Training Supply Chain Management: understand and manage your supply chain

As part of the CBI Food Ingredients Export Coaching Program (ECP), Fresh Studio provided a two-day workshop on Supply Chain Management (SCM) in both Hanoi and Ho Chi Minh City for pre-selected high potential food ingredient business ranging from honey, spices to tea.

The aim of the SCM workshop was threefold:

  1. to create awareness of the importance of SCM in order to become successful in the EU market
  2. to increase the knowledge of workshop participants on supply chain management
  3. strengthen the capacity on the requirements of European markets.

The workshop was in collaboration with Vietnam Trade Promotion Agency (Vietrade) and the Center for the Promotion of Imports from Developing Countries (CBI).

During the workshop Mr. Siebe van Wijk (Managing Director of Fresh Studio) provided insights in the flows, forces, dynamics, evolutionary path and the key functional processes in SCM. The subjects were illustrated with different case studies in the field.

Important message of the presentation was: “Companies who want to export to EU market need to understand their chain and they should be able to control it.

 “This workshop was a good chance for me to learn about supply chain and value chain methodically. The games and case studies during the course were very meaningful and applicable. I will bring back and apply these useful knowledge to my company”

Ms. Nguyen Thi Truc Loan – BaseaFood Hochiminh Branch.

In order to adapt the information and to improve the SCM of each participating business the flow of information was interspersed with (group) assignments. By analyzing their own supply chain, companies were challenged to identify and share their strong and weak points and to turn issues into working solutions.

Participants analyzing their supply chain during the workshop in HCMC

Besides insights in SCM, Mr. Richard de Boer (Managing director of Control Union) provided information about his company services: certification, inspection and warehouse monitoring services. A much appreciate presentation for the food ingredient businesses, since quality is a frequent issue and the standards of the EU market for agricultural products is high.

The workshop was an effective platform for the food ingredient businesses to gain knowledge about SCM, to make the issues in the chain more transparent and to learn from each other.

“I hope that the knowledge I gained in these 2 days will help my company to become successful in the CBI program and to penetrate the EU market”

Mr. Bien, Hagimex JSC.

First Small-Scale Pangasius Farmers Achieve GLOBAL G.A.P. Aquaculture Group Certificate

GLOBALG.A.P. is proud to announce the first aquaculture group certification for small-scale pangasius farmers in Vietnam. This major step is part of the Public Private Partnership – Sustainable Pangasius Supply Chain Program (PPP-SPSP) in Tra Vinh province. Fresh Studio was contracted by GIZ and IDH to develop a GLOBALG.A.P. certified smallholder pangasius farmer group in Tra Vinh Province.

At the GLOBALG.A.P. workshop that took place at Vietfish on 6 August 2014, Mr. Truong The Van, the Vice Chairman of the Tra Vinh Fisheries Association, shared the challenges and benefits for small-scale producers of GLOBALG.A.P. Certification in general, and GLOBALG.A.P. Group Certification in particular. He specifically highlighted the cooperation promotion between farms. He also outlined how raising producer awareness of Good Aquaculture Practices and environmental protection benefits the aquaculture sector as a whole and consumers worldwide.

An added advantage of GLOBALG.A.P. Group Certification for small-scale producers in Vietnam in particular is that they immediately comply with the national government’s decree requiring all pangasius farming activities to be certified against sustainable certification systems by 31 December 2015.

This is a milestone in GLOBALG.A.P. Aquaculture Group Certification and a major step forward in the aquaculture sector. Small-scale aquaculture producers organized in groups with a shared Quality Management System can now reap the benefits of a long established and successful form of GLOBALG.A.P. Certification, one that GLOBALG.A.P. certified Fruit & Vegetable producers have benefited from for years.

“I congratulate the Tra Vinh Cooperative for pioneering GLOBALG.A.P. Aquaculture Group Certification in Vietnam and around the world,” said Kristian Moeller, GLOBALG.A.P. CEO. “ Almost 100,000 fruit & vegetable farmers, that’s more than 70 percent of our GLOBALG.A.P. certified producers worldwide, are organized in groups and covered under GLOBALG.A.P. Group Certification. The first group small-scale farmer certificate in aquaculture confirms that achieving our high integrity requirements for food safety and sustainability systems on farm via a group generates benefits to small-scale producers that can also be enjoyed by the aquaculture sector. The European retail markets have a particular interest in connecting to smaller producers to secure their sourcing. I am pleased to announce that the majority of our German retailers are introducing and implementing policies that require GLOBALG.A.P. Aquaculture Certification as a food safety baseline for their entire aquaculture range.”

— Kristian Moeller, GLOBALG.A.P. CEO.

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Source: GlobalGAP.com

Publication date: August 2014

This development is a result of the collaboration with project:

GLOBALG.A.P. group certification for small scale Pangasius farmers in Tra Vinh

Fresh Studio was contracted to develop a Globalgap certified smallholder pangasius farmer group in Tra Vinh Province …

Sustainable dairy zone project breaks ground in Ha Nam

A groundbreaking ceremony marked an important milestone and is considered a first encouraging step for the development of sustainable dairy zones in Vietnam, the company said in a press statement.

This project is a partnership between FrieslandCampina, De Heus, Wageningen UR, Friesian Agro Consultancy B.V, Fresh Studio, Ha Nam authorities and the Dutch Government within the Facility for Sustainable Entrepreneurship and Food Security (FDOV) for the 2014-2018 period.

It is expected in the project that by 2018, three dairy zones will be established, with each zone having about 50 dairy farms, to produce at least 7,000 tons of fresh milk per year and create approximately 350 jobs.

After five years of participation in the project, each dairy farm is expected to have a herd of 50 to 80 head of cattle. In addition, the project aims to develop and implement training programs, set up a dairy cattle feed supply chain, and provide financial services for farmers participating in the project.

As the main partner in the project, FrieslandCampina undertakes the roles of management, execution and direct investment, and will establish three specialized dairy zones in Vietnam with two pilot dairy farms in each zone.

The company will help farmers gain access to preferential loans; provide training and supply technical advice for farmers; and develop and establish procurement and control systems to ensure good milk quality as well as the consumption of fresh milk at competitive prices.

The dairy zone in Ha Nam is considered a model of public-private partnership in close collaboration with national and provincial government agencies such as the Ministry of Agriculture, the provincial government of Ha Nam, and Ha Nam’s Department of Agriculture.

FrieslandCampina has been in Vietnam for over 18 years, with more than 1.5 billion high-quality milk units supplied a year and with many favorite brands such as Dutch Lady, Friso, Yomost, and Fristi.

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Source: www.talkvietnam.com

Publication date: July 2014

Vietnamese vegetable growth in modern greenhouses

Vietnams’ population consists of approximately 90 million people. Vegetables play an important role in their daily meals. Within the pilot-project Horti Dalat, Dutch companies are supporting the Vietnamese horti-sector with the development of modern greenhouses vegetables production.

The rapid growth of the Vietnamese population and pace and scope of retail development results in a high demand for quality products, food safety, stable supply and sustainable vegetable production.

In the Dutch article ‘Vietnamese groente gaat de kas in’, Flip van Koesveld and Huub Schepers of Applied Plant Reseach (Wageningen UR) discuss the vegetable production transition in Vietnam; from ‘outside’ to ‘inside’. For Vietnamese farmers it is smart choice to produce vegetable in greenhouses: “Shortly there are 3 reasons: less plant diseases, a reduced amount of fertilizer and higher yields. Greenhouses for vegetable production keep many issues ‘outside’ while the yield is increasing”.

Fresh Studio is, according to Van Koesveld, an important player in the chain. The company supports and creates breakthrough innovative interventions in the Asian food sector. “Fresh Studio plays a central role. We can give input how Vietnamese farmers should produce vegetables, but we do not speak their languages. For this, you need a strong local partner. One who can train farmers and who continues the project after finishing in 2016.”

+ Read the complete article (Language: Dutch)

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Source: Rijksdienst voor Ondernemend Nederland

Publication date: July 2014

Accelerating a modern greenhouse vegetable production sector

Vietnam has high potential to develop into a more professional and higher value agricultural and horticultural economy. The growing population and pace and scope of retail development results in a demand for higher quality products, food safety, stable supply and more up-scaled and sustainable production. To address these challenges 11 companies and institutions joined forces to develop a modern greenhouse vegetable production sector.

Background

Modern greenhouse vegetable production can provide an innovative solution to meet the fast growing demand for high quality, safe and sustainable produced vegetables, which are year round available.

The region around Da Lat City, Lam Dong Province with its unique climate has seen quite some development of greenhouse production in recent years, but the horticulture vegetable production sector is still characterized by a landscape of small producers with no knowledge of modern greenhouse vegetable production or the means to invest in modern greenhouse technologies.

A consortium consisting of Wageningen UR (PPO), Rabo Development (Rabobank), Fresh Studio, BVB Substrates, Da Lat University, HAS Hogeschool Den Bosch, Koppert Biological Systems, RijkZwaan, Ludvig Svensson, YARA, Priva have joined forces with the aim to accelerate the development of a professional greenhouse horticulture sector by:

  • Introducing and showcasing of modern greenhouse production technologies in order to obtain higher yield, better quality and more sustainable produce.
  • Establishing a platform to facilitate practical training for students and persons working within the horticulture sector
  • Providing the means in knowledge and financial support for farmers to invest in modern greenhouse technologies
  • Establishing a financial product to support investments in modern greenhouse production by local farmers

Approach

To accelerate the development of a modern greenhouse vegetable sector, the project develops a solution for bottlenecks below:

  • Relatively low yield levels;
  • Current unsustainable production methods;
  • Low percentage of class I products;
  • Lack of access by farmers to:
    • Means to finance the investment in professional greenhouse production;
    • No product differentiation in the market.
    • Lack of facilities to train students and extension staff in practice

    Outcome

    To overcome these bottlenecks the implementation of the following interventions are included:

    • Develop training and extension materials for professional greenhouse farmers and extension staff of input or service providers
    • Establish professional greenhouse pilot farms and develop the optimal greenhouse production model for the following crops: tomato, sweet pepper and hydroponic lettuce, covering a total production area of 6,000 m2 in Lam Dong province
    • The pilot greenhouse will be used as practical training and demonstration centres
    • In order to market tomato, sweet pepper and lettuce, a market research will be performed to determine the consumption patterns towards these products.
    • Create a brand to market the produced vegetables produced within the project
    • In cooperation with banks and investors, develop a horticulture greenhouse financial lease product, which will pre-finance investments of farmers in greenhouses
    • Establish a technical support system for introduced hardware
    • Create business opportunities for Dutch companies active in the horticulture sector

    Fresh Studio brings International Fruit Brand to New Zealand Fair

    In collaboration with New Zealand Trade & Enterprise, Fresh Studio brings Zespri Kiwifruit straight to the Filipino audience. The largest kiwifruit marketer in the world was featured in a three-day event that showcased the best products from New Zealand.

    New Zealand Trade and Enterprise organized its annual trade fair that showcased and promoted New Zealand companies, products and services in the Philippines. Held at the Glorietta Mall grounds in Makati City, the event ran from June 20-22, treating visitors to a diverse range of food, non-food items and other activities.

    Together with NZTE and Zespri’s Philippine importer, Fresh Studio introduced the latest Zespri variety to consumers visiting the event – SunGold Kiwifruit. The activity was a combination of product sampling and selling.

    The objective of the event was to promote Zespri SunGold – provide significant exposure to the brand and allow Filipino consumers a first-hand experience of Zespri’s latest product in the market.

    Very warm reception for Zespri SunGold

    Zespri SunGold had a very warm reception from the Filipino audience. The distinct tropical sweet and refreshing qualities rightly match the Filipino palate. All throughout the event, visitors enjoyed and attest to a pleasantly unique and delightful flavor. Staffs were available on the ground as well to complement this experience with a consistent message of health – Zespri Kiwifruit is truly one of the world’s most nutritious fruits.

    Before the end of the 3-day event, visitors gave an overwhelming response: SunGold inventories were sold out, with still many customers clamoring for more!

    Powering Aquaculture Progress; developing a R&D Aquaculture farm

    Together with its projects partners, Fresh Studio is developing a Research & Development Aquaculture farm in Mekong delta. This innovative center is expected to bring the Vietnamese Aquaculture to the next level.

    Background

    In Vietnam, the aquaculture sector started in the early 1960s with small scale extensive culture systems. The rapid growth of the sector during the last two decades has been a direct result of adapting intensive production practices mostly for exportable species. Vietnam’s aquaculture production increased from aroud 160,000 tons in 1990, to nearly 500,000 tons in 2000. After 2000, due to the development of the pangasius and shrimp industries, the aquaculture production has increased fivefold (just under 2.5 million tons).

    Despite this enormous success of the aquaculture sector in Vietnam, there are quite a number of challenges in order to achieve a more sustainable growth of the sector. For example:

    • Reducing negative environmental impacts of farming, and especially water pollution and use of limited natural resources (fish meal)
    • Control diseases outbreak and limit the use of veterinary medicines and chemicals
    • Improve cost efficiency and productivity to be able to be competitive in the global market

    Approach

    Aiming to be major actors in the sector, Fresh Studio and projects partners (private sector and universities) are developing a Research & Development Aquaculture farm in the heart of Mekong Delta. At the start, researches area will be focused on innovations in:

    • Fish nutrition
    • Feed management
    • Farm management Farming methods, including introduction of re-circulation systems

    Aiming to be major actor of innovations in the sector, Fresh Studio and project partners (private sector and universities) are developing a Research & Development Aquaculture farm in the heart of Mekong Delta. This farm will be made of over 100 farming units from 200 liters to 2000 square meters. At the start, the area of research will be focused on innovations in:

    • Fish nutrition and feed management
    • New technologies in farming systems, including introduction of re-circulation systems
    • Farm management

    To ensure that the developed innovations will be adopted by the final user (the fish farmers), training and extension programs will be implemented, as well as demonstration trials all over the Mekong Delta with leading and influential farmers.

    Architecture design of the R&D Aquaculture farm 

    Expected outcome

    This innovative Research & Development Aquaculture center is expected to bring the Vietnamese Aquaculture to the next level.

    Creation of a value chain for vegetables in North Vietnam

    Urban consumers in North Vietnam encounter problems buying guaranteed safe vegetables especially during the hot and humid summer period in North Vietnam which starts in April and lasts until September.

    Background

    Temperatures and humidity are too high in the Red River Delta plains to produce the required range of vegetables and there is limited supply of vegetables from Dalat from April to September. Therefore markets in North Vietnam are flooded with vegetables imported from China. This concerns consumers and government regulators due to questionable food safety standards.

    The rapid urbanization in Northern Vietnam combined with consumer demand for high quality and guaranteed safe vegetables, the long distance from Dalat to Hanoi (1,400 km) and the influx of Chinese vegetable imports, provides an opportunity to develop regional supply of safe vegetables for urban markets in North Vietnam.

    Approach

    Since 2010 Fresh Studio has been cooperating with METRO Cash & Carry Vietnam in North Vietnam to:

    • Provide small holder vegetable farmers with a direct linkage to modern trade
    • Diminish the negative environmental impacts of the current unsustainable horticulture production systems
    • Offer urban consumers guaranteed high quality and safe vegetables for a wide range of vegetables in large volumes

    To develop year round supply of guaranteed high quality and safe vegetables from North Vietnam, Fresh Studio clustered small holder vegetable farmers in the lowlands of the Red River Delta, as well as the poorer and more remote farmers located in the mountains in the North. Using the climatic advantage of the cooler mountains in North Vietnam, a regional solution has been developed to supplement the vegetable supply from the Red River Delta during the summer period. This resulted in the possibility for METRO and other retailers to source high quality and safe vegetables year round from North Vietnam.

    Outcome

    At the end of the project, 6 farmer groups were developed, representing a total of 113 farmers across 3 sourcing areas: Dong Anh, Hai Duong and Moc Chau. All farmer groups achieved government food safety certification and were trained in the METRO Requirement standard. In addition to government certification 46 farmers received METRO Requirement certification. Out of the 36 vegetables selected as project assortment, 26 are now METRO Requirement certified.

    Supply chain before intervention

    • Limited cooperation within the chain
    • Limited knowledge exchange between actors

    Value chain after intervention

    • Good cooperation within the chain
    • Extensive knowledge exchange between actors

    Recent developments in this project:

    Export Coaching Program for food ingredient businesses

    Fresh Studio is requested by the Center for the Promotion of Imports from Developing Countries (CBI) to assist with the recruitment of Vietnamese food ingredient companies to participate in a 4 year Export Coaching Program (ECP) which focusses on the EU market.

    Background

    The ECP is developed for ambitious entrepreneurs in developing countries as Vietnam. The aim of the program is to promote and enhance the competitive position of value added food ingredient products for the export to EU food and beverage markets.

    In order to meet the legislations and market requirements of European countries participating companies are trained, coached and advised about important export aspects. This includes product development, packaging, quality management and marketing.

    Furthermore, the engaged companies have the opportunity to meet and build business relationships with potential clients at trade fairs and exhibitions in Europe.

    Approach

    Many active companies in the Vietnamese food ingredients sector are eager to participate in the program. Fresh Studio implemented the following steps in order to recruit the most suitable companies for the program:

    • Performed desk research to find food ingredient businesses who meet the CBI selection criteria;
    • Pre-selected potential companies;
    • Organized information sessions about CBI ECP for potential companies and supported them to fill in CBI application forms;
    • Sent the list of the pre-selected companies to CBI for reviewing and short-listing;
    • Audited, in collaboration with CBI experts, the short-listed companies in order to obtain insights in companies’ current export strengthens and weaknesses;
    • Prepared, in co-operation with CBI expert, final audit reports with recommendations and sent them to CBI for final company selection.

    Outcome

    Fresh Studio continues to support the selection processes of food ingredient companies for the ECP.

    A recently signed agreement between VIETRADE and CBI emphasizes the likelihood that more Vietnamese business will contribute in the ECP.

    Development of dairy farm monitoring system

    For one of our clients, Fresh Studio developed a simple, cash-based farm monitoring system and conducted a trial with four dairy farmers in Cu Chi District, HCMC, Vietnam.

    Background

    In order to obtain better insights in farm economics and performance of individual dairy farmers, Fresh Studio developed a smallholder dairy farmer monitoring system. This will help farmers to improve their farm management.

    In addition, the monitoring system will help farmers to get easier access to loans. There is currently limited access to finance for dairy farmers in Vietnam which causes difficulties to smallholders who want to scale up their operations. To provide access to loans for farmers, the financial performance of farms should be quantified. In this way dairy farmers can, for example, show banks how much free cash flow they are generating to repay a loan.

    Approach

    Fresh Studio developed a dairy farm monitoring system to quantify the actual cash that is generated with dairy farming in Vietnam. Furthermore, we give dairy farmers information on key performance indicators as average milk production per cow, costs per kg of milk produced and share of inputs on total costs.

    In order for dairy farmers to comply easily with the system, it focused on actual input. Farmers recorded their inputs in a simple booklet that distinguished different types of inputs.

    A trial with the dairy farm monitoring system is conducted with four dairy farmers in Cu Chi, HCMC. At the start of the trial the stock of all inputs was recorded. During the trial farmers registered their actual inputs as well as cash expenses in a booklet. Every two weeks (one period in the monitoring system) a Fresh Studio consultant visited the farmers to collect the booklets and at the end of the trial stock was recorded again.

    Outcome

    Fresh Studio completed the trial with a farm report for each farmer which included the revenue/outputs and all expenses/inputs and summarized the (financial) performance of the dairy farm. In addition a benchmark was made which showed the performance of an individual dairy farmer compared to the group.

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