Đề tài Developing GAP systems for dragon fruit producers and exporters in Binh Thuan and Tien Giang provinces - MS6

Ministry of Agriculture & Rural Development CARD Project Progress Report 037/04VIE Developing GAP systems for dragon fruit producers and exporters in Binh Thuan and Tien Giang provinces MS6: Fourth Six-Monthly Progress Report April 2007 1. Institute Information Project Name Developing GAP systems for dragon fruit producers and exporters in Binh Thuan and Tien Giang provinces Vietnamese Institution Southern Fruit Research Institute Vietnamese Project Team Leader Nguyen Van Hoa Australian Organisation The Horticulture and Food Research Institute of New Zealand Australian Personnel John Campbell, Leonie Osborne Date commenced 30 June 2005 Completion date (original) March 2007 Completion date (revised) September 2007 Reporting period Fourth six monthly progress report Contact Officer(s) In Australia: Team Leader Name: John Campbell Telephone: +64 3 528 9106 Position: Project Leader Fax: +64 3 528 7813 Organisation HortResearch Email: jcampbell@hortresearch.co.nz In Australia: Administrative contact Name: Mrs Leonie Osborne Telephone: +64 9 815 8819 Position: PA, Bioprotection Group Leader Fax: +64 9 815 4202 Organisation HortResearch Email: losborne@hortresearch.co.nz In Vietnam Name: Dr Nguyen Minh Chau Telephone: +84 73 893 129 Position: Project Champion Fax: +84 73 893 122 Organisation SOFRI Email: mch@hcm.vnn/vn 2. Project Abstract Producers of dragon fruit in Vietnam have seen prices for their fruit decline by about 60% since 2000, which can be attributed, in part, to their dependence on local and nearby export markets. There are about ten major dragon fruit exporters in Vietnam but a significant proportion of the total production is sourced from many small farmers. Returns from dragon fruit could be significantly improved if small growers and exporters can gain access to new high value markets in Europe and North America. Unfortunately, regulatory requirements and recent consumer concerns over food safety and security mean that Vietnamese growers can now only export to these high value markets if they have Good Agricultural Practice (GAP) programmes in place. EUREPGAP is a comprehensive and auditable GAP programme which is now the minimum fruit quality, safety and sustainability standard required by most supermarket chains in Europe. This project will develop the basis for EUREPGAP implementation amongst groups of dragon fruit growers and BRC standards in a pilot packhouse in the Binh Thuan province, to enable Vietnamese growers to export dragon fruit to high value European markets. When implemented, the pilot will provide a model GAP system for adoption by other dragon fruit farmers and packers in the Binh Thuan and Tien Gieng Provinces and also to other Vietnamese fruit sectors. 3. Executive Summary This report is the fourth progress report for the Collaboration for Agriculture and Rural Development (CARD) project 037/04VIE and covers the period 1 September 2006 to 28 February 2007. For continuity of reporting much of the 3rd six-monthly report content has been retained; this has now been updated and the achievements for the fourth six-monthly period are included in this report. The HortResearch project leader has made one visit to Vietnam during this reporting period as scheduled: 18 November to 12 December 2006. There have been no changes to project personnel during the reporting period. Mentoring of the Vietnam project team has been ongoing. Southern Fruit Research Institute (SOFRI), Ministry of Agriculture and Rural Development (MARD), Department of Agriculture and Rural Development (DARD) and commercial personnel are included in the training which covers all facets of Good Agricultural Practice (GAP) at the various levels. Enhancement of the national capability of people and infrastructure continues to be given high priority by the project for ultimate sustainability obligations. “Introduction to Internal Auditor Training” Courses were delivered to selected SOFRI staff and to the pilot packhouse key personnel. Mr Nguyen Huu Hoang reported on his study tour to New Zealand and also used his Microsoft® PowerPoint presentation as a training tool when establishing GAP in the pilot. Field observations for the farmers’ benchmarking survey were completed in the first reporting period. The data were subsequently translated into English, entered into a web based database and analysed. The benchmarking survey report was prepared by HortResearch personnel and delivered as a PowerPoint presentation by the project leader to SOFRI personnel also packers, farmers, MARD and DARD personnel of Binh Thuan during March/April. Selection of a packer/exporter and farmer group for the Project Pilot to receive project input, confirmed during the September 2006 visit, was formalised. Training of the Pilot members for improvement towards British Retailers Consortium: Global Standard – Food (BRC) for the packer and EUREPGAP for the farmers continues. The training involves quality systems, health and safety, technical, product traceability and environmental issues that will, when adopted, enable the participants to meet compliance with the required standards. A component of the field visits by the project leader has been to observe the current practices of the dragon fruit farmers and packers. These findings have formed the basis for the quality manual preparation. The dragon fruit quality manuals for the farmer and packer have been developed in a way that closely relates to the current practices, includes appropriate improvements to enable the farmer and packer to comply with the EUREPGAP and BRC standards, and are user friendly. Most of the manual has been translated into Vietnamese. The manual has been issued to the pilot packer and farmers. The standards being implemented incorporate all issues identified in the project objectives. During the project leader’s December visit, extensive training was provided to the pilot packhouse senior staff and farmers which involved all the physical changes to facilities, quality systems establishment, personnel training, compliance issues and auditing requirements as documented in the Dragon fruit Quality Manual for the Pilot to reach compliance with BRC and EUREPGAP Standards. High value markets are being identified and evaluated for dragon fruit to be exported from Vietnam, both for fruit when certified and for the project-improved fruit exported during the transition period towards certification. A financial incentive is to be paid by the packer for qualifying fruit during the transition period. Inputs identified in the project document for Year 1 had been purchased. The CARD dragon fruit project continues to be well publicised in the local and national newspapers and television during this reporting period. 4. Introduction & Background Objective 1: To increase small holders’ competitiveness and capacity to supply dragon fruit to high-value international markets, introducing new concepts of food safety, environmental responsibility, sustainability and worker safety into their production practices Objective 2: To provide technical support and training for Vietnamese extension/researchers to improve their capacity in group training procedures for GAP implementation in dragon fruit The outputs expected include adoption of new practices that are required for entry into the European market, and empowerment of small farmers to negotiate improved supply arrangements. Vietnamese personnel from SOFRI, Department of Agriculture and Rural Development (DARD) and the private sector will be trained in the field in Vietnam and two SOFRI members will undertake a study tour to observe GAP systems in the fruit industry in New Zealand. It is intended that the development of the Vietnamese personnel, both in the public and private sectors, will be through the practical application of: ¾ Establishing the current status of the dragon fruit industry against EUREPGAP standards through a benchmarking survey ¾ Improving the current understanding of dragon fruit agronomy within SOFRI and establishment of systems for constant improvement and problem solving ¾ The development of pilot models of EUREPGAP-compliant Exporter/Packer/Farmer groups in the field ¾ Establishing manuals, Codes of Practice and the development of training material that are appropriate, user friendly, developed by the Vietnamese extensionists, and appropriate to the dragon fruit industry for transfer to subsequent “models” and ultimately other crops ¾ Establishing the required quality systems for the dragon fruit industry to adopt and obtain proof of the system robustness, by obtaining EUREPGAP certification for the pilot model ¾ Maximising the impact of current initiatives to develop GAP in the dragon fruit industry through full participation in the Dragon fruit GAP Project. 5. Progress to Date Implementation Highlights 5.1.1 Benchmarking The field portion of the benchmarking survey was completed by the SOFRI team in late July 2005. Some 124 farmers from Binh Thuan and 30 farmers from the Tien Giang Province were questioned. The SOFRI team recorded farmer information for the formal EUREPGAP oriented questionnaire (Inception Report: August 2005 Appendix 2) and also recorded additional current agronomic and technical information relating to the surveyed farmers dragon fruit production practices. The benchmarking survey data were analysed at HortResearch by Dr Jim Walker and Patrick Connolly who also prepared a PowerPoint presentation (Appendices 1 and 2 of the 3rd Progress Report, August 2006) for delivery during the scheduled March 2006 visit. It was originally planned for Dr Walker to travel to Vietnam to make the PowerPoint presentations, but this was not possible because of his other work commitments. As a consequence, the benchmarking PowerPoint presentations were delivered by the project leader during his March/April visit, initially to the staff of SOFRI then to DARD and some industry personnel in Binh Thuan. The presentation has subsequently been used as a training tool for the farmers and packers of the area. During the PowerPoint presentations, care was taken to emphasise the standards observed in the survey and to relate those conditions to the standards required to meet the high value customer-driven demands. The PowerPoint presentation and other information contained in the benchmarking survey database are being used by the SOFRI scientists during their research work. 5.1.2 GAP Manual Development The Dragon fruit Quality Manual has been completed in English and is currently being translated into Vietnamese. This manual was to be completed by the end of March 2006 (milestone #4) in the draft form but had been delayed because of time constraints and the clarification of copyright issues. The manual has been developed specifically to meet the needs of the quality systems of the project pilot. The manual has been developed at the farmer level to the EUREPGAP Standard and in the packhouse to the BRC Standard and apart from being a living document, has been completed in the final form. Future use of the manual to other packhouses will have the advantage of a manual that is an actual working document while being adapted to their particular packhouse/farm application. Full verification of the appropriateness of the Dragon fruit Quality Manual to address the specific standards of BRC and EUREPGAP and the requirements of the customer, the pilot packer and farmers will be confirmed by the Independent Certifying Body. Compliance assessment by the Certifying Body was planned take place during December 2006; however, the pilot was not ready and significant modifications were planned/being implemented for the packhouse to better comply with the standards. An assessment/internal audit is planned during the next visit of the project leader and the decision on when to call for the Certifying Body inspection will be made at that time. 5.1.3 Develop Implementation Plan – Completed: First Progress Report 5.1.4 Establish pilot GAP programme for year one As documented in the February 2006 report, the packhouse of Mr Hiep of Queen Farm, Hoang Hau Dragon Fruit Farm Co Ltd, was identified to be the project’s pilot for packing dragon fruit. Subsequently project personnel negotiated with Mr Hiep to define the level of commitment to and cooperation with the project for the development of his packhouse to meet the BRC Standards and project expectations. During the July visit by the project leader, a contract between Mr Hiep and Dr Chau as Project Champion was generated and signed. Agreement to work together with the pilot is based on the memorandum of understanding that was under discussion as described in the February 2006 report. Indeed many of the issues for improvement highlighted by the project during the previous visits were being or had been addressed by Mr Hiep. Mr Hiep has committed his resources and staff to the project pilot development. As well as committing the packhouse to the project, Mr Hiep also committed his 70 hectare, dragon fruit producing farm to the pilot to be developed for compliance with the EUREPGAP Standard. During this reporting period Mr Hiep indicated that he was proposing development of a large packhouse modelled on the pilot packhouse for future expansion; indeed, construction for buildings to house the packing facilities was underway at the time of the project leader’s visit in December. The Dragon fruit Quality Manual was presented to Mr Hiep in the English version and the Vietnamese version, which was complete apart from the Position Description section. During this reporting period the project team conducted intensive training/mentoring sessions with the pilot’s staff holding responsible positions within the packhouse and participating farm owners/managers. The areas of training and guidance covered included: ¾ The project scope and delivery ¾ The customer and customer demands ¾ Quality systems, their purpose, structure, establishment and management ¾ Defining the “process” on-farm through the packer to the exporter ¾ Linkages between farmer and packer and responsibilities and expectations ¾ The dragon fruit quality manual, its development, scope and application ¾ Feedback to ensure the “appropriateness/workability/fit’’ of the manual for the intended purpose ¾ Identification, guidance and purpose for physical improvements required by the project pilot facilities, both on-farm and at the packhouse, to comply with the dragon fruit quality manual ¾ Identification of positions in the “process” and ensuring that responsibilities had been correctly documented in the position descriptions within the manual ¾ Provision of training to people designated for positions of responsibility in the pilot ¾ The role of the internal audit ¾ The responsibilities of the Internal Auditor ¾ Processing of corrective action and sustainability. 5.1.5 Implementation of Quality Systems In previous reporting periods the project had provided training in quality systems to any identified group that would benefit from adopting GAP. Confirmation of the pilot participants and pilot scope during the last reporting period saw the training programme of the project become more focused and address the specific needs of the farmers and packer of the pilot, to enable them to meet compliance with the standards before the proposed assessment visit by the Certifying Body. During this reporting period, training provided was very specific to the pilot’s needs and included all components as detailed in the Dragon fruit Quality Manual, guidance on physical changes required at the packhouse and on the farm, Internal Auditing and for an understanding of the quality systems and the need to be market driven. Choice of quality system standards: The project chose the existing BRC and EUREPGAP quality standards as the most suitable to meet the demands of the target customer while protecting the interests of the Vietnamese stakeholders. At the farmer level the EUREPGAP Standards are being applied and at the packhouse the BRC Standards are implemented. Both standards complement each other to ensure the dragon fruit produced and packed is confirmed as safe, legal and of the quality expected by the high value market customer. The choice of the two standards has been determined by the access conditions to high value markets identified in the project document. The project is very “customer driven” and the quality system will meet all the customer’s requirements when fully implemented and will specifically provide documented proof of compliance for safe, legal quality control and traceability for the entire product during the production and packing processes. The quality systems developed will easily respond to any additional requirements from specific customers. The quality checking and documentation systems being employed in the pilot can also protect the farmer and packer from claims for damage to product (non-compliance issues) subsequent to the product leaving the packhouse. The current process and status of the quality system of the pilot is: ¾ Pilot participants identified and their association with the project formalised ¾ The BRC Standard has been selected for the packhouse quality system ¾ The EUREPGAP Standard has been selected for the farmer quality system ¾ The Dragon fruit Quality Manual has been developed in English ¾ The Dragon fruit Quality Manual is being translated into Vietnamese ¾ The English and Vietnamese versions of the manual have been distributed to the packer and relevant portions of the manual provided to the farmers of the pilot ¾ Physical changes, required by the quality system, in the packhouse and on the farm have been initiated and in some areas completed ¾ Vietnamese project personnel have the skills to train dragon fruit industry stakeholders in all areas of quality ¾ Intensive and targeted training has been provided to packhouse staff and farmers ¾ Quality systems are being developed in the pilot as described in the manual, under the training and guidance of the SOFRI project team ¾ Health and Safety and Risk analysis studies have been made for the pilot and documented as required by the standards ¾ Internal Audits have commenced to determine the quality status of the pilot with corrective action and training process being implemented ¾ It is proposed to call for an external audit by a Certifying Body when the pilot is operating in compliance with the standards as verified by the Internal Audits. 5.1.6 Review Compliance The project leader negotiated with Société Générale de Surveillance (SGS Vietnam), (in Vietnam, Regional Indonesia and New Zealand) an International Certifying agency, to provide an estimate for certification evaluation of the project initiatives. Quotations for the inspection and certification of project farmers and the packer were received from SGS Vietnam and subsequently a proposal was presented to CARD for the funding of the SGS services. CARD approved the funding of the External Audit and Certification services and this component has been included in the project as a new and separate milestone. During discussions with SGS at their Ho Chi Minh office, the project team were informed that SGS Vietnam now have trained inspectors for both EUREPGAP and BRC Standards. Internal reviews of the pilot have been undertaken in the form of BRC/EUREPGAP Internal Audits. The data collected have been used to det