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 MS6: FOURTH SIX MONTHLY REPORT July 2007 1 Table of Contents 1. Institute Information 1 2. Project Abstract 3 3. Executive Summary 3 4. Introduction & Background 5 5. Progress to Date 6 Implementation Highlights 6 Smallholder Benefits 12 Capacity Building 13 Publicity 14 Project Management 15 6. Report on Cross-Cutting Issues 17 Environment 17 Gender and Social Issues 19 7. Implementation & Sustainability Issues 21 Issues and Constraints 21 Options 22 Sustainability 23 8. Next Critical Steps 23 9. Conclusion 24 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 Studies on mango and pomelo fruit quality characteristics have been carried out. Results will help establish fruit quality characteristics that will be used to develop quality guides for the marketing of mango and pomelo. Quality monitoring surveys to establish fruit defects have been carried out on mango by SOFRI staff. Fruit affected by sapburn ranged from 16% to 50% across 5 markets in Can Tho city. Market surveys conducted by Mr. Nissen on mango fruit being sold in northern Vietnam showed that fruit affected by Anthracnose was 34%, sapburn 52%, abrasion marks 21%, and pressure marks 30%, fruit fly 1% and fruit rots (stem end and other rots) 3% (See report on Survey of Mango Fruit Offered for Sale in Northern Vietnam). Many fruit had multiple defects severely affecting consumer acceptance and product saleability. CARD Project training of SIAEP and SOFRI staff and material supplied has assisted SIAEP in the delivery of training workshops for Metro in their joint project with GTZ and the Ministry of Commerce in Vietnam. Materials supplied and training carried out by this CARD project have assisted SIAEP staff in the ADB project and workshops to assist farmers in developing new agricultural supply chains to supply Metro stores with produce that meet their specifications, particularly on product quality and food safety. Training for of more than 700 farmers has been completed by SIAEP staff. Workshop evaluations have indicated that over 90% of farmers were very satisfied with material supplied and workshops conducted. The strategic plans developed as part of this CARD Project for mango and pomelo are being implemented by SIAEP and SOFRI team members. Considerable progress has been made on the top 5 priorities for both the Vietnamese mango and pomelo industries. 3 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. Need to improve the linkages between farmers – traders – customers, scientists and government also need to be involved 3. Need 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 programming production area 4. Training on IPM 5. Improving applicability of farming techniques and technologies of harvesting, packing and transporting Preliminary socio-economic farmer surveys on Xoai (Mango) cultivar “Cat Hoa Loc” farmers in the Hoa Hung Commune, Cai Be District, Tien giang Province in the Mekong Delta of Vietnam indicates that:- • Growers with high levels of management practices and high input levels obtain a profit of VND 15,105,000 per 1000m 2 , 2.1 times greater than growers with mid level management practices and mid level inputs and 3.7 times greater than grower with low level management practices and inputs. • For a 1000m 2 area of mango the average farmer input is VND 6,405,000. • The average yield per 1000m 2 is 960 kg. • The unit cost per kg of “Cat Hoa Loc” mango is VND 7,600. • Mangoes are mainly sold at local markets. It is recommended to improve income, farmers should develop market opportunities in HCMC and northern Vietnam. Preliminary surveys of Buoi (Pomelo) cultivar “Nan Roi” in the My Hoa Commune, Binh Minh District, Vinh Long Province in the Mekong Delta of Vietnam indicates that:- • Growers with high levels of management practices and high input levels obtain a profit of VND 3,576,000 per 1000m 2 , 2.4 times greater than growers with mid level management practices and mid level inputs and 3.9 times greater than grower with low level management practices and inputs. • For a 1000m 2 area of pomelo the average farmer input is VND 3,244,000 • The average yield pre 1000m 2 is 1,648 kg. • The unit cost per kg for Buoi “Nam Roi” is VND 2,100. • Pomelos are mainly sold at local markets. It is recommended that farmers to improve income they should develop market opportunities in HCMC and northern Vietnam and look at ways of direct selling to the consumer. 4 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 reasonable 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 affecting 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 powers 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 should increase returns resulting in greater employment at the local village 5 level. The flow on 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 Since mapping and conducting the SWOT analysis of the mango and pomelo supply chains considerable development has been made on developing new supply chains. Development of the action plans and the setting of responsibilities for SIAEP and SOFRI staff and supply chain participants have been carried out and substantial development into identifying key fruit quality characteristics competed. Determining fruit quality levels acceptable to farmers, collectors, wholesalers, traders and retailers for pomelo and mango were undertaken. These activities align with the proposed project activities 3, 5 6 7, 8, and 11 and project milestones 4, 7 and 9. For example, studies on pomelo cv. “Nam Roi” and “Da Xanh” have been carried out and data collected on fruit quality characteristics. Market requirement characteristics reported on include: Fruit shape • Skin Colour • Weight • General Appearance • Number of seed • Rind colour, thickness and easiness to peel • Flesh firmness, colour, juiciness flavour and separation flesh sacks from the segment locular wall. Studies on fruit quality characteristics for mango cv. “Cat Hoa Loc” and “Cat Chu” to develop market quality characteristics included: • Fruit shape, size, appearance • Skin colour • Brix levels • Damage and defects (sapburn, disease and pest, cuts punctures, abrasion marks etc.) See Appendix B for summary of pomelo and mango quality characteristics to be used for the quality manual guides for Vietnam’s pomelo and mango industries. Studies on mango sapbrun undertaken by SOFRI staff showed that the percentage of mango fruit affected by sapburn ranged from 16% to 50% with an average of 33% across 5 markets in Can Tho city. 6 Table 1. Percentage of sapburn mango fruit observed at retail markets in Can Tho City (main season 2005) Retail market Sapburn mango fruit (%) 3/2 market 41,5 Xuân Khanh 16,7 An Nghiep 50,0 An Hoa 31,3 Cai Khe Trade Centre 27,1 Source: Tran Ngoc Suong et al. 2006. Study on pre-harvest cultivation techniques and post- harvest treatments to improve fruit quality and to prolong post-harvest shelf-life of mango cv. “Cat Hoa Loc” in Can Tho provinces. Skin damage on mango, no matter how small has a significant effect on customer and consumer acceptability. Practices especially in South Vietnam have a sever effect on mango fruit quality and saleability. Skin damage caused by any of the following conditions: • environmental conditions (rainfall, wind, high temperature causing sunburn) • pre-harvest management practices (damage due to pest and disease sprays, abrasion or wind rub marks, incorrect tree pruning and training etc.) • post-harvest practices or transport and handling practices (during picking, grading, sorting and packaging causing abrasion, cuts, pressure and puncture marks). Fruit affected by anthracnose in the northern markets is common. Market surveys conducted by Mr. Nissen on mango fruit being sold in northern Vietnam showed that fruit affected by Anthracnose was 34%, sapburn 52%, abrasion marks 21%, and pressure marks 30%, fruit fly 1% and fruit rots (stem end and other rots) 3% (See report on Survey of Mango Fruit Offered for Sale in Northern Vietnam). Many fruit had multiple defects severely affecting consumer acceptance and product saleability. The disease Anthracnose (Colletotrichum gloesporiodies) severely affects mango post- harvest life and fruit quality. The fungus remains dormant on green fruit until it begins to ripen. As the natural resistance of green fruit breaks down, the fungus can grow unchecked unless post-harvest treatments to control the disease are applied. Therefore training on mango post-harvest physiology was conducted by the Australian team in July 2007. One demonstration conducted during this training showed the use of a mango stem sap remover which eliminates fruit sapburn. The use of this product alone will have a significant impact on fruit quality and post-harvest storage life of mango as it will also help stop fruit being affected by Anthracnose. Post-harvest treatment with Sportak ® is also recommended. In Australia there are two main treatments available. A hot dip using carbendazim (Spin flo®) or a dip or flood spray with prochloraz (Sportak®). Your choice of treatment depends on the level of disease in the orchard and the incidence of the other major fungus, stem-end rot. If stem-end rot is not a problem, you can treat with prochloraz alone; if it is a problem, you will need to use a hot carbendazim dip. Post-harvest treatment trials conducted a SOFRI on controlling Anthracnose have proven to be highly successful (see Appendix B) but skin scalding and browning and los of water from the fruit are evident. 7 For Vietnamese growers, adopting such practices will be difficult. Chemical costs, implementation of correct chemical dipping rates and controlling the hot water temperatures and treatment practices involve complex processes. In Australia, many mango growers still have significant problems with hot water treatment of mangoes and therefore this practise is left to a few professional operators who have equipment capable of achieving reliable results. It is recommended for Vietnam that a dip with prochloraz (Sportak®) be implemented to control Anthracnose as this procedure can be easily carried out at the farm level with training on chemical usage and dipping procedures. Many Vietnamese growers are not capable of carrying out hot water dipping treatments due to lack of equipment and specific knowledge to achieve repeatable and reliable results. New high value markets need to be developed before such practices can be implemented to justify costs of carrying out such practices at the farmer level. Development of new supply chains CARD Project training of SIAEP and SOFRI staff and material supplied has assisted SIAEP in the delivery of training workshops for Metro in their joint project with GTZ and the Ministry of Commerce in Vietnam. CopMart are also negotiating with SIAEP to develop new agricultural supply chains. Materials supplied and training carried out by this CARD project have assisted SIAEP staff in the ADB project and workshops to assist farmers in developing new agricultural supply chains to supply Metro stores with produce that meet their specifications, particularly on product quality and food safety. Training for of more than 700 farmers has been completed by SIAEP staff. Workshop evaluations have indicated that over 90% of farmers were very satisfied with material supplied and workshops conducted. These activities align with the proposed project activities 3, 5 6 7, 8, 11, and 12 and with project milestones 4, 7 and 9. Implementation of mango and pomelo strategic plans The strategic plans developed as part of this CARD Project for mango and pomelo are being implemented by SIAEP and SOFRI team members. Considerable progress has been made on the top 5 priorities for both the Vietnamese mango and pomelo industries listed below. These activities align with the proposed project activities 3, 5 6 7, 8, 11, and 12 and project milestones 4, 7 and 9. Top 5 Priorities for the Mango Strategic Plan:- Listing in Order of Importance for Mango Industry 6. Improve production process (e.g. follow GAP) 7. Need to improve the linkages between farmers – traders – customers, scientists and government also need to be involved 8. Need market information for export and domestic markets 9. Improve packing and storing procedures/Need technical support to improve storing, packing and packaging material 10. 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 6. Supporting techniques from seedling–farming-harvesting (Guidance for GAP) 7. Advice/counsel on standards/specifications of products 8 [...]... Project Manuals and Training Workshops 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 e Developing... November-December 2006 for 15 days Workshops for July August were • Post-harvest physiology and handling of mango • Designing workshop for mango and pomelo farmers in Vietnam • Developing quality assurance guides for mango and pomleo in Vietnam • Developing socio-economic supply chain evaluations and analysis for Vietnam • Development findings on new supply chains in Vietnam o New supply chain developments... 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 9 a b c d How to Develop a New Supply Chain Market Research and Segmentation Building and Marketing... commercial partners to maximise profitability from Queensland trade into Asian regions; the development of new training aids and material to assist Queensland and Vietnamese industries provide a product suited to the overseas target market ; and the provision of training in post-harvest fruit handling to approx 700 Vietnamese fruit growers and supply chain participants Governments and agribusiness enterprises... Training and pruning systems f Planting trees 8 Mango Post-harvest Physiology Manual a Post-harvest biology i Fruit ripening and quality loss ii Main causes of quality loss after harvest iii Post-harvest technology 1 Introduction to mango post-harvest physiology 2 Harvesting and field handling 3 Packhouse operations and practices 4 Ripening and storage 5 transport for mango 6 Know your market 7 Causes and. .. Developing new supply chians Training of researchers, extension agents and farmers on developing new supply chains was conducted by this CARD Project in November 2006 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... farmers Training manuals and PowerPoint presentations developed for workshops were: • Post-harvest physiology and handling of mango • Designing workshop for mango and pomelo farmers in Vietnam • Developing quality assurance guides for mango and pomleo in Vietnam • Developing socio-economic supply chain evaluations and analysis for Vietnam Publicity Two publicity articles were developed and sent to DPI&F in... workshops and visiting Emu Exports at Cam Ranh, Nha Trang province The CARD project will training farmers and supply chain participants on how Emu Exports Vietnam is implementing and maintain GAP principles (pre -and post- harvest), grade standards and their supply chain to markets These participatory action learning farmer workshops will be on IPM/IDM, harvesting, packaging, stacking and handling This... on GAP, IPM and IDM principles and inking these to other previous CARD Project (Dragon Fruit) and AADCP project • providing background information on the benefits of health and safety, environmental and social impacts of implementing GAP, IPM and IDM methods in new pre- and post–harvest practices • establishing supply chain maps for product, communication and monetary flows, infrastructure and skills... to them • usefulness of information provided :- 72% of participants indicated that the information would be very usefully in working with other professionals and growers to develop new supply chains, whilst the remaining 28% indicated that all the information would be useful • trainees use of methods and material :- 85% of participants indicated that training methods used and information provided would . 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 Agriculture & Rural Development CARD Project Progress Report 050/04VIE Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and supply. 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