Ministry of Agriculture & Rural Development CARD Project Progress Report 050/04VIE: Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and supply chain management MS8: FIFTH SIX MONTHLY REPORT January 2008 1 Table of Contents 1. Institute Information 1 2. Project Abstract 3 3. Executive Summary 3 4. Introduction & Background 4 5. Progress to Date 5 Implementation Highlights 5 Smallholder Benefits 11 Capacity Building 13 Publicity 15 Project Management 16 6. Report on Cross-Cutting Issues 17 Environment 17 Gender and Social Issues 18 7. Implementation & Sustainability Issues 20 Issues and Constraints 20 Options 21 Sustainability 22 8. Next Critical Steps 23 9. Conclusion 23 10. Statutory Declaration Error! Bookmark not defined. 1 1. Institute Information Project Name Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and supply chain management. Vietnamese Institution Southern Sub-Institute of Agricultural Engineering and Post-Harvest Technology (SIAEP) Vietnamese Project Team Leader Mr Nguyen Duy Duc, M. Eng. Australian Organisation Queensland Department of Primary Industries and Fisheries (DPI & F) Australian Personnel Mr. Robert Nissen Dr. Peter Hofman Mr Brett Tucker Mr. Roland Holmes Ms Marlo Rankin Date commenced June 2005 Completion date (original) May 2008 Completion date (revised) June 2008 Reporting period Progress Report 3 Six Monthly January 2007 Contact Officer(s) In Australia: Team Leader Name: Mr. Robert Nissen Telephone: +61 07 54449631 Position: Project Leader Fax: +61 07 54412235 Organisation Queensland Department of Primary Industries and Fisheries (DPI & F) Email: bob.nissen@dpi.qld.gov.au In Australia: Administrative contact Name: Michelle Robbins Telephone: +61 07 3346 2711 Position: Senior Planning Officer (Emerging Technologies) Fax: +61 07 3346 2727 Organisation Queensland Department of Primary Industries and Email: michelle.robbins@dpi.qld.gov.au 1 Fisheries (DPI & F) In Viet Nam Name: Mr Nguyen Duy Duc, Telephone: +84 (8) 8481151 Position: Director SIAEP Fax: +84 (8) 8438842 Organisation Southern Sub-Institute of Agricultural Engineering and Post- Harvest Technology (SIAEP) Email: siaep@hcm.vnn.vn 2 2. Project Abstract The fruit industry in Vietnam has a great potential and plays an important role in agricultural production. In 2003, Vietnam exported US$43 million of high value fruit to high-income countries and imported US$14 million of fruit and vegetables. Vietnam is experiencing difficulties in competing with other Asian nations in export markets and its own domestic market, especially with China and Thailand. This suggests that Vietnam’s horticultural industries require substantial development to be globally competitive. Vietnamese consumers are demanding safer and higher quality fruit. This project has identified key pre-and post-harvest technology gaps that reduce product quality, safety and consistency. Targeted training programs are focusing on the total supply chain and are providing benefits by helping to implement quality management systems and GAP systems at the village level, providing greater employment for the farming community. This project embraces the five CARD strategies for rural development; and in particular; strategies to increase production and competitiveness of agricultural systems; reduce poverty and vulnerability, and increase stakeholder participation whilst ensuring sustainability. 3. Executive Summary The strategic plans developed as part of this CARD Project for mango and pomelo are now being implemented by SIAEP and SOFRI team members. Four members of the CARD Project team from SOFRI and the Director of SOFRI attended the International Society for Horticultural Science, International Symposium on Supply Chain Management, “Improving the performance of supply chains in the transitional economies, Responding to the demands of integrated value chains” held in Hanoi Vietnam from 23-27 September 2007. Several excellent papers were presented by SOFRI staff to an international audience. One paper focused on analysis of supply chains using strengths, weakness, opportunities and threats analytical method for the tropical and subtropical fruit industry in Vietnam. Another talk focused on the Good Agricultural Practices (GAP) and how they related to the domestic and export market development for Vietnamese fruit. In January 2008 a meeting held with Metro Cash and Carry, Le Thi Minh Trang, Quality Assurance Manager and Stephane Maurin, Divisional Manager–Fresh Food to set up new supply chains for Vietnamese’s farmer cooperatives. Talks focused on setting up trial shipments of Cat Hoa Loc mango from 2 cooperative in the Tien Giang Province to Metro Cash and Carry in Ho Chi Minh City. Further economic studies were carried out on the production of high quality, high value Cat Hoa Loc mango fruit for speciality markets in HCMC by SOFRI Staff. This study found that fruit bagging during the May to August period could significantly increase incomes by 27% lifting socio-economic standings of farmers. 3 4. Introduction & Background Fruit and Vegetable crops are highly lucrative compared to staple crops. Horticultural produce has high value-added and income generation potential when compared to livestock and grain production. Horticulture is highly attractive especially for small scale farmers, and has a comparative advantage, particularly where land holdings are small, labour is abundant and markets reasonably accessible (Weinberger and Lumpkin, 2006). This situation is particularly true in Mekong Delta and Central South Cost Province of Khanh Hoa, Viet Nam. Ford et al., (2003), suggested the competitiveness of Vietnamese fruit industries were failing due to poor, unstable product quality, no quality standards, poor post harvest technologies and pre-harvest practices, lack of group co-operative marketing structures and little information about supply chains, prices and customers needs. This project is addressing these constraints by engaging with key Vietnamese stakeholders from research institutes (SIAEP and SOFRI) and local farmers in the mango and pomelo industries in Southern Viet Nam. This project has taken account of the total supply chain network and focused on where significant benefits are to be gained in the pre- harvest, post- harvest and marketing sectors. The objectives of the project are: • Improved pre-harvest technologies to produce high quality mango (integrated pest management, integrated crop management, fruit fly control, maturity indices, reduced pesticide residues, better environmental and human health etc) • Improved mango and pomelo post-harvest technologies (eg cool chain management, packaging, post-harvest dipping, ethylene ripening, waxing, washing and wetting agents, quality assurance) • Improved quality standards and quality assurance programs for mango and pomelo. The approach and methodologies developed for these crops through this project will be applied to other fruits and vegetables. • Mapping of current supply chains to domestic and selected export markets, with particular emphasis on determining consumer preferences and needs, and reporting results back to farmers. • Provide a better understanding and possible improvements of the supply chain by Viet Namese fruit industries for mango and pomelo. This project will fill capacity gaps and reduce major weaknesses in pre-and post-harvest technologies improving product quality consistency and supply chain management and planning. Highly specialised targeted training programs appropriate for institutions and industry stakeholders will be provided. At the local village and district level, cluster development of farmer/grower groups should ensure better on-farm prices. This will increase power to these farmers which will benefit all members of the supply chain (intermediaries to retailers) rather than the present power brokers in the chain. Farm incomes will therefore increase and result in better standard of living for rural families. In addition, if quality management systems are implemented at the village and district level through more appropriate fruit quality standards, packaging and grading systems, increase returns should result creating greater employment. The flow on 4 effects of this will benefit the poor in the rural areas, and specifically help provide more jobs for rural women. 5. Progress to Date Implementation Highlights Implementation highlights of CARD Project activities Training in GAP and IPM/IDM The strategic plans developed as part of this CARD Project for mango and pomelo are now being implemented by SIAEP and SOFRI team members. These activities align with the proposed project activities 3, 4, 5, 6, 7, 8, 11, 12 and 13 and project milestones 4, 7, 9 and 10. Top 5 Priorities for the Mango Strategic Plan:- Listing in Order of Importance for Mango Industry 1. Improve production process (e.g. follow GAP) 2. Improve the linkages between farmers – traders – customers, scientists and government also need to be involved 3. Assessable market information for export and domestic markets 4. Improve packing and storing procedures/Need technical support to improve storing, packing and packaging material 5. Government to help with planning and development for specialised fruit growing area Top 5 Priorities for the Pomelo Strategic Plan:- Listing in Order of Importance for Mango Industry 1. Supporting techniques from seedling–farming-harvesting (Guidance for GAP) 2. Advice/counsel on standards/specifications of products 3. Intensively farming and production areas 4. Training on IPM 5. Improving applicability of farming techniques and technologies of harvesting, packing and transporting In September-October 2007 and January-February 2008 CARD Project training of mango and pomelo farmers via farmer schools was conducted by SIAEP and SOFRI and Australian personnel. This training focused on: • the development of GAP including pest and disease management (IPM/IDM) for both mango and pomelo • improving pre- and post-harvest farming techniques and technologies for mango and pomelo • improving linkages between growers, traders, customers, scientists, extension agents and government. This training aligns with the strategic priorities for mango and pomelo: • Priority one and two for mango • Priority one, two, three, four and five for pomelo 5 CARD project capacity building (demonstration of skills obtained) To document and test the competencies of SOFRI staff in applying supply chain analysis and methodologies and quality assurance procedures (CARD Project milestone 10), four members of the CARD Project team from SOFRI and the Director of SOFRI attended the International Society for Horticultural Science, International Symposium on Supply Chain Management, “Improving the performance of supply chains in the transitional economies, Responding to the demands of integrated value chains” held in Hanoi Vietnam from 23-27 September 2007. Several excellent papers were presented by SOFRI staff to an international audience. One paper focused on analysis of supply chains using strengths, weakness, opportunities and threats analytical method for the tropical and subtropical fruit industry in Vietnam. Another talk focused on the Good Agricultural Practices (GAP) and how they related to the domestic and export market development for Vietnamese fruit which aligns with CARD project milestone 7 and 10 and activities 8, 9, 10, 11, 12 and 13. SOFRI Teams member who attend the conference were: o Dr Nguyen Minh Chau (Director of SOFRI) o Nguyen Van Hoa o Le Thi Thu Hong o Tran Nguyen Lie Minh o Ta minh Tuan Mr Nissen also presented two papers to this conference. One of Mr Nissen’s papers detailed the development of new processes for evaluation and implementing new improved supply chains operating in South-East Asia. This paper aligns with milestone 4 and 7, methodology and analytical techniques and training material for supply chain analysis and development and key issues and options for improved supply chain management as well as the roles and responsibilities and implementation process to improve supply chain in South-East Asia (See Appendix A for a copy of this paper). Development of new supply chains In January 2008 a meeting held with Metro Cash and Carry, Le Thi Minh Trang, Quality Assurance Manager and Stephane Maurin, Divisional Manager–Fresh Food, focused on setting up trial shipments of Cat Hoa Loc mango from 2 cooperative in the Tien Giang Province to Metro Cash and Carry in Ho Chi Minh City. Quality guides developed as part of this CARD project (Milestone 4) and now being finalised and will be used to assure product quality of the Cat Hoa Loc mango during these trial shipments to Metro. Four different packaging systems will be employed in these trial shipments and experiments. These experiments will determine the most economically viable and appropriate packaging system for Cat Hoa Loc Mango in Southern Vietnam. This aligns with CARD project activities 8, 9, 10 and 13 and with priority 4 and 3 of the mango strategic plan developed by this CARD Project. Farmer training schools and workshops conducted September-October farmer training schools Training in September–October 2007 was carried out by the Vietnamese staff of SIAEP and SOFRI institutes and Australia personnel. Courses were conducted in My Tho, Tien Giang Province and at Nha Trang, Khanh Hoa Province, Vietnam for both mango and pomelo farmers. Intensive farmer schools and training workshops were one day in length and structured as: 6 • Day one - pre-harvest training • Introduce supply chain concept o Analysis of the Vietnamese supply chains • Pre harvest (based on GAP) o Orchard design o Orchard pruning and training o IPM training o IDM training • Day two - post-harvest training o Post harvest • Handling • Harvesting (picking) • Sorting and grading • Packing • Storing The process employed during training workshops and farmer schools allows farmers, extension agents and researchers to discuss ideas, develop solutions to problems encountered in developing improved post-harvest practices and new supply chains. Workshops conducted in September-October 2007 and January-February 2008 by Australian trainers were held at SIAEP and SOFRI training rooms as well as military training rooms in My Tho. Whilst these workshops were specifically designed as farmer schools, using participatory action learning principles, trainers researchers and extension agents were in attendance (see Appendix B for farmer group discussion notes taken during farmer training schools and Appendix C for list of participants). January-February 2008 farmer training schools Training in January-February 2008 was carried out by the Australia personnel. Courses were conducted at SOFRI, Tien Giang Province, Vietnam. Rowland Holmes and Robert Nissen conducted a two day workshop for the trainer and farmer training school on mango pests and diseases. These training activities listed above align with project activities 6, 7, 11 and 12 and project milestones 7, 9 and the Strategic Plans for mango and pomelo developed by this CARD Project (see Appendix C for list of participants). Development of new supply chains for mango and pomelo In September-October 2007 and January-February 2008 further workshops were conducted and analysis of data collected for the development of quality guides in consultation with the supply chain participants for mango and pomelo. In January-February 2008 an overview of the draft copy of the Cat Hoa Loc mango Quality Guide was shown and discussed with Metro Cash and Carry Le Thi Minh Trang, Quality Assurance Manager and Stephane Maurin, Divisional Manager–Fresh Food to determine their needs and input. These activities align with CARD project Milestone 4 and activities 8, 9, 10, 11, 12, and 13 and with focus on further development of “Metro” type supply chain as suggested by the CARD PMU in their MS6 appraisal report. Socio-economic analysis of supply chains 7 In September-October 2007 and January-February 2008 further workshops were conducted on gathering socio-economic data of mango and pomelo supply chain in the Mekong Delta of Southern Vietnam. Analysis of data is continuing and further data collection and analysis is being undertaken by the Vietnamese institutes SIAEP, SOFRI and Australian personnel. These activities align with CARD project activities 8, 9, 10, 12 and 13 and milestones 7, 9 and 10. Workshop evaluations The ORID system was used to evaluate the effectiveness of the eight farmer training schools and workshops conducted in September-October 2007 and January-February 2008. Both Vietnamese farmers and SIAEP and SOFRI staff were surveyed at the completion of each workshop. The workshops conducted were: • Mango and pomelo orchard management • Mango and pomelo pre-harvest management to optimise product quality • Mango and pomelo post-Harvest management to optimise product quality • Mango orchard management and IPM/IDM to optimise product quality Analysis of the workshops for September-October 2007 using the ORID system showed on average that:- • workshop length:- range was from 70% to 90% with an average of 83% of participants found that the workshops were of the right time length with the remaining 17% indicating that they were too short. These participants indicated workshops should be between three to 5 days in length. • trainees understanding of concepts:- range was from 65% to 70% with an average of 68% of participants understood the concepts very well, with the remaining 32% understanding concepts well. • new information:- for the orchard management workshops, 85% of all participants indicated that information presented was new to them with the remaining 15% indicating most of the information was new to them. For the pre-and post-harvest management workshops, 65% of all participants indicted that information presented was new to them with the remaining 35% indicating most of the information was new to them. • usefulness of information provided:- range 75 to 86% with and average 79.5% of participants indicated that the information would be very usefull in working with other professionals and growers to develop new supply chains, whilst the remaining 20.5% indicated that all the information would be useful. • trainees use of materials:- range 90 to 95% with an average of 92% of participants indicated that training methods used and information provided would be used by them. • trainees confidence in using techniques and methodology:- range 90% to 100% with an average of 95% of participants indicated that their confidence would improve with further training. • cultural barriers:- range 34% to 47% with an average of 40% of participants indicated that there may be some cultural barriers in implementing new methods, whilst 20% were unsure and 40% believed there were no barriers for post harvest workshops. • For orchard management and pre harvest workshops range 30% to 47% with an average of 50% of participants indicated that there may be some cultural barriers in implementing new methods, whilst 30% were unsure and 20% believed there were no barriers. 8 [...]... part of this CARD Project CARD Project workshop manuals developed to date are: 1 Introduction to Food Supply/ Value Chains 2 Developing Food Supply/ Value Chains 3 Improving Export and Domestic Markets for Vietnamese Fruit through Improved Supply Chain Management a Strategic Planning b Mapping and Developing Supply Chains c Analysing Supply Chains d Determining Improvements and Developing new Supply Chains... improved for domestic and export markets Export of quality mangoes and pomelo becomes more likely through improved supply chain management Better trained postharvest staff able to deal with supply chain issues Increased understanding of whole of supply chain issues and increased ability to manage problems within the supply chain Identification of key capacity weaknesses and gaps Assumptions Vietnamese. .. etc Improved technical expertise through international linkages Training will be provided to farmers, supply chain members and researchers, to improve quality of fruit for domestic and export consumption Post-harvest losses will be reduced from the current 30% level Cluster formation will be facilitated, and benefits for other fruits and areas promoted Quality of mango and pomelo fruit is improved for. .. for the Vietnamese trainers and farmers who will then conduct further training of the Vietnamese farmers in pre- and post-harvest handling of mango The information supplied and discussed in this workshop will be used to develop the Vietnamese farmers training workshops and manuals for improving the mango supply chains Workshops for September-October were:• Introduction to supply chains o Analysis of. .. farmer level and Vietnamese institute levels during this project For example, SIAEP, conducting ASEAN Training on Post-harvest technologies for fruit and vegetables and SOFRI Staff presenting to an International audience on Vietnamese supply chain strengths, weaknesses, opportunities and threats and the implementation of GAP principles and the affects on Vietnamese s domestic and international markets The... techniques and training material for supply chain analysis and development o Supply Chain maps for mangos and pomelo o Strategic Plan for mangos and pomelo o Mango post-harvest training and physiology manual completed o Quality assurance manuals for mango and pomelo - near final draft stage Milestone 5 January 2007 (Submitted and accepted) o 3rd Six monthly report submitted and statutory declaration and training... by SOFRI, SIAEP and Australian personnel These activities align with CARD project activities 8, 9, 10, 12 and 13 and milestones 7, 9 and 10 12 Developing new chains This CARD project through SIAEP and SOFRI staff are working with the various groups of the supply chain participants (farmers groups to consumers) in the mango and pomelo supply chains in Vietnam For example :- Three different supply chains... f Evaluating and Monitoring Supply chains 4 Supply/ Value Chain Analysis: Surveys and Interview techniques and questionnaires Design 5 Quality Flows: Monitoring Quality via Sequential Sampling of Mango and Pomelo down the length of the Supply/ Value Chain 6 Developing New Improved Horticultural Supply Chains a How to Develop a New Supply Chain b Market Research and Segmentation c Building and Marketing... encourage and support the role of women in the design and implementation of project objectives and outputs This project recognises the vital role women play at all levels of both mango and pomelo supply chains Women dominate the post-harvest marketing and sale of the fruit in Vietnam They often represent the majority of collectors, wholesalers, traders and retailers in local and regional markets Greater... completed in the second half of 2008 The development of new supply chain will rest with supply chain champions who want to improve their performance, product quality and income Therefore the development of these new supply chains:• cannot be enforced by the researchers and extension agent • researchers and extension agents can assist supply chain champions with technical advice and training workshops to . Information Project Name Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and supply chain management. Vietnamese Institution Southern Sub-Institute. Improving Export and Domestic Markets for Vietnamese Fruit through Improved Supply Chain Management a. Strategic Planning b. Mapping and Developing Supply Chains c. Analysing Supply Chains d Ministry of Agriculture & Rural Development CARD Project Progress Report 050/04VIE: Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and supply