Takeo Svay Rieng Kg Cham Kratie Battambang Pursat

6

01

16

4

2

7

3

8

13

5 5

Diffusion Project

14

5.9. Constraints and challenge

Nowadays, the price of live pig is low, especially since the end of 2011 the price decreased progressively. This decrease caused mainly by the import of live pigs from neighboring

countries (Thailand). Officially MAFF allows 5 Cambodian companies to import live pigs from Thailand. The import’s quota is limited at 1,000 live pigs per day to supply Cambodian

markets. But the import of live pigs from Thailand is more than 2,000 pigs per day. The quality of imported pig is better than local raised pig, in term of carcass and thickness of fat.

This factor leads trader to lower the price of price of local pigs. The common main constraint of feed mills interviewed is the limited capital in doing business. Their capital cannot afford to buy raw materials in big volumes. The price of raw materials in small volumes is very high. This makes the production cost high and limits the supply capacity of local feeds.

On the other hand, local feed mills do not have proper place to store raw materials in order to maintain the quality of raw material and finished feed. Some places face the high

exposure which could reduce the storage period of raw materials.

They also face other constraints which are described on the tables below.

Table 9. Constraints and challenge

Constraints: 1. Less capital to enlarge the business

2. Price of live pig is unstable (high import of live pigs from Thailand)

3. Lack of knowledge in raw materials (quality control, storage, etc.)

4. Diseases outbreak (PRRS). 5. Feed is sold in credit (increase debt,

cannot have enough capital to buy raw materials to produce feed)

6. Prices of some raw materials are high (soybean, dry fish, basemix, etc.)

Challenge: - Compete with commercial feed on the

market: Commercial feed, through local

dealers and shops sell feed in credit that can attract more clients.

Commercial feed Company provides good services and techniques (livestock expert, veterinary, etc.)

Commercial feed Company has all types of feeds

Commercial feed Company advertises their products very intensive.

5.10. SWOT Analysis

Strength Weakness

- Commitment to produce feed

- Adapt fast to the techniques provided

by the MSME project - Quality of feed is acceptable quality

(the growing performance of pigs is comparable with commercial feed)

- Financially, it makes more profits

- No strategic plan and no business plan

- No marketing activities - Feed is sold only at home

- Feed-bag is not at standard, no labeling, no good packaging

- Lack of appropriate equipments to

15

than using commercial feed, and save

time also (generally if they use commercially feed, they need to mix with rice bran or other raw materials to save cost).

- Most of important raw materials are available in the community and easy to find (rice bran, corn, cassava, dried

fish, etc.)

produce feed for piglet (piglet needs

pelleting feed, hygiene, high quality raw materials)

- Quality of meat is still low which leads to the lower price compared to pork meat of with commercial feed.

Opportunity Threat

- Feed price is relatively cheaper than commercial feeds

- Numbers of feed mills in the community are still low

- Technical support from MSME project and raw materials suppliers

companies - Local people are willing to buy feed

produced in the community - Improvement of raising techniques:

more and more farmers use finished feed.

- Quality of commercial feed is better and they provide good services to

clients - Price of live pig is low

- High import of live pigs from Thailand leads to the low price of live pig in

the community because the quality of imported pigs is better in term of carcass and thickness of fat

- Diseases outbreak, especially PRRS (Porcine Reproductive and Respiratory Syndrome)

6. Feed users

6.1. Reason of change to use local feed

Almost feed users are living in the same community with feed makers and raise pig in small scale. According to the results of this survey, they stop using commercial feed and change to

use feed that produced in community because:

- The growing performance is acceptable (47%) - The fattening period is not very different, around 4 to 4.5 months (47%)

- The price is relatively cheaper, 700 to 800 Riels cheaper in 1 kg depending on the type of feeds (41%)

- Another reason is to help community (44%)

16

Figure 6. Reasons of change of feed

6.2. Type and volume of feed consumed

According to the results of the survey, farmers bought on average nearly 300 kg/month for fattening pig <60 kg and around 230 kg/month for fattening pig >60 kg. Pig raisers in

community did not buy much sow feed, because usually they mix dominate rice bran in the diet of sow.

Figure 7. Type and volume of feed consumed

6.3. Perception on local feed

As seen previously, nearly half of farmers interviewed expressed the reason of change to use community feed because the growing performance is not very different from commercial feed. Here, when asking them about their perception on local feed, the majority of them replied that the quality is acceptable and most important is the price is cheaper.

17

Figure 8. Perception of feed consumers on local feed

Farmers not only want to help the local community, but they also want to see the

development of local feed production in their community because there are available resources to make feed such as corn, rice bran, cassava, soybean, dry fish, etc. Moreover

local feed is more accessible.

7. Case Study

7.1. Case Study in Kratie

Mrs. Chi Sam En is one of the feed makers supported by the MSME project in Kratie province. After attending the training on feed making, she started to produce feed for swine.

She produces feed not only for her own pigs but also for selling to other pig raisers in her community.

Starting with the simple feed mill unit bought locally in Kratie province and the second hand

engine with the total cost of 330 USD. With this feed mill she can produce 450 kg of feed per hour.

Three types of feeds, feed for sow, feed for piglets (post-weaning to 15 kg), and feed for

fattening pigs (15 kg to slaughter), are produced regularly in her farm. Until present, she is satisfied with feed formulas provided by the MSME project and can manage to produce on average 3 tons per month to feed her farm and supply the local community, in total 57.37 tons feed produced from September 2009 till March 2012. Mrs. Sam En sells feed from home and spreads out information from mouth to mouth. She ensures the quality of feed to clients through demonstration in her farm by using own feed; pigs grow up fast (4-4.5 months).

She sells feed also on credit around 3-4 months, but not for all clients.

18

Figure 9. Feed production of Ms Sam En by year

2,800

29,340

13,950

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2009 2010 2011

Feed production (kg) of Mrs. Sam En

Profits Mrs. Sam En can make profits on average 670 Riels per kg for piglet feed, 800 Riels for fattening feed and sow feed (see table below). On average, one pig consumes around 270 kg of feed during the whole fattening period (around 4 – 4.5 months).

Table 10. Production Cost and Selling Price of Ms. Sam En

Type of feed Production Cost (R/kg)

Sale Price (R/kg)

Profits (R/kg)

Piglet – 15 kg 2,430 3,100 670

15 kg till finisher 1,100 1,900 800

Sow 1,100 1,900 800

Piglet-feed is sold at 93,000 Riels per bag of 30 kg and 57,000 Riels per bag of 30 kg for fattening and sow feed. Before this feed production, Mrs. Sam En used commercial feed

which cost 115,000 Riels/bag for piglet feed and 75,000 Riels/bag for fattening pig.

Clearly since the production of her own feed, Mrs. Sam En can save on average 22,000 Riels/bag for piglet feed and 18,000 Riels/bag for fattening feed. Based on this figure and her monthly production (3 tons/month), she can save money around 1,800,000 Riels or 450 USD per month for self supply and for selling in the community.

19

Picture 3. Mrs. Chi Sam En, feed maker in Kratie province

Mrs. Sam En not only sells swine feeds but she also encourages other farmers to establish feed mill like her as well. Until present, she has convinced 9 farmers to establish new feed

mill facility in Kratie province.

Picture 4. Growing performance of pig raised with feed produced by Mrs. Sam En

Conclusion In average Mrs. Sam En produces feed for swine 3 tons per month and from the start of making feed from September 2009 till March 2012, she has produced in total 57.37 tons of feed. The growth performance of pig is comparable with commercial feed, 4 – 4.5 month per fattening cycle. Mrs. Sam En sells feed to the community and has convinced some of her clients to make feed

in own farm also.

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Until now, she does not build marketing activities for selling her feed yet. Consumers know and recognize her feed from mouth to mouth.

Mrs. Sam En can save on average 18,000 Riels/bag for fattening feed and around 1,800,000

Riels or 450 USD per month for selling feed in the community.

7.2. Case Study in Kampong Cham

Mr. Kou Ket, feed producer in Koh Sotin of Kampong Cham province, has started producing feed since September 2009. Mr. Kou Ket produces feed not only for his own pigs but also for selling to other pig raisers in his community. He purchased feed mill unit and engine from Phnom Penh with total cost of 550 USD. The capacity of this feed mill is 350 kg per hour and consumes around 1.5 litre of diesel per hour. Mr. Kou Ket produces three types of feeds: feed for piglet (post-weaning to 15 kg) and feed for fattening pig (15 kg to slaughter), and feed for sow. All feeds are produced with the

formulas provided by MSME project. Most of raw materials are purchased from C.P.H Glory Co., Ltd and from LVS Company such as soybean meal, mungbean bran, dry fish, fish meal,

shrimp paste, milk powder, premix/basemix, etc. Mr. Kou Ket can buy these raw materials on credit between 1- 3 months.

Mr. Kou Ket can produce feed on average 3 tons per month. Since starting in October 2009 to present, he produces feed in total around 45.32 tons. Mr. Kou Ket owns medium pig farm. On the interviewed day, he has about 100 fattening pig s and more than 10 sows. All these, he uses to demonstrate for his clients. Until present, Mr. Kou Ket doesn’t make marketing like commercial company, because of lacks of capital to do it, he said. People know him from one neighbor to another one. He sells feed also on credit around 4 moths, but not for all clients.

Figure 10. Feed production of Mr. Ket (by year) – for sell supply and for selling

2,550

9,700

22,072

0

5,000

10,000

15,000

20,000

25,000

2009 2010 2011

Feed production (kg) of Mr. Ket

21

Profits

Mr. Kou Ket produces feed for selling and for own pigs. He can make profits around 400 Riels per kg for piglet feed, 300 Riels for fattening and sow feed (see table below). On average,

one pig consumes around 270 kg of feed during the whole fattening period (around 4 – 4.5 months).

Table 11. Production Cost and Selling Price of Mr. Kou Ket

Type of feed Production Cost (R/kg)

Sale Price (R/kg)

Profits (R/kg)

Piglet – 15 kg 3,100 3,500 400

15 kg till finisher 1,700 2,000 300

Sow 1,500 1,800 300

Piglet feed is sold at 100,000 Riels per bag of 30 kg and 60,000 Riels per bag for fattening

feed and 54,000 Riels for sow feed per bag. Mr. Kou Ket can save on average 4,000 Riels per bag if compared to commercial feed that he used before.

Based on his monthly production, he can save around 400,000 Riels or 100 USD per month

for self supply and for selling in the community.

Picture 5. Feed mill of Mr. Kou Ket, Kampong Cham province

Picture 6. Growing performance of pig raised with feed produced Mr. Kou Ket

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Conclusion Mr. Kou Ket produces feed for swine on average 3 tons per month and from September 2009

to March 2012 he produces in total 45.32 tons. The growth performance of fattening pig by using formulas provided by MSME project is acceptable. The fattening period is around 4 month per cycle. Mr. Kou Ket sells his feed to the community and can convince his clients by demonstrating of his products in own farm. There are still no marketing activities yet.

Based on his monthly production, he can save around 400,000 Riels or 100 USD per month

for self supply and for selling in the community. In total he can save and earn nearly 7,000 USD.

7.3. Case Study in Battambang

Snoeung agricultural development cooperative is located in Boeung Cheing village, Snoeung commune, Banan district, Battambang province. The cooperative has been established under the technical assistance of the MSME project. The cooperative starts producing swine feed in 2010. The facility is equipped with engine and feed mill unit bought locally in Battambang province with the total cost of 450 USD. The production capacity can reach 1,000 kg per hour.

Since starting in 2010, the cooperative produces three types of feed including feed for piglet (post-weaning to 15 kg), feed for fattening pig (15-60 kg) and protein feed (concentrate). All

types of feeds are produced with formulas provided by the MSME project. Battambang is known as the source of raw materials. Most of raw materials for producing swine feed such as rice bran, broken rice, corn, cassava, are available in this region. Some other raw materials such as soybean meal, mungbean bran, dried fish, shrimp paste, powder

milk, basemix, etc. need to purchase from suppliers in Phnom Penh.

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Feed production and Profits

On average Snoeung cooperative produces feed around 6 tons per month (see table below). Since starting until present, the cooperative produced in total 96.50 tons. Fattening feed is

the most sold in community. Sneung agricultural development cooperative has done some advanced activities in

marketing such as the packaging with standard bags and labeling of feed and name of cooperative with contact address and telephone number. They advertised their products

also on radio, trade fair, etc.

Table 12. Feed production of Snoeung cooperative

No. Type of feed Average feed production/month (kg)

Total feed production (kg)

1 Fattening feed 4,249 86,954.5 2 Piglet feed 700 6,546.5

3 Concentrate 800 2,895.0 Total: 5,749 96,396

The sale volume of Snoeung cooperative since starting until present is around 96.50 tons.

The cooperative can make profits around 400 Riels/kg for piglet feed, and 200 Riels per kg for other feeds. In term of total value, the cooperative can earn around 4,347 USD from

selling fattening pig, 645 USD from selling piglet feed, and 145 USD from selling concentrate feed. So until present the cooperative can make profits in total 5,137 USD from selling feed in the community.

Picture 7. Feed mill of group feed maker in Banan district, Battambang province

Conclusion Snoeung agricultural development cooperative produces feed on average 6 tons per month. From October 2010 till March 2012, the cooperative produces in total 96.5 tons of feed. The quality of feed and the growth performance is acceptable. The fattening period is around 4 to 4.5 month per cycle. Snoeung cooperative is the first cooperative that advances the marketing activities by improving packaging with label of cooperative, address, telephone, banners, posters, advertise in trade fair and on radio, etc.

Based on the average monthly production, Snoeung cooperative can make profits around 450 USD per month.

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7.4. Case Study in Svay Rieng

Svay Rieng Agricultural development cooperative is located in Tradet village, Ponlea commune, Kampongroh district, Svay Rieng province. The cooperative has been established

in May 2009 under the support of the MSME project.

Since starting in May 2009, the cooperative has purchased an engine and feed mill machine with the total cost of 1,000 USD from Phnom Penh. The maximum capacity of production is

1,500 kg per hour.

The cooperative produces 4 different types of feed including fattening feed 15-30 kg and 30-60 kg, feed for pregnant sow and feed for lactating sow. The cooperative has changed feed

formulas provided by the project and has adopted new formula provided by raw material supplier company.

The cooperative is making marketing on radio, join trade fair, organize visit, farm demonstration, etc. The cooperative prepares also standard bags for packing their products , with label, contact address, telephone number, protein content, etc. Some raw materials such as rice bran, broken rice, corn, cassava, etc. are available in the region. Other raw materials such as soybean meal, mungbean bran, dried fish, milk power,

basemix, etc. have to be purchased from supplier in Phnom Penh.

Picture 8. Feed mill of Pig Raising Development Cooperative in Svay Rieng

Feed production and Profits

On average Svay Rieng cooperative can produce around 13 tons of feed per month (see table below). Since starting the production until present, the cooperative can produce in total 297

tons of all types of feeds. Fattening feed is the most sold in cooperative.

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Table 13. Feed production (kg)

No. Type of feed Average feed production per month (kg)

Total feed production (kg)

1 Fattening pig 15-30 kg 2,858 62,296

2 Fattening pig 30-60 kg 4,283 86,996 3 Gestated sow 3,000 81,560

4 Lactated sow 2,742 66,204

Total: 12,883 297,056

Table below shows the profits of feed production of the cooperative. The total profits of selling fattening feed is 30,476 USD, 15,293 USD from selling pregnant sow feed, and 14,068

USD from lactating sow feed. So, in total the profits from selling feed since 2009 to March 2012 are 59,837 USD.

Table 14. Profits from feed production

Type of feed Invest price (R/kg)

Sale price (R/kg)

Profits (R/kg)

Profits from start to March 2012

Fattening pig 15-30 kg

2,500 3,200 700 43,607,200 R or 10,902 USD

Fattening pig 30-60 kg

1,700 2,600 900 78,296,400 R or 19,574 USD

Pregnant sow 1,500 2,250 750 61,170,000 R or 15,293 USD

Lactating sow 1,600 2,450 850 56,273,400 R or 14,068 USD

Total: 59,837 USD

Conclusion

Svay Rieng Agricultural development cooperative produces feed on average 13 tons per month. From May 2009 till March 2012 the cooperative produces feed in total around 297 tons. Due to the difficulties in accessing good price of raw materials, the cooperative has tried to find different raw material suppliers in Phnom Penh and has improved the formulas of feeds

by the propose of new raw materials supplier. The production cost of new formulas is higher but feed quality is more satisfying.

The cooperative advertise their products on radio and at trade fair and starts use standard

feed bags with label, contact address, telephone number, protein content, etc.

Based on their total production from May 2009 till March 2012, the cooperative made the profits of nearly 60,000 USD.

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8. CONCLUSION

Based on the results of the study, the information collected from key informants, and data of the project, we can conclude as following.

1. The MSME project brought farmers to new knowledge in making own feed for pig

and moreover has opened the path to feed makers in community to improve their livestock and business. Farmers are satisfied with the new techniques they have

learned.

2. On the other hand, farmers gained not only the techniques in producing feed and reduce cost of production, but also gained other knowledge in raising pig, knowing the diagnosis of diseases, prevention program and the treatment of diseases, the selection of good genetic, etc.

3. In term of growing performance, the quality of feed is generally acceptable. In term of price, there is a high impact on economy as the use of feed formulas provided by the MSME project farmers can reduce the expense approximately 40 USD per fattening cycle of one pig. The economic impact is high for feed making cooperative as seen one cooperative in Svay Rieng can make profits nearly 60,000 USD during 3 years.

4. There is a weakness in marketing activities and business skill. The majority of feeds are sold in normal paddy rice bag with no label of feed maker. Most of feed makers

do not have business skill. They do not have the concept of marketing or how to make their products more attractive. There are only few feed makers who have some advanced activities in marketing such as improving packaging, advertising feed on local radio, participating in trade fairs, etc.

5. Capital is a major problem for small enterprises. Limited capital leads to the limitation of supply and can lead also to the closure of feed making. The sale in credit pumps the financing resources of feed makers and they cannot maintain the activities because they do not have enough capital to by raw materials. On the other hand, low price of pig and diseases outbreak lead also to the closure of feed making.

27

9. RECOMMENDATIONS

The majority of feed makers are satisfied with the techniques provided the MSME project.

Generally, feeds produced by local community are acceptable. Meanwhile, in order to save some cost of production, improve the growing performance of pig, improving sales and

maintain production operation, feed makers should take into account some aspects as following:

1. Knowledge in raw materials and flexibility of use of raw material. Feed formulas

should flexible and varied according to the availability of raw materials and areas. Feed makers should be well trained in choosing raw materials and follow careful the price of raw materials. When the prices of raw materials change, feed makers should be capable to change the formulas in order to have better production cost and maintain growing performance.

2. The project should provide training to feed makers on business skills and management (record of sales and expenses). It is very important for feed makers to have this knowledge because it can help them to make business plan and find further

financing supports or access to micro credit.

3. The sales volumes of feed do not depend only on quality of feed but depend also on packaging and marketing of feed and sales strategy. Feed makers should receive training on marketing and sales skills. Appearance of product is very important to attract consumers and give more confidence on quality of products. In this perspective, feed makers should:

o Improve packaging: package feed with label, address, telephone, information

on the composition of feed, etc.

o Service: explain the advantage of local feed (competitive price, availability,

quality feed, etc.)

o Leaflet, brochures, adverting on radio, etc.

o Join trade fairs

o Improve selling shop: logo of shop, banner…

4. In order to maintain the smooth operation of feed making activities , feed makers

should pay more attention on financing aspect. In this operation, the main finance goes to the purchase of raw materials. According to the results of this survey, we see

that the majority of feed makers depend largely on only one raw material supplier in Phnom Penh. In this case, feed makers should have more choices in purchasing raw

materials with good prices and good quality. On the other hand, it is recommended to feed makers to avoid the sale on credit because if the credit accumulates, they do

not have enough capital to buy raw materials to operate the production.

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10. REFERENCES

1. Data of MSME project (2009-2012): Own pig feed making by project swine clients, swine sector MSME2

2. Own feed making (2012): by Ros Limhy “Lowering input cost in s wine production by

using potentially and locally available resources”, USAID Cambodia MSME project

3. Data of technical training (2009-2012): Clients trainings strengthening swine industry technical and business skills of swine sector, MSME2 project

4. Report of internal assessment results on feed making activities implemented by MSME project

5. H. Pettersson, etc. (2007): Controlling mycotoxins in animal feed, Swedish University of Agricultural Sciences, Sweden

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11. ANNEX

11.1. Evaluation Team

The evaluation team of DAC consisted of Dr. Meak Pramol, Mr. Heang Suo-Saravorn, and Ms. Eng Kagna. Below describes the brief role of each consultant.

11.1.1. Dr. Meak Pramol, Team Leader

- Oversee the overall standard and quality of the consultancy output - Formulate the evaluation research framework and plan

- Review analyze all the relevant secondary materials - Lead in the design and preparation of data collection tools

- Collect and review / analyze all relevant secondary materials; - Undertake field-level data collection

- Co-write the draft report - Co-present findings

- Finalize the report based on comments

11.1.2. Mr. Heang Suo-Saravorn, Associate Team Leader

- Provide insights into the overall Cambodian context based on non-verbal and cultural cues.

- Involve in formulating the evaluation framework and planning and preparing the data collecting tools.

- Collect and help review / analyze all relevant secondary materials;

- Facilitate the formulation of a data collection plan and schedule - Undertake field-level data collection

- Assist in data analysis, ensure that the report responds to the consultancy objectives - Preparation of appropriate data summaries (including writing of case studies)

- Co-write the draft report - Co-present findings

- Finalize the report based on comments

11.2. Scope of Work

Based on the TOR, DAC is responsible for:

1. Providing a work plan and timeframe for the assessment. 2. Collaborating with the swine team in conducting the assessment in terms of

designing, reviewing related documents, arranging fieldwork, etc. 3. Gathering information related to feed making in the target provinces through

individual interviews and focal group discussions, aiming at improving feed making operations.

4. Analyzing economic impact of feed making operations and its sustainability.

5. Analyzing how feed making marketing can be made applicable in the rural community.

30

6. Identifying the best practices and experiences of successful feed makers. In addition, identify constraints and issues contributing to inactivity or stoppage of feed making.

7. Investigating the reasons why some feed makers have abandoned feed making operations.

8. Preparing and conducting a preliminary findings presentation workshop to key actors including NGOs and other development projects that could integrate the findings into

their programs. 9. Finalizing and submitting the English report to the Cambodia MSME.

Prior to the above-mentioned responsibility, any changes were discussed with the MSME

project’s team and the DAC Consultants’ team.

11.3. Feed formulas of MSME project

Table 15. Formula for piglet (weaning to 20 kg)

Raw Material Percentage

(%) Unit Price

(Riel) Total Price

(Riel)

Broken rice 55 1,300 71,500

Soybean 10 2,800 28,000

Oily soybean 12 3,550 42,600

Milk powder 10 2,500 25,000

Fishmeal 5 3,200 16,000

Oil (cooking) 3 5,200 15,600

Pre-starter basemix 5 14,000 70,000

Total 100 268,700

Unit Cost (Riel/kg) 2,700

Table 16. Formula for fattening pig from 20 to 60 kg

Raw Materials Percentage

(%) Unit Price (Riel/kg)

Total Price (Riel)

Cassava 10 400 4,000

Corn 20 1,300 26,000

Milk powder 5 2,500 12,500

Rice bran 25 750 18,750

Fishmeal 4 3,200 12,800

Shrimp paste 4 2,600 10,400

Soybean 20 1,800 36,000

Mungbean bran 10 980 9,800

Oyster shell 1 750 750

Premix 0.50 14,000 7,000

Total 99.50 28,280 138,000


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Table 17. Formula for fattening pig from 60 to slaughter



Total Price (Riel)

Cassava 15 400 6,000

Corn 30 1,300 39,000

Rice bran 30 750 22,500

Fishmeal 3 3,200 9,600


Soybean 10 1,800 18,000



Premix 0.25 9,500 2,375

Total 102.25 115,825


Table 18. Formula for Pregnant sow



Total Price (Riel)

Cassava 20 400 8,000

Corn 20 1,300 26,000

Rice bran 35 750 26,250

Fishmeal 2 3,200 6,400


Soybean 10 1,800 18,000



Premix 0 14,000 0

Total 102 102,360


Table 19. Formula for lactating sow



Total Price (Riel)

Cassava 20 400 8,000

Corn 25 1,300 32,500

Cow milk 0 2,500 0

Rice bran 30 750 22,500

Fishmeal 3 3,200 9,600


Soybean 10 1,800 18,000



Premix 0.25 9,500 2,375

Total 102.25

111,325

Unit Cost (Riel/kg)

1,100

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11.4. List of interviewed people

Name Sex Occupation Address Tel.

Ty Sam Oeun M Feed maker Sambo district, Kratie 097 8219298 Ven Dara M Feed maker Kratie town 011 263008

So Si Yutha F Feed maker Sambo district, Kratie 077 690698 Chhun Chanthan F Feed maker Chit Borey district, Kratie 077 307106

Chim Yak M Feed maker Sambo district, Kratie 097 6761272

Phouk Chanserey M Feed maker Chit Borey district, Kratie 097 6442478 Hour Kim Mom M Feed maker Chit Borey district, Kratie 097 7491845

Mut Khorn M Feed maker Sambo district, Kratie 011 787138 Hem Rachny F Feed maker Kratie town 088 8316168

Chi Sam En F Feed maker Kratie town 017 249272 Suong Sineat F Feed maker Prey Chhor, Kg. Cham 092 890998

Hab Chorn M Feed maker Oraing Ov, Kg. Cham 092 520459

Kou Ket M Feed maker Koh Sotin, Kg. Cham 077 309230 Ros Sa Onn M Feed maker Steung Trang, Kg. Cham 017 473059

Than Vanna F Feed maker Chamkar Leu, Kg. Cham 012 552153 Sok Sokun M Feed maker Traing district, Takeo 092 210520

Kong Sarak M Feed maker Samrong district, Takeo 092 263390 Vang Mao M Feed maker Prey Kabas, Takeo 017 556943

Keo Bonarithy M Feed maker Bati district, Takeo 077 754524

Seung Virak M Feed maker Samrong, Takeo 017 527730 Chao Samnol M Feed maker Ek Phnom, Battambang 012 963002

Bin Sary M Feed maker Borvel district, Battambang 092 506035 Vong Sarey M Feed maker Borvel district, Battambang 012 606347

Chem Vanthoeun M Feed maker Phnom Prek, Battambang 012 389496 Oeu Saphoeun M Feed maker Banan district, Battambang 017 406467

Hong Dara M Feed maker Banan district, Battambang 012 932529

Ho Huot M Feed maker Krakor district, Pursat 012 974717 Bin Luong M Feed maker Krakor district, Pursat 012 590887

Siek Ren M Feed maker Bakan district, Pursat 012 263944 Sim Sokpheing M Feed maker Bakan district, Pursat 017 707295

Chan Saroeun M Feed maker Svaychrum, Svay Rieng 011 899594 Suos Yath M Feed maker Svay Rieng district, S. Rieng 011 251775

Hun Serey Vichara F Feed maker Bavet, Svay Rieng 097 5916223

Pov Theary M Feed user Kratie town, Kratie 0767048178 Hong Savuth F Feed user Kratie town, Kratie 011 205508

Hea Sokong M Feed user Kratie town, Kratie 011 260020 Kem Siep F Feed user Kratie town, Kratie 092 301151

Pheng Seil F Feed user Sambo district, Kratie 085 776020 Suon Sarin M Feed user Steung Trang, Kg. Cham 012 425090

Hy Vin M Feed user Steung Trang, Kg. Cham 089 682956

Prum Chheang M Feed user Steung Trang, Kg. Cham 088 9356851 Chres Vorn M Feed user Steung Trang, Kg. Cham 097 5875409

Prem Praing M Feed user Steung Trang, Kg. Cham 097 2563228 So Sieng Hy M Feed user Steung Trang, Kg. Cham 092 829914

Vet Soley M Feed user Steung Trang, Kg. Cham 012 992271 Tuon Samet M Feed user Samrong, Takeo 017 723034

Duk Hieng F Feed user Prey Kabas, Takeo -

33

Pen Kim Lorn F Feed user Prey Kabas, Takeo 089 602523

Chi Eng M Feed user Samrong, Takeo 089 723656 Mao Dong M PDA Tbong Khmum, Kg. Cham 012 559874

Chan Yuthea M Raw materials supplier Phnom Penh 077 987567

Oeng Chhaily M Raw materials supplier Phnom Penh 012 981678 Samrith Cheng F Raw materials supplier Phnom Penh 012 830094

Sok Sotheavuth M PDA PDA Svay Rieng 011 956 842 Kong Reatrey M PDA PDA Pursat 012 884 487

Toch Borom M Feed user Banan district, Battambang 012 438018 Hem Sam At M Feed user Banan district, Battambang 097 2444726

Hou Setha M Feed user Banan district, Battambang 012 821170

Yim Sarom M Feed user Banan district, Battambang 017 253387 Chhean Chanthea M Feed user Banan district, Battambang 092 985117

Say Roth M Feed user Banan district, Battambang 092 376237 Chea Khun M Feed user Bakan district, Pursat 092 143464

Mak Sarom M Feed user Bakan district, Pursat 012 670448 Poeun Savy F Feed user Bakan district, Pursat 089 485875

Say Sina M Feed user Bakan district, Pursat 092 570996

Chan Sinan F Feed user Svaytiep, Svay Rieng 097 3001942 Van Vy M Feed user S. Rieng district, Svay Rieng -

Noch Borin F Feed user S. Rieng district, Svay Rieng - Prach Sokuntheary F Feed user Kampong Roh, Svay Rieng -

Theuk Chan M Feed user Svaytiep, Svay Rieng - Chhim Tit M Feed user Svaytiep, Svay Rieng 011 340615

11.5. Questionnaires

animal feed assessment final report - united …pdf.usaid.gov/pdf_docs/pnaec939.pdf · ·...

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