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Australian Team Leader’s report Welcome to the first issue of the Macadamia Newsletter for Vietnam.. Vietnam and Australian governments have recognised the importance of collaborative d

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Australian Team Leader’s report Welcome to the first issue of the Macadamia Newsletter for Vietnam

Congratulations to Vietnam for joining the International Macadamia industry which includes Austra-lia, USA, South Africa, China and a number of other countries growing the worlds finest nut The nut

is a native of Australia’s rainforest and is still largely unknown, this is despite the fact, that it is one

of the healthiest and finest tasting nuts the world has to offer

Growing Macadamia in Vietnam has the potential to enhance economic, socials and environmental values of the country, while at the same time helping to expand the global macadamia production of

a higher value tree crop

Macadamia comprises of less than 2 % of the world nut trade, so additional production is needed if the world is to benefit from such a premium nut

Australia leads the world in terms of Nut in Shell (N.I.S.) production of over 40,000 tons a year and plantings of 21,000 ha more than double that of Hawaii and South Africa

Vietnam and Australian governments have recognised the importance of collaborative development

in the agricultural sector with regard to many crops including that of Macadamia Although Vietnam

is a poor country, it has been recognise as a valuable partner when it comes to agricultural initiatives such as that of Macadamia

Under the Collaborative Agricultural and Rural Development program (CARD) the Australian and Vietnam governments are supporting a project which aims to help Vietnam in its sustainable devel-opment of a macadamia industry and integrate this develdevel-opment with that of the other involved coun-tries, especially that of Australia The type of collaborative higher value agricultural development will help the poor farmers and agricultural workers while at the same time creating environmental and social benefits

Supported by

Macadamia Newsletter for Vietnam

Issue 1 2007

from little things big things grow

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CONTENTS

1

Australian team leaders report

2 – 3

Macadamia project report

4—5

The Macadamia study tour of China

6—7

Project news updates

• New training material –6

• The Lang son training workshop—6

• The 3 Macadamia nurseries; FSI,

Lang son, & Ba vi —6

• New nursery at Yen Thuy—7

• Financial returns—7

8

documentation

Project report

The Macadamia Project for Vietnam (037/05/ VIE)–CARD is titled “Establish nurseries and training to effectively propagate high quality trees and trial plantation models of Macadamia in 3 provinces of North Vietnam.”

This project is supported by the Collaboration for Rural Development Program, a joint initiative of the Vietnam and Australian governments

The 3 year project started in 2006 and is being conducted by the Center for Environment Tour-ism and Development (CETD) and the Subtropi-cal Farm Forestry Association of Australia (SFFA)

This project has establish a new Macadamia nurs-ery and enhanced three existing nurseries Also 3 principal variety trials of Macadamias are being established, of about 1 ha each involving 14 suit-able Macadamias varieties, in 3 provinces of north Vietnam In addition the project is involved with 3 organizations undertaking 16 other trials Training has been conducted in aspects of propa-gation, grafting, site design and preparation, planting, maintenance and plantation manage-ment at the nurseries and trial sites This has in-cluded the distribution of CD, DVD and power-point presentations as well as hands on training at

2 formal Workshops as well as training in the field 540 kg of seed nut from Australia and China have been provided to the nurseries along with 3000 sticks of Scion wood of the selected varieties and samples of grafting equipment dur-ing 2006 A further 1000 sticks of scion-wood was delivered to the nurseries in March 2007

A study tour to China was undertaken covering all the major nurseries and some key plantations

in southern China Reports of this tour including photos and a DVD video have been presented to the key stakeholders in Vietnam and Australia

A select group of small-holder farmers have been chosen to be involved with project activities in the provinces of Lang Son, B vi, Hoa Binh prov-inces In addition the project continues to involve all known key government agencies involved with Macadamias in Vietnam including MARD, FSI, RCFTI, RIFA and RIFV A number of pri-vate sector companies are also involved as is the Macca Club of Vietnam

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Significant progress has been made with regard to

the capacity building of extension and technical

staff since the commencement of the project in

January 2006

The project continued over 2006 and the last 6

months of 2007 and included meetings in

Austra-lia and Vietnam between participants

communi-cating progress and key information relating to

the participating organisations

The final report of the Macadamia study tour of

China was made up of 2 written reports by both

the Vietnamese team and the Australian team as,

as well as a DVD video and photo CD and

ac-companying notes A summary of this report is

included in this newsletter

The Australian team visit to Vietnam takes place

every 6 months, during which over a 1000 pieces

of Australian Scion wood has delivered to the 3

existing nurseries This included all of the 10

Australian varieties, 246, 344, 741, 814, 816, 842,

849, A4, A16, A38 (originally Hawaiian except

for A4, A16 and A32) selected for the trial The

team has also been visiting the FSI nursery and

the Yen Thuy new nursery and trial site and

pro-vided hands on training and information relating

to key aspects of progress Issues such as

germi-nation problems of Australian seed nut and poor

strike rates of some varieties were addressed It

was decided to import future seed nut from China

not Australian The strike rate of A varieties is

very poor and this was re-confirmed to the

nurs-eries It was agreed that younger wood from

Aus-tralia should be used as scion in the future

Solu-tions to problems with the new florist grafting

tape were demonstrated Some of the nurseries

have adopted the Australian grafting techniques

demonstrated during the training sessions This

along with techniques practiced in Vietnam and

China were demonstrated to all participating

tech-nicians once again enabling techtech-nicians to better

train grafting staff and fine tune techniques

Those that had not attempted these techniques

have been encouraged to do so Further input was

provided by the visiting 3 Chinese collaborators

in this training and information delivery process

at the Lang son Training Workshop detailed

be-low

Nurseries that had tried Australian formulas for propagation and potting mixes were commended and encouraged to keep comparative data Early evidence indicated that the new mixes were working well

The highlight for this period was the Lang son Macadamia Training Workshop held over 2 days and involving 44 participants The comprehensive program included presentations and field visits The program included presentations by the Viet-namese and Australian project leaders, Hoang Hoe and Martin Novak, providing an overview of project progress and key aspects of project devel-opment

Kim Wilson CEO of Gray Plantations and AMS Vice Chairman, made two presentations including

a project update of the 3 principal trial sites and nurseries and an overview of Macadamia R&D in Australia and the World including the latest infor-mation presented at the Macadamia Congress in Brasil August 2006 A summary is included in this newsletter

The project partners presented reports on the re-sults of their activities and challenges Dr Hai of FSI presented a report on his and Dr Kha’s Maca-damia research ranging over 6 years and 6 prov-inces of Vietnam Again a summary of this report

is included in this newsletter

Dang thi thuy Thao of WASI presented a brief report prepared by Tran Vinh of their trials at the workshop and have continued to work collabora-tively with the project team Some aspects of this report are included in this newsletter

The visiting Chinese delegation represented by

Dr Chen presented a comprehensive report on R&D in Quangxi China The presentation fo-cused on a trial of 8 varieties examining quality and yield of NIS This was followed by a pictorial presentation of nursery practice which stimulated

a debate focusing on the variations between prac-tices in China, Australia and Vietnam The field sites visit provided an opportunity for participants

to demonstrate and further debate their various practices

The project is now working with organizations that are undertaking 16 Macadamia trials There are the 3 principal Varietal trials at Lang son, Ba

vi and Yen Thuy, the 8 FSI trials and the 6 WASI trials On top of that there is the ThaiBinh Foods planting about to commence and the 8+ trials in China

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The Macadamia Study Tour of

China

In March 2006, as a part of the Macadamia

CARD project,11 participants went on a fact

find-ing tour of China to look at how the country’s

Macadamia Industry has developed and what

les-sons could be learned for Vietnam The team

spent 10 days in China involved in briefings,

presentations and field visits, taking photographs,

videos and detailed notes The tour covered over

5000 klms of south China spanning from the east

coast to the southwestern border regions The tour

entailed traveling by 4WD, bus, train and plane

A DVD Video and photo CD have been produced

of the highlights of the study

A report of preliminary research of Macadamia

was provide by Dr Chen and is available through

the CEDT office

Prof Hoang Hoe has prepared a comprehensive

report in Vietnamese Since he speaks, writes and

reads Chinese he was able to translate into

Eng-lish during most of the tour for Kim Wilson and

Martin Novak the Australian project team

repre-sentatives

We advise readers of this report to also refer to

Prof Hoe’s Vietnamese report, which is very

comprehensive The translated Summary English

version is Part 2 of this report We also advise

readers to refer to the DVD Video and CD photos

of the tour in order to experience the atmosphere

of the Macadamia culture of China and for

addi-tional technical and experiential information

These are available though the CETD Office,

Ha-noi as is Prof Hoe’s report

Tour Participants

Martin Novak, President SFFA, Austra-lian Project leader

Kim Wilson, Vice Chair AMS Manager Gray Plantations Project Consultant Hoang Hoe, National Director, Project 037VIE05

Nguyen Huu Loc, Chair, Vietnam Maca-damia Club, Interpreter

Nguyen cong Tan, President, Vietnam As-sociation of Rural Industry Small & Medium Enterprises

Nguyen huu Quang, President, Vietnam Forestry Association

Hoang Phuc, Managing Director, Long Phuong Co Ltd

Nguyen Duc Son, Managing Director, A Chau Co Ltd

Dang van Xuan, Chairman, Yen Thuy Dis-trict People Committee

Chen Xenguo, Chinese Expert, Subtropical Crops Institute of Guangxi,

Key regions visited included, Nanning Guangxi, Zhangjiang Guangdong, Kun-ming and Jinghong Yunnan and Long Zhou Guangxi

Key places visited included:

GAMac Guangxi Fusui Company Chongzua city

in the Fusui district Guangxi province, Guangxi Subtropical Crops Research Institute, Guangxi Subtropical Crops Research Centre, South Sub-tropical Crops Research Institute Zhangjiang, Yunnan Forestry Administration Kunming, Insti-tute of Tropical Crops at Jing hong, Jing Hong State Farm, Long Zhou State Farm and Nursery

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Summary of lessons learnt

There are some limitations to the following

ob-servations At times the translation from Chinese

and Vietnamese was difficult Also cultural

dif-ferences and variations in definition may have

affected the perception of the outcomes of the

research However every effort has been made to

record accurate information:

The group visited most of the main large

nurs-eries including GAMac – Fusui Co 100000

Seedlings; Guangxi Subtropical Crops

Re-search Institute - 50,000 Grafted and

seed-lings; Zangzhiang - 100000 Grafted,

cut-tings and seedlings; Yunnan Macadamia

Development Company - 200000 grafted

trees available (Claimed to be the biggest

in Asia) Tree costs range from 12, 15-18

Yuan

The best nursery and plantation companies

were the 2 Joint Venture Companies

GA-Mac Fusui Co in Guangxi and Yunnan

Macadamia Industry Development Ltd in

Yunnan Both had Australian partners,

pri-vate investors and state support

Yunnan Province is the most suited for

Maca-damias both in terms of climate and soil It

has by far the largest plantings

approxi-mately 3300 ha

Best varieties from all sites visited included

695, 788, OC, 741, 900, 800 and some of

the Chinese selections

Varieties included some good selections of

high performing trees, however there was

a lot of uncertainty of varieties and

varie-ties that were mis-labelled or incorrectly

identified based on Australian

understand-ing

Long Zhou State Farm and Nursery, near the

Lang son border also showed some good

tree selections, one of which is being

in-cluded in the project trials

Field performance is based on highest yielding trees but these are few, up to 11 in some places So the genetic diversity will be small if they become the principle industry trees Original mother tree variety and ori-gin are uncertain in many cases

The quantity of grafted trees is mixed some good some not so good in all the nurseries Claims of 95 % success rates appeared in-accurate upon viewing trees in the nursery Generally nursery success rates and pro-duction rates appeared based on best per-formance rather than averages, which would provide a more accurate picture Potting mix formula for cloned Eucalyptus at Forest Research Centre (Not allowed pho-tos) may have promise for Macadamia pot-ting mixes This included charcoal rice husks, composed sawdust, sand and fertil-izer

There was little evidence of a well structured industry Cooperation between organiza-tions lacked a well-developed management structure considering the 20-year develop-mental history of Macadamias in China

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Project News updates:

New training material

New training material including a “Macadamia

Nursery Manual for Vietnam” 2007 and a video

“Grafting techniques in Australia and Vietnam “

have been developed this year This is in addition

to materials developed in 2006 listed below

The manual focuses on the propagation of

grafted macadamia trees and covers such topis as

the raising of seedlings, grafting techniques,

nurs-ery design and and record keeping It is

princi-pally based on proven Australian techniques that

have been adapted to suit the situation in Vietnam

The Lang son Training Workshop

The Lang son Training Workshop was the project

highlight of 2006 The effort and ability of the

Vietnamese team leader and the CETD staff in

planning then implementing the activities

neces-sary to ensure a comprehensive program and

presentations and gain good participation by all

know stakeholders was outstanding and is a great

asset of the project

The presentations by all, were of a high standard

and facilitated broad participation It was

particu-larly encouraging to see technicians and

exten-sion staff, provide informative reports and

dem-onstrate their keenness by a high level of

involve-ment in all sessions both at the workshop and in

the field There was a notable difference in this regard when compared to the involvement during the Introductory Training Session held in Hanoi earlier in the year Considering the limited experi-ence and exposure to the Macadamia industry it is

to their credit that they are responding so effec-tively

The workshop was held in an atmosphere of openness which allowed participants to raise is-sues of concern, including the need for increased support for the trials, the need to undertake more pilot plantings in other provinces, the need to im-prove the quality of the seed and scion wood and the desire to involve more smaller farmers as well

as to link more strongly to bigger commercial interests Ways of addressing these issues were debated and are being implemented

All presentations are included in the Workshop Proceedings listed in this newsletter

The 3 existing Macadamia Nurseries FSI, Lang son & Ba vi and the variety trials

It is encouraging to see progress in the nurseries and trial sites Most of the information and tech-niques delivered in previous sessions and visits were being tried, including grafting techniques and equipment, propagation techniques, potting mixes and fertilizer regimes

It was good to see the progress of FSI research in Macadamia presented by Dr Hai and Mr Kien at the Training workshop Clearly FSI is the princi-ple Macadamia research body underpinning the projects role as well as that of some of the other private developments They are using a compre-hensive range of genetic material including the following from Australia: Daddow, 246, 294,

344, 816,849, 856, 741 and NG8 and 2 varieties from China OC and A800

Also trees grafted from original trees planted in

Ba Vi in 1994 including: MC1, MC2, MC3, MC4, MC5, MC6, MC7, MC8, MC9, MC10, MC11, ðC1 (trees planted from Australian seed), ðC2 (trees planted from seed in Ba Vi) and ðC3 (Cutting trees in Ba Vi)

Mrs Ngo mai Phuong, Mr Nguyen Duc Son, Nguyen thu Van, of the Lang son Seed Enterprise

Co under the directorship of Hoang Le Minh have also been doing some very good research

Lang son workshop: Dr Chen (China), Martin

No-vak, Hoang Hoe and Kim Wilson

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both in the nursery and in trialing macadamia

varieties in the field

They have been successful at trialing cutting and

cloning techniques This is very important work

along with similar work by FSI which will help

the industry produce macadamia trees quickly

and cost effectively

Mr Nguyen Cong Duong and Bui Vu Anh at the

Ba vi Nursery have been successfully propagating

and grafting successfully all of the scion-wood

received from Australia They now have trees

old enough to take scion wood from And their

nursery is now providing trees for the trials and

other plantings

Progress at the new macadamia nursery at

Yen Thuy

The progress at the new nursery, accords with

design plans and exceeds expectation of the

Aus-tralian team It is already demonstrating

tech-niques include seed germination in well drained

sand, potting mixes using much less soil and

more sand and organic matter, larger potting

bags, a lighter shade cloth and the use of plastic

and gravel underlay for the potting bags

The Long Phuong Company’s new nursery is

us-ing the people from the local community, to build the new nursery, for preparation of plantation land Six workers are involved in propagation, preparation of potting mix, and maintenance The Company has also successfully submitted a pro-posal to the Sweden Environment Fund (SEF) focusing on " the village environment" The Project objectives includes helping 20 house-holds, by building, Eco toilets, planting high quality grass in home-gardens, building 2 water wells to provide clean water and organized 4 Training Courses on Environment protection to all the local village people The project has devel-oped successfully to date and compliments the Macadamia project

Financial returns

The Macadamia Capital Development and Finan-cial Projection Model has been prepared, based

on available cost data to date for a generic 20 ha plantation providing NPV and IRR projections over a 20 year period This is based on a model developed in Australia and adapted for the situa-tion in Vietnam

Data used in the model has been collect since

2005 Additional data and some analysis was pre-sented by participants in the Lang son Workshop

of October 2006 The yield data is based on Aus-tralian figures Consideration of Chinese yield provided some validation, but until good yield data is available from Vietnam the resulting IRR and NPV figures should be treat with significant qualification They should not be used to make serious commercial or research assumptions Even much of the cost data needs to be expanded and progressively validated as the project pro-gresses and the infant industry grows in Vietnam The model will be presented at the next Macada-mia Training Workshop Copies of the Model are available from the CETD office

FSI Nursery Kim Wilson, Dr Think, Dr Hai,

Mr Phuc and Mr Kien

New Nursery at Yen Thuy

Ba vi Variety trial by Jessy, Phuc and Kim

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Macadamia Project Supporting Documentation available through the CETD office

Video - DVDs

1 Macadamia in Vietnam 2004

2 Macadamia in Vietnam 2005

3 Macadamia Study Tour of China 2006 **

4 Macadamia in Vietnam – March/April 2006**

5 Grafting Macadamias in Australia March 2006**

6 Macadamias in Australia – AMS Promotional Video

7 Grafting techniques in Australia and Vietnam 2005 - 2006

Photo Presentations CDs

1 Grafting Macadamia in Australia – 2006

2 Macadamia China Study Tour – March/April 2006

3 Australian Macadamia Nurseries – 2006

4 Macadamias in Vietnam – 2004-6

5 Illustrated guide to identification of macadamia cultivars in South Africa by Peter Allan

Training and Support Documents

1 Choosing Varieties and Tree Spacing *

2 Row and Tree Spacing Options *

3 Planting Procedure *

4 Managing Young Trees *

5 Propagation *

6 Notes on Macadamia China Study Tour – Novak

7 Notes on Macadamia China Study Tour – Hoe

8 Report on the Macadamia Study Tour of China – Part 1 Novak Part 2 Hoe

9 Proceeding of the Macadamia Training Workshop Lang son 2006

10 Proceeding of Macadamia Training Workshop Ba vi 2007

11 Macadamia Nursery Manual for Vietnam 2007

News Letters

Macadamia News Letter for Vietnam—Issue 1 2007

Note:

1 * Notes based on Australian Macadamia Manual Translations were provided at the Lang son Training Workshop October 2006

2 **Training support documentation and materials provided to project participants during the Workshop

All other documents were provide to participants at the Macadamia Introductory Workshop in Hanoi April 2006 or directly at field site training sessions

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