Transition towards sustainable and hygienic chicken slaughtering practices in Greater Jakarta: a scenario analysis

Transcription

1 Transition towards sustainable and hygienic chicken slaughtering practices in Greater Jakarta: a scenario analysis 21 NOVEMBER 2017 PETER VAN HORNE & COEN VAN WAGENBERG WAGENINGEN ECONOMIC RESEARCH

2 Demand growth provide opportunities to invest and improve standards (Rabobank, 2016) 2

3 Institutional context for private sector investments and improvements Objectives: Describe current state of affairs in the poultry slaughterhouse sector in Greater Jakarta from a policy and a private sector point of view Inform a public-private dialogue on how to balance the different public and private interests. Legal framework Investment and competition Public sector facilities 3

4 Who will implement? Government Businesses Civil Society Outputs & impact Implementation roles: Government regulatory framework, funding & enforcement Businesses investments, entrepreneurship Civil society (NGO s & knowledge sector) know how, awareness, capacity building

5 Current state of affairs in the sector Legislation: Adequate legal framework, but implementation difficult Enforcement not effective micro & small slaughter companies not licensed & fully registered Public facilities: Only facilities for maximum 10% of micro slaughterers in Greater Jakarta Incentives for microslaughterers to move are limited Investment & competition: No debt funding available for SME s wishing to invest in improvements Increasing competition from large integrators 5

6 Supply chain configurations Micro-slaughterers in residential areas Public slaughter facilities SMEs Integrators 6

7 Microslaughtering still predominates 75% of market, chickens slaughtered manually at small scale backyard facilities located in urban areas + Most employment, low costs - High food safety risks, high public health risk (spread of zoonoses), much transport, high environmental pollution 7

8 Public slaughter facilities limited size 10% of market, chickens slaughtered manually or semi-automatically in rented public facilities in designated areas + Much employment, low costs, some form of waste treatment, lower public health risks - High food safety risks, environmental pollution, much transport 8

9 Small and medium sized private slaughter houses 5% of market, chickens slaughtered mostly semiautomatically, facilities located on outskirts of town + Low food safety risks, low environmental pollution, low public health risks, less transport - Less employment, higher costs 9

10 Private integrators 10% of market, chickens slaughtered automatically in fully controlled hygienic conditions + Lowest food safety risks, lowest environmental pollution, lowest public health risks, lowest transport - Least employment, highest slaughter costs 10

11 Impact configurations on economy, environment, public health and food safety 11

12 Different scenarios for growth to 2025 (growth poultry market 4% per year) Scenario Employment 50% of the growth to public slaughter facilities, 50% to integrators Micro-slaughterers and SMEs remain at size of 2017 Scenario Public health 50% of the growth to public slaughter facilities, 50% to integrators All micro-slaughterers move to public slaughter facilities SMEs remain at the size of 2017 Scenario Food safety and environment 100% of the growth to integrators All micro-slaughterers move to public slaughter facilities SMEs remain at the size of

13 Effects of different scenarios 180% Impact per growth scenario on economic, environmental and public health indicators in 2025 (situation 2017 = 100%) 160% 140% 120% 100% 80% 60% 40% 20% 0% Employment chain excl. farm (number of workers) Chain costs excl. farm (IDR) Untreated waste units Total transport (km) Transport motorcycles live broilers (km) Scenario Employment Scenario Public Health Scenario Food Safety and Environment Warm chicken (percent) 13

14 Discussion questions How can we balance the different public and private interests? 1. How do you as stakeholders in the sector wish to prioritise the different objectives: a) Reduction of waste b) Reduction of transport with live birds c) Employment in the sector d) Affordability of the chicken meat for urban consumers (cost reduction) e) Cooled chicken meat 2. What policy would be needed to reach these priorities? 3. Is there a willingness among regional government agencies to invest the construction and maintenance of public slaughter facilities? 4. Would SME slaughterhouses invest in hygiene and a cool chain if it is possible to become fully registered and licensed? What policy change would be needed? 14

15 Thank you! Website: