Đề tài Improvement of export and domestic markets for Vietnamese fruit through improved post-Harvest and supply chain management - MS5

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 MS5: THIRD SIX-MONTHLY REPORT January 2007 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 Mss 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 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 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, especially China and Thailand in export markets and its own domestic market. 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. 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 A training workshop for farmers was conducted so they could obtain a good understanding of how their product is handled and what condition the product is in when it reaches the consumer. The Vietnamese mango and pomelo farmers participating in this project visited the Thu Duc wholesale markets in HCMC and more than 8 high quality fruit retailers in HCMC, including 2 supermarkets and 6 speciality fruit stores. The farmers were accompanied by SIAEP, SOFRI and Australian team members who facilitated discussions between the wholesalers, traders and the farmers. Several manuals based on Vietnamese conditions have been developed. These manuals are: 1. Mango cultivation handbook 2. Mango pest control handbook. 3. Mango disease handbook. 4. Pomelo handbook Simple, farmer, user friendly books have been developed for mango pests and diseases. These booklets show photographs of pests, damage caused and registered chemicals used for control. 1. Mango diseases 2. Mango pests 3. Citrus pests The Australian team has devised processes and manuals to train Vietnamese’s institution staff (SIAEP and SOFRI) and Vietnamese pomelo and mango farmers to develop new improved supply chains which deliver higher quality fruit. Many of these manuals cover critical aspects for the development of new improved supply chains. Various sections contained in these manuals have been grouped under broad category headings listed below. 3 Manuals developed and provided to the Vietnamese collaborator are: • Strategic planning processes for supply chians • Developing supply chian maps • Supply chain analysis: surveys and interview techniques and questionnaire design • Quality flows – monitoring quality and sequential sampling of mango down the supply chain • Developing new improved horticultural supply chains • Mango and pomelo orchard design Vietnamese farmers all suffer to varying degrees from the instability in fruit production. Compounding this instability is sequestered market information. Full disclosure is not practiced by each participant in the supply chain because suppliers feel they can obtain a competitive advantage over other suppliers. A critical element in setting up a successful supply chain setting are: • demonstrating benefits to the supply chain participants • forming of farmer groups to achieve better economies of scale to increase bargaining power. Work has to be conducted at both ends of the chain, the producer and the final customer. This work has to be executed simultaneously, as neglecting either end of the chain limits the ability of the producer and chain to supply a product suited to the target market. During the visit in November-December 2006, a series of three workshops were conducted on the development of new and improved supply chains. Then, a series of three workshops were conducted on mango and pomelo orchard design. Visits to pomelo farmer orchards to workshop pests and diseases were also undertaken. 4. Introduction & Background Fruit and vegetable crops are highly lucrative compared to staple crops. Horticultural produce has high value-adding and income generating potential when compared to livestock and grain production. Horticulture is highly attractive especially for small scale farmers, and has a comparative advantage, particular 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, Vietnam. Ford et al., (2003), suggested that the competitiveness of Vietnamese fruit industries was:- • poor due to unstable product quality • no quality standards • poor post harvest technologies and pre-harvest practices • lack of group co-operative marketing structures • little information about supply chains, prices and customers needs. This project addresses these constraints by engaging with key Vietnamese stakeholders; including research institutes (SIAEP and SOFRI) and local farmers in the mango and pomelo industries in Southern Vietnam. This project has taken account of the total supply chain 4 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 Vietnamese 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 groups should ensure better on-farm prices, through increased power to these farmers, benefiting all members of the supply chain, rather than the present powers brokers in the chain. The “flow-on” affects of this will benefit the poor in the rural areas, and specifically help provide more jobs for rural women. Farm incomes will increase, resulting in better standard of living for rural and women. 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 in greater employment at the local village level. 5. Progress to Date Implementation Highlights CARD project members participating in the November 2006 workshops:- • SIAEP and SOFRI staff • mango and pomelo farmers from the Mekong Delta. All workshops involved “participatory action learning” and “farmer training farmer” process to develop solutions to improving pre- and post-harvest management impacts on fruit quality. Workshops were held at the wholesale and retail markets in HCMC, SIAEP and SOFRI training rooms and on pomelo and mango farms. This allowed farmers, extension agents and researchers to discuss ideas, develop solutions and adjust implementation strategies of the strategic plan. This process also allows the project to obtain wider support from a cross- 5 section of participants. This consultative and participatory action learning approach is designed to empower the rural poor in the decision making processes. Based on the agreed vision, goals and future direction set down in the strategic plan and action plans for both the mango and pomelo CARD project participants these workshops aligned with the project objectives. Vietnamese farmers visit markets, wholesalers, traders and retailers in HCMC. A training workshop for farmers was conducted so they could obtain a good understanding of how their product is handled and what condition the product is in when it reaches the consumer. The Vietnamese mango and pomelo farmers participating in this project visited the Thu Duc wholesale markets in HCMC and more than 8 high quality fruit retailers in HCMC, including 2 supermarkets and 6 speciality fruit stores. The farmers were accompanied by SIAEP, SOFRI and Australian team members who facilitated discussions between the wholesalers, traders and the farmers. Summary report on information and problems presented at the workshop by the mango and pomelo farmers after their visit to wholesalers and retailers. • Wholesalers (Thu Duc Market) 1. Quality: o Fruit are continually graded by each participant along the supply chain. For both mango and pomelo grades, each chain participant classifies and grades fruit according to their experience and traditional methods. Standards for size, colour, and maturity vary according to each supply chain participant’s experience. o Original suppliers are also used in this classification. o Different varieties are received from different suppliers. o The wholesaler either trusts their suppliers, or as many wholesalers do, re-classify the fruit based on their own experiences. However, this has led to mixed fruit varieties and topping to obtain extra benefits. Topping is a method used by many supply chain participants, farmers to wholesalers. Lower class/grade fruit is placed in the bottom of the marketing basket and the final few layers are made up of higher quality fruit. The whole basket is then sold based on the top few layers, hopefully for a higher price. o Wholesalers when dealing with their suppliers, remove 5% of the total volume of fruit supplied to them. Wholesalers then paid for the 95% of the total volume of fruit supplied. This form of discounting is to overcome the practice of topping. 2. Price o During the visit to the wholesalers, prices for mango were 19 000 to 22 000 VND for grade 1 fruit. o Farmers argue that wholesalers sell mangoes especially grade 1 fruit to their regular customers (traders) at a higher price (e.g. 23 000VND). Traders then sell these fruit as grade 1 to high value, retail shops for 25 000 to 32 000 VND. Wholesalers will then sell grades 2, 3, 4 collected from farmers to their other customers at the price of grade 1 fruit (19 000 to 22 000VND). 3. Factors affecting fruit quality o Picking and harvesting methods 6 o Pesticide residue (Chemicals) o Disease o Sapburn o Insect damage o Bruising was extensive due to incorrect handling, packing and transport methods used (7 to 10%). Fruit are sorted by hand with the sorter tossing fruit into various baskets of a particular grade from several feet. o Packaging (bamboo baskets need to be replaced) o Transport:- bikes are not the ideal method of transport. Trucks are packed too tightly (every space filled), no temperature control, handling methods are extremely rough and boxes often placed on top of each other. o Food safety:- fruit are sorted/graded on the ground at the markets. Old packaging materials are sometimes used. • Retailers in HCMC Many retailers do not have experience to identify varieties. Often varieties are mixed and sold for the same price. Many of the high quality fruit shops have excellent display cabinets for displaying the fruit. For pomelo and mango, from the farm to consumer, product loss due to damage is estimated to be a minimum of 20%. This is often greater than 30% for mango. Summary report on solutions presented at the workshop by the mango and pomelo farmers after their visit to wholesalers and retailers. o Development of GAP for safety and quality control. Ideal situation would be no pesticide or any signs of chemical residue. o Uniform process adopted for the mango and pomelo cooperatives. o New post- harvest packaging, handling and transport systems organised. o Develop quality standards for both mango (Cat Hoa Loc Mango) and pomelo. o Develop trademarks and fruit stickers to differentiate their product. o Communication between the market and growers needs to urgently upgraded o Uniform prices according to the time of year (early – peak – late seasons) are wanted by framers. o Improved information on demand and supply from markets. This will enable cooperatives to direct product where demands are not exceeded by supply. o Undertake the development of a new supply chain that will be based on the identification of the high value market sectors in HCMC. o Previously one farmer mango cooperative tried to establish a market/retail outlet for their product in the local retail sector of Cai Lay, Vietnam. This proved to be unsuccessful due to over-supply and no real demand. No marketing studies were carried out to identify the size, purchasing power and competing fruits in this market. The training carried out in November 2006 and the manual developed, targeted this specific area, enabling farmers to developed new supply chains. Implementation of strategic plans 7 The strategic plans developed in early 2006 are being implemented by the project team (Vietnam’s SIAEP, SOFRI and the Australian team members) to develop new and improved supply chains for Vietnamese farmers. Mango and pomelo action plans:- Action 1. Develop and implement GAP, focussing initially on pest and disease management (IPM/IDM) Vietnamese farmers, extension agents and researchers must develop practical IPM and IDM systems to suit their own industry situations. They must implement these systems to be internationally and domestically competitive, as well as socio-economically and environmentally sustainable. Farmers are facing significant pest and disease problems which are affecting fruit quality. Identification of the major commercial pest and diseases has been undertaken in Vietnam. User-friendly handbooks developed as farmer training aids. These will be incorporated into GAP manuals. Manuals developed are: 5. Mango cultivation handbook 6. Mango pest control handbook. 7. Mango disease handbook. 8. Pomelo handbook Simple farmer, user-friendly books have been developed for mango pests and diseases. These booklets show photographs of pests, damage caused and registered chemicals used for control. 4. Mango diseases 5. Mango pests 6. Citrus pests Action 2. Improve linkages between growers traders, customers, scientists, extension agents and government. Action 3. Reducing post harvest losses by establishing a demonstration of production, sorting, packing and transport systems to provide the quality required by selected, high value retail outlets The Australian team has devised processes and manuals to train Vietnamese institution staff (SIAEP and SOFRI) and Vietnamese pomelo and mango farmers to develop new improved supply chains which deliver higher quality fruit. Several manuals have been developed and training undertaken. In the last 9 months 12 training workshops have been conducted by the Australian team members for SIAEP, SOFRI, mango and pomelo farmers in Vietnam. Manuals developed and provided to the Vietnamese collaborators to date are: • quality flows – monitoring quality and sequential sampling of mango down the supply chain • supply chain analysis: surveys and interview techniques and questionnaire design • strategic planning processes for supply chians • developing new improved horticultural supply chains • the team memory jogger; a pocket guide for team members • identification of mango problems and disorders in the value chain 8 • mango and citrus orchard design • Australian mango best practice manual in Vietnamese and English (hardcopy manual) • Australian citrus best practice manual in English (CR ROM and hardcopy manual). • citrus pests and their natural enemies (hardcopy manuals) • citrus pests a field guide (hardcopy manual). A draft of post-harvest handbook for mango is under development in collaboration with SIAEP and SOFRI staff. This post-harvest manual will complement the information all ready provided to Vietnamese collaborators on the best practice manuals for mango and citrus. Subject areas for the mango post-harvest manual are shown in Attachment A. Workshops were held at SOFRI and SIAEP on the 8th November and 11th November 2006, respectively to discuss the implementation of the strategic plans and progress made with the action plans. Areas covered were:- • Sequential sampling techniques to determine quality flows through the supply chain • Refining of mango grade standards for farmers and collectors. These standards are also to be used in the development of new improved supply chains. • SIAEP and SOFRI to assist farmers develop new improved supply chains to HCMC for mango and pomelo farmer groups. SIAEP and SOFRI staff to provide technical backup, they will not be involved in the business negotiations or operation of the individual farmer grower groups. • Framers and the cooperatives are to be the drivers who establishing