Setting up a vegetable and fish sourcing system

Since 2007, Fresh Studio has been contracted by a multinational wholesaler to manage and develop their vegetable and fish sourcing systems, with the aim to improve product quality and safety standards.

The assignment began with the establishment of a sourcing system in Dalat (Central Highlands of Vietnam). A certified sourcing system with over 150 contracted farmers was drawn up, and a new state-of-the-art HACCP certified pack house was designed and constructed. This system has been running very successfully for over 5 years, and the volumes produced, along with the number of farmers involved, are growing steadily. Every day the Fresh Studio sourcing team is handling over 150 different SKUs, preparing them for nationwide distribution to our client stores.

Inspired by the success of this project, our client asked us to develop a similar system for vegetables in the North of Vietnam, and for fish in Southern Vietnam.

Our aims are:

  • To develop year round supply of guaranteed high quality and safe vegetables from North Vietnam, Fresh Studio is working with 100 smallholder 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 is being developed to supplement the vegetable supply from the Red River Delta during the summer period, thus creating the possibility for year round supply of guaranteed high quality and safe vegetables from North Vietnam.
  • Almost all investments and professionalization in the aquaculture sector of Vietnam have just focussed on pangasius and shrimp, which are the main seafood export products. But as our client targets the 88 million domestic consumers, nobody till date had developed a professional fresh fish sourcing and processing system targeting the 80 fish species which the Vietnamese love to eat. Within two years time Fresh Studio assisted its client to setup and manage the first fresh fish processing facility and developed a sourcing system which now every day sources fresh fish from over 100 well trained and certified fish farmers and 20 preferred marine and fresh water certified fish collectors.

Potato potential assessment

Our Dutch client, a potato seed and potato trading company, approached Fresh Studio with a view to conducting a feasibility study regarding the production and marketing of high quality Dutch table and processing potatoes in Vietnam.

We researched cultivation potential by testing 15 different potato varieties in Dalat and North Vietnam. Market potential and consumer preference were investigated through market research of current potato sales and consumption, consumer panels, food labs with chefs, sales pilots across modern and traditional outlets, and product test in co-operation with the processing industry.

The research resulted in potato breeds, which grow well across climate zones, and which offer sound market potential. Both professional services and private consumers clearly preferred selections of Dutch high-quality variety above the current offer.

Developing the vegetable seed market for high-quality seeds

Since 2006, Fresh Studio has been contracted by a Dutch vegetable seed company – one of the world leaders in breeding and distributing innovative high quality vegetable seeds.

After an extensive seed market study in various countries in Asia, our client contracted us to undertake continuous vegetable variety screening trials at numerous locations in Vietnam, including at our own R&D farm.

In addition to these trials, we assisted our client in developing the market for their vegetable varieties in Vietnam through farmer field days, and other small chain projects where we link farmers who grow the high quality vegetable varieties our client sells to vegetable processors, vegetable exporters and supermarket chains.

Creating market access for organic vegetables

Striving to improve organic agriculture in all areas from production to consumption in a sustainable manner, our client approached Fresh Studio for assistance in attaining market access for organic vegetables in Hanoi.

We established the food supply chain, by organizing and training farmer groups in business skills beyond cultivation, and linking them to supermarkets in Hanoi.

Using our consumer research, which delivered insights about the perception of organic vegetables, as well as consumer willingness to pay for organic quality, we developed a distinct market proposition for our client.

Our marketing team and in-house design translated the proposition into a complete set of in-store display, packaging and consumer communication materials. To educate consumers on organic quality, we organized an in-store information campaign, including promoters to answer consumer questions on the spot.

Consumers responded enthusiastically to products offered, which were sold out daily. Information about organic practices, in combination with high quality, professionally displayed produce allowed premium price levels while at the same time realizing consumer trust and satisfaction.

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

Fresh Studio was contracted by GIZ and IDH to develop a Globalgap certified smallholder pangasius (catfish) farmer group in Tra Vinh Province.

Background

Following an expression of interest by European stakeholders to source pangasius from Vietnam, in 2009 a Public Private Partnership (PPP) was initiated to develop more sustainable pangasius production systems that meet European market standards. The public partners in the consortium were the German Developing Agency (GIZ) and the Dutch Sustainable Trade Initiative (IDH) and from NGO side also WWF Germany and WWF USA participated. A large fish importer and a multinational wholesaler represented the private sector within the consortium. The project targeted its activities to three professional large scale Vietnamese pangasius producers as well as a group of small scale pangasius farmers. (Average 1,5 pond per farms).

Approach

For Fresh Studio, the mission was divided into several components. First, we assessed the discrepancies between existing production systems and the GLOBALG.A.P. and ASC standards. Later, Fresh Studio created an Internal Control System (ICS) for the group of small farmers, trained them in the implementation of the ASC and GLOBALG.A.P. standards and assisted them in maintaining their system towards the final audit.

Outcome

After a period of standards implementation by the farmer group, the 4 first farmers received certification from Control Union for the GlobalGap standard early this year. It is expected that this group will grow and that the best performers among those farmers will be able to apply for an ASC audit. We would like to thank the Tra Vinh fisheries association for all their great efforts to make this project successful.

Recent developments in this project:

Aquaculture Stewardship Council certified pangasius from Tra Vinh Smallholders

It started with an extensive analysis of the gap between the current fish farming practices and the new standard of ASC for pangasius

Fruit marketing in emerging markets

As the official marketing partner of Zespri International Ltd., Fresh Studio develops and leads the Zespri kiwifruit marketing campaign for Vietnam and the Philippines, taking on the task of developing the brand and ensuring its robust volume growth.

Background

Zespri, is the world’s largest marketer of kiwifruit. Selling in more than 50 countries, it trades more than 30% of total global volume. It continues to expand globally, and has taken significant steps to grow key business regions.

The company, based in New Zealand, has set its sights in Southeast Asia (SEA). This is a region that has performed strongly for the business and aims to further harness an immense growth potential. Two upcoming and exciting markets, the Philippines and Vietnam, form part of its strategic outlook. With their rising economic levels and huge consumption populations, the promise of growth is tremendous.

The value of promotional activities and relationship marketing has had a direct positive impact.

Challenged by the prospect of launching the brand into unfamiliar territory, Zespri recognized the need to have a strong local working knowledge and an approach tailor-fitted to the markets.

Fresh Studio has been tapped by Zespri to bring its marketing and brand expertise in these developing markets – leading the campaigns in the consumer and business development fronts since 2008. Fresh Studio has an extensive market knowledge, local consumer understanding and solid business development experience in these countries. These strengths exploited to effectively develop the product through multiple platforms and prime it for growth.

Approach

Both markets are distinctly diverse. Against the backdrop of vast geographical landscapes, each has a different set of established distribution structures and consumer profiles. The kiwifruit, as well, is relatively new to these markets. Therefore, finding the right channels, developing awareness about the fruit and the brand – all play a big role if a successful foray in these countries is to be achieved. Within this context and backed by its strong local market experience, Fresh Studio developed an integrated marketing and business development campaign.

Fresh Studio’s strategic approach is three-fold: 

1) Publicity through Media
2) Consumer Engagement in the grassroots, and
3) Customer Development activities targeting Zespri business clients.

With several key marketing initiatives in place, Fresh Studio continues to drive the brand in both markets – through product launches and sustained exposure in various PR & Media channels, consumer promotions across grassroots selling channels, and business development activities geared towards direct Zespri partners.

Outcome

The value of promotional activities and relationship marketing has had a direct positive impact.

From a product that has been experienced by consumers as unfamiliar, the kiwifruit category has increased awareness and recognition – with Zespri being top of mind among consumers in the kiwifruit category.

In distribution, penetration is always key. Fresh Studio’s marketing and development team has worked hard to develop this. As a result, Zespri is now the established and highly preferred brand among the most important distribution channel players in the Philippines and Vietnam.

With Fresh Studio leading the respective country campaigns, the volume growth of Zespri in these markets has been equally impressive. The marketing activities have significantly driven and contributed to the double-digit year-on-year sales growth since 2008. Further still, the business outlook for both countries remains consistently positive and upbeat in the long term.

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