Đề tài Developing GAP systems for dragon fruit producers and exporters in Binh Thuan and Tien Giang provinces - Milestone 7

Ministry of Agriculture & Rural Development 037/04VIE Developing GAP systems for dragon fruit producers and exporters in Binh Thuan and Tien Giang provinces Milestone 7 Farmer Cluster Groups Applying Good Agricultural Practices (GAP) June 2007 Campbell J The Horticulture and Food Research Institute of New Zealand Ltd HortResearch Nelson Region PO Box 220 Motueka 7143 NEW ZEALAND DISCLAIMER Unless agreed otherwise, HortResearch does not give any prediction, warranty or assurance in relation to the accuracy of or fitness for any particular use or application of, any information or scientific or other result contained in this report. Neither HortResearch nor any of its employees shall be liable for any cost (including legal costs), claim, liability, loss, damage, injury or the like, which may be suffered or incurred as a direct or indirect result of the reliance by any person on any information contained in this report. CONTENTS Page BACKGROUND........................................................................................................................ 1 1. DOCUMENTATION OF GAP APPLIED BY CLUSTER GROUP SMALL-HOLDERS. 3 Farmer Selection .................................................................................................................... 6 Small-Holder Sector of Project Pilot Group Establishment................................................... 6 2. PROGRESS TOWARDS SMALL-HOLDER CERTIFICATION AS EUREPGAP COMPLIANT AND PERFORMANCE AUDITED.................................................................. 8 Choice of Quality System Standards...................................................................................... 8 Dragon Sruit Quality Manual ................................................................................................. 9 Stakeholder Skill Sevelopment .............................................................................................. 9 Associated Dragon fruit GAP Project .................................................................................. 11 3. BASIC ANALYSIS OF SMALL-HOLDER, AND EXPORTER FINANCIAL BENEFITS .................................................................................................................................................. 13 APPENDIX 1 ........................................................................................................................... 14 Benchmarking Questionnaire ............................................................................................... 14 APPENDIX 2 ........................................................................................................................... 21 VNCI Certification............................................................................................................... 21 1 BACKGROUND The implementation of the dragon fruit GAP project has been based on the development of people’s skills in good agricultural practices (GAP) principles. The people targeted have been: project personnel stationed at Southern Fruit Research Institute (SOFRI) and other SOFRI staff, Department of Agriculture and Rural Development (DARD) personnel in the two project responsibility provinces, dragon fruit exporters, packers and dragon fruit farmers both small and large holders (with priority given the project document requirement of addressing small-holders). The national capability has been developed by the project in a sustainable way and there has been an increasing awareness, understanding and confidence in GAP principles, especially in the project national team, which has been evident in their subsequent achievements. At the commencement of the project implementation, a benchmarking survey to define baselines for GAP being applied at the small farmer level was undertaken. 126 small-holder farms were surveyed in the Binh Thuan province and 30 small-holder farms were also surveyed in the Tien Giang Province. The purpose of the benchmarking survey was to define the level of operations on the small- holder farms compared with the documented standards of Euro-Retailer Produce Working Group; Good Agricultural Practice (EUREPGAP). EUREPGAP was chosen as the standard by which the farms would be compared, as this is the minimum standard that is accepted by the high value markets of the United Kingdom and Europe and the standard the project initiatives would seek to attain. Some 92 questions, based on the EUREPGAP standard, were asked of the farmer (Appendix 1 – Benchmarking Questionnaire) by the Vietnamese project team and assisted by young scientists from SOFRI. All data were subsequently translated into English, entered into a specially prepared database and analysed by HortResearch personnel. A Microsoft® Office PowerPoint® presentation (Refer to August 2006 Project Report: Appendix 2) was prepared by HortResearch and delivered to SOFRI staff and to DARD staff, packers and farmers of the Binh Thuan Province by the project leader during his March 2006 visit. The benchmarking database is held at SOFRI and portions of the database and Microsoft® Office PowerPoint® presentation have subsequently been used by SOFRI personnel for training and research purposes in dragon fruit and other crops. Observations and feedback from the benchmarking, survey preparations, implementation, and interpretation of the data collected, gave an early indication that a demonstration model to show and prove the viability of Good Agricultural Practices in the dragon fruit industry was needed before small-holders would respond to project initiatives for them to adopt GAP (the many constraints preventing small-holder farmers from adopting GAP have been documented in the project regular reporting). Figure 1. Benchmarking survey, questionnaire testing with small-holder dragon fruit farmers. A commercial model “Pilot” of dragon fruit exporter, packer, large farm and small-holders has been systematically developed by the project and is close to meeting the selected quality system standards. The pilot model was set up for two main purposes: 1. To prove the viability of the pilot when implementing GAP, quality systems and standards that would provide access to high value export markets 2. To establish the structure within the pilot that has a quality system embedded in the packhouse, to assist the small-holder dragon fruit farmer in implementing their quality systems, to provide uniformity of standards across the pilot, to be simple to operate, accurate and a low financial burden to operate. Following external audit and certification by a registered Certifying Body, the pilot will begin exporting to high value markets. It is at this time that the true value and costs of GAP implementation will be defined. It is expected that returns could be significant for the farmer and there will be little problem with attracting and holding the interest of the small and large holder at this time; indeed strong organisation of the industry and possible constraint could be required at a later date. This dragon fruit GAP project has placed great importance on a systematic delivery of the project objectives and the ultimate sustainability of the intended outcomes. To address the three bullet points of this report, it is necessary to outline the technology transfer progression/evolution of GAP from the project, firstly into the host Vietnamese Institution, SOFRI, and then out to the wider dragon fruit industry. When implementing a ‘people development’ project of this type, it is necessary/important to lift each prerequisite stage progressively to a high level of understanding prior to its replication and/or moving on to the next stage. 2 3 1. DOCUMENTATION OF GAP APPLIED BY CLUSTER GROUP SMALL-HOLDERS The following table documents the project training programme: Stage Area Component Prerequisite Training Outcome 1 Project management ƒ Project Leader ƒ Knowledge ƒ Acceptance ƒ Management ƒ Delivery ƒ Project exceeds expectations ƒ SOFRI Project Team ƒ Responsiveness to change training ƒ Ability to implement project obligations ƒ Motivation to pass on knowledge gained ƒ From project leader via mentoring, presentations, team interactions, etc. ƒ Learning from training delivery feedback ƒ Networking ƒ Study Tour: to New Zealand ƒ Formal courses: e.g. NZOQ Internal Auditor Course ƒ Complete understanding of the dragon fruit crop ƒ Being customer driven ƒ Complete understanding of quality systems and their implementation to the level of the adopted standards ƒ Peer recognition as experts in the field ƒ Respect for their competence in the project scope and nationally ƒ Increased demand on their quality knowledge transfer ƒ SOFRI Environment ƒ SOFRI leadership is quality driven ƒ SOFRI Leadership has set up a strong quality environment at the institute ƒ SOFRI staff quality motivated ƒ Project leader presentations ƒ Networking ƒ Mentoring ƒ Other obligations outside the scope of the project document ƒ Dr Nguyen Minh Chau has set up an excellent environment within SOFRI for project delivery and management ƒ All SOFRI staff are on the path to GAP learning and application/support ƒ Respect for Dr Chau has facilitated the smooth establishment of the project’s commercial “Pilot” and a start to national infrastructure development to support the high quality dragon fruit industry 2 Project delivery ƒ Benchmarking survey ƒ Project team with the necessary understanding and skills ƒ Test sample ƒ Training of young scientists ƒ Conducting the survey ƒ Learning through listening and observing ƒ Documentation of the GAP status of small-holder farms in relation to the EUREPGAP Standard ƒ Selection of farmers with project delivery potential ƒ Increased GAP understanding and capability of SOFRI and DARD staff ƒ Identification of a suitable packer/exporter for project GAP intervention 4 Stage Area Component Prerequisite Training Outcome ƒ Small-holder GAP project intervention ƒ Competent project team and trainers with the necessary understanding and skills ƒ Willingness to learn GAP principles ƒ Have access to necessary resources to make the physical changes needed ƒ Have the ability to understand and implement GAP ƒ GAP benefits extolled during the benchmarking survey ƒ Farmer group training through discussions, Microsoft® Office PowerPoint® presentations, demonstration, etc. ƒ Individual farmer training through discussions, farm mapping, and requirements needed to meet the standards, etc. ƒ HACCP surveys and training ƒ Health and Safety training ƒ Risk analysis and documentation ƒ Safe use of agrichemicals ƒ An increase in GAP understanding by small-holder dragon fruit farmers ƒ Initial training presented to a wide range of farmers previously selected through the benchmarking survey and DARD personnel ƒ Workable alternatives to small-holder farmers’ lack of commitment to take their level of GAP to the customer driven standards of EUREPGAP ƒ Project continues to recruit small-holder farmers for GAP intervention as they increasingly become committed ƒ Small-holder farmers are ready to flock to the GAP production of dragon fruit following proof of viability as demonstrated by the project pilot ƒ Infrastructure development Prerequisites for a dynamic quality driven dragon fruit industry include: ƒ Certified laboratory services for soil, leaf, water analysis ƒ Safe use of agrichemicals ƒ First Aid certification ƒ Internal auditing. ƒ Trainer of approved trainers ƒ Certifying bodies ƒ Standards development ƒ Problem solving, R & D Promotion, etc. ƒ Documentation of areas to be addressed ƒ Mentoring ƒ Study Tour observations of working systems Although outside the scope of the project document, this area has been encouraged by the project leader. Dr Chau’s quality systems skills and understanding and position of authority and respect have led to significant development in this area. ƒ Approved/certified/appropriate providers to service the quality needs of the dragon fruit industry to the standards demanded by the customer – BRC and EUREPGAP ƒ A competitive market for the service providers to ensure costs to the farmer are kept to a sustainable minimum ƒ A strong quality-driven, organised dragon fruit industry is established ƒ Pilot development ƒ A commercial packer/exporter of dragon fruit that has the resources, desire, skills and attitude to adopt the changes necessary to comply with the selected quality standards ƒ Quality advice for the ƒ Identification and project selling to the packer/exporter – an education/negotiation process ƒ Mutual respect between pilot and project team, particularly with the packer ƒ Identification of farmers for project quality intervention – farmers include large-holders ƒ Pilot packer/exporter selected and agreement to cooperate with the project ƒ Full cooperation by farmers with project team ƒ Implementation of systems and advice delivery ƒ Documented quality system developed – “Dragon 5 Stage Area Component Prerequisite Training Outcome packer/exporter to follow on its path to quality compliance – to work closely with the project team ƒ Establishment of a documented quality system ƒ A code of honesty, transparency and understanding ƒ A willingness to take the lead in the quality development of the pilot and to fulfil the system responsibilities to the “supplier” (small-holder) ƒ Allow the project to have access to all the data generated by the project initiative, for subsequent analysis and technology transfer to other dragon fruit groups (and other crops) and well as small-holders – an education/negotiation process ƒ Define the existing processes and train for changes necessary to facilitate compliance – general and very specific training ƒ Train individuals and groups to a level of proficiency for stakeholders to “understand”, “control” and improve all processes continuously ƒ Train the quality manager as leader of the “quality” responsibilities and in the role of self assessment (Internal Auditing) fruit Quality Manual” in English and Vietnamese written and presented to pilot ƒ Specific achievements in implementing the dragon fruit quality manual e.g. Product traceability, quality control, etc. ƒ Physical changes made in the packhouse and on the farms and services to facilitate compliance issues as directed by the project team ƒ Farm registration, location, mapping, documentation, etc. ƒ Supplier contract and schedule of costs agreed and signed between packer and farmer in compliance with the standards ƒ Honest, transparent and customer-driven supply, grade, pack and postharvest chain 3 Marketing ƒ Identify High Value Markets ƒ That the pilot has attained compliance with the BRC and EUREPGAP Standards and operates at that level at all times ƒ Train all pilot personnel to understand the processes, to keep those processes under control at all times and have the ability to improve them constantly ƒ Train to be customer driven ƒ Attain and maintain preferred supplier status with the customer and to work together to resolve any issues jointly ƒ BRC Global – Food Standards Certification at the packhouse: maintained ƒ EUREPGAP Standards Certification for all supplying farms: maintained ƒ Consistently high returns for product being exported ƒ Access to top-end markets through providing product that is safe, legal, of the quality and presentation demanded by the customer ƒ Good communication between customer, exporter, packer and farmer 4 Compliance ƒ External Audit ƒ Compliance of the pilot confirmed by internal audit ƒ Internal Auditor trained to the appropriate proficiency ƒ Corrective action process and implementation ƒ Good working relationships with Certifying Body ƒ External audit completed ƒ Corrective action implemented ƒ Sign off of changes ƒ BRC Global – Food Standards Certification at the packhouse ƒ EUREPGAP Standards Certification for all supplying farms 6 FARMER SELECTION The project has continuously encouraged the forming of cluster groups of small-holder farmers and for them to receive project training support. The project has continually included willing small-holder farmer individuals as well as cluster groups. During the benchmarking survey the opportunity was taken, when interviewing each farmer, to discuss the “project”, identify areas for improvement on the property and discuss issues and concerns of the farmer. During the survey, it was also a chance to identify farmers who would respond to the project initiatives with those identified being targeted to receive project GAP training. The survey identified that significant changes were needed right across the questionnaire scope to most properties, for them to be able to meet the standards of EUREPGAP. Indeed the benchmarking survey was the first project training initiative, as during the farmer interviews it was necessary to talk about GAP principles and how to achieve the necessary GAP standards as part of winning the farmer’s confidence, so that all questions could be answered in a relaxed and honest manner: some questions being of a sensitive nature for the farmer. The benchmarking survey was an excellent chance for the project team to deliver the project intentions to the region and to gain an indication of the best approach for project delivery. The benchmarking survey preparation and implementation enabled the project leader to define GAP competence at all levels of the project scope and the most appropriate approach for implementing the project’s documented outcomes in a sustainable way. It was found that most farmers targeted in the survey did not have resources to make the necessary changes for them to comply with the standards. Many farmers were found to be reliant on collectors to harvest and sell their dragon fruit. The combination of small farm size, poor agronomic practices and the farmer being dependent on the collector for finance that could involve pre-harvest advance payment for the crop indicated to the project that it would be difficult for the farmer to respond to the project GAP initiatives, no matter how strong the initial enthusiasm was. No provision had been made either within or outside the project to provide the resources the farmer would require to make the changes. It was also very difficult for the project to convince farmers with extremely limited resources to implement change when, because there was no precedent, the project could not guarantee that, until tested and confirmed, the farmer would increase profits from their dragon fruit crop. The project document scope determined that the poor farmer must be targeted for improvement. However, it was found during the initial project training programmes that, after initial enthusiasm to make change by the poor farmers, they quickly lost interest and did not attend more ongoing GAP training sessions. SMALL-HOLDER SECTOR OF PROJECT PILOT GROUP ESTABLISHMENT The project shifted its stance slightly by targeting farmers that had the willingness, ability and resources to exploit the project’s GAP training, to establish a pilot of a packer/exporter and a group of farmers that were serious about making the quality changes. Considerable urgency was placed