Đề tài Improvement of export and domestic markets for Vietnamese fruit through improved post-Harvest and supply chain management - Milestone Report 4

1 Ministry of Agriculture & Rural Development Milestone Report 4 Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and supply chain management. CARD Project 050/04VIE Milestone Report 4 Date June 2008 1 Table of Contents Institute Information .................................................................................................................... 2 Project Abstract........................................................................................................................... 4 Executive Summary..................................................................................................................... 4 Introduction & Background ......................................................................................................... 5 Methodology, techniques and training material for supply chain analysis and development in Southern Vietnam for mango and pomelo .............................................................................................................................................. 6 Created and constructed supply chain maps for mangos and pomelo ...................................................................... 7 Validation of strategic plans developed for mango and pomelo................................................................................ 7 Smallholder Benefits .......................................................................................................................... 14 Capacity Building ............................................................................................................................... 15 Publicity ............................................................................................................................................. 16 Project Management .......................................................................................................................... 16 Report on Cross-Cutting Issues ................................................................................................ 17 Environment ...................................................................................................................................... 17 Gender and Social Issues................................................................................................................... 19 Implementation & Sustainability Issues ..................................................................................... 19 Issues and Constraints....................................................................................................................... 19 Options .............................................................................................................................................. 20 Sustainability ..................................................................................................................................... 21 Next Critical Steps ..................................................................................................................... 21 Conclusion ................................................................................................................................ 22 2 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 Date commenced September 2006 Completion date (original) May 2008 Completion date (revised) December 2008 Reporting period Milestone Report 4 3 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 Fisheries (DPI & F) Email: michelle.robbins@dpi.qld.gov.au In Vietnam 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 4 Project Abstract Executive Summary Methodology, analytical techniques and training material for supply chain analysis and development in Southern Vietnam for mango and pomelo were provided in April 2006. Supply chain maps for mango and pomelo were constructed with the Vietnamese project participants. Strategic Plans were developed during April 2006 and refined during following visits via consultation and further data collection of industry statistics. Baseline surveys were also conducted for mango in Tien Gien and Khanh Hoa provinces and for pomelo in the Vinh Long Province. In total, over 120 farmers, 30 collectors and 20 wholesalers were interviewed by the Vietnamese collaborators to obtain vital information on how the mango and pomelo supply chains are operating. Initial fact finding and surveys indicate that Good Agricultural Practice (GAP), Integrated Pest Management IPM and Integrated Disease Management IDM issues are the largest issues affecting fruit quality in both mango and pomelo supply chains. GAP manuals are being developed based on current, and newly developed Asian GAP principles. Initial drafts of manuals have been completed for Mango Cultivation Handbook, Mango Pest Control Handbook, Mango Disease Handbook and Pomelo Cultivation, Pest and Disease Control Handbook, and further development of manuals was completed in January 2008. Post-harvest handbook for mango was being developed in collaboration with SIAEP and SOFRI staff. Workshops have been conducted using participatory action learning processes to enhance the knowledge of SIAEP and SOFRI staff. Workshops were conducted on: • developing an understanding of how supply chains function • developing supply chain maps on product movement, information and monetary flows 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. 5 • a strengths, weakness, opportunity and threats (SWOT) analysis • a supply chain process analysis, that identified problems and solutions for mango and pomelo supply chains • developing strategic and action plans for mango and pomelo supply chains During April 2006, workshops were also held in villages with mango and pomelo growers and with collectors to discuss supply chain maps, the SWOT analyses and strategic plans. This enabled adjustment to the plans developed at earlier workshops, and allowed support and input from a wider cross section of farmer/growers. Information from all of these sources was then used to develop the final industry mission statements, strategic and actions plans. These objectives will be implemented during this project. The Objective, Reflective, Interpretive, and Decisional analysis (ORID) system was used to evaluate the effectiveness of the workshops. Fifty percent of the workshop participants understood workshop concepts very well, while the remaining 50 percent said they were satisfied with their understanding of workshop concepts. Eighty three percent of the group indicated they would be confident in using these concepts with other supply chains and this training fulfilled their expectations. Benefits to grower/farmer involvement in the workshops and training exercises has been shown through one group being stimulated into proactively addressing and developing new harvesting, handling and packaging systems which improved their first grade pack out percentage by 10%, thus providing greater socio-economic benefits to the village and the wider community. Introduction & Background Ford et al., (2003) analysed the constraints to the competitiveness of fruit industries in Vietnam and identified: • poor unstable product quality • no quality standards • poor post harvest technologies • poor pre-harvest practices • lack of group co-operative marketing structures • little information about supply chains and prices and customers needs. Stakeholder/beneficiary analysis of fruit crops in the Mekong delta showed that both mango and pomelo (with 33 000 ha and 9 000 ha respectively) are very important fruit crops in Southern Vietnam. The objectives of this CARD project 05/04 VIE are to: • Improve 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) 6 • 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 Vietnamese fruit industries for mango and pomelo. This CARD project fills capacity gaps and reduces major weaknesses in pre-and post-harvest technologies affecting product quality consistency and supply chain management and planning. Highly specialised targeted training programs and research appropriate for institutions and industry stakeholders were provided to complete this CARD Project 05/04 VIE Milestone 4. CARD Project Milestone 4 focused on the development of supply chain training workshops and manuals. These manuals were translated into Vietnamese. Participatory action learning and farmer’s extension school activities were conducted for trainers in Southern Sub-institute of Engineering and Post-harvest Technologies (SIEAP) and Southern Fruit Research Institute (SOFRI) and for mango and pomelo supply chain participants (retailers, wholesalers, transporters, collectors and farmers). These were delivered as per the project objectives. These workshops and manuals were developed by the Department of Primary Industries and Fisheries (DPI&F) in collaboration with the University Of Queensland (UQ) and the collaborating Vietnamese’s institutions of SIAEP and SOFRI. As per the milestone 4 schedule the team provided: o Methodology, analytical techniques and training material for supply chain analysis and development in Southern Vietnam for mango and pomelo o Created and constructed supply chain maps for mangos and pomelo with the Vietnamese participants o Developed strategic plans for mango and pomelo with the Vietnamese participants Implementation Highlights Methodology, techniques and training material for supply chain analysis and development in Southern Vietnam for mango and pomelo The Australian team members developed the methodology, training techniques and new training material (CARD Project manuals and supply chain analysis processes) based on processes and manuals previously developed by: • Qld DPI&F for two International ACIAR (Australian Centre for International Agricultural Research) Projects • Australian Government, New Industries Development Program, Department of Agriculture, Fisheries and Forestry Australia, Supply Chain Management in Agribusiness Learning from Experience Workbook • Australian, National Food Industry Strategy, Food Chain Capability Development Program Workbooks: o Facilitator Reference Manual o Participant Resource Manual 7 o Value Chains, Chain Awareness, The Competitive Edge, Participant Workbook A manual for strategic planning, supply chain analysis and mapping was developed and supplied to all participants who attended the training schools (See Appendix A). A training process (Detailed Session Plan) was specifically developed based on this manual (See Appendix B). This detailed session plan was developed to assist trainers in conducting these training workshops. Examples of process analysis sheets were also developed and supplied (See Appendix C). Theses manuals and training guide were specifically developed to assess the mango and pomelo industries in Southern Vietnam and can be easily adapted for other commodity groups in Vietnam. Create and construct supply chain maps for mango and pomelo Three Australian team members travelled to Vietnam in April-May 2006 to conduct capacity building exercises and run a series of 6 workshops on strategic planning and analysis of existing supply chains and development of new supply chains. These workshops used participatory action learning processes and capacity building for SIAEP and SOFRI staff to develop: • supply chain maps for both mango and pomelo • conduct a strengths, weakness, opportunity and threats analysis • carry out a supply chain process analysis • develop strategic plans for mango and pomelo supply chains for participating CARD project members. (See Appendix C) CARD Project members participating in these workshops were SIAEP and SOFRI staff, farmers, collectors, traders, wholesalers and marketers etc., (See Appendix D). All were involved in a participatory action learning process (farmer type schools) to develop the supply chain maps, carry out SOWT analyses and develop the strategic plans. All members participated in the supply chain process analyse. See Appendix E for supply chain maps and SWOT analysis. The following CARD workshops in 2006 and 2007 built upon these strategic plans and a deeper analysis of the existing supply chains was undertaken. New supply chains were developed and trials conducted on these new chains to assess their socio-economic benefits to local farmers through the use of improved postharvest techniques, practices and management systems. Validation of strategic plans and action plans developed for mango and pomelo Workshops were also held in villages with mango and pomelo growers (see Appendix F) and with collectors to discuss supply chain maps, the SWOT analyse and strategic plans developed at previous workshops and to adjust and obtain input from a wider cross section of farmer/growers. This consultative and participatory action learning approach (farmer schools) are designed to empower the rural poor in the decision making processes. Based on the agreed vision, goals and future direction for both the mango and pomelo CARD project participants developed action plans based on the strategic plans. These action plans for both the mango and pomelo supply chains aligned with this CARD Project objectives. Therefore, 8 the action plans developed indicate the project activities and project direction for the next 2 years (2007-2008). Baseline Surveys Supply chain baseline surveys were conducted by SIEAP and SOFRI staff for mango in Tien Giang and Khanh Hoa Provinces and for pomelo in the Vinh Long Province. Mango and pomelo production for the relevant regions revealed: • Mango o South East Vietnam:- 18 685ha producing 70 622 tonnes annually o Mekong Delta:- 22 001ha producing 193 383 tonnes annually o Khanh Hoa Province:- 5 800ha producing 18 800 tonnes annually • Pomelo o South East Vietnam:- 1 422ha producing 12 932 tonnes annually o Mekong Delta:- 8 298ha producing 108 916 tonnes annually About 20% of Vietnam’s population live in the Mekong Delta Region with 85% living in rural areas. About 80% of rural farms range in size from 0.5 to 2ha. The lower poverty line defined by Vietnamese General Statistics Office (GSO) is; expenditure per capita required for securing a minimum nutritional requirement (2100 calories per day). Therefore, the poverty rate below the lower limit calculated by the (GSO) in 2003 showed that the total poverty percentage for each Vietnamese region where this project is operating is: • Mekong Delta 23.7% • South Central Coast 25.9% These percentages are lower than Vietnam’s average poverty rate of 28.85 percent. The only other region to record a poverty rate below this is the Red River Delta region (22.4%). The rural poverty rates have the similar trends and are: • Mekong Delta 26.56% • South Central Coast 31.27% In total, over 120 farmers, 30 collectors and 20 wholesalers were interviewed by the Vietnamese collaborators to obtain vital information on how the supply chains for mango and pomelo are functioning in Vietnam. Surveys were conducted at the end of the project for document comparisons and benefits obtained. These will be presented in Milestone Report 10. Survey data was presented at the first workshop during the second project trip in April-May 2006. Information obtained was then used in subsequent workshops to develop models of the supply chains for mango and pomelo in Vietnam, and to develop the strategic plans for mango and pomelo. Brief Summary of Mango Baseline Survey Information • Total Mango area and production for the South East is 18 685 ha producing 70 622 tonnes/year, Mekong Delta Region 22 001ha producing 193 383 tonnes/year and Khanh Hoa Province 5 800ha, producing 18 800 tonnes/year. • Vietnamese consumers regard the “Cat Hoa Loc” as the number one variety in Vietnam. 9 • In the Mekong Delta, about 72% of mango fruit are transported from farm to collector by boat, but in Khanh Hoa Province 100% are via some form of road transport. Farmers, collectors and wholesaler believe that only 1-2% of fruit is damaged during transport in 30 to 50 kg bamboo baskets or crates. • In the Mekong Delta a small percentage of mango is graded at the farm level but most fruit are graded and sorted at the collector and then again at the wholesaler level in the supply chain. In contrast, for Khanh Hoa Province, about 54% of farmers grade their fruit. • In the Mekong Delta there are three basic grades, Class 1:- 420-500g, Class 2: