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Ministry of Agriculture & Rural Development CARD Project Progress Report 050/04VIE Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and

Ministry of Agriculture & Rural Development

CARD Project Progress Report

050/04VIE Improvement of export and domestic

markets for Vietnamese fruit

through improved post-harvest and

supply chain management

MS6: FOURTH SIX MONTHLY REPORT

July 2007

Table of Contents

1 Institute Information 1

2 Project Abstract 3

3 Executive Summary 3

4 Introduction & Background 5

5 Progress to Date 6

Implementation Highlights 6

Smallholder Benefits 12

Capacity Building 13

Publicity 14

Project Management 15

6 Report on Cross-Cutting Issues 17

Environment 17

Gender and Social Issues 19

7 Implementation & Sustainability Issues 21

Issues and Constraints 21

Options 22

Sustainability 23

8 Next Critical Steps 23

9 Conclusion 24

10 Statutory Declaration Error! Bookmark not defined

1 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

Ms Marlo Rankin

2007

Contact Officer(s)

In Australia: Team Leader

Organisation Queensland Department of

Primary Industries and Fisheries (DPI & F)

In Australia: Administrative contact

(Emerging Technologies)

Organisation Queensland Department

of Primary Industries and

Fisheries (DPI & F)

In Viet Nam

Organisation Southern Sub-Institute of

Agricultural Engineering and Harvest Technology (SIAEP)

2 Project Abstract

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

3 Executive Summary

Studies on mango and pomelo fruit quality characteristics have been carried out Results will help establish fruit quality characteristics that will be used to develop quality guides for the marketing of mango and pomelo

Quality monitoring surveys to establish fruit defects have been carried out on mango by SOFRI staff Fruit affected by sapburn ranged from 16% to 50% across 5 markets in Can Tho city Market surveys conducted by Mr Nissen on mango fruit being sold in northern Vietnam showed that fruit affected by Anthracnose was 34%, sapburn 52%, abrasion marks 21%, and pressure marks 30%, fruit fly 1% and fruit rots (stem end and other rots) 3% (See report on Survey of Mango Fruit Offered for Sale in Northern Vietnam) Many fruit had multiple defects severely affecting consumer acceptance and product saleability

CARD Project training of SIAEP and SOFRI staff and material supplied has assisted SIAEP

in the delivery of training workshops for Metro in their joint project with GTZ and the Ministry of Commerce in Vietnam Materials supplied and training carried out by this CARD project have assisted SIAEP staff in the ADB project and workshops to assist farmers

in developing new agricultural supply chains to supply Metro stores with produce that meet

their specifications, particularly on product quality and food safety Training for of more

than 700 farmers has been completed by SIAEP staff Workshop evaluations have

indicated that over 90% of farmers were very satisfied with material supplied and workshops conducted

The strategic plans developed as part of this CARD Project for mango and pomelo are being implemented by SIAEP and SOFRI team members Considerable progress has been made on the top 5 priorities for both the Vietnamese mango and pomelo industries

Top 5 Priorities for the Mango Strategic Plan:- Listing in Order of Importance for Mango Industry

1 Improve production process (e.g follow GAP)

2 Need to improve the linkages between farmers – traders – customers, scientists and government also need to be involved

3 Need market information for export and domestic markets

4 Improve packing and storing procedures/Need technical support to improve storing, packing and packaging material

5 Government to help with planning and development for specialised fruit growing area

Top 5 Priorities for the Pomelo Strategic Plan:- Listing in Order of Importance for Mango Industry

1 Supporting techniques from seedling–farming-harvesting (Guidance for GAP)

2 Advice/counsel on standards/specifications of products

3 Intensively farming and programming production area

• Growers with high levels of management practices and high input levels obtain a profit of VND 15,105,000 per 1000m2, 2.1 times greater than growers with mid level management practices and mid level inputs and 3.7 times greater than grower with low level management practices and inputs

• For a 1000m2

area of mango the average farmer input is VND 6,405,000

• The average yield per 1000m2

is 960 kg

• The unit cost per kg of “Cat Hoa Loc” mango is VND 7,600

• Mangoes are mainly sold at local markets It is recommended to improve income, farmers should develop market opportunities in HCMC and northern Vietnam

Preliminary surveys of Buoi (Pomelo) cultivar “Nan Roi” in the My Hoa Commune, Binh Minh District, Vinh Long Province in the Mekong Delta of Vietnam indicates that:-

• Growers with high levels of management practices and high input levels obtain a profit of VND 3,576,000 per 1000m2, 2.4 times greater than growers with mid level management practices and mid level inputs and 3.9 times greater than grower with low level management practices and inputs

• For a 1000m2

area of pomelo the average farmer input is VND 3,244,000

• The average yield pre 1000m2

is 1,648 kg

• The unit cost per kg for Buoi “Nam Roi” is VND 2,100

• Pomelos are mainly sold at local markets It is recommended that farmers to improve income they should develop market opportunities in HCMC and northern Vietnam and look at ways of direct selling to the consumer

4 Introduction & Background

Fruit and Vegetable crops are highly lucrative compared to staple crops Horticultural produce has high value-added and income generation potential when compared to livestock and grain production Horticulture is highly attractive especially for small scale farmers, and has a comparative advantage, particularly where land holdings are small, labour is abundant and markets reasonable accessible (Weinberger and Lumpkin, 2006) This situation is particularly true in Mekong Delta and Central South Cost Province of Khanh Hoa, Viet Nam

Ford et al., (2003), suggested the competitiveness of Vietnamese fruit industries were failing due to poor, unstable product quality, no quality standards, poor post harvest technologies and pre-harvest practices, lack of group co-operative marketing structures and little information about supply chains, prices and customers needs

This project is addressing these constraints by engaging with key Vietnamese stakeholders from research institutes (SIAEP and SOFRI) and local farmers in the mango and pomelo industries in Southern Viet Nam This project has taken account of the total supply chain network and focused on where significant benefits are to be gained in the pre- harvest, post-harvest and marketing sectors

The objectives of the project are:

• Improved 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 Viet Namese fruit industries for mango and pomelo

This project will fill capacity gaps and reduce major weaknesses in pre-and post-harvest technologies affecting product quality consistency and supply chain management and planning Highly specialised targeted training programs appropriate for institutions and industry stakeholders will be provided

At the local village and district level, cluster development of farmer/grower groups should ensure better on-farm prices This will increase power to these farmers which will benefit all members of the supply chain (intermediaries to retailers) rather than the present powers brokers in the chain Farm incomes will therefore increase and result in better standard of living for rural families In addition, if quality management systems are implemented at the village and district level through more appropriate fruit quality standards, packaging and grading systems should increase returns resulting in greater employment at the local village

level The flow on effects of this will benefit the poor in the rural areas, and specifically help provide more jobs for rural women

5 Progress to Date

Implementation Highlights

Implementation highlights of CARD Project activities

Since mapping and conducting the SWOT analysis of the mango and pomelo supply chains considerable development has been made on developing new supply chains Development of the action plans and the setting of responsibilities for SIAEP and SOFRI staff and supply chain participants have been carried out and substantial development into identifying key fruit quality characteristics competed Determining fruit quality levels acceptable to farmers, collectors, wholesalers, traders and retailers for pomelo and mango were undertaken These activities align with the proposed project activities 3, 5 6 7, 8, and 11 and project milestones

4, 7 and 9

For example, studies on pomelo cv “Nam Roi” and “Da Xanh” have been carried out and data collected on fruit quality characteristics Market requirement characteristics reported on include:

• Rind colour, thickness and easiness to peel

• Flesh firmness, colour, juiciness flavour and separation flesh sacks from the segment locular wall

Studies on fruit quality characteristics for mango cv “Cat Hoa Loc” and “Cat Chu” to develop market quality characteristics included:

• Fruit shape, size, appearance

• Skin colour

• Brix levels

• Damage and defects (sapburn, disease and pest, cuts punctures, abrasion marks etc.) See Appendix B for summary of pomelo and mango quality characteristics to be used for the quality manual guides for Vietnam’s pomelo and mango industries

Studies on mango sapbrun undertaken by SOFRI staff showed that the percentage of mango fruit affected by sapburn ranged from 16% to 50% with an average of 33% across 5 markets

in Can Tho city

Table 1 Percentage of sapburn mango fruit observed at retail markets in Can

Tho City (main season 2005) Retail market Sapburn mango fruit (%)

Source: Tran Ngoc Suong et al 2006 Study on pre-harvest cultivation techniques and harvest treatments to improve fruit quality and to prolong post-harvest shelf-life of mango cv

post-“Cat Hoa Loc” in Can Tho provinces

Skin damage on mango, no matter how small has a significant effect on customer and consumer acceptability Practices especially in South Vietnam have a sever effect on mango fruit quality and saleability Skin damage caused by any of the following conditions:

• environmental conditions (rainfall, wind, high temperature causing sunburn)

• pre-harvest management practices (damage due to pest and disease sprays, abrasion

or wind rub marks, incorrect tree pruning and training etc.)

• post-harvest practices or transport and handling practices (during picking, grading, sorting and packaging causing abrasion, cuts, pressure and puncture marks)

Fruit affected by anthracnose in the northern markets is common Market surveys conducted

by Mr Nissen on mango fruit being sold in northern Vietnam showed that fruit affected by Anthracnose was 34%, sapburn 52%, abrasion marks 21%, and pressure marks 30%, fruit fly 1% and fruit rots (stem end and other rots) 3% (See report on Survey of Mango Fruit Offered for Sale in Northern Vietnam) Many fruit had multiple defects severely affecting consumer acceptance and product saleability

The disease Anthracnose (Colletotrichum gloesporiodies) severely affects mango

post-harvest life and fruit quality The fungus remains dormant on green fruit until it begins to ripen As the natural resistance of green fruit breaks down, the fungus can grow unchecked unless post-harvest treatments to control the disease are applied

Therefore training on mango post-harvest physiology was conducted by the Australian team

in July 2007 One demonstration conducted during this training showed the use of a mango stem sap remover which eliminates fruit sapburn The use of this product alone will have a significant impact on fruit quality and post-harvest storage life of mango as it will also help stop fruit being affected by Anthracnose Post-harvest treatment with Sportak ® is also recommended

In Australia there are two main treatments available A hot dip using carbendazim (Spin flo®) or a dip or flood spray with prochloraz (Sportak®) Your choice of treatment depends

on the level of disease in the orchard and the incidence of the other major fungus, stem-end rot If stem-end rot is not a problem, you can treat with prochloraz alone; if it is a problem, you will need to use a hot carbendazim dip

Post-harvest treatment trials conducted a SOFRI on controlling Anthracnose have proven to

be highly successful (see Appendix B) but skin scalding and browning and los of water from the fruit are evident

For Vietnamese growers, adopting such practices will be difficult Chemical costs, implementation of correct chemical dipping rates and controlling the hot water temperatures and treatment practices involve complex processes In Australia, many mango growers still have significant problems with hot water treatment of mangoes and therefore this practise is left to a few professional operators who have equipment capable of achieving reliable results

It is recommended for Vietnam that a dip with prochloraz (Sportak®) be implemented to control Anthracnose as this procedure can be easily carried out at the farm level with training

on chemical usage and dipping procedures Many Vietnamese growers are not capable of carrying out hot water dipping treatments due to lack of equipment and specific knowledge to achieve repeatable and reliable results New high value markets need to be developed before such practices can be implemented to justify costs of carrying out such practices at the farmer level

Development of new supply chains

CARD Project training of SIAEP and SOFRI staff and material supplied has assisted SIAEP

in the delivery of training workshops for Metro in their joint project with GTZ and the Ministry of Commerce in Vietnam CopMart are also negotiating with SIAEP to develop new agricultural supply chains Materials supplied and training carried out by this CARD project have assisted SIAEP staff in the ADB project and workshops to assist farmers in developing new agricultural supply chains to supply Metro stores with produce that meet

their specifications, particularly on product quality and food safety Training for of more

than 700 farmers has been completed by SIAEP staff Workshop evaluations have

indicated that over 90% of farmers were very satisfied with material supplied and workshops conducted These activities align with the proposed project activities 3, 5 6 7, 8, 11, and 12 and with project milestones 4, 7 and 9

Implementation of mango and pomelo strategic plans

The strategic plans developed as part of this CARD Project for mango and pomelo are being implemented by SIAEP and SOFRI team members Considerable progress has been made on the top 5 priorities for both the Vietnamese mango and pomelo industries listed below These activities align with the proposed project activities 3, 5 6 7, 8, 11, and 12 and project milestones 4, 7 and 9

Top 5 Priorities for the Mango Strategic Plan:- Listing in Order of Importance for Mango Industry

6 Improve production process (e.g follow GAP)

7 Need to improve the linkages between farmers – traders – customers, scientists and government also need to be involved

8 Need market information for export and domestic markets

9 Improve packing and storing procedures/Need technical support to improve storing, packing and packaging material

10 Government to help with planning and development for specialised fruit growing area

Top 5 Priorities for the Pomelo Strategic Plan:- Listing in Order of Importance for Mango Industry

6 Supporting techniques from seedling–farming-harvesting (Guidance for GAP)

7 Advice/counsel on standards/specifications of products

8 Intensively farming and programming production area

9 Training on IPM

10 Improving applicability of farming techniques and technologies of harvesting, packing and transporting

Action Plans for the Implementation of the Strategic Plans

In May 2006, key roles and responsibilities were allocated for the implementation of the strategic plans developed Actions undertaken as per these plans are as follows:-

Action 1 Development of GAP including pest and disease management (IPM/IDM)

Mango Priorities 1, 2 & 5

Pomelo Priorities 1, 2, 3 & 4

Action 2 Improved linkages between growers, traders, customers, scientists, extension agents

Mango Priorities 1, 3 & 4

Pomelo Priorities 1, 2, & 5

Project manuals developed and supplied to date are:

1 Mango Cultivation Handbook

2 Mango Pest Control Handbook

3 Mango Disease Handbook

4 Pomelo Handbook

5 Mango and Citrus Orchard Design

6 Mango Information Kit (DPI&F Agrilink Publication Translated into Vietnamese)

7 Citrus Information Kit (DPI&F Agrilink Publication)

8 Citrus Pests and Their Natural Enemies (DPI&F Publication)

9 The Good Bug Book (ABC Publication Book)

Project Manuals and Training Workshops developed to date are:

1 Introduction to Food Supply/Value Chains

2 Developing Food Supply/Value Chains

3 Improving Export and Domestic Markets for Vietnamese Fruit through Improved Supply Chain Management

a Strategic Planning

b Mapping and Developing Supply Chains

c Analysing Supply Chains

d Determining Improvements and Developing new Supply Chains

e Developing Action Plans

f Evaluating and Monitoring Supply chains

4 Supply/Value Chain Analysis: Surveys and Interview techniques and questionnaires Design

5 Quality Flows: Monitoring Quality via Sequential Sampling of Mango and Pomelo down the length of the Supply/Value Chain

6 Developing New Improved Horticultural Supply Chains

a How to Develop a New Supply Chain

b Market Research and Segmentation

c Building and Marketing Strategy

d Supply Chain Development

i Getting The Product right

ii Building Effective Information and Communication Strategy iii Building and Effective Distribution and Logistics System

iv Building Effective Relationships

v Creating Shared Value

1 Monitoring Quality

2 Packaging

7 Mango and Citrus Orchard Design

a Orchard Layout

b Farm access and facilities

c Water courses and dams

i Fruit ripening and quality loss

ii Main causes of quality loss after harvest iii Post-harvest technology

1 Introduction to mango post-harvest physiology

2 Harvesting and field handling

3 Packhouse operations and practices

4 Ripening and storage

5 transport for mango

6 Know your market

7 Causes and Solutions of post-harvest defects

9 Designing Training Workshops for Mango and Pomelo Farmers in Vietnam

10 Farm Economic Analysis Workbook

The process employed during training workshops allows farmers, extension agents and researchers to discuss ideas, develop solutions to problems encountered in developing improved post-harvest practices and new supply chains Workshops conducted in July 2007

by Australian trainers were held at SIAEP and SOFRI training rooms Whilst these workshops were specifically designed as “train the trainer” workshops, several farmers and extension agents were in attendance (see Appendix B for workshop participants lists)

Training Workshops

Mango Post-Harvest Physiology Workshop, Designing Training Workshops for Mango and Pomelo Farmers Workshop, and the Socio-economic Workshop to assess the impact of supply chians for mango and pomelo growers in Vietnam were conducted during July-August 2007 These workshops align with the proposed project activities 3, 5 6 7, 8, 9, 11,

12 and 13 and with project milestones 4, 7 and 9

Workshop evaluations

The ORID system was used to evaluate the effectiveness of the four workshops conducted in July 2007 Both Vietnamese farmers and SIAEP and SOFRI staff were surveyed at the completion of each workshop The workshops conducted were:

• Mango Post-Harvest Physiology Workshop

• Designing Training Workshops for Mango and Pomelo Farmers

• Developing Fruit Quality Guides for Mango and Pomelo Industries

• Socio-economic Analyses of Supply Chains

Analysis of the four workshops using the ORID system showed on average that:-

• workshop length:- 92% of participants found that the workshops were of the right time length with the remaining 8% indicating that they were too short

• trainees understanding of concepts:- 50% of participants understood the concepts very well, with the remaining 50% understanding concepts well

• new information:- 91% of all participants indicted that a high proportion of information presented was new to them with the remaining 9% indicating most of the information was new to them

• usefulness of information provided:- 72% of participants indicated that the information would be very usefully in working with other professionals and growers

to develop new supply chains, whilst the remaining 28% indicated that all the information would be useful

• trainees use of methods and material:- 85% of participants indicated that training methods used and information provided would be used by them to conduct their own workshops

• trainees confidence in using techniques and methodology:- 91% of participants indicated that their confidence would improve with further training

• cultural barriers:- 33% of participants indicated that their may be some cultural barriers in implementing new methods, whilst 50% were unsure and 17% believed there were no barriers

• trainer’s knowledge:- 80% of participants believed that the was very good whilst the reaming 20% of participants believed it was good

• fulfilling trainees expectations:- 65% of participants indicated that their personal expectations with the workshops and their needs were highly satisfied The remaining 25% had their expectation satisfied

Milestone achievements

As per the CARD Project Management Unit agreed and approved adjusted milestones in the

1st six monthly report (Appendix A) This project has achieved all the milestone on time and

on budget These are and are listed below

• Mile stone 3 July 2006

o 2nd Six monthly report submitted and statutory declaration and training inputs highlighted