Progess Report:" Cocoa Fermentation and Drying and Quality Assessment in Vietnam - Milestones 5 & 7 " pptx

Ministry of Agriculture & Rural Development Collaboration for Agriculture & Rural Development 013VIE05 VIE: Cocoa Fermentation and Drying and Quality Assessment in Vietnam Progress R

Ministry of Agriculture & Rural Development

Collaboration for Agriculture & Rural Development

013VIE05 VIE: Cocoa Fermentation and Drying and Quality

Assessment in Vietnam

Progress Report

Milestones 5 & 7: Manual for Improved Cocoa Quality through Improved Processing Procedures &

Research Papers/Technical Reports

Table of Contents

1 Institute Information 2

2 Project Abstract 3

3 Executive Summary _3

4 Introduction & Background 4

5 Progress to Date 5 5.1 Implementation Highlights 4 5.2 Smallholder Benefits 9 5.3 Capacity Building 9 5.4 Publicity 9 5.5 Project Management 10

6 Report on Cross-Cutting Issues _10 6.1 Environment _ 10 6.2 Gender and Social Issues _ 10

7 Implementation & Sustainability Issues 11 7.1 Issues and Constraints _ 11 7.2 Options 11 7.3 Sustainability _ 11

8 Next Critical Steps _12

9 Conclusion _13

10 Statuatory Declaration Error! Bookmark not defined.

1 Institute Information

Project Name 013VIE05 Cocoa Fermentation and

Drying and Quality Assessment in Vietnam

Vietnamese Institution Can Tho University

Vietnamese Project Team Leader Ha Thanh Toan, PhD

Vietnamese Institution Nong Lam University

Vietnamese Project Team Leader Dr Pham Hong Duc Phuoc

Vietnamese Institution Western Highlands Agro-forestry

Science & Technical Institute

Vietnamese Project Team Leader Dr NGUYEN VAN THUONG

Australian Organisation QDPI&F

Australian Personnel Neil Hollywood

Completion date (original) February 08

Completion date (revised) June 08

Reporting period Forth 6 months to February 08

Contact Officer(s)

In Australia: Team Leader

Name: Neil Hollywood Telephone: 617 34068643

Position: Senior Microbiologist Fax: 617 34068699

Organisation QDPI&F Email: Neil.hollywood@dpi.qld.gov.au

In Australia: Administrative contact

Name: Michelle Sinn Telephone: 617 33462711

Position: Senior Planning Officer Fax: 617 33462727

Organisation QDPI&F Email: Michelle.Sinn@dpi.qld.gov.au

In Vietnam

Name: Ha Thanh Toan Telephone: 84 71 830604

Position: Director, Biotechnology R&D

Institute

Fax: 84 71 830604

Organisation Can Tho University Email: httoan@ctu.edu.vn

2 Project Abstract

3 Executive Summary

One visit by the Australian collaborator was made in April 2007 During this visit the three collaborating institutes were visited

The purpose of this visit is outlined in the project document in Section 3.2 “Implementation Schedule” and was basically to complete outputs 9 - 14 of that schedule These are as follows:

A “Hot House” fermentation trial was conducted at Western Highlands Agricultural Science Institute (WASI) during the April visit of the Australian collaborator This trial was conducted in conjunction with the testing of three other treatments These treatments were pod storage and the spreading of beans, in the sun for two hours and four hours, prior to placement in fermentation boxes Results obtained from these trials indicated that the use of “hot houses” did not have a significant effect on fermentation parameters and their use can not be recommended for the cooler regions of Dak Lak Province Sensory analysis of dried bean samples from these trials were conducted at Nong Lam University in December 2007 but results were inconclusive A further trial

on the use of a wash procedure for fermented beans, prior to drying, was also conducted at Can Tho University in April 2007 This trial was repeated at Nong Lam University in September 2007

A further trial using combinations of pod storage, spreading of beans in the sun prior to fermentation, length of fermentation time and soaking of beans after fermentation and prior to drying, was conducted at Nong Lam University in December 2007 Dried bean analyses were completed in January 2008 Results demonstrated that the practices of pod storage, bean spreading and washing, prior to drying, each increased the brown bean percentages in cut tests As buyers currently determine prices for cocoa on cut test results, all three practices are to be recommended Because of some delays an extension of the time frame from April to June 2008 was requested and approved by CARD

The Government of Vietnam is focusing on high quality Vietnamese cocoa and has set a goal of having 10,000 ha of planted cocoa by 2010 This is principally aimed for in the Central Highlands and Mekong Delta regions These are priority regions for CARD projects It is crucial that Vietnam produces a high quality fermented cocoa that would improve incomes for Vietnamese farmers The best way to assure good quality attributes

is to train relevant Vietnamese organisation’s staff in assessment of cocoa quality and fermentation and drying methodologies The obvious choice for training are scientists from the Vietnamese Cocoa Development team in Nong Lam University, scientists from Can Tho University, and WASI, the official cocoa research institute, in Dak Lak province

In this project, smallholder methods of fermenting and solar drying cocoa are to be tested under Vietnamese conditions and factors involved in farmer adoption Methodologies will

be passed to farmers through extension and other appropriate channels In tandem with this, training of Vietnamese staff in cocoa sensory and chemical analysis at QDPI&F, is to

be conducted The aim of these project activities is to produce high quality cocoa as well

as having the capacity to monitor and advise at the participating Vietnamese Institutes

4 Introduction & Background

Due to a large cocoa grinding industry and growing consumption, there is a lack of properly fermented cocoa in the Asia Pacific region Much of the fermented cocoa is currently being important from West Africa Vietnam has the capacity to fill at least part of this supply need, but it

is crucial that cocoa produced is comparable to the industry standard, West African cocoa

The Vietnamese government has an aim of increasing cocoa production especially in the Western Highlands and Mekong Delta regions It is intended that the Mekong Delta area, using smallholder farmers, will be the site of the bulk of new plantings Currently there are 2700ha of cocoa planted

in this region In the Mekong Delta area, the majority of cocoa is in Ben Tre Province This is a neighbouring province of Can Tho, where Can Tho University and the proponent are situated Ben Tre province is also being promoted by the central government as a pioneering province for cocoa development in the Mekong Delta region Cocoa development activities have strong support from the local MARD (Ministry of Agriculture and Rural Development) branch

Due to the fact that cocoa cultivation is very new in Vietnam, there is little expertise in cocoa quality in any of Vietnam’s academic and research organizations A Cocoa Development team from Nong Lam University is the most knowledgeable in many aspects of cocoa, especially in agronomic issues related to the establishment of the crop Can Tho University is adjacent to Ben Tre province and WASI (Western Highlands Agricultural Science Institute) can service the cocoa industry in the Western Highlands WASI is also the official Vietnamese cocoa research institution mandated by Ministry of Agriculture and Rural Development (MARD) Therefore these three institutes were included for participation in the project The project aims include addressing capacity building in all aspects of cocoa processing and quality assessment in these Institutions

The project aims include studies of methods of optimising the processing of cocoa, especially in regard to harvesting and fermentation and drying procedures Dak Lak, because of its’ cooler climate, has separate requirements regarding fermentation and drying from the other two provinces This aim, it is hoped, will result in premium prices for cocoa Once methodologies have been developed for a range of harvest sizes, adaptive, on-farm trials will be established These trials will involve the distribution of dryers and fermenting boxes to selected smallholders in Can Tho, Ben Tre and Dak Lak On-farm sites are then to be monitored at intervals to note factors such as; he manner in which the procedures are adopted and perform, the quality of product compared

to that obtained in other countries and the rest of Vietnam, maintenance problems which may occur and the benefits to family members, including gender issues such as, labour reduction and income effects These trials would need to be undertaken over at least a one-year period to adequately assess performance, maintenance and any other associated problems with the methodologies, which may be encountered in different seasons

With a successful conduct and outcome from the on-farm trials, extension activities would then be undertaken This could be in the form of booklets, production of simple plans for fermenting boxes and dryer construction, local media reports, and dissemination via extension officers within relevant Vietnamese agricultural agencies and with training projects such as SUCCESS Alliance (SA)

For cocoa quality evaluation, staff from the three participating institutes will receive training in the physical, chemical and sensory evaluation of cocoa at QDPI&F, Brisbane They will also receive training in the conduct of fermentation and drying trials In this manner, capacity building of the participating institutions will be implemented

5 Progress to Date

5.1 Implementation highlights

The project milestones, as per Annex 1 of Schedule 2 of the amended contract, and achievements

to date against proposal activity log frames are as follows:

TABLE OF MILESTONES

No

Logframe

Ref

(Output)

Milestone Description

Deliverables: Means of Verification for

Payment

Expected Delivery Month/Year Actual Delivery

1

Signed

• Research Agreement signed

Milestones and payment schedules

in place

February 2006 February 2006

2

Output 2 Cocoa Baseline

Data

Current Cocoa Production Practices in target areas including:

• Holding size

• Production and quality of pods

• Current processing methods, including fermentation and drying

in the wet season

• Farm-based financial information - income and expenditure and returns per labour day

• Existing market options and the returns from the use of marketing organisations such as cooperatives and government and private sector buyers

• Identification of critical control points for improvement of cocoa quality

• Reference to other farmer baseline surveys – e.g SUCCESS

September 2006 September 2006

3

Objective

5

1st Six-monthly Report

• Report submitted using the CARD standard reporting format detailing progress in achievement of logframe activities (Brief Training Reports as attachments)

• Statutory Declaration of Personnel, Equipment and Other Services Provided

August 2006 August 2006

4

Objective

9

2nd Six-monthly Report

• Report submitted using the CARD standard reporting format detailing progress in achievement of logframe activities (Brief Training Reports as attachments)

• Statutory Declaration of Personnel, Equipment and Other Services Provided

February 2007 August 2007

5

Objective

11, 12

Cocoa Quality Manual

Comprehensive Manual for Improved Cocoa Quality including:

• Design and construction of farmer-appropriate fermenting boxes, hot houses and driers

• Recommended management practices for harvest and post-harvest treatment of cocoa beans

• Extension material and farmer aids for sorting, grading and bulking cocoa to improve income

July 2007 Completed

February 2008

6

Objective

13

3rd Six-monthly Report

• Report submitted using the CARD standard reporting format detailing progress in achievement of logframe activities (Brief Training Reports as attachments)

• Statutory Declaration of Personnel, Equipment and Other Services Provided

August 2007 Submitted

September 2007

7

Objective

7, 8, 12,

Research Papers/Technical Reports

• Cocoa drying trials

• Cocoa fermentation trials

• Summary of on-farm trials

• Chocolate liquor production and sensory evaluation

• Quality attributes of cocoa in Vietnam

September 2007 Completed

February 2008 but had to be posted

on CD due to size

of documents and translation delayed

8

Objective

2, 3, 4, 6,

10, 14

Competent staff

at CTU, NLU and WASI

Objective competency assessment of Can Tho, NLU and WASI staff in:

• Design, installation and advice for the use of farmer appropriate drying and fermentation equipment

• Skills in establishment and management of taste panels, cocoa sensory analysis and biometry procedures

• Analysis and reporting of on-farm trials in Ben Tre, Western Highlands and SUCCESS sites, including farmer oriented financial analysis of cocoa quality

improvement interventions

November 2007 Staff now have

competencies in processing procedures, conduct of fermentation and drying trials and quality evaluation The analysis of on-farm trials is now expected in April 2008

9

Objective

7

Validation of Smallholder

Benefits

• Economic, social and environmental benefits for target farmers through adoption of recommended interventions for improvement of cocoa quality (compared with baselines

December 2007 Follow-up survey

conducted in December 2007 Final analysis to

be completed in April 2008

10

Objective

15, 16, 17

18

Project Completion Report

• Report submitted using the CARD standard reporting format detailing progress in achievement of logframe activities (Brief Training Reports as attachments)

• Statutory Declaration of Personnel, Equipment and Other Services Provided

April 2008 Due by June

2008

Project Activities

The activities listed are as per the project document as this states the activities in more detail than the amended contract Activities previously reported are not included Activities initiated or completed during the past six months are as follows:

2.2 Collection of base line data re current industry and Institute capacities Completed and

previously reported

2.3 Assessment of baseline data Completed and previously reported

2.4 Identification of capacity building requirements of Vietnamese institutes Completed and

previously reported

Project logframe activity 2.5: Initiation of construction of fermentation boxes, solar dryers and hot houses: Completed and previously reported

Project logframe activity 2.6: Initiation of drying trials and dryer modification: Completed

and previously reported

Project logframe activity 2.7: Initiation of fermentation trials The “hot house” fermentation

trials, including studies of pod storage, bean spreading and length of fermentation time were completed in April 2007 The effects of fermentation in the warmer atmosphere of the hot house were not sufficient to warrant its recommendation

In April 2007 the use of a wash or soaking procedure on beans at the end of fermentation, before drying, was tested at CTU This was repeated at NLU in September 2007 and increases in brown bean counts and a reduction in shell content were confirmed In December 2007 a multi-factorial trial was trial was conducted at NLU involving pod storage, bean spreading, length of fermentation time and the soaking procedure All trials have now been written up as attachments to milestone 7 and form the basis of recommendations in the farmer’s manual

2.8 Collection of samples of fermented dried cocoa from local sources and fermentation trials for inclusion in sensory and analytical training at QDPI&F Completed and previously reported 2.9 Purchase in Australia and delivery of items not readily accessible in Vietnam Completed

and previously reported

3.1 Visit to QDPI&F of Vietnamese scientists from CTU, WASI and NLU Completed and

previously reported

3.2 Training in cocoa sensory, analytical and biometry procedures for scientists from Can Tho and NLU Completed and previously reported

3.3 Establishment of taste panels and analytical procedures at CTU, WASI and NLU

Completed and previously reported

4.1 Assistance to Can Tho, NLU and WASI in buying equipment required for sensory, analytical and biometry procedures Completed and previously reported

6.1 Training of WASI staff at CTU and NLU in sensory analytical and biometry procedures

by Can Tho and NLU staff This was completed by attendance of WASI staff member at training

at QDPI&F

7.1 Smallholder cocoa quality improvement through optimisation of fermentation practices

Experimentation has been completed and the manual is in print The main recommendations regarding fermentation are to adopt the practice of pod storage, spreading of beans, to reduce

Western Highlands but should be adopted in the Mekong delta region The extension of information to farmers is behind schedule

7.2 Evaluation of fermentation trial data This has been completed and several

recommendations are being incorporated into extension materials

7.3 Evaluation of drying trial data This has been completed

7.4 Construction of solar dryers at Can Tho and NLU and delivery of prefabricated units to WASI Completed and previously reported

7.5 Drying trials evaluation Completed and previously reported

8.2 Adjustments, if any, to solar dryer design made Completed and previously reported

8.3 Testing of updated dryer design Completed and previously reported

11.1 Production of extension materials re fermentation practices and dryer design in Association with CTU, NLU, WASI, NAEC and SUCCESS Alliance The extension materials

have been finalised and are currently being translated and printed at CTU

12.1 Initiation of on-farm trials in Ben Tre and Western highland in association with Vietnamese institutes, MARD and SUCCESS Trials have been initiated at all three participating

institutions but insufficient gathering of dried bean samples and assessment of characteristics has occurred to date

12.2 Economic assessment of selected villagers current incomes and practices regarding cocoa processing and sale A follow-up survey of farmers, with and without solar driers, in Ben

Tre Province was conducted in December 2007 Analysis of the survey data is yet to be completed

12.3 Collection of cocoa samples from the selected sites on a regular basis and assessment of quality attributes of the cocoa This has proved problematical with the distance from Can Tho

and Nong Lam Universities from the solar drier sites in Ben Tre province Similarly, the one solar drying site in Dak Lak is sixty kilometres from WASI There probably needs to be some reallocation of funds for this to be conducted comprehensively However, over-expenditure has occurred in several areas of the project and a reallocation of funds may be problematical

12.4 Collection of data on changes to farmers work patterns and income due to adoption of methodologies A follow-up survey of farmers, with and without solar driers, in Ben Tre Province

was conducted in December 2007 Analysis of the survey data is yet to be completed

12.5 Collation of data on quality attributes of cocoa produced by smallholders or cooperatives using project methodologies against a range of Vietnamese sources As for

activity 12.3

12.6 Comparison of farmer’s costs, work practices and income after adoption of the methodologies As for activity 12.4

14.1 Travel of two weeks, in August 2007, by Australian partner to Vietnam for assessment

of sites in Ben Tre and Western Highlands This has not been undertaken as over-expenditure

has occurred in several areas and the lateness of milestones 5 & 7 have led to delays in forwarding tranches for these milestones

14.2 Identify technological uptake and identify barriers to adoption of methodologies As for

activity 12.4

15.1 Finalisation and assessment of all project activities To be done in time for a final project workshop in June 2008

16.1 Visit, of three weeks, by Australian partner to Vietnam in April 2008 This needs to be

changed to three weeks in June

17.1 Final project workshop To be done by end of June 2008

18.1 Final project report To be done by end of June 2008

5.2 Smallholder Benefits

Cocoa, properly fermented and dried, and of good flavor attributes, can fetch a premium between 100-200 USD/tonne over the usual Southeast Asian bean price This means that, if this project were successful in establishing a high quality standard, Vietnamese smallholders would earn an additional 1-2 million USD per year once the foreseen target, of 10,000 ha in production by 2010,

is reached For the Mekong Delta region, there is the potential of an additional amount of 1.8-3.6 million USD that would be earned by smallholder cocoa growers Due to similar rainfall, development of methodologies for the Mekong should be transferable to the Central Coast if cocoa production was initiated there

A short survey of cocoa farmers at Ben Tre province, by SA in 2004, demonstrated that cocoa trees, within 2 years of planting, could give 50kg of cocoa bean per month/ha The yield increases

to 200kg cocoa bean/month/ha for 4 year old trees At the present price (21,000 VND/kg of fermented bean) farmers could earn 3.6 billion Vietnamese Dong/month/ha (or 235 USD/month/ha) for good quality cocoa

The impacts, of adoption of methodologies from this project, were expected to be reported by September 2007

5.3 Capacity Building

Training in the conduct of fermentation and drying trials and analysis of the relevant parameters has now been completed at each participating institute

Training, in the use of HPLC for organic acids and GC-MS for aromatic compounds, for Vietnamese staff from each participating Institute, was conducted at QDPI&F in August 2006 Of the participating institutes, only NLU has the equipment for conduct of these analyses

Training in sensory evaluation and biometry of results was also conducted at this workshop Follow up training has been conducted by the Australian collaborator during visits in December

2006 and April 2007 A mortar and pestle, for cocoa liquor or chocolate production, has been delivered to WASI and a processor for chocolate or liquor production delivered to CTU NLU had equipment for this prior to the project commencement

5.4 Publicity

The following would be applied to publicise AusAID / CARD involvement

• Media and publicity releases;

• References and signage at field demonstrations, workshops and training sessions (Solar driers and fermenting boxes demonstrated in Ben Tre Province during an “International Cocoa Workshop” Nov 2006 and a seminar on cocoa fermentation& drying and quality