Báo cáo nghiên cứu khoa học " Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and supply chain management - Milestone Report 4 " pptx

5 Methodology, techniques and training material for supply chain analysis and development in Southern Vietnam for mango and pomelo .... Project Abstract Executive Summary Methodology,

Ministry of Agriculture & Rural Development

Milestone Report 4

Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and supply chain

management

CARD Project 050/04VIE

Milestone Report 4

Date June 2008

Table of Contents

Institute Information 2

Project Abstract 4

Executive Summary 4

Introduction & Background 5

Methodology, techniques and training material for supply chain analysis and development in Southern Vietnam for mango and pomelo 6

Created and constructed supply chain maps for mangos and pomelo 7

Validation of strategic plans developed for mango and pomelo 7

Smallholder Benefits 14

Capacity Building 15

Publicity 16

Project Management 16

Report on Cross-Cutting Issues 17

Environment 17

Gender and Social Issues 19

Implementation & Sustainability Issues 19

Issues and Constraints 19

Options 20

Sustainability 21

Next Critical Steps 21

Conclusion 22

Institute Information

markets for Vietnamese fruit through improved post-harvest and supply chain management

Engineering and Post-Harvest Technology (SIAEP)

Industries and Fisheries (DPI & F)

Dr Peter Hofman

Mr Brett Tucker

Mr Roland Holmes

Contact Officer(s)

In Australia: Team Leader

Organisation Queensland Department of

Primary Industries and Fisheries (DPI & F)

Email: bob.nissen@dpi.qld.gov.au

In Australia: Administrative contact

Position: Senior Planning Officer

(Emerging Technologies) Fax: +61 07 3346 2727

Organisation Queensland Department of

Primary Industries and Fisheries (DPI & F)

Email: michelle.robbins@dpi.qld.gov.au

In Vietnam

Organisation Southern Sub-Institute of Agricultural

Engineering and Post-Harvest Technology (SIAEP)

Project Abstract

Executive Summary

Methodology, analytical techniques and training material for supply chain analysis and development in Southern Vietnam for mango and pomelo were provided in April 2006 Supply chain maps for mango and pomelo were constructed with the Vietnamese project participants Strategic Plans were developed during April 2006 and refined during following visits via consultation and further data collection of industry statistics

Baseline surveys were also conducted for mango in Tien Gien and Khanh Hoa provinces and for pomelo in the Vinh Long Province In total, over 120 farmers, 30 collectors and 20 wholesalers were interviewed by the Vietnamese collaborators to obtain vital information on how the mango and pomelo supply chains are operating

Initial fact finding and surveys indicate that Good Agricultural Practice (GAP), Integrated Pest Management IPM and Integrated Disease Management IDM issues are the largest issues affecting fruit quality in both mango and pomelo supply chains GAP manuals are being developed based

on current, and newly developed Asian GAP principles Initial drafts of manuals have been completed for Mango Cultivation Handbook, Mango Pest Control Handbook, Mango Disease Handbook and Pomelo Cultivation, Pest and Disease Control Handbook, and further development

of manuals was completed in January 2008 Post-harvest handbook for mango was being developed in collaboration with SIAEP and SOFRI staff

Workshops have been conducted using participatory action learning processes to enhance the knowledge of SIAEP and SOFRI staff Workshops were conducted on:

• developing an understanding of how supply chains function

• developing supply chain maps on product movement, information and monetary flows

The fruit industry in Vietnam has a great potential and plays an important role in agricultural production In 2003, Vietnam exported US$43 million of high value fruit to high-income countries and imported US$14 million of fruit and vegetables Vietnam is experiencing difficulties in competing with other Asian nations in export markets and its own domestic market, especially with China and Thailand This suggests that Vietnam’s horticultural industries require substantial development to be globally competitive Vietnamese consumers are demanding safer and higher quality fruit This project has identified key pre and post-harvest technology gaps that reduce product quality, safety and consistency Targeted training programs are focusing on the total supply chain and are providing benefits by helping to implement quality management systems and GAP systems at the village level providing greater employment for the farming community This project embraces the five CARD strategies for rural development; and in particular; strategies to increase production and competitiveness of agricultural systems; reduce poverty and vulnerability, and increase stakeholder participation whilst ensuring sustainability

• a strengths, weakness, opportunity and threats (SWOT) analysis

• a supply chain process analysis, that identified problems and solutions for mango and pomelo supply chains

• developing strategic and action plans for mango and pomelo supply chains

During April 2006, workshops were also held in villages with mango and pomelo growers and with collectors to discuss supply chain maps, the SWOT analyses and strategic plans This enabled adjustment to the plans developed at earlier workshops, and allowed support and input from a wider cross section of farmer/growers Information from all of these sources was then used to develop the final industry mission statements, strategic and actions plans These objectives will be implemented during this project

The Objective, Reflective, Interpretive, and Decisional analysis (ORID) system was used to evaluate the effectiveness of the workshops Fifty percent of the workshop participants understood workshop concepts very well, while the remaining 50 percent said they were satisfied with their understanding of workshop concepts Eighty three percent of the group indicated they would be confident in using these concepts with other supply chains and this training fulfilled their expectations

Benefits to grower/farmer involvement in the workshops and training exercises has been shown through one group being stimulated into proactively addressing and developing new harvesting, handling and packaging systems which improved their first grade pack out percentage by 10%, thus providing greater socio-economic benefits to the village and the wider community

Introduction & Background

Ford et al., (2003) analysed the constraints to the competitiveness of fruit industries in Vietnam and identified:

• poor unstable product quality

• no quality standards

• poor post harvest technologies

• poor pre-harvest practices

• lack of group co-operative marketing structures

• little information about supply chains and prices and customers needs

Stakeholder/beneficiary analysis of fruit crops in the Mekong delta showed that both mango and pomelo (with 33 000 ha and 9 000 ha respectively) are very important fruit crops in Southern Vietnam The objectives of this CARD project 05/04 VIE are to:

• Improve pre-harvest technologies to produce high quality mango (integrated pest management, integrated crop management, fruit fly control, maturity indices, reduced pesticide residues, better environmental and human health, etc)

• Improved mango and pomelo post-harvest technologies (eg cool chain management, packaging, post-harvest dipping, ethylene ripening, waxing, washing and wetting agents, quality assurance)

• Improved quality standards and quality assurance programs for mango and pomelo The approach and methodologies developed for these crops through this project will be applied to other fruits and vegetables

• Mapping of current supply chains to domestic and selected export markets, with particular emphasis on determining consumer preferences and needs, and reporting results back to farmers

• Provide a better understanding and possible improvements of the supply chain by Vietnamese fruit industries for mango and pomelo

This CARD project fills capacity gaps and reduces major weaknesses in pre-and post-harvest technologies affecting product quality consistency and supply chain management and planning Highly specialised targeted training programs and research appropriate for institutions and industry stakeholders were provided to complete this CARD Project 05/04 VIE Milestone 4

CARD Project Milestone 4 focused on the development of supply chain training workshops and manuals These manuals were translated into Vietnamese Participatory action learning and farmer’s extension school activities were conducted for trainers in Southern Sub-institute of Engineering and Post-harvest Technologies (SIEAP) and Southern Fruit Research Institute (SOFRI) and for mango and pomelo supply chain participants (retailers, wholesalers, transporters, collectors and farmers) These were delivered as per the project objectives These workshops and manuals were developed by the Department of Primary Industries and Fisheries (DPI&F) in collaboration with the University Of Queensland (UQ) and the collaborating Vietnamese’s institutions of SIAEP and SOFRI As per the milestone 4 schedule the team provided:

o Methodology, analytical techniques and training material for supply chain analysis and

development in Southern Vietnam for mango and pomelo

o Created and constructed supply chain maps for mangos and pomelo with the Vietnamese participants

o Developed strategic plans for mango and pomelo with the Vietnamese participants

• Qld DPI&F for two International ACIAR (Australian Centre for International Agricultural Research) Projects

• Australian Government, New Industries Development Program, Department of Agriculture, Fisheries and Forestry Australia, Supply Chain Management in Agribusiness Learning from Experience Workbook

• Australian, National Food Industry Strategy, Food Chain Capability Development Program Workbooks:

o Facilitator Reference Manual

o Participant Resource Manual

o Value Chains, Chain Awareness, The Competitive Edge, Participant Workbook

A manual for strategic planning, supply chain analysis and mapping was developed and supplied to all participants who attended the training schools (See Appendix A) A training process (Detailed Session Plan) was specifically developed based on this manual (See Appendix B) This detailed session plan was developed to assist trainers in conducting these training workshops Examples

of process analysis sheets were also developed and supplied (See Appendix C) Theses manuals and training guide were specifically developed to assess the mango and pomelo industries in Southern Vietnam and can be easily adapted for other commodity groups in Vietnam

Create and construct supply chain maps for mango and pomelo

Three Australian team members travelled to Vietnam in April-May 2006 to conduct capacity building exercises and run a series of 6 workshops on strategic planning and analysis of existing supply chains and development of new supply chains These workshops used participatory action learning processes and capacity building for SIAEP and SOFRI staff to develop:

• supply chain maps for both mango and pomelo

• conduct a strengths, weakness, opportunity and threats analysis

• carry out a supply chain process analysis

• develop strategic plans for mango and pomelo supply chains for participating CARD project members

(See Appendix C)

CARD Project members participating in these workshops were SIAEP and SOFRI staff, farmers, collectors, traders, wholesalers and marketers etc., (See Appendix D) All were involved in a participatory action learning process (farmer type schools) to develop the supply chain maps, carry out SOWT analyses and develop the strategic plans All members participated in the supply chain process analyse See Appendix E for supply chain maps and SWOT analysis

The following CARD workshops in 2006 and 2007 built upon these strategic plans and a deeper analysis of the existing supply chains was undertaken New supply chains were developed and trials conducted on these new chains to assess their socio-economic benefits to local farmers through the use of improved postharvest techniques, practices and management systems

Validation of strategic plans and action plans developed for mango and

pomelo

Workshops were also held in villages with mango and pomelo growers (see Appendix F) and with collectors to discuss supply chain maps, the SWOT analyse and strategic plans developed at previous workshops and to adjust and obtain input from a wider cross section of farmer/growers This consultative and participatory action learning approach (farmer schools) are designed to empower the rural poor in the decision making processes

Based on the agreed vision, goals and future direction for both the mango and pomelo CARD project participants developed action plans based on the strategic plans These action plans for both the mango and pomelo supply chains aligned with this CARD Project objectives Therefore,

the action plans developed indicate the project activities and project direction for the next 2 years (2007-2008)

Baseline Surveys

Supply chain baseline surveys were conducted by SIEAP and SOFRI staff for mango in Tien Giang and Khanh Hoa Provinces and for pomelo in the Vinh Long Province Mango and pomelo production for the relevant regions revealed:

• Mango

o South East Vietnam:- 18 685ha producing 70 622 tonnes annually

o Mekong Delta:- 22 001ha producing 193 383 tonnes annually

o Khanh Hoa Province:- 5 800ha producing 18 800 tonnes annually

• Pomelo

o South East Vietnam:- 1 422ha producing 12 932 tonnes annually

o Mekong Delta:- 8 298ha producing 108 916 tonnes annually

About 20% of Vietnam’s population live in the Mekong Delta Region with 85% living in rural areas About 80% of rural farms range in size from 0.5 to 2ha The lower poverty line defined by Vietnamese General Statistics Office (GSO) is; expenditure per capita required for securing a minimum nutritional requirement (2100 calories per day) Therefore, the poverty rate below the lower limit calculated by the (GSO) in 2003 showed that the total poverty percentage for each Vietnamese region where this project is operating is:

• Mekong Delta 23.7%

• South Central Coast 25.9%

These percentages are lower than Vietnam’s average poverty rate of 28.85 percent The only other region to record a poverty rate below this is the Red River Delta region (22.4%)

The rural poverty rates have the similar trends and are:

• Mekong Delta 26.56%

• South Central Coast 31.27%

In total, over 120 farmers, 30 collectors and 20 wholesalers were interviewed by the Vietnamese collaborators to obtain vital information on how the supply chains for mango and pomelo are functioning in Vietnam Surveys were conducted at the end of the project for document comparisons and benefits obtained These will be presented in Milestone Report 10

Survey data was presented at the first workshop during the second project trip in April-May 2006 Information obtained was then used in subsequent workshops to develop models of the supply chains for mango and pomelo in Vietnam, and to develop the strategic plans for mango and pomelo

Brief Summary of Mango Baseline Survey Information

• Total Mango area and production for the South East is 18 685 ha producing 70 622 tonnes/year, Mekong Delta Region 22 001ha producing 193 383 tonnes/year and Khanh Hoa Province 5 800ha, producing 18 800 tonnes/year

• Vietnamese consumers regard the “Cat Hoa Loc” as the number one variety in Vietnam

• In the Mekong Delta, about 72% of mango fruit are transported from farm to collector by boat, but in Khanh Hoa Province 100% are via some form of road transport Farmers, collectors and wholesaler believe that only 1-2% of fruit is damaged during transport in 30

to 50 kg bamboo baskets or crates

• In the Mekong Delta a small percentage of mango is graded at the farm level but most fruit are graded and sorted at the collector and then again at the wholesaler level in the supply chain In contrast, for Khanh Hoa Province, about 54% of farmers grade their fruit

• In the Mekong Delta there are three basic grades, Class 1:- 420-500g, Class 2:- 300-420g and Class 3:- <300g, whilst in Khanh Hoa there are also three grades, Class 1:- 1-3 fruit/kg, Class 2:- 4-6 fruit/kg and Beer class >6 fruit /kg Fruit grading is carried out by eye Improvement and standardisation of quality standards as well as adoption by all participants in the supply chain is need

• Most fruit are sold hard green, ripe fruit are not wanted

• Collectors/farmers prefer to sell mixed grades even though the farm gate price will be low This is done to allow collectors/farmers to sell Class 3 fruit which they could not normally sell On the other hand many wholesalers find it extremely difficult to sell Class 3 fruit This adds significant costs to all aspects of the supply chain and affects farmers/grower returns

• Selling price for fruit:- Majority of farmers obtain the price of fruit locally This is achieved

by asking as many collectors, farmers and wholesalers as possible at the district level for their price paid or received for fruit sold

• Price is usually set and established with farmers on day of sale or the day before and based on the market supply on any given day

• The majority of farmers do not know the price of mango at the HCMC wholesale market

• Wholesalers reported that most fruit will keep for 4 days with out the use of special storage facilities Presently, there are no storage facilities located the HCMC wholesale markets for wholesalers to use)

• At the wholesaler point in the supply chain, once the fruit is mature, for each day that it is not sold, traders will reduce the price by 500-10 000 vnd/kg

Brief Summary of Critical Pomelo Baseline Survey Information

• In the Mekong Delta, the Vin Long Province is considered as the leading growing region in Vietnam for Pomelo

• Total area and production in the Southeast is 1 422ha, producing 12 932 tonnes/year and for the Mekong Delta Region 8 298ha producing 108 916 tonnes/year

• The pomelo variety “Man Roi” is considered the number one variety in Vietnam

• There are as many as 2 to 4 grades/standards of fruit depending upon market and time of season Each class grade standard changes, based on early season production, mid-season and late-season production For example, Vin Long local market there are 2 classes/grade standards, Hoang Gia Company uses 3 classes or grade standards and the wholesale market in HCMC 4 classes or grade standards

• In the Mekong Delta, about 62% of pomelo fruit are transported from farm to collector by boat, and then 66% of fruit transported by road to HCMC and the remainder (34%) by boat

in 80 to 85kg bamboo baskets

• Of the total production from Vin Long Province it is estimated 5% to 6% is for local consumption In 2004, Metro Cash and Carry marketed 145 tonnes of pomelo fruit Also

in 2004, 50 tonnes of pomelo was exported to Germany In 2005, a 100 tonnes was exported to Germany and Russia and the price was US Dollars Freight On Board Ho Chi Minh City $590USD/tonne (about 9 200VND/kg)