Frog value chain case study in Ho Chi Minh City Vietnam

Abstract

Frog is valuable product in Vietnam but the natural frogs are overexploited thus, the new model to raising frog is desired. Many species of frogs are cultured in Vietnam, especially in Ho Chi Minh City, for trial of the adaptive ability of exotic species in Vietnam condition. Recently, the frogs’ species from Thailand and Taiwan are prepotent and spread out Vietnam. Nowadays, frog culture becomes one of the newest industries in Vietnam. With a short life cycle, frog culture is farming as economic efficiency for farmers to get return. However, being a new industry, it is quite hard to manage the supply chain of frog. Developed from 2000, this industry production has been growing up and down many times due to the spontaneous development of farmers. Recently, frog farming has new potential horizon to progress firmly. There are new potential partners from US, EU, Taiwan, etc cooperating with Vietnamese farmers for lasting cooperation. This study tries to apply the theory of value chain to analyse the activities of participants along the linkages of frog farming around Ho Chi Minh City. Moreover, the fluctuation of the final price of this product is the biggest problem of farmers. There are many farmers who have to quit this industry because of the fall of price. Of course, the output price is impacted by many internal and external factors thus I want to point out the causers of the inordinary change of price and suggest solution for that. Supply chain of frog in Ho Chi Minh City is made up by four main actors: The hatcheries, the frog farmers, the whole salers and the retailers. Most of frog farmers are small scale and they raise frog with other aquatic products. Besides, the supporters such as medication, feed suppliers, and processing factories also adhere this chain and build up the added value for the final products of frogs. However, frog processing is not developed in Vietnam thus the export volume of this product is limited. Most of frogs are supplied directly to the market for consumers. This study has represented the map of frog value chain in HCMC, analyzed the cost and benefit of frog based on the data of farmers’ budget and the transmission prices along the chain. The superprofit and low cost of frog culture attract many farmers join in frog industry but the risk of unstable price let them give up quickly. Hatchery farm achieves more than 100% profit from selling juvenile for farmers. The farmers can obtain a profit of 0% to 250% per kg of frog. The net profit of wholesaler and retailers are more stable. About 11% of the frog value is added by the wholesalers and17% value is added by retailers. This study is conducted mostly in Son Ca Farm, Hoc Mon Distreet. Data is collected from many sources, most of them are primary data surveyed by questionares.