Báo cáo nghiên cứu khoa học " Strategy for Distribution of Improved Seed by Research Centre for Forest Tree Improvement (RCFTI), Vietnam " pdf

22/08/2007 Ministry of Agriculture & Rural Development Strategy for Distribution of Improved Seed by Research Centre for Forest Tree Improvement RCFTI, Vietnam Prepared January 2007

22/08/2007

Ministry of Agriculture & Rural Development

Strategy for Distribution of Improved Seed

by Research Centre for Forest Tree Improvement

(RCFTI), Vietnam

Prepared January 2007

Output from CARD Project No 058/04VIE Strengthening Capacity in Forest Tree Seed Technologies Serving Research

and Development Activities and ex-situ Conservation

Disclaimer: The contents and opinions contained in this conceptual framework have been provided in good faith

and on the basis that endeavour has been made to be accurate and not misleading and to exercise reasonable care,

skill and judgment in providing such opinions Neither Ensis nor any of its employees, contractors, agents or other

persons acting on its behalf or under its control accept any responsibility or liability in respect of use or

exploitation of this conceptual framework by any person

1 Executive Summary and Recommendations

The Research Centre for Forest Tree Improvement (RCFTI) currently produces 100 kg of genetically improved tree seed from over 40 seed producing stands (seed orchards or seed production areas) The seed represents 15 species which are regarded as key species for

commercial and social application in Vietnam and other similar international environments Over the next five years RCFTI will become a self supporting research organisation and so the seed production is predicted excess of 300 kg of improved seed which can make a significant contribution to the timber industry in Vietnam In order to achieve this, RCFTI has to develop its market capability and diffusion capability to distribute the seed and other germplasm

sources it produces together with its range of services

As part of CARD Project 058/04VIE ‘Strengthening Capacity in Forest Tree Seed

Technologies serving Research and Development activities and ex-situ Conservation’, there is

a requirement to produce two related strategies, one dealing with commercialisation of

RCFTI’s seed sale activities and this document dealing with strategies for distribution of seed This document should therefore be read and contents developed in conjunction with the

business strategy titled ‘Concept Paper covering development of a Business Plan for Tree Seed Supply & Technical Services by the Research Centre for Forest Tree Improvement, Vietnam’

The successful distribution of better adapted and genetically improved seed by RCFTI relates

to four problem areas These are: a) lack of awareness and confidence by growers (credibility)

of the benefits of improved seed from RCFTI, b) how to get access to the improved seed, c) the relatively small quantities of seed produced by RCFTI compared with total demand, and d) the relatively high cost of RCFTI seed compared with seed from other national sources

Companies in Vietnam who appreciate the benefit of improved tree seed, often prefer to

purchase seed from international sources with a proven reputation This is in spite of the fact that the RCFTI seed may be better adapted and of superior genetic quality, and significantly cheaper than international sources By contrast, farmers are after the cheapest possible seed or seedlings and have to rely on access from local sources Given RCFTI’s limited distribution network and higher pricing structure, the centre has not been able to sell direct to farmers

In order to overcome these challenges and be able to effectively market and distribute its seed, RCFTI needs to implement a number of initiatives designed to target niche markets where seed

quality is important The following is a summary of recommendations More detailed

information is provided in Section 6

Summary of recommendations

It is appreciated that marketing in to the Vietnam tree seed sector is difficult given the lack of appreciation for genetically improved tree seed in the market place and comparatively limited amount of seed RCFTI has available making it a minor player in the seed sector By contrast RCFTI has been effective in marketing its seed and other products on the international market where the quality of its products is better understood and valued In order to enhance the adoption of genetically improved seed and planting material at the national level there is a need to:

• Get certificates and registration for genetic seed source (seedling seed orchards, clone seed orchards and seed production areas), approval of advanced genetically germplasms and

sufficiency for ability of genetic germplasm production and business

• understand market needs - customers, competition etc.;

• raise the awareness of the value of improved material;

• quantify the value of improved seed;

• determine the demand and supply of major species used in the planting programs, and

• identify the best routes for deployment

In order to achieve these requirements, RCFTI needs to:

o Speed up getting the certificate and registrations of advanced genetically

germplasms

o Carry out a customer analysis to provide a profile on customer needs and what goods and services RCFTI can provide RCFTI needs to develop its brand name so that it is recognised as the preferred supplier of quality seed Foster good relations with existing stakeholders and at the same time develop new business opportunities

o Gather market intelligence relating to market demand such as species and seed requirements and how RCFTI’s goods and services are differentiated from

competitors Develop pricing strategy based on costs, competitor prices and what the market is prepared to pay

o Develop promotional material and interaction with clients This will vary according

to customer base from personal contact with key stakeholders to field

demonstrations for farmers and a wide range of stakeholders

o Develop closer collaboration / partnerships with stakeholders particularly within MARD This has the potential to increase market exposure and influence the use of genetically improved seed as part of a government strategy

o Continue to develop new improved strains of species and hybrids to meet market demand This work should be carried out in parallel with market intelligence All new ‘improved seed’ must be vigorously tested against other improved seedlots and industry standards

2 Background

Since 1993, large-scale tree planting programs have been carried out in Vietnam More

recently, the government has initiated a program aimed at establishing an additional 5 million

ha of forest development over the period 1998-2010 through rehabilitation of natural forests and new plantations The forest sector including RCFTI through its tree breeding program and seed supply plays a very important role in these massive planting programs Key stakeholders include the Ministry of Agriculture and Rural Development (MARD) through its various departments and sub-departments at the central and provincial level, forest industries, farmers and donor agencies

The average annual planting rate is reported to be 360 000 ha At least 50% of the planted forests will utilise exotic species, the majority of which will be acacias and eucalypts, the species that RCFTI have been focussing on It is estimated that 470-750 million seedlings will

be planted annually for which 245-370 tonnes of seeds are needed each year to propagate the required seedlings (MARD 1998)

According to the decision No of 89/2005/QĐ-BNN issued by MARD in December, 2005, certificate of seed sources must be registered For using the seed source, all seedling seed orchards have to be certificated by MARD while seed production areas have to be certificated

by Provincial Department of Agriculture and Rural Development Therefore, the need to to initiate, establish seed production sources of good genetic quality and certificate the seed sources to support the national reforestation programs has been emphasised by MARD

Government agencies including the Central Forest Seed Company (CFSC), RCFTI and some provincial research centres are all involved in development of seed production sources (seed production areas and seed orchards) CFSC has a seed production network of major plantation

species totalling 3000 ha Under Program 327, state forest enterprises in some provenances were assigned to establish seed production areas of selected species RCFTI presently has 73.8

ha of seed stands comprising 31 seed production areas and seed orchards across15 species (Appendix I)

There are a number of issues that need to be addressed by the industry and which affect

RCFTI’s ability to be an effective distributor of seed

• Collaboration between tree seed stakeholders in Vietnam is generally lacking There is a need for a clear division of tasks particularly at the government level (MARD) to minimise the duplication and competition among stakeholders

• The genetic and physiological quality of seed and seedlings used in the tree planting

programs is often not satisfactory There appears to be limited awareness of the real value

of genetically improved seed among seed users, seed producers and decision-makers Often good germination is the only attribute considered

• The price of seed (e.g seed orchard seeds) and planting material (e.g acacia hybrid

cuttings) from good sources is much more expensive than that of routine seed In order to fulfil the planting target within the available budget, project managers opt to use seed and planting material from cheap sources

3 Current tree seed stakeholders in Vietnam

There are many stakeholders involved in the production, supply or use of seed These

stakeholders can be divided into four main groups:

1) Government agencies under the umbrella of MARD,

2) Forest industries,

3) Farmers, and

4) Donor projects

MARD and its key forestry departments, institutions and representations at the central,

provincial and district levels are major stakeholders and as such all play a very important role

In addition, forest industries, farmers, international donors and NGOs are also involved in one role or another in this sector The role or responsibility of these stakeholders related to the

production, supply and use of seed and planting material The following information on the

various stakeholders is an update of Pinyopusarerk et al (1999)

MARD

As the ministry in charge of all tree planting programs in Vietnam, MARD is responsible for development of policy, strategies, guidelines and regulations related to production of seed and planting material, and to control and monitor their production and utilisation MARD

Headquarters is located in Hanoi MARD’s Department of Forestry (DoF) is the executive office for the 5-million ha Program and in charge of policy, strategy issues and organising and guiding on:

• Establishment of seed stands and nurseries

• Production and utilisation of seedlings to ensure stable and sufficient supply of quality seedlings

• Developing appropriate composition of forest plantation, regeneration, enrichment and thinning

• Export and import of seed and seedlings under government regulations

Another important department of MARD involved in the 5 million ha Program is the National Centre of Agriculture and Forestry Extension (NCAFE) NCAFE operation extends to

provincial, district and commune levels, and is represented by Agriculture and Forestry

Extension Centre in every province and city About 70% of the districts have established an extension station The main functions of extension are:

• to introduce new agroforestry techniques

• to assist farmers to design and set up demonstration models

• to facilitate exchange of ideas between farmers

• to produce extension material (nursery propagation)

Central Forest Seed Company

The Central Forest Seed Company (CFSC) falls within MARD, and has been the main agency responsible for production and supply of seed and planting material in Vietnam CFSC has a nation-wide mandate and operates through its seven regional seed enterprises which are located

in seven provinces/cities of Hanoi, Lang Son, Vinh Phuc, Quang Binh, Lam Dong, Quy Nhon and Ho Chi Minh City Currently 3000 ha of seed sources are registered with CFSC with an

estimated production capacity of 400 tonne/year Most recently CFSC has drafted a national plan for the production and supply of forest seeds for the 5-million ha Program CFSC has several roles as a stakeholder in the seed network:

• Planning of seed demand and supply

• Supply of seed and planting material (seedlings, cuttings, tissue-culture plants)

• Procurement, processing, storage and testing of seed

• Establishment of seed orchards and seed stands (conversion from selected plantations)

• Import and export of seed

• Research, testing and development of new techniques

• Information and extension service

Provincial Departments of Agriculture and Rural Development

In each province or city MARD is represented by a Department of Agriculture and Rural Development (DARD) which implements MARD’s policy under the authority of the People’s Committee of the province The main role of DARD in the seed sector is:

• Development, approval and control of Program 327 and 5-million ha Program within province

• Control of state forest enterprises (all provinces)

• Control of provincial seed enterprises (some provinces only)

• Control of provincial forest experimental stations/centres and technical sections of DARD (some provinces only)

• Extension services

Out of the total 61 provinces and cities, 42 are engaged in the production and supply of tree seed and planting material

District Agriculture and Forestry Section

At the district level DARD is represented by Agriculture and Forestry Section which

implements MARD’s policy under the authority of the People’s Committee in the district AFS manages Program 327 and 5-million ha Program within the district in cooperation with

people’s committee in communes Their main roles are:

• User of seed and seedlings

• Nursery propagation

State Forest Enterprises (SFEs)

SFEs are a major arm of DARD in the plantation forestry development within provinces There are currently more than 400 SFEs, with one in most districts They manage forests totalling more than 4.5 million ha or 41% of the forest area The average size of a SFE is 10,000 ha Current role of SFEs in the seed sector is:

• Seed production from own seed sources

• Seed supplier

• Production of seedlings and cuttings

• User of seed and seedlings

• Extension service

Forest Research Institutions

MARD’s Department of Science and Technology advises the ministry on research matters and direct research through the Forest Science Institute of Vietnam (FSIV) FSIV operates through three research centres and seven divisions based in Hanoi, one sub-institute in Ho Chi Minh City and eight regional research and production centres located in the provinces of Phu Tho, Son La, Lam Dong, Vinh Phuc, Dong Nai, Gia Lai, Quang Tri and Ca Mau FSIV’s Research Centre for Forest Tree Improvement is a leader in tree improvement research with a long contact with CSIRO and SAREC through regular exchanges of people, seed, training and equipment

Another prominent research institution is the Phu Ninh Forest Research Centre of Paper

Corporation of Vietnam This Centre has conducted research on species/provenance selection and established seedling and clonal seed orchards of many commercially important species

Forest Industries

Forest industries involved in the seed sector are limited to those which invest in plantations for production of raw material Most are state-owned or joint ventures

Vietnam Forest Corporation (Vinafor)

Paper Corporation of Vietnam (formerly Bai Bang Pulp and Paper Mill)

Wood processing association

International companies and donors (such as Oji Paper Company, Vijachip/Nissho Iwai, Stora Enso)

Farmers

With the current government policy to involve active participation of local communities in forest protection and reforestation, local farmers are now one of the most important players in the seed supply network In some communes up to 80% of the people are involved in forestry activities Farmers play a very important role in the seed sector today as seed suppliers,

collectors and growers

Table 1 Main functions of stakeholders involved in the seed supply and management network

in Vietnam

Stakeholder Function

issues

See import

Seed production

Seed supply

Nursery Technology

transfer

User s