Dự án nông nghiệp " Replacing fertiliser N with rhizobial inoculants for legumes in Vietnam for greater farm profitability and environmental benefits " MS2 doc

This project aims to increase production of high-quality legume inoculants in Vietnam through enhanced production capacity, implementation of a national quality assurance QA program at a

Ministry of Agriculture & Rural Development

Project Inception Report

013/06VIE Replacing fertiliser N with rhizobial inoculants for legumes in Vietnam for greater farm profitability and

environmental benefits

MS2: FIRST SIX-MONTHLY REPORT

24th September 2007

Table of Contents

1 Institute Information _ 2

2 Project Abstract _ 4

3 Executive Summary 4

4 Introduction & Background _ 4

5 Progress to Date _ 6

5.1 Implementation Highlights 8 5.2 Smallholder Benefits _ 9 5.3 Capacity Building _ 9 5.4 Publicity _ 9 5.5 Project Management _ 9

6 Report on Cross-Cutting Issues _ 9

6.1 Environment _ 9 6.2 Gender and Social Issues _ 9

7 Implementation & Sustainability Issues 7

7.1 Issues and Constraints 7 7.2 Options 7 7.3 Sustainability 10

8 Next Critical Steps 10

9 Conclusion 10

10 Statuatory Declaration Error! Bookmark not defined

1 Institute Information

legumes in Vietnam for greater farm profitability and environmental benefits

University of Sydney

Dr Roz Deaker

Ms Elizabeth Hartley

Mr Greg Gemell

Contact Officer(s)

In Australia: Team Leader

Scientist

Organisation NSW Department of

Primary Industries

In Australia: Administrative contact

Funding

Organisation NSW Department of

Primary Industries

In Vietnam

8297336

yenthao@hcm.fpt.vn

yenthao9@yahoo.com

2 Project Abstract

Farmers in Vietnam currently fertilise legumes such as soybean and groundnut with N, rather than inoculate with rhizobia Replacing fertiliser N with rhizobial inoculants would save Vietnamese farmers A$50-60 million annuallyin input costs and, at the same time, help facilitate the desired expansion in legume production There would also be positive environmental outcomes This project aims to increase production of high-quality legume inoculants in Vietnam through enhanced production capacity, implementation of a national quality assurance (QA) program at and increased inoculant R&D Participating in the project in Vietnam are the Oil Plants Institute (OPI), the Institute of Agricultural Science (IAS) and the National Institute for Soils and Fertilisers (NISF) Institutions in Australia are NSW Department of Primary Industries and the University of Sydney Legume inoculant use by farmers in Vietnam will be increased through the development and implementation of an effective extension and training program for researchers, MARD extension officers and farmers The benefits of inoculants and legume nitrogen fixation will be demonstrated in the field and communicated through workshops, meetings and publications To ensure sustainability

of inoculant production and use, the project will engage the private sector in marketing and ‘pilot production’ of legume inoculants, with the aim that they may scale-up production and progressively take over supply as the technology and markets are developed

3 Executive Summary

The project commenced in February/March 2007 with a 2-week Legume Inoculant Quality Assurance (QA) workshop at the Institute of Agricultural Science (IAS) laboratories in HCM City and a 2-day Project Inception workshop at the Oil Plants Institute (OPI), also in HCM City

QA Workshop, IAS, HCM City

The workshop (26 Feb – 9 March, 2007) aims were to provide the Vietnamese scientists and technicians with an overview of the requirements and protocols for quality control of legume inoculants, and to improve their skills in order that legume inoculants in Vietnam copuld be routinely measured for quality It was expected that understanding the parameters of quality would improve inoculant production techniques and increase availability and adoption of high quality legume inoculants in Vietnam The protocols presented were based on the quality control program used by the NSW Department of Primary Industries - Australian Legume Inoculant Research Unit (ALIRU) in Australia The workshop was divided into two components Firstly, participants gained practical experience in quality control protocols and secondly, quality control procedures were discussed and adapted to suit local conditions in Vietnam

Lists of workshop personnel and the 17 participants are provided in Appendix 1 The workshop was designed by ALIRU staff and presented by Elizabeth Hartley (ALIRU), Greg Gemell (ALIRU) and Rosalind Deaker (University of Sydney) Each participant was provided with a workbook and comprehensive notes on procedures:

Workbook: Quality Control of Legume Inoculants Workshop, 26th February – 9th March

2007, compiled by E Hartley, G Gemell, J Hartley (01/02/2007) 37 pages

Procedures Section: Quality Control of Legume Inoculants Workshop, compiled by E Hartley, G Gemell, J Hartley (01/02/2007) 32 pages

Organisation of the workshop and selection of the participants was facilitated by the Vietnamese project leader Tran Yen Thao Workshop participants were selected to represent all institutes and private-sector inoculant manufacturers/distributors involved in project 013/06VIE All participants were skilled in general microbiological procedures

Project Inception Workshop, OPI, HCM City

Present at the Inception Workshop at OPI were personnel from OPI, Cantho University (CTU), Institute of Agricultural Science (IAS), Soils and Fertilizers Institute (SFI), Ministry of Industry (MOI), and the National Agricultural Extension Centre (NAEC) There were also representitives from the three private sector companies - Fitohoocmon, Humix and Cu Chi - that are interested in being involved in inoculant production/distribution in Vietnam The major outcome of the Workshop and subsequent discussions was a clear framework of timelines, R&D plans and budgets for activities in Vietnam, Australia and Thailand during the course of the 2-year project Three copies of the signed agreement between the Oil Plants Institute, the project’s lead agency in Vietnam, and NSW DPI were brought back to Australia

Inoculant Production Workshop, Suranaree University, Thailand

The aim of this training workshop (4–22 June 2007) was to improve the skills of Vietnamese scientists in order to improve inoculant production techniques in Vietnam It was expected that the practical and theoretical nature of the training would mean rapid application of the technologies in Vietnam Activities focussed on lectures, laboratory training and visits to production facilities in Thailand The training covered background information on rhizobia, fermentation technologies including large systems and the micro production unit (MPU), carbon source for rhizobia in fermentation, other plant growth promoting (PGP) organisms and counting techniques (see Appendix 2 for details)

Three Vietnamese scientists participated in the training:

- Tran Minh Hien, researcher from IAS (HCM City), the main person responsible for research and production of rhizobial inoculants at IAS

- Le Thi Thanh Thuy, researcher at the National Institute for Soils and Fertilizers (NISF)

in Hanoi

- Ms Tran Yen Thao, researcher at OPI (HCM City), leader of biological nitrogen fixation research group at OPI and 013/06VIE project leader

R&D and Extension Programs

The R&D programs commenced in April 2007 with trials sown in the northern upland (Son La province) and in August 2007 in the Central Upland (Dak Nong and Dak Lak provinces) In Son La province, three filed trials of soybean were conducted There are responses to inoculation Fields were harvested and data analysis is in progress Samples

of biomass and seed are being prepared for N analysis In Dak Nong and Dak Lak, three trials of soybean and three trials of groundnut were sown in August Plants are growing well now and preparing for the nodules harvest There are two field experiments of inoculation for vegetable soybean at Dak Lak

The extension program commenced in April 2007 with trials sown in the northern upland (Son La province) and in August Central Upland (Dak Nong and Dak Lak province) In

Son La, demonstrations were conducted at 3 sites Farmers, extension officers and officers of provincial governments were invited Generally, they were interested in inoculation and hope to have the products soon for application In Dak Nong and Dak Lak, demonstrations were conducted at 6 sites, 3 for groundnut and 3 for soybean Farmers and extension officers were invited to the demonstration sites at sowing to get to know about inoculant products, how to mix inoculants with seeds and how to sow Farmers were very curious about inoculants They will be invited to the fields when nodules are harvested

Surveys were conducted during April – August to determine the level of knowledge by farmers and advisers about inoculants, inoculant use by farmers and their attitudes to inoculant use in the future, and, finally, current production and QA of inoculants in Vietnam Results are being compiled for reporting in October 2007

4 Introduction & Background

Project Objectives and Expected Outputs

The Vietnamese government (MOI, MARD) is committed to increase the area sown to legumes from the current 780,000 ha to >1,000,000 ha by 2010, with particular focus on soybean and groundnut in the Mekong Delta, the Central Coastal region and upland (highland) areas of the North, Central and North The legumes are used for production of food, oil and protein meal, and are grown as rotation crops with rice (Mekong Delta), as intercrops in the upland areas with cassava, sugar cane, rubber, fruit and maize and as cover crops in the sandy coastal soils ACIAR Small Project LWR2/98/27 (Increasing yield and nitrogen fixation of soybeans, groundnuts and mungbean in Vietnam through

Rhizobium inoculation) identified that legume production in Vietnam currently relies on

expensive imported fertiliser N, rather than cost-effective inoculants containing rhizobia Replacing fertiliser N with rhizobial inoculants would save Vietnamese farmers A$50-60 million annually in input costs and, at the same time, help facilitate the desired expansion

in legume production There would also be positive environmental outcomes

Details of the economic benefits of replacing fertiliser N with rhizobial inoculation were outlined in the proceedings of the technical workshop to terminate LWR2/98/27 However, for this to happen, high-quality inoculants need to be readily available in the market The current capacity of inoculant production in Vietnam is about 40,000 packets annually, and would need to be increased to about 500,000 packets annually to meet potential demand Inoculant quality is also poor (LWR2/98/27 project) and would need to

be improved Shelf life and distribution and marketing are issues that would also need to

be addressed Moreover, there is limited awareness of the benefits of inoculants and methods of application among Vietnamese farmers and extension workers

Capacity gaps are evident at the national and institutional level The major gap at the national level is the lack of a coordinated, focussed national legume inoculant program

At the institutional level, the gaps are capacity for medium-scale inoculant production and associated quality assurance (QA) as well as R&D and training capacity The proposed project would address these issues of production, quality, distribution and marketing and farmer education Involvement of the private sector in both production and marketing will ensure the long-term viability of the concept The project objectives are to:

1 Increase production of high-quality inoculants for soybean, groundnut and other legumes in Vietnam through enhancement of production capacity (personnel and equipment) at participating institutions, implementation of QA, and increased inoculant R&D;

2 Increase farmer interest and use of inoculants in Vietnam through development and implementation of an effective extension and training program on inoculants and legume nitrogen fixation for researchers, MARD extension officers and farmers through demonstration trials, workshops and meetings, and publications;

3 Ensure the long-term viability of the project through involvement of the private sector in this ‘pilot production’ of legume inoculants, with the aim that the private sector would progressively take over production as the technology and markets are developed

The Project is aligned with the CARD Program Strategic Objective 2 ‘Improved

productivity and links to markets for the rural poor in the Mekong Delta and Central

Coast regions’, through Objective 2.1 ‘Increase rural productivity’, using principally

Strategy 1 ‘Increase productivity and competitiveness of the agricultural system’

Project Approach and Methodology

The project strategy is to enhance inoculant production, quality, distribution and marketing and farmer education through the collaborating institutions It will involve both Government institutions – Oil Plants Institute (OPI), the Institute of Agricultural Science (IAS) and the Institute for Soils and Fertilisers (ISF) – as well as private sector companies (Fitohoocmon Fertiliser JSC, Cu Chi Bio-Chemical Fertiliser JSC and Humix) The latter would be involved initially in marketing and distribution of inoculants and would be provided with advice and technical expertise to improve and expand their inoculant production capabilities In time, it is envisaged that the private sector would take over inoculant production, leaving QA to the public institutions Involvement of the private sector in both production and marketing will ensure the long-term viability of the concept

Increased production of high-quality inoculants and QA

The focus will be on rhizobial strains and their maintenance, inoculant production (fermentation) technologies, quality assurance of the production process and products and training in the production technologies and QA

Rhizobial strains - Existing strains from the collections in Vietnam and/or other

institutions, eg ALIRU (Australia), NifTAL (University of Hawaii), Suranaree University (Thailand) will be utilised where appropriate Decisions will be made about the most appropriate strains for inoculant production through a program of research and

development

Strain maintenance - Protocols and operation manuals for maintaining strain

effectiveness and recognition to ensure stability of inoculant quality during long-term storage will be developed and implemented During the course of the project a decision will be made about which institute/s will take responsibility for the maintenance of a culture collection and verification of strains for inoculant production The institute/s will

be equipped with the necessary materials to continue processing germplasm for inoculant production

Production technology – Draw on experiences from Thailand and Australia to develop

production technology of inoculants at medium-scale in Vietnamese institutes through:

• Modifications to broth formulations and experiments in procedures for maintaining

sterility and dispensing broths into the inoculant carrier

• Testing appropriate forms of inoculant (peat, granular, liquid) that allow compliance with quality control standards and are easy to use, supply and transport Economic

benefits will be determined by assessing their effectiveness in laboratory and field trials

• Strain selection: Different strains will be tested for survival in inoculant products and

during delivery of products to the field

Quality assurance - Australian QA protocols will be used initially as a model From that,

QA protocols, training and working manuals specific to inoculant production in Vietnam will be developed jointly between Australian and Vietnamese project scientists Decisions will be made about which institute will be equipped to carry out on-going routine quality control of inoculants in Vietnam

Training on inoculant production and QA - Vietnamese researchers from institutes will

be trained in Vietnam by Australian collaborators and at Suranaree University of Technology (Thailand) in inoculant production, QA and laboratory management, as well

as R&D in rhizobiology

Extension and training of farmers and advisers

The extension-training program for farmers and extension officers will be built around simple, multi-location inoculation experiments in the legume production areas (Mekong Delta, the Central Coastal region and upland (highland) areas of the North and Central and the South East) They will involve participation of farmers and extension officers in all aspects, from the design of experiments to sowing, sampling, harvesting and interpretation of results It is expected that the MARD extension service will play a large role in extension activities Data from field demonstrations will be used to produce an economic model for production and use of legume inoculants in Vietnam In addition, training courses will be organised for farmers, extension workers and researchers in methods of inoculant use, and economic as well as environmental benefits of inoculation This extension-training program will be conducted by Vietnamese researchers in collaboration with Australian counterparts, who will assist in collating and preparing extension materials for translation and transfer to Vietnam

Involvement of the private sector in production, distribution and marketing

Two (and possibly three) Vietnamese companies will be involved in the project, Fitohoocmon Fertiliser JSC and Cu Chi Bio-Chemical Fertiliser JSC (and Humix) It is envisaged that the market for inoculants will grow during the course of the project from the current low level and that the private sector will progressively become involved as the production technology is developed and the market for the inoculants expands The companies will initially be involved in marketing and inoculant distribution Training workshops will also be open to researchers from the collaborating private companies Project scientists will provide technical expertise to the companies throughout the project

to troubleshoot production problems and increase production capacity and product quality

5 Progress to Date

Implementation Highlights

Implementation highlights include the successful completion of the QA Workshop in HCM City in February–March 2007, the successful Project Inception Workshop, also in

HCM City in February–March 2007, the successful completion of the Inoculant Production Technologies Workshop in Thailand in June 2007 and the commencement of project activities in laboratory and field during April – September 2007 (see Progress Report Logframe for details)

Smallholder Benefits

Potential benefits for smallholders are valued at A$50–60 million p.a., principally through reduced use of fertiliser N Benefits for the smallholders should start to flow through after

the second year of the project

Capacity Building

Capacity building has commenced with participation of 17 Vietnamese

scientists/technicians at the QA Workshop in HCM City in February–March, the

Inoculant Production Technologies Workshop in Thailand in June 2007, and the purchase

of materials and equipment for R&D and inoculant production

Publicity

None at this stage

Project Management

The project is progressing smoothly, although Can Tho University, originally identified in the project as a collaborator, pulled out immediately following the Inception Workshop and QA training in HCM City Its place in the project has been taken bythe Institute of Agriculture and Forestry for Tay Nguyen (IAF) and the Agricultural Science Institute for Southern Coastal Centre of Vietnam (ASISCV)

6 Report on Cross-Cutting Issues

Environment

The project is expected to have a positive impact on the environment through increased productivity of the legumes and the substitution of industrially produced fertiliser N with biologically fixed N The extension program will increase general knowledge of soils and fertility management, thereby improving soil management Reduced use of fertiliser N, particularly in the rice cropping systems of the Mekong Delta, will have benefits for water quality and production of paddy fish and shrimp We also expect that soil degradation in the upland areas will be reduced with the increased productivity through the legume cropping

Gender and Social Issues

Gender are expected to be neutral Social issues are expected to be positive as the positive economic impact of the project begins to flow through

7 Implementation & Sustainability Issues

Issues and Constraints

There were some issues regarding collaborating institutions in Vietnam, which were resolved immediately after the Inception Workshop Briefly, Cantho University withdrew from the project and its responsibilities are to be covered by the Institute of Agriculture