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Establish nurseries and training to effectively propagate high quality trees and trial plantation models of Macadamia in 3 provinces of North Vietnam - Milestone 7 " pdf

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Ministry of Agriculture & Rural Development Project Progress Report 037VIE05 Establish nurseries and training to effectively propagate high quality trees and trial plantation models of

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Ministry of Agriculture & Rural Development

Project Progress Report

037VIE05

Establish nurseries and training to effectively propagate high quality trees and trial plantation models of Macadamia in 3

provinces of North Vietnam

Milestone 7 THIRD SIX-MONTHLY REPORT

January-July 2007

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1 Institute Information

Project Name Establish nurseries and training to effectively

propagate high quality trees and trial plantation models of Macadamia in 3 provinces of North Vietnam

Vietnamese Institution Center for Environment, Tourism and

Development (CETD),

Vietnamese Project Team Leader Prof Hoang Hoe

Australian Organisation Subtropical Farm Forestry Association

Australian Personnel Martin Novak, Kim Wilson

Date commenced 10 January 2006

Completion date (original) 10 January 2009

Completion date (revised)

Reporting period January – June 2007

Contact Officer(s)

In Australia: Team Leader

Name: Martin Novak Telephone: 61 2 66895027

Position: President Fax: 61 2 66895227

Organisation Subtropical Farm Forestry

Association

Email: martinnovak@bigpond.com

In Australia: Administrative contact

Name: Valda Mitchell Telephone: 61 2 66284372

Position: Administrative Officer Fax: 61 2 66284386

Organisation Subtropical Farm Forestry

Position: Director Fax: 04 7560233

Organisation CETD Email: hoanghoe@fpt.vn

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2 Project Abstract

3 Executive Summary

The project continued over the first 6 months of 2007 and included meetings in Australia and Vietnam between participants communicating progress and key information relating to the participating organisations

The Australian team visit took place in March during which over a 1000 pieces of Australian Scion wood was delivered to the 3 existing nurseries This included all of the 10 Australian

246, 344, 741, 814, 816, 842, 849, A4, A16, A38 varieties selected for the trial Kim Wilson visited the FSI and Ba vi nurseries and trial sites and Martin Novak visited Lang son and Yen Thuy although he was not able to visit the new nursery and trial site due to poor road conditions as a result of previous heavy rain Both Australians provided hands on training and information relating to key aspects of macadamia propagation

The main issues which arose during this Australian team visit at the nurseries, were once again, the use of too small a bags, poor potting mixes and inefficient methods of mixing Also the need for slow release fertilizers was identified With regard to the trials the need for additional NPK in the plots was noted (Annex 1 & 2 Australian team visit reports) There is some concern that the Ba vi trial plot was not planted according to the original design Also there was concern that the Yen Thuy trial planting had not yet commenced because of delays

in the finalising of the leasing arrangements

During this period the proceedings of the Lang son Training Workshop were finalised and distributed to participants on CD (Annex 3) Also work was started on the Nursery Manual and the first issue of the Newsletter Planning of the October 2007 Workshop to be held at Ba

vi were completed This included delivering invitations to 5 key Chinese delegates and an effort to involve more farmers this time around

This project continues during the first half of 2007 to support the propagation in the new Macadamia nursery and in the three existing nurseries Also 3 principal variety trials of Macadamias are being established, of about 1 ha each involving 14 suitable Macadamias varieties, in 3 provinces of north Vietnam

In addition the project is involved with 3 organizations undertaking 16 other trials Training continues to be conducted in aspects of propagation, grafting, site design and preparation, planting, maintenance and plantation management at the nurseries and trial sites This has included the distribution of CD, DVD and powerpoint presentations as well as hands on training at 2 formal training 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 during 2006 and 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 provinces 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 private sector companies are also involved as is the Macca Club of Vietnam

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

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In addition to the above, work was started on the Nursery Tree Movement and Sales Model

XL Spread sheets and the Macadamia Capital Development & Financial Projections Model

XL Spread sheets This a key part of the Milestone 3 report utilising the relevant baseline data collected to date

The Macca Club continued its coordinating role in association with the activities of the project Comprehensive discussions were undertaken and reports exchanged during the Australian team visit in March (Annex 1 Australian Team leaders meeting notes)

Communication and exchange of information was increased during this period with a number

of organizations and individuals, including, Central and Western Highlands Agro-Forestry Science and Technical Institutes, Thai Binh Foods and a number of interested farmers Invitations were given to these and other participants, to attend the planned Ba vi Workshop (Annex 4)

The Australian team leader made a stop over in Bangkok to meet with Prof Choob, Prof Bunvong and Prof Monton of Kasetsart University, who are helping to arrange a tour of Macadamia plantations in October 2007 The tour will include visits to a number of research plantings and nurseries as well as some private commercial nurseries and plantations in October 2007

4 Introduction & Background

The following are the project objectives with comments on progress towards achieving these during this 6 month period:

Objective 1 - Bring all the stakeholders together to work toward a sustainable high value Macadamia industry for Vietnam

A number of meetings and communiqués were undertaken during this period in Vietnam and Australia with Collaborators, past and potential workshop participants including new farmers

to the project

The relationship with Chinese and Thai colleges was strengthened by way of one visit each

by project leaders to the respective countries In addition to this an ongoing dialogue has been maintained via phone and email Invitations to the Ba vi Training Workshop have been given to these and other Chinese Macadamia Industry stakeholders

Objective 2 - Strengthen the capacity of 3 existing nurseries

Once again additional Australian scion wood was delivered to all 3 existing nurseries including the following varieties 246, 344, 741, 814, 816, 842, 849, A4, A16, A38 (Annex 1&2) Training sessions were delivered at all 4 nurseries along with additional samples of nursery equipment and demonstration DVD’s and CD’s (Annex 3)

Objective 3 - Establish a new model nursery to demonstrate Australian nursery practice To provide opportunity for investment and to ensure adequate supply of stock

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The new nursery was visited by Kim Wilson and considered to be ready to scale up production It has already propagated over 6000 macadamia nut seedlings which have now been potted up and housed in the new shaded area

The sand bed propagation of nut seed from China has been very successful at Yen Thuy with only 300 losses out of 6400 from 100 kg of nut as compared with Lang son which has 4200 seedling trees from 100 kg and Ba vi 2400 seedling trees from 100 kg

Potted tree growth also appears to be better that the other nurseries as a result of a better potting mix with less soil and larger pots, based on the Australian experince (Annex 2) Road access to the nursery is still a problem with the local government delaying promised road works Further promises have been made to complete the work within the next 3 months

Objective 4 - Trial at least 10 varieties of Macadamia in 3 difference provinces Ba vi, Hoa binh and Lang son of Vietnam

The Van Dinh trial in Lang son has been mostly planted Site 1 has close to 400 grafted trees

of all the selected varieties planted Site 2 the smaller site is fully prepared with 178 planter holes ready for planting shortly

Most of the planted trees look good with the odd one off color and small There is evidence

of canker in some older trees at the Station so advice was given that a few may need to be replaced and older trees need to be treated for canker (Annex 1)

At the Ba vi Trial site 2 hectares have been planted including A4, 344, 900, 246, A16, 695,

814, OC, 800, 849, A38, 741, 816, 842 However it does not appear that the original trial

design for this site has been followed There is some confusions as to whether this is the trial since MARD has contributed to the cost of planting 3 ha A site plan has been promised but

as yet has not been received The quality of the trees appear to be good, although more

fertiliser and weeding was recommended by Kim Wilson (Annex 2)

The Yen Thuy trial site has been set aside but not yet planted It will require fencing because

of cattle in the area The main reason for the delay is because of the prolonged procedure to gain government approval for the land lease terms The Australian Team leader met with the local government official and part of the explanation given was that the village farmers do not have certification to use this land but have been dependent on it for some time and will need compensation So half of the lease money is to go to them making the process complicated Assurance was given that all would be finalised within the year at the latest

Objective 5 - Undertake a fact finding study tour of South China 10-12 key project participants, including trainers and researchers

The final reports, one from the Vietnamese team leader and an English version from the Australian Team leader, on the successful Macadamia Study Tour Of China, which took place in March/ April of 2006 was delivered to all participants of the Lang son Training workshop A copies were provided with the previous report (Annex 3) A Video DVD and Photo CD was also provided and further copies are available from CETD

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Objective 6 - Assess Macadamia developments in Thailand Project leaders to undertake the assessment

Following political instability due to the coup last year and also because of an extended Horticultural Show in Chiang mai visits were postponed until this year

In March during the Vietnam visit, the Australian team leader made a stop over in Bangkok

to meet with Prof Choob, Prof Bunvong and Prof Monton of Kasetsart University, who are helping to arrange a tour of Macadamia plantations in October 2007 The tour will include visits to a number of research plantings and nurseries as well as some private commercial nurseries and plantations

The Thais have been involved with the growing of Macadamia for over 20 years and have supplied seed to WASI last year They have undertaken research in propagating and growing macadamia in tropical high elevation areas which will have relevance to highland areas in central and south Vietnam

Objective 7 - Undertake participatory training for technicians, extension officers, nursery staff and workers, farmers and farm workers

Training was delivered during the Australian teams visit in February and March of this period in all the nurseries and trial sites, similar to previous visits

Ongoing informal training also continues in all of the participating nurseries especially since staff and technicians are gaining knowledge and confidence as the project progresses

Objective 8 - Support the formalisation of a Macadamia industry network Based on the successful Australian model (AMS) and other models in Vietnam and elsewhere

A Macca Club of Vietnam meeting was held during the Australian team leaders visit on the

10 March

Presentations and speeches were given by Mr Tan, Mr Loc, Hoang Hoe and Martin Novak (Annex 1)

Mr Tan in his speech emphasised the importance of a strategic approach involving research

in the development of Vietnams Macadamia industry

Mr Loc gave an introduction and overview of plantings in Vietnam

Prof Hoe presented figures on the world production of Macadamia and possible financial returns

Martin Novak gave a PPT presentation on the development of the project including challenges, especially in terms of quality of nursery production The importance of better potting mixes and the need to select out poor trees Grafting still needs to improve Nurseries are being pressured to privatise and hence they try and sell everything including the poor stock Nurseries want new graft material but have not yet perfected their techniques

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The meeting concluded with agreement that the Club would try and involve more interested parties work with the project towards the next Training Workshop at Ba vi in October this year

Objective 9 - Assist and share information, experience and data with existing Macadamia researchers in Vietnam in particular with FSI

The proceedings of the Lang son Workshop contain information for all the key project participants including an informative presentation by FSI and this has been distributed all the Training Workshop participants and others (Annex 3)

The FSI Nursery was visited by the Australian Team and Vietnam Team Leader (Annex 1 & 2) Further meetings were held with Dr Kha , Dr Thinh and Dr Hai The Role of FSI in sharing data, receiving scion wood, seed and samples of equipment and taking part in training continued FSI has requested scion-wood of varieties which they do not have and other than that identified for the trials

Both Kim Wilson and Martin Novak advised FSI that the trial at the Nursery site needed more fertiliser and some watering They also pointed out that nursery macadamia tree production would benefit from better potting mixes and larger bags This is especially important in the light of FSI status as principal research body for Macadamias and also since they were now selling large qualities of grafted trees to commercial farmers

In addition WASI, CASI, RIFV, ThaiBinh Foods and others including smaller farmers, continue to exchanging information and experience with the project team and each other

Objective 10 - Collect data from existing and new trial plots and nurseries and undertake evaluation and analysis

Now that a significant amount of data has been collected by the project team and other participants, work has been able to start on the Nursery Tree Movement and Sales Model XL Spread sheets and the Macadamia Capital Development & Financial Projections Model XL Spread sheets This a key part of the Milestone 3 report utilising the relevant baseline data collected to date

There have been some delays with regard to the delivery of data from the nurseries, partly because of the incompatibility of data formats and partly because of funding limitations This

is being addressed both by the project team and by the nurseries

Project participants have been requested to present relevant data in their presentations at the coming Ba vi Training Workshop in October

Objective 11 - Inform stakeholders and others and promote the objectives of the project specifically and the benefits of a Macadamia industry generally

The network of stakeholders and others has grown significantly since the start of the project

at the beginning of 2006

All relevant government agencies and all known participants in macadamia initiatives have been informed of the project role and activities and invited to Training Workshops

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The publicity generated by the Workshops, particularly, the Lang son Workshop, has helped

to promote macadamia generally in Vietnam This has raised the interest of farmers and investors resulting in the planning and start up of a number of new macadamia plantations

Objective 12 - Strengthen extension capacity by linking it to research and the practitioners

Communication has been maintained with extension and technical staff from all participating agencies and companies involved with the macadamia industry including all those that attended the Lang son Training Workshop that included researchers and practitioners from China, Vietnam and Australia

The project work continues to strengthen the capacity of the technicians and extension personnel of the principal nurseries and trial plot participants

5.2 Smallholder Benefits

There has been a significant interest shown by smallholder farmers since the Lang son workshop Enquiries and orders for trees at Lang son and FSI Ba vi nurseries has significantly increased to the point where FSI has reported not being able to meet the demand for grafted trees

Interest in the October Ba vi workshop by farmers is a further indication of farmer involvement

5.3 Capacity Building

Significant capacity building continues to be achieved via the project training and information delivery mechanisms particularly during the Australian team visit in March The activities at the nurseries and the trial sites, demonstrates participants skills and increasing knowledge levels

5.4 Publicity

No specific publicity was undertaken during this period However plans for promoting the October Ba vi workshop including media coverage have been developed

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The nurseries undertake their own promotion

5.5 Project Management

Management activities in Vietnam and Australia have continued along the lines of the first 12 months, this has included oversight of implementation at nurseries and trial sites, extension work, translation of documents, arrangement of ongoing meetings, responses to design issues, purchasing of equipment, editing of information documents and video Also further ongoing communication relating to the trial sites and nursery activities between participants and collaborators continues

6 Report on Cross-Cutting Issues

A more comprehensive study into environment issues is being undertaken and will be report

on at the October workshop

6.2 Gender and Social Issues

As stated in earlier reports approximately half of technicians and workers in the nurseries are women They play an equal role to that of the men both in terms of work and capacity building

A female staff of CETD will the principal organizer of the Ba vi Training Workshop and she was given high commendation from the participants and project leaders for her successful work at the Long son Training Workshop

A female translator, Dieu Thuy Dang, continues to undertake English translations of research and progress reports including that of FSI

The project leaders continue to encourage participating organizations to utilize the role of woman, on their staff in the project

7 Implementation & Sustainability Issues

7.1 Issues and Constraints

With regard to the project the main issues and constraints relate to the apparent inability of some of the key participants to communicate data and information regarding their activities

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and to fully implement, on time, their side of the project milestones The principal reason for this appears to be the lack of funds available to them to undertake the role

Lack of funding is also hampering the projects team to assist additional farmers and government agencies, particularly those outside of the 3 provinces directly targeted by the project

A proposal to CARD via an EOI (Annex 5) to support an expansion of the project to assist with this situation has been submitted The minister Mr Bong has also been approach regarding support from MARD to utilise the project to assist in developing stronger links with commercial interest and provide materials and extension to WASI and Central Highlands interested stakeholders

With regard to the bigger picture and the fledgling Macadamia industry in Vietnam there still remains an issue of quality stock from the nurseries and adequate data to make accurate projections on the financial viability of the industry as a whole Although the project is attempting to come up with financial modelling in this regard the limited data available limits the accuracy of projections and delays the delivery of such projections Additional input from agencies and/or funding is required to address the limited scope of the data Again the EOI if successful, will assist in this regard as will the ongoing duration of the project

7.3 Sustainability

The basic information as well as good quality suitable varieties are now available to the industry to provide a solid foundation for a viable and sustainable industry Progressively over the next 18 months it will depend on stakeholders within Vietnam to take up the challenge of developing the industry Lessons from Australia need to be taken on board particularly with regard to a communicative and open approach to industry development

To date there do not appear to be any serious environmental or social obstacles to the development of the industry

8 Next Critical Steps

The Ba vi Training Workshop is planned to be the next major project event to held in October

Prior to this event the Nursery manual and the first macadamia newsletter for Vietnam will

be produced and distributed to all known stakeholders and workshop participants

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If the EOI is approved the project team will provide extension to the additional provinces as mention earlier Also plans for training in Australia will be finalised and implemented within the next six months

In addition the first financial projects for the macadamia plantation industry in Vietnam will

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