Báo cáo nghiên cứu nông nghiệp " Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and supply chain management " pdf

A strategic analysis of the mango and pomelo supply/value chains operating in southern Vietnam was completed in April 2006 by SIAEP and SOFRI staff, farmers, collectors, traders, wholesa

Ministry of Agriculture & Rural Development

Completion Report

Improvement of export and domestic

markets for Vietnamese fruit

through improved post-harvest and

supply chain management

CARD Project 050/04VIE

COMPLETION REPORT

Date February 2009

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 20

Capacity Building 22

Publicity 24

Project Management 27

6 Report on Cross-Cutting Issues 27

Environment 28

Gender and Social Issues 28

7 Implementation & Sustainability Issues 32

Issues and Constraints 32

Options 35

Sustainability 36

8 Next Critical Steps 36

9 Conclusion 37

10 Statutory Declaration 37

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

Contact Officer(s)

In Australia: Team Leader

Organisation Queensland Department of

Primary Industries and Fisheries (DPI & F)

In Australia: Administrative contact

(Emerging Technologies) Fax: +61 07 3346 2727

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

3 Executive Summary

This is the completion report for the Collaboration for Agriculture; and Rural Development (CARD) Project 050/04 VIE Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and supply chain management

A strategic analysis of the mango and pomelo supply/value chains operating in southern Vietnam was completed in April 2006 by SIAEP and SOFRI staff, farmers, collectors, traders, wholesalers, exporters and retailers This strategic analysis process, in manual form was provided to both SIAEP and SOFRI staff to use for development of future fruit and vegetable supply/value chains Strategic plans workshops were also held in villages with mango and pomelo growers and with collectors to discuss supply chain maps, the SWOT analysis and strategic plans developed at previous workshops and to adjust and obtain input from a wider cross section of farmer/growers Action plans were also developed based on the agreed vision, goals and future direction for both the mango and pomelo CARD project participants These action plans aligned with the CARD Project objectives and represented the project activities Easy and simple to understand supply/value chain maps were constructed to enable supply chain stakeholders to identify their participation in these chains This also enabled participants to identify where they added value to the chain without being fearful of criticism This consultative and participatory action learning approach is designed

to empower the rural poor in the decision making processes

Two reports were produced on investigations into mango and pomelo supply chains in the Mekong Delta of Vietnam These reports provided information on consumer preferences, retailer, wholesaler, collector/trader and farmer practices and technologies used in Vietnam Major findings indicated that:

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

• Traditional mango and pomelo supply/value chains in Vietnam are long in terms of number of participants in the chain and the number of times the product is handled by the participants

• Care and attention to sorting grading, packaging, handling procedures and stacking methods are not practiced to the levels to provide consumers with as quality assured safe product

• High quality, extra or super class fruit, class 1 fruit are marketed with stalks attached This is done to reassure customers that the fruit they are purchasing fresh fruit These stalks often break off during handling and transport and also draw moisture from the fruit

• Farmers, collectors, traders, packaging agents and wholesalers estimates of damage fruit

is from fro 1 to 2%, but surveys conducted found it is greater then 20%

• Terms of trade and verbally agreement with collectors and farmers needs to be quickly overhauled and a new system put in place that protects the wholesaler, collector and farmer

• Even though these supply chain appear to be models of efficiency, the inability of wholesalers and exporters further down the chain to meet price and quality demands points to a significant problems

New supply chains were developed with Metro Cash & Carry and various high value retailers

in TP Ho Chi Minh City for mango and pomelo This project was not involved in the business to business negotiations but assisted in developing good agricultural practices (GAP) and quality assurance systems

For example:-

• Keeping mango fruit cool along the supply chain in the high humidity and high temperature conditions in Southern Vietnam significantly reduces fruit weight loss by 35% to 61% and extended shelf life by a minimum of at least 4 days

• A combination of new fibreboard packaging plus hot water dip treatment and plastic crate packaging plus hot water dip treatment plus cooling the fruit along the supply chain significantly reduced disease infestation by 55% to 93%

Implementation of GAP, mango 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

Bagged fruit were sprayed once with pesticides (before bagging), while non-bagged fruit were sprayed a further seven times This bagging method provided to consumers a chemical free, safe product An 87% reduction pesticides costs was achieved using fruit bagging A 10% to 20% increase in fruit quality achieved using fruit bags across all fruit grades

Pomelo 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

Fifty nine workshops were conducted during this project, to train 572 farmers and 79 collectors and wholesalers In-field, participatory action learning workshops provided a better understanding of how improvements to the mango and pomelo supply/value chains operating in Southern Vietnam

Forty two manuals and workbooks were developed and used in the CARD Project and 22 reports were produced covering:-

• Investigation into the mango and pomelo supply/value chains operating in Southern Vietnam

• Strategic Plans and supply/value chain maps for pomelo and mango

• Mango post harvest physiology manual and quality assurance manuals for mango and pomelo

• Maintaining fruit quality and increasing shelf life of mango and pomelo

• Survey of mango fruit quality offered for sale in Northern Vietnam

• Economic evaluations of the mango supply/value chains and orchard practices for mango and pomelo

In 2008, the Cat Hoa Loc Mango Group sold about 700kg to 1 tonne of Cat Hoa Loc grade 1 fruit to Metro Cash & Carry Vietnam Ltd., as a trial shipment using a new developed supply/value chain This fruit sold from 55,000 to 75,000 VND/kg This is about double to triple the normal price At the end of the CARD Project, a contract was signed with Metro Cash & Carry to supply 5 tonne of fruit

In the My Hoa Pomelo Group pack-house, GAP processes were implemented SIAEP staff helped the pomelo group with developing, designing and implementing the processing line to facilitate the sorting grading and packaging of pomelo fruit They have now signed a contract with Metro Cash and Carry for 34 tonnes of pomelo They also supply supermarkets

in Hanoi with about 18 tonnes of pomelo They have been trailing fruit vacuum bagging to reduce moisture loss and extend the fruit shelf life They have also trailed Citra Shine Wax This CARD Project has achieved all of its activities and outputs I would like to thank CARD for their support and funding for this project It has not been an easy project to implement and run due to the loss of staff from the various Vietnamese and Australian institutes and lost time due to unforeseen health problems of the Australian team members However, I would like to personally thank Director Duc SIAEP and Dr Chau SOFRI for their friendship and support for the Australian team members and myself They and their staff have availed themselves to the highest level possible to assist us and their own farmers and CARD project participants implement this project

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 Coast Province of Khanh Hoa, Vietnam 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 will address constraints by engaging with key Vietnamese stakeholders from research institutes (SIAEP and SOFRI) and local farmers in the mango and pomelo industries

in Southern Vietnam This project will taken account of the total supply chain network This project focused on where significant benefits are to be gained in the pre- harvest, post-harvest and marketing sectors This project will alleviate weaknesses in the supply chain and improve the capacity of stakeholders involved in pre-and post-harvest technologies affecting product quality consistency Highly–specialised, targeted training programs, appropriate for institutions and industry stakeholders will be provided in supply chain management and planning, pre- and post-harvest technologies

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/value chain, 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

The project has more than filled its component objectives by focusing on the total supply chain networks and market sectors This was achieved through engaging key Vietnamese stakeholders (research institutes, SIAEP and SOFRI) and local farmer groups (Cat Hoa Loc Mango Cooperative and My Hoa Pomelo Cooperatives) and local farmers in the provinces of Tien Giang, Dong Thap, Long An, Ben Tre, Tra Vin, Vin Long, Can Tho in the Mekong Delta of and Khanh Hoa in Southern Vietnam

This CARD project made linkages with the AADCP project and ASEAN Training workshops on Post-harvest Technologies and the Dragon Fruit project Project training of SIAEP and SOFRI staff and material supplied has also assisted SIAEP in the delivery of training workshops for Metro Cash and Carry in their joint project with GTZ and the Ministry of Commerce in Vietnam Materials supplied and training carried out by this CARD project has also assisted SIAEP staff in the ADB project and workshops to assist farmers in developing new agricultural supply chains to supply Metro Cash an Carry stores with produce that meet their specifications, particularly on product quality and food safety

This project has provided training for more than 572 farmers and 79 collectors and wholesalers Workshop evaluations have indicated that over 90% of farmers were very satisfied with material supplied and workshops conducted

The major components of this project were:

• Selection of fruit crops:- mango and pomelo were selected as the highest priority crops in Southern Vietnam

• A strategic analysis of the mango and pomelo horticultural industries supply chains in Vietnam

• Mango was the main fruit selected for intensive investigation for supply chain practices, traditional pre- and postharvest technologies used in Vietnam The effects on fruit quality along the supply chain was the chief focus of this project with information obtained from the mango supply chain adapted to the pomelo supply chain

• Mapping and identifying strengths and weaknesses in existing domestic and export chains for mango and pomelo, with particular emphasis on determining consumer preferences and needs, and feeding results back to farmers

• Selection of the key stakeholders and identification of key pre-and harvest and cultural constraints

post-• Developing improved export and domestic supply chains for mango and pomelo

• Setting up of new supply chains, improved farmer groups/organisations for marketing mango and pomelo

Achievements and outputs of this CARD project components

Strategic Analysis Process

A strategic analysis of the mango and pomelo supply/value chains operating in southern Vietnam was completed in April 2006 by SIAEP and SOFRI staff, farmers, collectors, traders, wholesalers, exporters and retailers This strategic analysis process, in manual form was provided to both SIAEP and SOFRI staff to use for development of future fruit and vegetable supply/value chains

Strategic planning workshops were also held in villages with mango and pomelo growers and with collectors to discuss supply chain maps, the SWOT analysis 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 is designed to empower the rural poor in the decision making processes

Investigations into supply value chain operating in Southern Vietnam

Two reports were produced on investigations into mango and pomelo supply chains in the Mekong Delta of Vietnam These reports provided information on consumer preferences, retailer, wholesaler, collector/trader and farmer practices and technologies used in Vietnam and provided to the CARD Project Management Unit in the Milestone 7 Report

Traditional mango and pomelo supply/value chains in Vietnam are long in terms of number

of participants in the chain and the number of times the product is handled by the participants For pomelo, almost 80% of the fruit is moved from farms by boat to the collectors to local wholesale markets Care and attention to sorting grading, packaging, handling procedures and stacking methods are not practiced High quality, extra or super

class fruit, class 1 fruit are marketed with stalks attached This is done to reassure customers that the fruit they are purchasing fresh pomelo These stalks often break off during handling and transport and also draw moisture from the fruit Farmers, collectors, traders, packaging agents and wholesalers estimates of damage fruit is from 1 to 2%, but surveys found it is often above 10%

Supermarkets are now setting new procurement practices and supply systems which focus on reducing costs and improving quality to enable them to sell at lower prices This will allow them to win over consumers and obtain a larger share of their target market The ability of many small farmers, collectors and wholesalers in the Mekong Delta of Vietnam to meet safe food levels and quality demands of domestic and overseas supermarkets can only be obtained through investing in improvements in their production and supply chain practices

Implementation of new production and post–harvest practices and the modernisation of these supply chains may prevent some small farmers from participating Many small farmers will have to develop risk minimisation strategies, such as forming groups, implementing new crop management and production systems, improved packaging, more efficient transport methods and handling practices to provide a safe, competitively priced quality product Understanding the supply chain and where to make changes is essential if farmers and chain participants are to benefit

Terms of trade is usually by verbal agreement between collectors, farmers, wholesalers and retailers This needs to be quickly overhauled and a new system put in place that protects the retailer, wholesaler, collector and farmer Even though this supply chain appears to be a model of efficiency, the inability of wholesalers and exporters further down the chain to meet price and quality demands points to a significant problem Also, risks faced by supply chain participants are significant For example one collector/wholesaler/exporter is owed a significant amount of money, some 49 million VND after exporting mango fruit Their options are extremely limited in options to receive payment for fruit all ready supplied Many collectors, wholesalers, traders, transporters and middlemen act in an opportunistic way in order to minimise the risk of opportunism, resulting in less-than-desirable supply chains Weaknesses in the Vietnamese legal system fail to address oblivious and dubious transactions, adding to less than desirable supply chains operating in Southern Vietnam

Supply/Value Chain Maps

Easy and simple to understand supply/value chain maps were constructed to enable supply chain stakeholders to identify their participation in these chains This also enabled participants to identify where they added value to the chain without being fearful of criticism During this phase in the project, identification of strengths and weakness of each chain was undertaken without participants losing face

Prior to developing supply chain maps for mango and pomelo farmers in the Mekong Delta

in southern Vietnam, many chain participants felt that they had an excellent product, but data collected from supply chain sampling revealed losses of up to 40% for mango and 30% for pomelo This mapping revealed that losses were due to incorrect handling procedures, no cool chain, poor packaging, inadequate transport and stacking systems employed This indicated a lack of infrastructure, knowledge and skills along the supply/value chain

Both vertical and horizontal integration of a supply chains has to occur if chains are to be effective and efficient Whilst all participants involved in these strategic supply chain development process find it easy to analyse their existing chains and develop new chains, the underlying principles of developing high levels of trust, open effective communication and information flows are very difficult to achieve due to the business culture operating in these transitional economies

Strategic and Action Plans

Development of strategic plans and action plans for mango and pomelo industries was also undertaken in April 2006 This CARD Project then implemented these action plans for mango and pomelo over the lifetime of this project

Top 5 Priority for 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 Priority for Strategic Plan:- Listing in Order of Importance for Pomelo Industry

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

2 Advice/counsel on standards/specifications of products

3 Intensively farming & programming production area

2005 and December 2008

Additional farmer training courses were carried out by both SIAEP and SOFRI in June 2006, May 2007 and June 2008 in the Mekong Delta and Khanh Hoa Province Further impromptu training sessions were held with farmers and farmer groups (cooperatives) during SIAEP and SOFRI staff visits to the various farms, farmer groups pack houses and wholesalers

The success of these workshops were documented and reported to the CARD Project Management Unit in Milestone 10 A summary of all the farmer workshop evaluations showed that:-

• 75% of all farmer workshop participants found the workbooks/manuals very useful with the remaining 25% indicating that they were useful

• 52% understood the concepts very well and 47% having a understanding of the concepts

• 49% reported that all the information was new to them with 50% indicating that most

of the information was new to them

• 73% indicated the information was very useful to them for their work with the remaining 27% indicating it was useful

• 83% of all the farmers workshop participants indicated the methods and process would be used in their work with the remaining 17% indicating it would be useful

• 81% of all farmers who attended the workshops indicated that they were highly satisfied with the training with the remaining 19% saying that they were satisfied

• 94% of all farmers’ participants wanted further training

A summary of all the train the trainer workshop evaluations showed that:-

• 71% of SIAEP and SOFRI staff who attended the training workshops indicated the workbooks and manuals very useful with remaining 29% indicating that they were useful

• 59% of SIAEP and SOFRI staff at the workshops understood the concepts very well with the remaining 41% indicated they understood the concepts

• 48% of SIAEP and SOFRI staff at the workshops indicted that all of the information was new to them with the remaining 52% indicating that most of it was new to them

• 73% of SIAEP and SOFRI staff at the workshops indicated that this information would be very useful in their work with the remaining 27% indication it would be useful

• 85% of SIAEP and SOFRI staff at the workshops indicated that methods and processes would be very useful in their work with the remaining 15% indicating that the methods and process would be useful

• 93% of SIAEP and SOFRI staff at the workshops indicated they wanted further training

• 79% of SIAEP and SOFRI staff at the workshops indicated that they were highly satisfied with the training with the remaining 21% indicating they were mostly satisfied

New supply chains were developed with Metro Cash & Carry and various retailers in TP Ho Chi Mint City for mango and pomelo This project was not involved in the business to business negotiations but assisted in developing GAP and quality assurance systems As part

of the development of these new supply/value chains an economic analysis was conducted and a report was prepared and provided to the CARD Project Management Unit as part of Milestone 10 This training and monitoring and results of the analysis of the new supply chains, development of the quality standards for mango and pomelo; fulfil the CARD Project activities 5, 6, 7, 8, 9, 11, 12 and 13

The objectives of the project were:

• Improved pre-harvest technologies to produce high quality mango (integrated pest and disease management (IPDM), integrated crop management (ICM), fruit fly control, maturity indices, reduced pesticide residues, better environmental and human health issues in Vietnam)

• Improved mango and pomelo post-harvest technologies (e.g cool chain management, packaging, post-harvest dipping, ethylene ripening, waxing, washing and wetting agents)

• Improved quality standards and quality assurance programs for mango and pomelo The approach and methodologies developed for these crops through this project can

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

Achievements and outputs of the project objectives

Pre-harvest manuals developed

The Australia team assisted SIAEP and SOFRI staff to developed technical and field guide pre-harvest manuals based on GAP These manuals were written in Vietnamese for Vietnamese farmers Specific subjects covered were:-

• Mango Cultivation Handbook

• Mango Pest Control Handbook

• Mango Disease Control Handbook

• Pomelo Cultivation Pest and Disease Control Handbook

Manuals covering pre-harvest training and were provided by the Australian team in conjunction with our Vietnamese collaborators These manuals were:

• Best practice manual for mango (Mango Information Kit)

• Mango and citrus orchard design

• Citrus training and pruning manual

• Farmer citrus training and pruning manual

• Using chemicals (A chemical handling and safety manual)

• Citrus pest and disease manual

• Integrated pest and disease management (IPDM) system for pomelo

• Mango pest management manual

• Improving mango harvest systems

Postharvest manuals developed

Manuals covering post-harvest training were also provided by the Australian team in conjunction with our Vietnamese’s collaborators These manuals covered:

• Optimising harvest quality in mangoes

ƒ Hazards to quality

ƒ Maturity

ƒ Disease breakdown

ƒ Managing sapburn and skin browning

ƒ Ripening and storage

ƒ Quality and grading

ƒ Monitoring quality

ƒ Quarantine pests packaging and labelling

• Mango postharvest manual

ƒ Fruit ripening and quality loss

ƒ Harvesting and field handling

ƒ Pack-house operations and practices

ƒ Ripening and storage

ƒ Main causes of postharvest defects

• Ripening room design

Supply Chain manuals developed

Manuals covering supply/value chain development and improvement were also provided by the Australian team in conjunction with our Vietnamese’s collaborators These manuals covered:

• Introduction to value supply chains

• Developing food value supply chains

• Understanding and monitoring quality flows

• Principles of supply/value chains

• Supply/value chian analysis

• Developing supply/value chains

• Developing strategic plans

• Developing action plans

• Developing new improved horticultural supply/value chains

• Supply/value chain management of fresh product quality and food safety

• Understand supply/value chain and product quality

• Processes used to manage fresh product quality and food safety

• Handling and transporting of fresh produce along a supply chain to maintain produce quality and deliver safe produce to the consumer

• Marketing and focus group training

• Designing Training Workshops for mango and pomelo growers in Vietnam

• Socio-economic analysis of mango and pomelo supply chains in Vietnam

All manuals were provided to SIAEP and SOFRI and to farmers, collectors, traders, wholesales, retailers and exporters who attended the CARD Project training workshops These manuals are one measure to ensure sustainability of this project These manuals are a way of ensuring long-term project impacts Manuals are of then used a source of reference material for SOFRI and SIAEP staff as well as the local mango and pomelo farmers On several of the farm visits in the Mekong Delta, farmers would bring out their manuals, proudly displaying them and discuss various aspects they have read or need help with in trying to implement on their farms These manuals are part of the CARD’s Project activity

11

Practical on hands training conducted for capacity building

Several experiments were set up to provide hands on training for SIAEP and SOFRI staff This was done so staff had first hand knowledge of how fruit quality deteriorated along the supply chain and how manipulating the supply chain by using various post-harvest

technologies can stop the loss in fruit quality These reports on the effects on fruit quality were presented to the CARD Project Management Unit in Milestone 9

Monitoring of results for pomelo showed that all farmers, collectors, traders, packing agents, wholesalers, retailers and consumers use colour as one of the indicators of maturity in the Mekong River Delta of southern Vietnam Results established that skin colour is not a good indicator of Nam Roi pomelo fruit maturity The oBrix (sugar) and acid content continued to increase after the fruit were harvested This may be due to the significant moisture loss which occurs within the pomelo fruit after harvest and the concentration of sugars and acid in the fruit The testing of the new mango supply chains and quality monitoring showed sorting, grading and packaging and cooling the fruit by the farmer groups significantly reduced fruit weight loss and damage and increased the shelf life for mango These outcomes and training provided covers part of this CARD Project activities 8, 9, 11, 12 and

13

Pomelo outcomes

Results from experiments indicated that fruit treated with Citra Shine Special Wax had an increased the shelf life The increase was about 2 weeks compared to the control and Vacuum Wrapping treated fruit The change from green to yellow was about one week later for the Citra Shine Special Wax and Vacuum Wrapped treated fruit compared to the Control treated fruit This delay in colour change may have some effect on the supply chains operating in the Mekong River Delta in southern Vietnam by allowing traders, collectors, packing agents and wholesalers to hold fruit back from marketing for about a week This is a significant advantage considering there are no cool chains or other post harvest treatments applied to pomelo fruit before marketing

Vacuum Wrapping and moisture condensation inside the wrapping also played a significant role in increasing the incidence of disease Fruit that are vacuumed wrapped, or have a special anti-transpirant applied must have no physical damage to the surface of the skin Fruit must also be sanitised thoroughly to eliminate any possible disease infection before applying postharvest treatments This is especially critical for fruit destined for export due to quarantine requirements of importing countries and developing a reliable trade mark and reputation for Vietnamese pomelo fruit

Mango outcomes

Keeping mango fruit cool along the supply chain in the high humidity and high temperature conditions in Southern Vietnam significantly reduces fruit weight loss by 35% to 61% and extended shelf life by a minimum of 4 days

Combinations of new fibreboard packaging, hot water dip treatment, plastic crate packaging and cooling the fruit along the supply chain significantly reduced disease infestation by 55%

to 93% respectively

As with most fruit, mangoes are best ripened at the wholesale market end of the chain This will allow the fruit to travel along the chain in a hard green state reducing handling damage and disease development Mangoes should be ripened at 18oC to 22oC as these temperatures will allow the fruit to develop maximum colour, flavour, texture, taste, and limit the loss of Vitamins If these temperatures are maintained along the supply chain, fruit will still be in a high quality state and capable of being sold at the highest market prices

Development of new cool supply chain systems, packaging and disease control methods to extend shelf life of Cat Hoa Loc mango in Southern Vietnam must be a key initiative of Government and Institutes to ensure farmers in the Mekong Delta remain economically viable

Evidence of project outputs and benefits

A final workshop attended by all stakeholders was held at SIAEP Conference Rooms in Ho Chi Minh City from the 18th and 19th December 2008, with a field trip to on the 20th of December 2008 to inspect pomelo and mango grower group operations The final CARD project workshop was attended by CARD Officials, Vietnamese Ministry Officials, SIAEP, SOFRI, Metro Cash and Carry, VACVINA and pomelo and mango farmer group representatives and this fulfil this CARD Project activity 14 See Appendix B for a list of speakers and the workshop program

Highlights from the workshop were:-

Mango 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 (See table 1 below) For example:- a framer with a 1000m2area of mango the average farmer input is VND 6,405,000 and the average yield per 1000m2

is 960 kg The unit cost per kg of “Cat Hoa Loc” mango is VND 7,600

Table 1 Input profit by farmer groups for “Cat Hoa Loc” Mango farmers in the Hoa Hung Commune, Cai Be District, Tien Giang Province in the Mekong Delta of Vietnam

Description High

Level Group

Medium Level Group

Low Level Group

Average Ratio

(times) High vs

Medium

Ratio (times) High vs Low

Unit production cost

Bagging mango of fruit

Bagged fruit were only sprayed once with pesticides (before bagging), while non-bagged fruit were sprayed a further seven times This bagging method provides to consumers a chemical free, safe product An 87% reduction pesticides costs was achieved using fruit bagging Table 1 below show 10% to 20% increase in fruit quality achieved using fruit bags

across all fruit grades Table 2 below, show the price received in VND/kg for each fruit grade for bagged and non-bagged fruit

Table1 Comparison of fruit grades, bagged fruit versus non-bagged fruit

Table 2 Comparison of prices per fruit grade for bagged fruit versus non-bagged fruit

2 573 000 VND vs 1 824 800 VND Profit earned from one Cat Hoa Loc mango tree that was bagged was 2 341 800 VND compared to a non-bagged tree of Cat Hoa Loc 1 696 800 VND These studies found that fruit bagging during the May to August period could significantly increase incomes by 27%, lifting socio-economic standings

Pomelo 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 (See table 2 below) For example:- A pomelo farmer with

a 1000m2 area of pomelo, the average farmer input is VND 3,244,000 and the the average yield per 1000m2 is 1,648 kg The unit cost per kg for Buoi “Nam Roi” is VND 2,100, with most pomelos sold at the local markets

Table 2 Input profit by farmer groups for Buoi “Nam Roi” farmers in the My Hoa Commune, Binh Minh District, Vinh Long Province in the Mekong Delta of Vietnam

Description High

Level Group

Medium Level Group

Low Level Group

Average Ratio

(times) High vs

Medium

Ratio (times) High vs Low

Unit production cost

To improve income it was recommended that mango and pomelo farmers they should develop new pre harvest practices and market opportunities in HCMC and northern Vietnam and look at ways of direct selling to the consumer at this final workshop

Farmer difficulties experienced in implementing GAP

Due to economics of redesigning their mango orchards, many mango farmers believe it will take considerable time to implement Farmers still have to generate a living from their farms during the redesign phase Two forms of change were highly acceptable to the farmers These are:-

• gradual tree removal and replacement planting to an GAP system orchard design

• gradual lopping of large trees (reducing tree height) The implementation of canopy management and pruning practices to increase fruit quality by allowing:-

o greater light penetration into the canopy

o better spray penetration (This will give greater control of pests and diseases thereby reducing effects on fruit quality and help reduce chemical costs and application costs)

o all the crop to be harvested (reducing pests and disease pressures)

Benefits of Training in GAP

Many pomelo and mango farmers are now planting monoculture blocks of trees to ensure they can obtain GAP accreditation For example, Hoang Gia Company has planted monoculture blocks of pomelo (about 600 trees) in the Binh Minh District The Viet Hung Company has also planted about 180 hectares of mango Mr Hung, an orchardist and director of the Viet Hung Company, has about 15000 m2 or 480 mango trees planted at a spacing of about 6 m x 6m Trees are kept to a manageable height of less than 4 metres via canopy management techniques such a pruning and training, tree lopping and top-working trees to new varieties

After training, Mango groups have initiated new harvesting procedures and process to ensure quality standards and GAP are adhered to For example:-

o mango fruit are harvested in the morning, but on occasions when rain or other crop management factors intervene, fruit may be harvested at any time of day

o Harvesting poles are used to harvest the fruit from the ground and from high

up in the tree canopy

o All fruit are harvested with long stems (up to 10 cm if possible) and placed into paper-lined baskets

o Harvested fruit stems are usually cut to 2 cm in length and placed on wire trays with stem down to allow sap to ooze

o Paper is also placed between each layer of fruit in the baskets to protect fruit from sap burn or rub marks

o Fruit are left on the ground for approximately 2 hours then wrapped in newspaper and placed into 20 kg baskets

Mango branches, paper or banana leaves are used to cover fruit in these baskets whilst in the field

Farmers have now introduced a maturity index for Cat Hoa Loc Mango Fruit are harvested when:

• length of time from flowering to harvest maturity (84 days)

• fruit change from a dark green colour to light green colour

• fruit shape is full

• shoulders of the fruit are full and fruit beak has filled out

• no visible line down the centre of the fruit

Quality guides for both mango and pomelo were developed in conjunction with the various farmer groups collectors, wholesalers and traders via discussion group training These manuals were provided to the CARD Project Management Unit in milestone 9 report These manuals were also provided to the various farmer groups to use to develop their new supply chains

Activities undertaken

The achievements and outputs on this CARD project components and objectives above also

provide evidence of the activities undertaken The activities were reported on in the six monthly progress reports provided to the CARD Project Management Unit

Activities 1 and 2

Project activities 1 and 2 was undertaken at the local farmer, local farmer group, local authorities, including the Peoples Committee at the Province and District level, officials of DARD in each province Each group was introduced to the project activities and objectives

in November 2005 and April 2006 Eleven workshops on this CARD project, aims, objectives and benefits to stakeholders were held in:-

• Tien Giang Province

• Vinh Long Province

• Khanh Hoa Province

• and Ho Chi Minh City Region

Activities 3 and 4

Project activities 3 and 4, participatory action learning was undertaken with all supply/value chain participants A strategic planning process was conducted, encompassing a strategic SWOT analysis, documentation of supply chain customers and consumers, creating shared value, getting the product right, logistics and distribution and information gathering and communication on the mango and pomelo supply/value chains operating in Vietnam Strategic plans were developed by all the supply/value chain participants and key priorities identified and action plans compiled and undertaken for both mango and pomelo industries in Southern Vietnam by the selected champion farmers and champion groups These groups implemented the action and strategic plans that they helped developed as part of this project and reported to the CARD Project Management Unit in Milestone 4 and Milestone 7

Activities 5, 6, 7 and 8

The pre- and post-harvest technologies in activity 5, 6, 7 and 8 were implemented and processes develop to improve the quality of the product being handled be the supply/value chains participants in Southern Vietnam For example, postharvest technologies implemented for mango and pomelo were:-

• implementation of quality assurance measures to ensure market access (Viet Gap for mango and Global Gap for pomelo)

• disinfestation or sanitizisation of product (de-sapping, washing in chlorine, hot water, dipping)

• sorting and grading, including the implementation of grade standards and adherence

to those standards by the various mango and pomelo groups

• packaging (vacuum wrapping, waxing, and packing of their product into fibreboard cartons and plastic crates)

• development of new supply/value chains (e.g high value retailers in Ho Chi Minh City, Metro Cash and Carry, agreements to exporters who export to Japan (Mango) and Pomelo to Europe

These are being carried out by the Cat Hoa Loc Mango Group, Viet Hong mango groups and the My Hoa pomelo group

Testing of postharvest technologies also undertaken as part of this CARD project and reported on in the following reports:

• Maintaining fruit quality and increasing shelf life of pomelo in the Mekong Delta of southern Vietnam

• Fruit quality comparisons of three Cat Ho Loc Mango Supply Chains in Southern Vietnam

Pre-harvest activities implemented were:-

• mango and citrus orchard design

• canopy management and pruning and training of mango and citrus orchards

• integrated pest and disease management for mango

• integrated pest and disease management for pomelo

• optimising harvesting and infield handling systems

A list of manuals produced in Vietnamese by the Vietnamese Institutes in conjunction with the Australian team members for this CARD Project was:

• Mango Cultivation Handbook

• Mango Pest Control Handbook

• Mango Disease Control Handbook

• Pomelo Cultivation Pest and Disease Control Handbook

In Milestone 9 an economic analysis on the mango supply chains were carried out and information provided to the CARD Project supply/value chain participants

All ideas were tested in Vietnam and the Australian and Vietnamese specialists assisted in the development of these supply/value chains and markets All project participants provided feedback via evaluation surveys conducted and these were provided in Milestone 10 report

Activities 8, 9, 11, 12 and 13

In completing activity 8, investigations into the mango and pomelo supply chain operating in Southern Vietnam were undertaken and reported on to the local farmers, farmer groups, wholesalers, and collectors Two reports on these chains were produced and provided to the CARD Project Management Unit in Milestone 9 From this work, preliminary grade standards were developed for both pomelo and mango and quality manuals developed in conjunction with all CARD project participants

Testing of mango and pomelo varieties supply/value chains, plus the experiments carried out

on fruit quality and shelf life and the training conducted in quality monitoring which completed activity 9

The above work reported on and coupled with the development of the quality standards and training manuals in pre-harvest and post-harvest and supply/value chain activities in Southern Vietnam for pomelo and mango completes activity 11, 12 and 13

Activity 10

Training of SIAEP and SOFRI staff in running focus group was conducted and a manual developed by the Australian team Also training was conducted and manuals developed by the Australian team on external and internal forces affecting produce quality management and transport and handling for the Vietnamese CARD Project Participants

Unfortunately, the excursion to China to develop markets and gain consumer information was cancelled due to importation regulations imposed by the by Chinese These regulations stopped our group from taking mango and pomelo fruit into China and conducting focus group meetings The CARD Project Unit directed us to increase our efforts to develop supply/value chains to Ho Chi Minh City by developing new type supply/value chains, similar to those supplying Metro Cash and Carry

Activity 14

A final CARD Project workshop was held for supply/value chain participants at SIAEP Conference Rooms in Ho Chi Minh City from the 18th and 19th December 2008, with a field trip to on the 20th of December 2008 to inspect pomelo and mango grower group operations

Inputs

Allocation of Resources

The Australian team members spent considerable amount of time collating information suitable for the Vietnamese mango and pomelo industries Australian team members wrote training manuals, workbooks and develop PowerPoint presentations which were used to train SIAEP, SOFRI staff, and the CARD Project participants:- farmers, farmer groups, collectors, traders, wholesalers, exporters and retailers

For example:- the Australian team leader (Mr Nissen) exceeded his time allocation of 226 days in Australian by a further 30% Mr Nissen also far exceeded his initial project allocated time to be in Vietnam by 40% Mr Nissen combined CARD project travel with other overseas ACIAR project travel commitments to reduce costs and travel time commitments The extra time Mr Nissen spent in country enabled this project to achieve better than expected sustainable outcomes for the mango and pomelo CARD Project participants

Workshops and training conducted

More than 50 workshops were conducted during this project and with:-

• Mr Nissen conducting more than 30 workshops

• Dr Hofman conducting 3 workshops

• Mr Holmes conducting 3 workshops

• Mr Tucker conducting 2 workshops

• Dr Marques conducting 2 workshops

Ms Rankin, when working on the project assisted the Australia team with more than 12 workshops

More than 572 farmers and 79 collectors and wholesalers were trained by this CARD project In-field, participatory action learning workshops provided a better understanding for participants of how improvements to the supply/value chains of mango and pomelo operating

in Southern Vietnam

Manuals and reports produced

Greater than 40 manuals and workbooks were developed for this CARD Project and subjects covered have been reported on in Milestone 7 and in the achievements of the projects objection section above

More than 20 reports were produced covering:-

• Investigation into the mango and pomelo supply/value chains operating in Southern Vietnam (2 reports)

• Strategic Plans and supply/value chain maps for pomelo and mango (2 reports)

• Mango post harvest physiology manual and quality assurance manuals for mango and pomelo (5 reports)

• Maintaining fruit quality and increasing shelf life of mango and pomelo (2 reports)

• Survey of mango fruit quality offered for sale in Northern Vietnam (1 report)

• Economic evaluations of the mango supply/value chains and orchard practices for mango and pomelo (5 reports)

• five six monthly reports This project also provided benefits not only to Vietnam, but back to the Australian mango and citrus industries

For example:- exports to Vietnam of more than $250,000 of citrus (mandarin) by Ironbark Citrus and Grapes occurred in 2006 Assistance was also provided to Emu Exports, (a private Queensland company) set up a 100 ha mango orchard and $3 million dollar packing facilities in Khanh Hoa Province Vietnam

Smallholder Benefits

Benefits to mango farmers

A good example is a group of mango grower/farmers who have been stimulated into proactively addressing and developing new and improved harvesting, handling and packaging systems which resulted in improved net returns in 2007 This cooperative has increased Class 1 fruit sales by 10% New methods for picking and handling of fruit after harvesting and packaging of fruit in fibreboard cartons were developed and are carried out at the cooperative level Fruit are marketed under this group’s own cooperative trademark This has highlighted the benefits of both public and private sector involvement in such projects and how ordinary farmer’s can become leaders of change and build capacity at the local level This also provided greater socio-economic benefits to the village and wider community

The Cat Hoa Loc Mango Group is using the quality manuals developed by the CARD Project They are developing their GAP procedures for each of the member farms They are keeping records of chemicals and fertilisers used on the orchards for quality assurance

purposes and traceability The Cat Hoa Loc Mango Group have purchased new land and constructed a new packing and processing shed With help from the SIAEP staff and the CARD Project they have:-

• purchased and constructed a cool room

• constructed a ripening room

• constructed drying grading and sorting tables

• developed a specific gravity maturity test

• constructed and are using a washing and hot water heat treatment tanks to remove contaminates, control fruit fly and diseases on the harvested fruit

• using fans to dry the fruit on the sorting and grading tables

• packing and grading fruit into fibreboard cartons

• placing the trade mark stickers on each mango fruit in the carton

• implemented quality assurance standards such as:- the pack-house will only accept extra, first and second grade fruit Third grade fruit is returned to the grower and the grower asked not to send any third grade fruit to the pack-house in the future

In 2008 about 700kg to 1 tonne of Cat Hoa Loc grade 1 fruit were sold to Metro Cash & Carry Vietnam Ltd., as a trial shipment This fruit sold from 55,000 to 75,000 VND/kg This is about double to triple the normal price At the end of the CARD Project, a contract was signed with Metro Cash & Carry to supply 5 tonne of fruit These trial shipments were based on a primitive cool chain using an air conditioned van to transport the fruit The groups would like Metro Cash & Carry Vietnam Ltd., to send their cool trucks to their cooperative so a good cool chain and high fruit quality was maintained Since this project has finished, Metro Cash & Carry Vietnam Ltd., has asked the group to supply larger quantities of class 2 fruit at a significantly reduced price

The group also supplies about 70 tonne of fruit to a processor who exports to Japan This processor is in Ho Chi Minh City They artificially ripen the fruit, remove the skin and process the pulp This group supplies a frozen product to a Japanese company

The Viet Hung group have also now implemented fibreboard packaging for their mango They have implemented good GAP for tree training and pruning chemical usage and fruit bagging as per the pre-harvest capacity building section above

Benefits to pomelo farmers

The Nam Roi Pomelo My Hoa Farmers Group has 26 members with at total of 23 hectares of pomelo (and expanding) They had approximately 600,000,000 VND in capital for the 26 members In September 2008 they obtained Global GAP Certificate 2 In 2008, based on this Global Gap certificate 2 they exported 18 twenty foot containers to Holland and received about 10,500 VND / kg This is double the local price paid for pomelo In 2009 this group exported about 70 twenty foot containers (about 1000 tonne) to Holland and Belgium for about 8,700 VND / kg They have now signed a contract with Metro Cash and Carry for 34 tonnes of pomelo They also supply supermarkets in Hanoi with about 18 tonnes of pomelo They have been trialing fruit vacuum bagging to reduce moisture loss and extend the fruit shelf life They have also trialed Citra Shine Wax They have implemented GAP process such as:-

• stock take for each orchard

• production procedure for each member

• cultivation procedures

In the pack-house they have also implemented GAP processes SIAEP staff has helped the pomelo group with developing, designing and implementing the processing line to facilitate the sorting grading and packaging of pomelo fruit Some processes put in place at the pack-house are:-

• fruit are cleaned by water solution containing chlorine at 150 ppm

• trialling vacuum bagging and drying by fan of pomelo fruit for export to Europe

• trialling the use net bagging of fruit

• placing an origin stamp on fruit

• constructed a cool room

This group ise continuing to expand and has negotiated with the local authority to increase their pack-house size They are building new cold rooms on the land next to the pack-house They also indicated that they need support from government to enable them to borrow money

at low interest rate

Export markets demand clean fruit; smut or skin disease is not allowed About 70% of fruit sent or collected by the cooperative has disease and smut on skin Handling this fruit adds a significant cost to the group’s pack-house operations Special infield fruit bags for pomelo were supplied to this group to trial Fruit bagging of pomelo should significantly decrease pest and disease attacking the fruit

Capacity Building

Training methods

During the life of this CARD Project, capacity building was conducted using hands on training in train the trainer methods for both SIAEP and SOFRI staff This training was conducted by Australian team (Mr Nissen, Mr Holmes, Mr Tucker, Dr Hofman and Dr Marques and Dr Rankin) on pre- and post-harvest technologies and supply/value chains affecting mango and pomelo product in Vietnam

Farmer training was then conducted by SIAEP and SOFRI staff with the assistance of the Australian team in the Southern Vietnam Provinces of :

completely different to the traditional Vietnamese training methods they have provided to their farmers in the past A summary farmer training conducted by this card project is presented above in the achievements and outputs of the CARD Project components, training section above Further reports on capacity building and how successful this training conducted was by this CARD project trainers were presented in Milestone 10

A manual and workbook was developed and written by the Australian team for the Vietnamese institutes SIAEP and SOFRI This manual and workbook was titled:-

• Designing Training Workshops for mango and Pomelo Growers in Vietnam

Train the trainer training was then conducted by the Australian team to assist SIEAP and SOFRI staff to develop training programs for Vietnamese farmers based on adult learning participatory action learning principles They also received training in the ORID analysis – evaluating the success of workshops and Bennett’s Hierarchy for Supply Chain Project Evaluation These training activities were reported on in the six monthly CARD Project reports and Milestone 7

Developing manuals and workbooks suited to educating farmers

The Australia team also assisted SIAEP and SOFI staff to developed technical and field guide manuals based on good agricultural principles (GAP) These new ideas and approaches to writing manuals, layout and structure were provided to SIAEP and SOFRI staff by the Australian team These manuals were written in Vietnamese for Vietnamese farmers and then translated into English Specific subjects covered were:-

o Mango Cultivation Handbook

o Mango Pest Control Handbook

o Mango Disease Control Handbook

o Pomelo Cultivation Pest and Disease Control Handbook

These manuals were provided to Vietnamese farmers during the training workshops These manuals are written in an easy to read format, with easily recognisable pictures showing critical points which must be implemented to undertake good on farm GAP implementation practices

The quality guides for mango (Cat Hoa Loc Mango Quality Guide) and pomelo (2 guides -

Da Xanh and Nam Roi quality guides) were developed by the Australian team in conjunction with SIAEP and SOFRI staff as well as collectors, wholesalers and retailers participating in the mango and pomelo supply/value chains in Southern Vietnam Process on how to develop these manuals were provided by the Australian team members to the Staff of SIAEP and SOFRI so they can develop new manuals for different fruit and vegetable industries operating in Vietnam

Methodologies and process to develop new supply/value chains

The Australian team trained the Vietnamese institutes (SIAEP and SOFRI), Vietnamese farmer, farmer groups, collectors, traders, wholesalers and exporters in a strategic planning process, supply/value chain analysis methods, supply chian mapping, and product quality monitoring and assessment, and the methodology and processes to development new supply/value chains These were reported on in the six monthly CARD Project reports and in Milestone 10

R.J Nissen, A P George, R.H Broadley, S M Newman and S Hetherington 2006 Developing improved supply chains for temperate fruits

in Transitional Asian economies of Thailand and Vietnam Acta Horticulturae

669, pp 335-342 Presentations:

A P George, R J Nissen, and R H Broadley 2006 Strategic Analysis: a Key factor in developing Horticultural Supply chains in Transitional economies Proceedings of the First International Symposium on Improving the performance of supply chains in the Transitional Economies

R.J Nissen, A P George, R.H Broadley, S M Newman and S Hetherington 2006 Developing improved supply chains for temperate fruits

in Transitional Asian economies of Thailand and Vietnam

Mr R J Nissen, Dr A P George, Mr U Napooakoonwong, Mr Pichit Sripinta, Dr U Boonprakob, Ms M Rankin, Mr D D Nguyen, Dr M.C.Nguyen, and Dr Le Duc Khanh 2007 Case studies of product quality improvement and supply chain management for stonefruit, mango and pomelo

in Thailand Laos and Vietnam RAP Publication 2007/21, pp 104-114

Presentations:

A P George, R.H Broadley and R.J Nissen 2007 Key Strategies for horticultural industries to remain internationally competitive, Proceedings of the International symposium on fresh produce supply chain management

Mr R J Nissen, Dr A P George, Mr U Napooakoonwong, Mr Pichit Sripinta, Dr U Boonprakob, Ms M Rankin, Mr D D Nguyen, Dr M.C.Nguyen, and Dr Le Duc Khanh Case studies of product quality improvement and supply chain management for stonefruit, mango and pomelo

in Thailand, Laos and Vietnam

R J Nissen, A P George, P Hofman, B Tucker, M Rankin 2008 Development of new processes for evaluation and implementing new improved horticultural supply chains operating in South-East Asia Acta Horticulturae 794 pp 269-278

S M Newman, V V V Ku, S D Hetherington, T.D chu, D L Tran and R

J Nissen Mapping stone fruit supply chins in North West Vietnam Acta Horticulturae 794 pp 261-268

Presentations:

A P George, R J Nissen, and R H Broadley 2006 Improving horticultural supply chains in Asia and the developing Economies requires a shift in strategic thinking

R J Nissen, A P George, P Hofman, B Tucker, M Rankin 2008 Development of new processes for evaluation and implementing new improved horticultural supply chains operating in South-East Asia

S M Newman, V V V Ku, S D Hetherington, T.D Chu, D L Tran and R

J Nissen Mapping stone fruit supply chins in North West Vietnam

Nguyen, Minh.Chau and Le Thi Thu Hong Present Scenario, Market trends

of the tropical and subtropical fruit industry in Vietnam

Conference:

Improving the performance of supply chains in the transitional economies: responding to the challenge of linking smallholder producers to dynamic markets 9-12 July 2008 Waterfront Insular Hotel, Davao City, Philippines

Papers published:

A P George, R H Broadly and R J Nissen The formation and funding of marketing groups will be critical to the survival of small scale horticultural farmers in Asia In Press

R.J Nissen, A P George, S Price, D D Nguyen, D.N.T Tran, C M Nguyen, T M Ta, T H Doan, M K Rankin and I Russell 2008 Vietnamese farmers capturing benefits through improved supply chain management In Press

Presentations:

A P George, R H Broadly and R J Nissen The formation and funding of marketing groups will be critical to the survival of small scale horticultural farmers in Asia

R.J Nissen, A P George, S Price, D D Nguyen, D.N.T Tran, C M Nguyen, T M Ta, T H Doan, M K Rankin and I Russell 2008 Vietnamese farmers capturing benefits through improved supply chain management

Conference:

Good agricultural Practices and Food Safety Workshop, Binh Thuan, 21-22 July

2008, Collaboration for Agriculture and Rural Development (CARD Program) Australian Government AusAID Australian Government and Ministry of Agriculture and Rural Development

Paper published:

Mr R J Nissen, Mr Nguyen Duy Duc, Dr Nguyen Minh Chau, Mr

Vu Cong.Khanh, Mr Ngo Van Binh, Ms San Tram Anh, Ms Tran Thi Kim Oanh 2008 CARD Project 050/04 VIE Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and supply chain management

PowerPoint presentation:

CARD Project 050/04 VIE Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and supply chain management

Poster presentation:

CARD Project 050/04 VIE Improvement of export and domestic markets for Vietnamese fruit through improved post-harvest and supply chain management

An article titled “Knowledge Exports” was submitted for publication in DPI&F annual reporting 2006 This article highlighted how the profitability of supply chains for both mango and pomelo in Vietnam has been significantly improved by the multi-disciplinary AusAID CARD funded Project This article emphasisedthe need to maintain fruit quality through the supply chain downstream to the consumer The model used in this project will

improve DPI&F’s capability and capacity to take advantage of similar opportunities in the future

An article for the 2nd CARD Newsletter about the project was provided This article highlighting SIAEP’s and SOFRI’s involvement with mango and pomelo farmers constructing supply chain maps, strategic plans and process analysis methods to ascertain fruit quality and to determining areas where improvement in fruit quality can be easily achieved

Project Management

Linkages to other projects

During the January-February 2008 visit by Mr Nissen, Director Nguyen Duy Duc and Mr Nissen made direct linkages to between the CARD Project 050/04 VIE and the ASEAN Secretariat South-South Cooperation Project and A-J partnership Project Funded by MAFF Japan were formed Mr Nissen provided training and workshop material to the ASEAN training course that was developed for the CARD project to train SIAEP, SOFRI, farmers, collectors, wholesaler and retailers Previous CARD project training and material assisted SIAEP staff to conduct this ASEAN training course

Closer linkages with the joint RMIT and DPI&F project staff working on Quality Assurance Systems for ASEAN Fruit and Vegetables (QASAFV) is still being undertaken The QASAFV project is one of 10 projects initiated under the ASEAN Australian Development Cooperation Program (AADCP) Exchange of information has occurred on a regular basis The information exchanged covered areas such as:

• product quality concepts and quality assurance guidelines

• development of ASEAN GAP standards

• supply chain development and evaluation processes

• extension training methodologies for training trainers

Project activities management

During this CARD project activities undertaken were in line with the top 5 Priorities identified by the CARD Project participants Every effort was made during this project to enhance the project timeline and catch up to the deliver dates for the project milestones Factors that interrupted the project activities timeline have caused slippage in activities This was due to circumstances beyond Mr Nissens control Activities and training workshops to

be conducted in early 2007 were deferred to July-August 2007 Personal health problems of

Dr Hofman and Mr Nissen caused these delays as detailed in the previous six monthly report

There has been a significant amount of work conducted during this project and in particular training of mango and pomelo farmers and SIAEP and SOFRI Staff There were production issues in crop availability delays and the development of the quality assurance guides and research work conducted to developing new supply chains

Staff changes

There has been one change to the Australian Project team Ms Marlo Rankin left the Australian project team at the end of the second year of the project

Extension to the project finish date was sought and obtained This was due to:-

• two vital staff members from SIAEP resigning, Mrs Tran Thi Ngoc Diep, Mr Nguyen Chi Trung

• two key members Mr Le Minh Hung and Mrs Nguyen Vu Hong Ha leaving to undertake further training and study in New Zealand for three years

• and the passing of Professor Luu Trong Hieu

Further absences that have impacted upon this CARD project, are the two resignations of key staff from SOFRI (Mr Do Minh Hien and Mrs Thai Thi Hoa) leaving to take up new jobs Eight staff leaving this CARD project has seriously impacted in terms of achieving milestone outcomes in the desired time frame (September 2008) Two vital project activities impacted upon are:

• socio-economic studies of mango and pomelo

• pomelo and mango post harvest enhancement of shelf life and reduction in fruit quality loss using enhanced post harvest methods

This CARD project team is truly sincerely sorry for the delays to this project, but due to these factors mentioned above, we requested and obtained approval from the CARD Project Management Unit for us an extension on this CARD project timeline so all activities, manuals and reports can be completed to the highest quality possible No extra money was required to accommodate for the delays caused by the Australian team health problems, failures in crops by Emu Exports Vietnam in Khanh Hoa province due to unforseen environmental conditions

6 Report on Cross-Cutting Issues

• contamination of irrigation water via grey water and salt water incursions

• incorrect water management practices and irrigation methods (e.g disposal of grey water, and by product contamination of waterways, over watering, nutrient leaching and runoff)

Agricultural spray application, methodology and practices

Understanding how risk and its role in the farmers decision making process is critical to developing solutions to problems with agricultural spray applications Even though many farmers do not directly say what the levels of risk they face, but these risks do impact heavily

on their decision making process

Chemical representatives provide technical information about a chemical’s effectiveness and appropriative use in Vietnam There are a large number of chemical products for farmers to