Shallot value chain analysis highlights key intervention opportunities

In Vietnam, the province of Soc Trang is famous for its shallots. Since a few years, however, it is no longer the shallot itself but the shallot farmers which are grabbing headlines across the country.

Most shalllot farmers are among the poorest people in the country. Increasingly unpredictable rainfall has lowered yields and changing market conditions have created demand uncertainty. Each year thousands of tons of shallots remain unsold. Soc Trang province is aware of the difficulties facing the sector and wants to provide support.

Fresh Studio was requested to support Soc Trang province in this process. In the first phase of the project, Fresh Studio conducted a value chain analysis to critically assess the issues faced by different stakeholders and identify opportunities for improvement, including:

  • High cost and inconsistent quality of shallot seed.
  • Unstainable shallot production practices.
  • Short storage period with high losses of consumption shallot and seed shallot.
  • Losing market share in the domestic market due to strong competition from cheap and year-round available Indian shallots.
  • Consumers like the Vinh Chau shallot, but are not aware about the heritage of Vinh Chau shallots and can only buy them a few months per year.

Based on the findings of the value chain analysis, a detailed action plan will be made to develop the shallot sector. Read more about our Soc Trang value chain analysis below or contact us for further information about this project.

Minister Koenders opens Dutch embassy in Myanmar

On Wednesday (12 October) Minister Koenders (Minister of Foreign Affairs of the Netherlands) opened the Dutch embassy in Myanmar (formerly known as Burma). An unique moment because everywhere else in the world the Dutch embassies are closing down or at least decreasing the number of staff. But in Myanmar a new Dutch embassy is being established.

Furthermore, this was the first Dutch political mission to the new Myanmar government. The last political elections in November 2015 were the first elections in 60 years in which the leading party (NLD: National League of Democracy) was democratically chosen by a majority of votes. After 60 years of military rule, and hardly any focus on the development of the country and the people, the current government has a very challenging task but certainly shows the mentality to succeed.

Only two months ago the first Dutch ambassador arrived in Yangon. This changed the economic mission of the Netherlands in Myanmar into a more ambitious mission which results in having a Dutch embassy present in Myanmar. Surely this indicates the potential of Myanmar in general, and specifically in trade and the water and agro-food sector.

During his 3-day visit to Myanmar Minister Koenders had meetings with the private sector in order to stimulate and strengthen the economic relationships between the Netherlands and Myanmar. This is also something he stressed several times during his speech at the opening of the embassy.

For SAPA, these are encouraging and beneficial developments: the establishment of the Dutch embassy in Myanmar; the continuous strengthening of the economic relationships between the Netherlands and Myanmar; and finally the focus on developing and improving the agriculture of the new government.

Read more about the SAPA project:

Improving food security and livelihoods in Myanmar

SAPA is a Public Private Partnership project in which strengths are combined of European companies and knowledge institutions and local NGO’s and knowledge institutes active in the poultry value to chain …

Vitalising the Vietnamese potato sector: read the results of year 2

How to achieve food security, improved nutrition and accelerate sustainable agriculture in Vietnam? How to increase the income of small scale farmers in Vietnam? 

The ‘Growing out of poverty with potato’ project aims to tackle this challenge and sets an example by creating a value chain for a high quality and sustainable potato production system in Vietnam. Since its launch in 2014, the ‘Growing out of poverty with potato’ project made a great deal of progress. The results up to March 2016:

In summary

Supply

  • Field trials with 5 high-yielding potato varieties were successfully completed.
  • Potato production enhancing equipment, like irrigation systems and machinery to plant and harvest potatoes was successfully tested.
  • 950 farmers (of which 70% female) received a training certificate after attending 3 potato training modules regarding potato production.
  • Training of 14 potato production advisors was completed. Potato production advisors will visit contract farmers at least once every two weeks to assist them in optimizing their production performance.

Demand

  • Over 200.000 consumers were reached through awareness campaigns in wet markets and supermarkets in Hanoi and HCMC.
  • 400 consumers were interviewed to get more insight in their potato preferences.
  • Food labs: 400 consumers participated in the sensory evaluation of potato varieties.
  • 50 households prepared 4 selected potato varieties at home and provided feedback per potato variety.

Supply chain development

  • 10 field days were organized and attended by 6 traders and over 350 farmers.
  • 353 farmers signed contracts with traders to deliver potatoes.

Policy development

  • 2 meetings were organized with the Potato Policy Discussion platform
  • In cooperation with all partners, Dutch embassy, Vietnamese authorities and research institutes a policy brief was completed with recommendations to strengthen the Vietnamese potato sector.

For more in-depth information about the progress in year 2 of the ‘Growing out of Poverty’ with potato project and projection to year 3 kindly download the full newsletter of Year 2 below:

First milestones achieved for the development of a modern greenhouse sector

With the completion of 6 modern greenhouses an important milestone is achieved as part of the Transition Facility project “Accelerating the development of a modern greenhouse vegetable production sector in Vietnam”. Sweet pepper and tomato crops are planted and the first harvest is expected in October. The greenhouses will be used to train >700 farmers in modern greenhouse vegetable production.

The completion of 6 modern greenhouses is the result of a lot of preparation and efforts of various project partners and the 6 selected pilot farmers. Although this is a real milestone, the project activities don’t stop here. The next phase of the project involves the actual production in the greenhouses and knowledge dissemination activities towards farmers. Regular updates regarding the crop status and production results will be provided in future project updates.

Access to finance

To enable the pilot farmers to make the investment in modern greenhouse vegetable production the Rabobank Foundation signed an agreement with Sacombank to provide the 6 pilot farmers with a loan to finance their investment in the modern greenhouse hardware and the initial operational costs. After obtaining approval from the State Bank of Vietnam the loans were disbursed to the pilot farmers in April 2015.

Greenhouses

At Fresh Studio’s R&D farm a multi-span greenhouse (CMF ESPACE 9.60 M) with automatic ventilation and screening (SVENSSON XLS 50 F HARMONY REVOLUX) is installed. At the other 5 pilot farms a multi-span greenhouse (CMF ESPACE 9.60 M) with fixed ventilation is installed.

Climate control and irrigation

A climate control and irrigation system (PRIVA NUTRIFIT and MAXIMIZER) is installed at the Fresh Studio’s R&D farm to operate the new greenhouse. This system will also be used to collect climate data for the project partners.

Substrate

Grow slabs (with a mix of cocopeat, peatmoss and perlite) from BVB-substrates are imported to be used as substrate by the pilot farmers.

Varieties

5 pilot farmers decided to grow tomatoes (beef, normal, cocktail and cherry) and 1 pilot farmer decided to grow sweet pepper (red and yellow). The varieties planted are from Rijk Zwaan.

Fertilizer

YARA Vietnam made arrangements to enable the pilot farmers to buy the Kristalon fertilizer range.

Training materials

The first version of Vietnamese sweet pepper and tomato training materials is completed. For NFT lettuce, training material is being developed. Farmer training activities will start in September 2015.

Knowledge development

As a spinoff of this project a proposal to develop a practical knowledge and training institute that supports the development of the Vietnamese agrifood sector towards a sustainable, healthy and upgraded industry, through sharing knowledge and skills in the production-, postharvest- and distribution stages of the supply chain was submitted by HAS Hogeschool and granted by the Dutch Ministry of Foreign Trade and Development Cooperation. The name of the project is Fresh Academy Vietnam.

This development is a result of the collaboration with project:

Accelerating a modern greenhouse vegetable production sector

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 …

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

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