Consolidation drives technology adoption in Vietnam
Vietnamese chicken producers are fast realizing that they need to invest in technology in order to consolidate the industry and maximize productivity.
The country's chicken industry is not doing well. Many producers have closed because of the pandemic. Before that, small farmers failed to withstand falling prices due to high supply. "The price of construction materials also increased, discouraging producers from investing in new farms” Ho Khan h Hai Thuan, Poultry Sales Manager at Big Dutchman Vietnam told Asian Poultry Magazine.
"In addition, profit margins are getting thinner. Farmers are thinking carefully before making decisions on new investment," Mr Thuan said. Only large holdings and breeder farms could invest in new technology, while small farms saw little new investment.
Technology adoption
New technologies are more common at white broiler farms and quick growing coloured broiler farms.
"Producers of these two broilers have already set up their closed-houses. It is easier for these farms to upgrade their facilities with new technologies," explained Mr. Thuan.
They focus on investing in automatic systems for the different aspects of production, management software, and Internet of Things.
"Depending on the financial capacity of the farms, the investment can range from simple to highly advanced automation” said Mr Thuan.
Management software and loT are the dominant technologies that have been installed at large farms, he revealed.
Inevitable investment
"Due to the adverse impact of Covid, investment in new technology has slowed down. However, this is only temporary. In the long term, investing in new technology is inevitable, because it helps producers reduce the risk of disease, solve labor shortages, and improve their performance, for better competitiveness," said Mr Thuan.