Soc Trang Purple Onion value chain analysis

In Vietnam, the province of Soc Trang is famous for its purple onion. Since a few years, however, it is no longer the onion itself but the onion farmers which are grabbing headlines across the country. The onion sector is in trouble.

Background

Life is difficult for Soc Trang onion farmers at the best of times. Most onion farmers are among the poorest people in the country. Over the last years, their struggle is becoming even more desperate. Increasingly unpredictable rainfall has lowered yields and changing market conditions have created demand uncertainty. Each year thousands of tons of onion remain unsold. Soc Trang province is aware of the difficulties facing the sector and wants to provide support. It is motivated by the importance of purple onion for the province, in particular for the impoverished Khmer ethnic minority. Therefore, they want to implement a support program based on a thorough understanding of the current situation.

Approach

Fresh Studio was requested to support Soc Trang province in this process. In the first phase of the project, Fresh Studio will conduct a value chain analysis to critically assess the issues faced by different stakeholders and identify opportunities for improvement. A team of consultants from R&D, Sourcing, Quality Assurance, Business Development and Marketing will interview hundreds of stakeholders in Soc Trang and Ho Chi Minh City. Based on the findings of the value chain analysis, a detailed action plan will be made to develop the purple onion sector. The plan will be presented back to stakeholders from the sector, including input suppliers, farmers, traders, and buyers during a workshop. Based on their feedback, a final proposal will be developed and presented to Soc Trang province.

Expected outcome

There are few magic bullets in the world and it is unrealistic to expect that there exists a quick and easy solution to solve the problems the sector is currently facing. Instead, whatever solution will be identified will require hard work and sustained commitment from all stakeholders. Therefore, a decidedly interactive approach was chosen for this project. Throughout both the analysis and the proposal development phase the public and private sector are actively involved. Expert opinions will be used to trigger discussion and encourage out-of-the-box thinking, but at the end of the day, the only solution that works is a solution supported by all. Once such a solution has been identified, Soc Trang and Fresh Studio look forward to working together on its implementation.

Kick-off broiler training and opening Poultry Training Centre in Myanmar

Monday 6th of February was a milestone for the SAPA project. The first broiler training took place for 10 selected veterinarians. At the same time the first Poultry Training Center in Mandalay opened as part of the training.

One of the main components of the SAPA Project is the capacity building of farmers, both broiler farmers as corn farmers. Last Monday 6th of February two milestones of the SAPA project took place: firstly, the kick-off of the first broiler training for 10 selected veterinarians in Mandalay and secondly, this training took place at the first Poultry Training Centre (PTC) of Myanmar.

The PTC is built on the farm of broiler farmer U Win Hlaing, who was selected and eager to participate in SAPA to upgrade his existing farm into a PTC. This PTC will be used throughout the whole SAPA project to train veterinarians, broiler farmers and workers until 2020 on various topics related to broiler farming. The reason why this PTC is so special is because this is the first training centre on a broiler farm, where trainees receive theory and are immediately able to observe, reflect and apply the acquired knowledge into practice. In the coming months two more PTCs are opened: in NPT and Yangon.

Esther Wintraecke of Fresh Studio Myanmar.

The first broiler farmer training is a 10 day training for 10 selected veterinarians, who have the responsibility to train 750 broiler farmers and workers throughout the whole of Myanmar. The topics of this first training were: farm management and bio-security. In the coming year two additional training modules take place so that at the end of the training courses the veterinarians are certified SAPA-trainers. The topics addressed are: health, nutrition, housing, entrepreneurship and the broiler production standard.

As the opening of the PTC and the kick-off of the first broiler training are a very important milestone in the SAPA project, a special opening ceremony was organised with members of the Mandalay Livestock Federation and the deputy general of the LBVD (Livestock, Breeding and Veterinary Department) and the director of De Heus Myanmar and a ribbon cutting ceremony.

Read more about the SAPA Project

Aquaculture Innovation Challenge: making impact in aquaculture

Seafood Trade Intelligence Portal, Fresh Studio and Solidaridad kicked off the Aquaculture Innovation Challenge on Tuesday, 6 December 2016, with an inspiring event to bridge the gap between innovators and impact investors in the aquaculture sector.

Background

By 2050, aquaculture production will need to grow by another 70 million tones to meet the world’s seafood demand. The consumption and dependency on seafood for well-being has never been this high. Aquaculture presents a significant opportunity to enhance food security. Vietnam, the fourth largest aquaculture producer in the world, has demonstrated its potential, but the emergence of the aquaculture sector raises major concerns in the country. The role of entrepreneurs will be the key to creating necessary innovations for a sustainable aquaculture sector.

However, to realize ambitions and innovations for the sector, access to finance and capital is critically important. Finding bright minds and enabling them to realize their ambition by connecting them to finance and capital is the main target of the Aquaculture Innovation Challenge.

Approach

The challenge is open for online and offline applications from 6 December 2016 until 11 March 2017. Finalists will be invited to an intensive business plan boot camp and pitching event. The best business plans will be awarded a cash investment for initiating the business plan. Winners will be announced in June.

For this challenge, innovations and solutions are sought in three different categories:

  • Design
  • Demonstration
  • Upscaling

Willem Schoustra, project manager for Blue Growth at the Dutch Ministry of Economic Affairs said, “Aquaculture has an enormous potential as a source of animal protein. There is one condition: we must reach this potential in a sustainable way! The Dutch government is continuously exploring how to contribute best to the development of a sustainable aquaculture sector around the world. The Aquaculture Innovation Challenge is an opportunity to bring together innovation and finance to achieve this goal.”

Support from industry leaders

The Aquaculture Innovation Challenge is supported by the Dutch Ministry of Economic Affairs and the Vietnamese Ministry of Agriculture and Rural Development. Key partners include Inve Aquaculture and De Heus Vietnam. The competition jury consists of experts with a background in science, business, finance and civil society including partners such as Rabobank, Alterfin, Aqua-Spark, Seafood Connection, Pan Group, Asian Development Bank, eFishery, Wageningen University, ICCO Investments, Australian aid and Solidaridad.

Expected outcome

We aim to find the brightest minds and enabling them to realize their ambition by connecting them to finance and capital and by doing this improving the aquaculture sector in Vietnam.

Read more about the Aquaculture Innovation Challenge on the AIC website: English Vietnamese

De Heus and Fresh Studio open Aquaculture R&D farm in Vietnam in Spring 2017

Dutch feed giant Royal De Heus Animal Nutrition is to strengthen its position in Vietnam’s aquaculture sector in 2017, with the opening of a new research facility in partnership with R&D and consultancy firm Fresh Studio.

The center – due to officially open in spring 2017 – will initially focus on developing knowledge of pangasius, tilapia, snakehead and shrimp feeds. The aim is to improve the feeding performance of these species, to maximize animal growth and limit wastage of resources, Fresh Studio’s managing director Siebe van Wijk told Undercurrent News.

We hope our work can improve efficiency, quality, and stability; that’s how we can start developing the whole supply chain, into a value chain.

Mr. Siebe van Wijk – Director Fresh Studio

Fresh Studio began its work in the horticulture sector in Vietnam, where one of the largest supermarket chains in the world contracted it to develop direct farmer sourcing systems, he said. To ensure farmers complied with the quality standards of Fresh Studio’s client, Fresh Studio developed an extension service and an R&D and demonstration farm. “Within a period of ten years the combination of applied research, extension and cooperation with a large number of technology companies, resulted in the successful introduction of value-adding innovations to thousands of farmers.

Indoors at the new center

Based on this success, Fresh Studio’s client retailer contracted it to develop the same sourcing system for aquaculture. While developing this sourcing system, Fresh Studio too saw the need for the same applied R&D approach in the aquaculture sector, said van Wijk. De Heus, which had just made its first investment in the fish feed sector, saw the same need, and the first partnership stages were formed.

De Heus first became active in Vietnam in 2008, and completed a new factory there in April 2016. Now, two years after the partnership formed, their six hectare facility in Vinh Long Province, Mekong Delta, has an operating, indoor recirculation aquaculture system. Work on the outdoor area is being completed currently.

From Fresh Studio’s presentation at the Aquaculture Innovation Challenge event

The R&D farm was funded through a public private partnership between De Heus, Fresh Studio and an R&D grant from the Dutch government. Links with science were made by involving Can Tho University and Wageningen University. For De Heus, this R&D facility should develop into a key innovation center for its aquaculture feed programs in other Southeast Asian nations, as well as important other fish feed markets, such as China, and Egypt. After one year of research on pangasius and tilapia, the facility is now moving into snakehead and shrimp, said van Wijk, and will branch out into feeding technology and “pure research” on feed, to “provide concrete solutions to farmers on improved feed management”.

The site, as seen from Google Maps

Presenting the initiative at the “Aquaculture Innovation Challenge” in Ho Chi Minh – organized by the Seafood Trade Intelligence Portal, Solidaridad, and Fresh Studio early in December – van Wijk noted that pangasius selling prices at retail were trending downwards, while production costs have risen over the past 16 years. Hence the need for research into feed; feed costs make up over 90% of pangasius farming, and 85% of the cost of producing tilapia too.

Aside from this, poor seed quality and disease outbreaks can also eat into profits for farmers, he noted. When it comes to FRCs, a slight improvement could mean a big difference to margins. Currently salmon’s average feed conversion ratio (FCR) is around 1.1, while pangasius is 1.5 and tilapia 2.6, according to data he presented.

“There’s certainly room for improvement to get a bit nearer that 1.1 mark for pangasius, and that would mean real savings.”

For instance, working on the basis of a pangasius maket price of VND 21,000 per kilogram, an FCR improvement from 1.5 to 1.2 could mean savings of 20%, or VND 4,050/kg, he said. In turn this could lead to an upward spiral of better products and higher yields, improving demand, and ultimately earning higher prices, Fresh Studio hopes.

From Fresh Studio’s presentation at the Aquaculture Innovation Challenge event

We expect indirect savings also. From the farm side, because less feed will be used per pond, less organic matters will be released into the ponds which should limit both the pumping costs to exchange water, and treatment costs to cure diseases.

From a market perspective, these improvements should be perceived positively, and may play a part in driving higher market prices in the long-term, it is hoped. By the time the official opening comes around, De Heus and Fresh Studio will announce collaborations with other key players in the aquaculture sector, who want their technologies and production systems tested and further improved, he said.

Source: www.undercurrentnews.com

en_GBEN