1553 proposal on the implementation of selected value chains en

By late May, 2014, project officer and DARD, Division of Agriculture and Rural Development at district level, and agriculture extension system consulted to district authorities and 11 bu

Proposal on the Implementation of Biodiversity Friendly Value Chain

For Livelihood Development in PNKB NP Buffer Zone

1 Introduction

To forward with achievements of livelihood development for buffer zone communities in previous phases, and on the basis of locals’ urgent demand, GIZ Component of the PNKB Regional Project commits to continue its supports on livelihood development focusing on biodiversity friendly value chain and poor communities, especially for women and ethnic minorities Beside its continued supports on buffer zone livelihood development, project activities will enhance capacity on monitoring impacts of social economic development on biodiversity conservation in the national park for its partners at all level Based on its capacity, experience and complete operation system, the Department of Agriculture and Rural Development (DARD) and its line agencies at all levels are identified as main partner for jointly implementing these activities

With the objective of the phase “Approaches and learning experiences for integrated nature conservation in the Phong Nha-Ke Bang region are used for local management and national policy-making”, it is expected that the results, approaches and experiences of the project of the final phase will be documented and integrated into the current government system of livelihood development for local households in the buffer zone and other regions Sustainable livelihood development in buffer zone requires typical measures of linking biodiversity conservation of PNKB NP The selection of potential and biodiversity-friendly livelihood activities for suitable target groups is necessary and crucial in this phase Furthermore, the supports need to ensure that these livelihood activities not only increase sustainable income for each benefited household, but up scaling potential and community as the beneficiaries are also important Thereafter, a sustainable and market-oriented approach of supporting poor and semi-poor households and ethnic minorities in developing selected livelihood options is essential

The project was cooperating with the Department of Agriculture and Rural Development

to conduct a “Selection and Planning Workshop for biodiversity-friendly livelihood development in the Buffer zone of Phong Nha Ke Bang National Park” in February 2014 in Dong Hoi The project partners at all level participated actively in experience sharing and discussion on selection of the most potential livelihood alternatives that can be supported with the project’s means and capacities For further detail information of workshop outputs, kindly see the detail workshop report

2 Main Outputs of the Workshop and Advisory with District and Commune

Authorities

According to the Workshop Report, 06 livelihood models were selected out of 17 proposed potential livelihood alternatives The participants use three sets of criteria (11

specific criteria) that are relevant to biodiversity friendliness and market-orientation The selected alternatives include: Chicken Raising, Bee Keeping and Honey Production, Integrated Agro-Forestry Model, Tourist Souvenir Products made from Bamboo and Rattan, Mushroom Cultivation and Sweet Potato Cultivation

Based on the outputs, project team had consulted a technical group of DARD and agreed

on lists of livelihood models that will be supported by the project in the buffer zone under this phase These include: 1) There are 5 selected alternatives instead of 6 models as agreed during the workshop, as Sweet Potato production is rather challenging for ethnic minorities and poor households due to lack of cultivated land; and 2) 11 communes instead of 13 communes in buffer zone were reselected for implementation (crossing Hung Trach and Phu Dinh Communes, as there are no ethnic minorities in these two communes and low impact level to the NP) See List of Selection Criteria and Selected Alternatives in Annex 1

By late May, 2014, project officer and DARD, Division of Agriculture and Rural Development at district level, and agriculture extension system consulted to district authorities and 11 buffer zone communes on selected potential livelihood models in order to identify a suitable model for each commune, considering specific conditions and capacity After the discussion and analyzing with representatives of the communes, each commune agreed to implement 02/05 selected models Most highland communes selected two models, tourist souvenir products made from bamboo and rattan and bee-keeping and honey production due to natural condition, habit and local capacity Agro-Forestry model will be implemented in mid-land communes because households have plantations and regeneration areas The mushroom cultivation model was selected for implementation by some communes, neighboring to the PNKB NP for its high market potential to restaurants for tourists and for availability of production material source Chicken rising is popular and flexible to different conditions Besides, the local authorities and communities proposed many potential alternatives with other characteristics for project’s support Nevertheless, due to limited resources in technical assistance and time, the project is focusing on the selected activities See Result Report on Consultancy with District and Commune Authorities

3 Approach

Within the PNKB regional project framework, the technical assistance of GIZ component is designed as a basis for financial supported activities to upscale project impact to buffer zone communities Besides livelihood activities supported by GIZ, the financial support component has supported buffer zone households with forest handing-over, production plantation, regeneration, ingenious plantation and community forests with an aim to create employment opportunities and to increase income Over 700 households have been supported on plantation and regeneration; 09 community groups have been supported on implementation of community forest model The cooperation of supported resources between project components is required to increase project impacts to these

beneficiaries The following basic issues need to be considered for selecting project approach in order to implement livelihood supports to communities:

 Based on actual experience of livelihood development under project support in previous years and actual community demand, value chain approach for the poor is recommended to apply This approach will enhance production skills and new technical knowledge for households, encourage them to participate in competitive market and through the involvement, they get updates on markets, marketing skills and develop their capacity through interacting with other agents in the market The supports to households on implementing selected livelihood products help them one way or another to update and apply advanced production technique, using new genre in production to improve product quality and quantity

 It is more important to find out how to link the beneficiaries to markets and focal enterprises The participation of local business in supporting households to implement livelihood models for activity sustainability in the future need to be considered and enhanced

 The main target groups of the project in this phase are the poor and semi poor households, with a focus on women and ethnic minority groups Thus, implementation methods and livelihood model selection should be in accordance with their capacity, conditions and custom A suitable approach will increase production knowledge and skills to create sustainable income for participated households This then help increasing their awareness on natural resource and forest protection

 Using technical consultant services and providing existing input services at the local need to be promoted to secure linkage of producers to service providers and ensure the sustainability of activities after the project support ends This also helps promoting consumption of outputs for households as well as provides input services and offers site technical assistance during the production process in the future

 DARD will select the participated households carefully based on specific criteria to ensure their capacity and up scaling conditions for implementing the activities List

of households will be provided by local government and appraised by DARD, Division of Agriculture and Rural Development at district level During the selection process, the households that received supports on plantation and community forest by the project will be considered if they meet given criteria Due to different conditions for each model, list of criteria for household selecting on each model will be basically different See List of Criteria for household selecting on each model

in Annex 2

 For its sustainability and upscale within communities, there will be a benefit sharing mechanism to ensure selected households to have concrete commitment

on responsibilities and benefit sharing to nearby households

 Currently, the project “Sustainable Rural Development for the Poor” funded by IFAD is implementing on 8/13 buffer zone communes, with objectives of livelihood improvement for poor and semi-poor at these communes Value chain and linkage

to focal enterprises approach are applied for implementation This is a good chance for cooperation and integrating supports by different projects in the same area to enhance maximum benefit for beneficiaries and on the other hand, to reduce implementation expense and overlapping

 Within the technical assistance framework of GIZ component, there are around

300 households in this phase; especially ethnic minorities will be supported with livelihood models In the hope that the approach and implementation method will

be a basis for up scaling in buffer zone communes and reaches to more benefited households from livelihood support fund by financial support component, KfW, in the project last years

 Beside, GIZ will support DARD and Division of Agriculture and Rural Development

at district level to develop evaluation and monitoring system for livelihood models

in this current phase Through the activity, capacity building for officers at all level and standard MRV process and results of livelihood models in buffer zone will provide precious data for planning process of social-economic development at local level

4 Implementation Process and Method

Due to different production cycle, technical requirements, materials and technical consultant services to each activity, implementation method requires to be diversed for suitable and effective implementation of each value chain DARD is the main partner at provincial level and Division of Agriculture and Rural Development of three districts are in line partner at district level during implementing these activities at local area Based on partners’ experience and speciality as well as on technical service providers, to ensure a smooth and effective implementation of technical assistance, expected method of implementing product value chain will be applied at buffer zone communes as following:

- Argo-Forestry and Chicken Raising activities will be implemented through local contract between GIZ and DARD In which DARD and District DARD are responsible

to implement on site and follow up the process DARD will make input service contract for the activities, technical consultant service contract for locals for a successful implementation

- Other activities including Tourist Souvenir Products from Bamboo & Rattan, Mushroom Cultivation, Bee-keeping and Honey Production will be implemented through technical consultant service contracts and input service contract between GIZ and service providers DARD, District DARD and the project will coordinate to follow up the activity implementation and achievements

After consultation with DARD, 05 product value chains was selected and proposed for implementing at 11/13 buffer zone communes based on their natural conditions and specific characteristics These communes include:

Table 1: List of Product Value Chain in each commune and participated households:

Product Value

Chain Unit

Bo Trach District Minh Hoa District

Q

Ninh Dist

Total househo lds

Sơn Trạch

Phúc Trạch

Tân Trạch

Thượng Trạch

Xuân Trạch

Thượng Hóa

Trung Hóa

Hóa Sơn

Trọng Hóa

Dân Hóa

Trường Sơn

Tourist Product

Souvenir from

Bamboo and

Rattan

Hous ehol

d

Mushroom

Cultivation

Hous ehol

d

Bee-Keeping

Hous ehol

d

Integrated

Agro-Forestry Model

Hous ehol

d

Chicken Raising

Hous ehol

d

4.1 Tourist Product Souvenir from Bamboo and Rattan by Ethnic Minorities:

Based on the output from the pilot activity on souvenir products from traditional bamboo and rattan handicrafts made by ethnic minorities in Dan Hoa and Trong Hoa communes, Minh Hoa district, the project will continue supporting under this current phase to upscale the pilot results to the whole commune and to potential communes With the pilot outputs, over 10 production groups were found in Y Leng (Dan Hoa) La Trong 1 and Ramai (Trong Hoa) The groups were supported on pilot producing 04 types of products (03 designed for man labors and 01 designed for woman labor) based on designed proposed by the consultant who based on traditional products of Khua and Sach People After 10 months of implementation, around 35 products were made by the group and are

on sale in PNKB tourism center Over 20 members of multi groups joined a study tour to traditional handicraft villages in Hue with objective of raising awareness on products and markets Besides, under supports by Mekong Sub-Region Project, over 20 craftsmen in Truong Son commune formed a group, designed products and guide on crafting products

with high art value These products were used in a showroom by Van Xuan Co Ltd in an international fair on handcrafted bamboo and rattan

The important point is how to continue supports for these groups to strengthen their skills and create more employment opportunities and sustainable income from these products? With that approach, it is expected that the continued support on tourist souvernir products from traditional bamboo and rattan by ethnic minorities will be implemented in a higher level and approach to different groups with more unique designs

Aim to identify clearly of scale and participated households as well as commitment and desires of local authorities and of benefitarias, a quick survey will be done in mid September, 2014 Collected information will be used as a basis and orientation for planning a specific support schedule and drawing a suitable approach

The supports will expectedly focus on:

 Enhance group operation and skill training (for groups found in a pilot time and supported by Mekong Sub-Region Project)

 Survey skilled households and identify potential groups in new communes and support on group establishment (for new communes)

 Support on designing some new products and have technical training to groups

 Train craftsmen for the groups

 Support on developing traditional handicraft village model in a commune

 Train on business skill and linkage to markets

 Link products to sale stores in PNKB tourism center and within the province

Method:

 Technical consultant service contract will be signed to Van Xuan Bamboo and Rattan handicraft to provide supports on group building, training, product designing and producing training, linkage products to the market (the only enterprise provide the service in the province)

 Connect to Craft Link Co to provide intensive training on teamwork skills and group development

 DARD, District DARD and local governments is responsible to follow up during implementation, achievements; local government supports the groups

Scale and Expected Location:

 Strengthen 12 existing groups with around 90 participated households in Dan Hoa, Trong Hoa and Truong Son

 Develop 05 new groups with around 40 participated households in Tan Trach and Thuong Trach

Expected Outputs:

 Around 15 skilled groups develop stably (around 130 participated ethnic households)

 Around 5-6 new products will be designed based on traditional products of the communities and in accordance with customers’ taste

 Products will be linked to the markets in tourism area and within the region

 Remarkably Increased income for group members

4.2 Mushroom Cultivation:

This is a new product in the buffer zone area, however, 03 communes neighboring to NP that have high impact level to the NP, were chosen with potential on this model With the advantage of neighboring to PNKB tourism area, there are thousands of tourists coming and using dining service every year These communes expect that this is potential product creating income and stable works for the locals by providing products to restaurants in the area Based on demand of the communes and considering suitable production condition (available material resource: rubber plant sawdust and agriculture by-product: straws, peanut cover, etc.), Son Trach, Phuc Trach and Xuan Trach will implement this model

The supports will expectedly focus on:

 Form groups for eatable mushroom and medical mushroom

 Guide and train on technique on mushroom cultivation to participated households

 Guide on constructing mushroom house

 Support on cultivation techniques at households and during the cultivation period

 Buy medical mushrooms from the households

Method:

 Technical consultant service contract will be signed to Advanced Scientific Technology Center in Quang Binh to provide supports on technical assistance for production and input services producing eatable and medical mushroom for participated households (the only enterprise provide the service in the province)

 DARD, District DARD and local governments is responsible to follow up during implementation, achievements; local government supports the groups

Scale and Expected Location:

 Around 18 participated households will be supported in Son Trach, Xuan Trach and Phuc Trach

 2 groups with 3-4 households for each will be formed in each commune

 The participated households will be supported with some material, seedlings and initial tools for a start

 The households will themselves construct the mushroom house with area of 25-30m2

Expected Output:

 80% supported households are successful and committed to maintain the activity

 Employment opportunity for 1-2 labors in each household

 Increased income up to 30% for each household

 Households committed to upscale the model in the community

4.3 Bee Keeping and Honey Production:

This is the traditional activity for most of buffer zone communes, especially for ethnic communities Some communes were previously supported by different programs on successful implementation in the area; some communes mainly collect honey from natural forest However, according to sharing from local governments, number of households that are active in this activity is not high due to different reasons, for example: technique, breeding quality, negative weather condition, effects by using pesticide during agriculture cultivation, etc Besides, honey collecting from natural forests

is limited day by day as well as this collecting activity cause’s forest fire, affecting to biodiversity Meanwhile, honey remains a potential product with promising market Bee keeping and honey production does not only require less labors, but also create sustainable income for the participated households After consulting with local authorities, the model is expected to be implemented in 05 communes including Xuan Trach, Thuong Hoa, Trung Hoa, Hoa Son and Dan Hoa

The supports will expectedly focus on:

 Form bee keeping groups in communes

 Train key members (3-4 people/commune) to ensure that they will have good skills and support to other households

 Train and guide on bee keeping technique for participated household

 Technical assistance at household level and during implementation

 Buy honey products from the households

Method:

 Technical consultant service contract will be signed to Tay Quang Binh Eco Co in Quang Binh to provide supports on technical assistance for production and input services for participated households (the only enterprise provide the service related to this model in the province)

 DARD, District DARD and local governments is responsible to follow up during implementation, achievements; local government supports the groups

 Focal household will sign a commitment on giving technical assistance to other group members and provide breeding to other households within the commune after a production season

Scale and Expected Location:

 Around 42 households will be supported in 5 communes

 2 groups with 3-5 households for each will be formed in each commune

 Each household will breed 3-5 beehives

 The participated households will be supported with some material, breeds and initial tools for a start

Expected Outputs:

 80% supported households are successful and committed to maintain the activity

 Employment opportunity for 1-2 labors in each household

 Increased income up to 30% for each household

 Households committed to upscale the model in the community

4.4 Integrated Argo - Forestry:

This model is considered suitable to natural condition of buffer zone communes because most households have plantation and especially for participated households were supported by the project on plantation, regeneration and community forest With the idea that households that have plantations will be supported with cow rising, grass cultivation and short term plantation Due to limited fund from Technical Assistance Component, while high demands from communes, selected households will be the focal

to upscale this model to the whole commune Each supported household will sign a commitment on implementing the activity and shift the first cow to other household On

so doing, households that receive a breeder cow will commit to upscale the model within the community Local authorities (village and commune) will follow up the handing-over process and select the next household Based on proposal from local authorities, 10/11 communes will be supported with this model (except Phuc Trach)

The supports will expectedly focus on:

 Support on technical training and consulting on integration of Argo-forestry for the same area

 Support with breed cow (Zebu), grass cultivation and other short term plants (depend on each household)

 Consult and follow up on technique during implementation

Method:

 Local contract signed between GIZ and DARD secures the support during activity implementation at field

 DARD, District DARD and local governments is responsible to follow up during implementation, achievements; local government supports the groups

 DARD will sign contract with District Agriculture Extension Centers and related agencies for technical consultant service contract and inputs for the participated households

 The selected household will commit to shift the first cow to next selected household

 Commune authorities prepare a list of households receiving cows from other households to follow up the progress

Scale and Expected Location:

 Around 25 households will be supported in 10 communes

 2-3 households will be supported in each communes

 Ethnic households are encouraged to be selected

 The participated households will be supported with breed cow and other input material

Expected Output:

 95% supported households are successful and committed to maintain the activity

 Employment opportunity for 1-2 labors in each household

 Increased income up to 30% for each household

 Households committed to upscale the model in the community

4.5 Chicken Rising:

In the livelihood program of the previous phase of the project, the chicken model is one of the successful model and many famers is interested in Therefore, this product was still selected in this phase, due to the implementation easily, high income and suitable for most of household in the buffer zone One of the challenges of the activities is lack of seedling/chick for reproduce To overcome these difficulties, the support in this phase will focus on helping famers to be more proactive on the seedling/chick in the area In the 9 communes were selected for implementation in this phase, 7 communes were supported incubators to help famer proactively on the quality seedling to reproduce Due to the power, Tan Trach and Thuong Trach commune cannot use this technology However, farmers can buy seedling from Son Trach commune Each commune will choose a household which is responsible for management and using the incubators to ensure that the whole community gets benefits

The supports will expectedly focus on:

 Support for the technical training for households

 Support breeding chickens and inputs (veterinary medicines, vaccines )

 Consulting to make the henhouse

 Consulting and supporting the technical issues at the household level

Method:

 Local grant was signed by GIZ and DARD to support for the implementation of the models

 DARD, District-DARD, commune authorities play a role on the monitoring the

implementation process and results of the model; local authorities will support the famer production groups

 The contract to provide the technical training and inputs/materials for the farmers will be signed with the district-AEC and stakeholders by DARD

 Project, DARD and local authorities will develop the mechanism of management, using and getting benefits from the incubators

 The commune, village is responsible for monitoring the implementation process and prepare a list of beneficiary households

Scale and Expected Location:

 Approximately 60 households will be supported in 9 communes

 5-10 household/commune will be supported, 70 chickens (90% hen) and other inputs

Expected Output:

 95% households successfully and maintain the chicken raising after the

implementation

 Create the jobs for 1-2 workers per household