Session 3 Presentation 1: Value Chain Analysis of Free Range Chicken (Cambodia)
Session 3: In-Country Presentations on Value Chain Studies (LSFM Pilot Projects)
Study 1: Value Chain Analysis of Free Range Chicken (Cambodia)
By Sim Kong, General Director, CEDAC Agri-based Enterprise Support Program
The value chain for free range chicken follows a typical product flow. Farmers or producers sell the chicken to middlemen, who add value by incurring transportation costs to bring the chicken to the whole sellers. The whole sellers, who do the slaughtering and processing, then pass this on to retailers such as supermarkets who in turn make the chicken available either directly to consumers or food processors (restaurants) who add even more value by preparing/cooking the chicken before this is finally bought and consumed by their clients. Through this entire process, the price of the chicken is increased from 13,000 Cambodian Riel (KHR) or US$3.29 (from the farmer) to 24,000 – 32,000 KHR or US$6.07 – 8.09 (to the consumer).
As part of the analysis, it was determined that there is a strong market demand for chicken because all classes of people eat this. Some concerns and issues in producing free range chicken that emerged are:
- Farmers do not know/count the cost of raising their chickens
- Small farmers are price-takers, not price-setters when it comes to selling chicken
- Small farmers are not getting much benefits through current market (because they are not producing enough)
- There are no market intermediation mechanisms to help small farmers
- There is no interaction between producers and consumers, though many local people support the product
- There is limited implementation of government policies and regulations on food safety and slaughterhouse management
Download the Cambodia Free Range Chicken VCA.ppt
