Private GAP implementation for large wholesaler

Upon request of one of world’s largest wholesalers we developed a private standard on good agriculture practices (GAP) with a specific focus on food safety.

The standard, guaranteeing full traceability from farm to fork, is tailored to two distinct fresh categories: vegetables and fish. Next a training program was designed and all actors along the production chain were trained in the implementation of the new standard. To date a team of Fresh Studio auditors audits the contracted farmers and suppliers annually. A random sampling program is being executed, continuously monitoring the correct standard implementation at farm level. Quality controllers check the incoming products daily at the client’s platforms (Hanoi, Dalat and Can Tho) for further distribution to all the stores in Vietnam.

Working with a multitude of small scale farmers was one of the main challenges in realizing consistent volume and quality supply. The close collaboration between agronomists and QA staff has proven vital in the realization of the QA program. This program is unique in Vietnam and sets our client aside from competition in terms of food safety.

A significant side effect of the standard implementation is that a whole village started to follow the example of the GAP farmers in keeping their fields and surroundings free of litter and waste.

Private label introduction for fresh products

Already operational in Vietnam is dedicated in delivering its customers the best and safest food quality in its fresh food category. Design equals strategy and creativity? (fruits & vegetables, fish & seafood, meat) a multi-national wholesaler approached Fresh Studio to revitalize its customer communications.

Since most of the effort in sourcing quality products was considered somewhat invisible to this client’s customers, the objective of the communication strategy was to create relevant and attractive positioning, resulting in a preference for the client’s label by professional buyers at purchasing outlets.

To enable transparent sourcing activities for its customers, the client planned to introduce one of its private labels in its fresh food category to the local market.

The aim was to distinguish premium quality fruits and vegetables from other brands and labels, and from bulk produce.

Fresh Studio was responsible for the research and development of the private label positioning, and the communication strategy. The assignment included the development of visual marketing materials.

Marketing and branding for avocado sector development

Fresh Studio was approached to design and manage a large scale not-for-profit project to develop an avocado market in Dak Lak province.

The DAKADO project used a value-chain approach where farmers, collectors and traders were linked to buyers and consumers in order to establish a sustainable business network for the marketing of a high quality avocado brand. For more info, see: www.dakado.vn

The DAKADO project entailed the Fresh Studio Marketing Team being responsible for the stimulation of domestic demand for avocado through a consumer awareness campaign, first to introduce, and then to develop, this high quality avocado brand. The project included an extensive consumer campaign in retail outlets of Saigon Coop Mart, Metro Cash & Carry and FiviMart in HCMC and Hanoi, in 2007 and 2008.

By specifically marketing the quality DAKADO brand, by allowing price premiums of more than 40 per cent to cover increased production costs, and by realizing higher profit margins for all agents involved (from retail to farmer), the project succeeded in creating the first traceable fruit in Vietnam.

That consumers were willing to pay higher prices for premium fruits was an eye-opener for modern retail in Vietnam. Prior to this, it has always been assumed that Vietnamese consumers cared more about price than about quality when purchasing fruit.

Growth strategy consultation and brand portfolio management

Our client faced significant changes in global trade with the entrance of multiple new players tightening the playing field. This resulted in higher quality product requirements at lower margins with more complex and fragmentary distribution structures.

In their approach to us, our client requested assistance in revitalizing and optimizing their sales and marketing strategy.

By using a step-by-step approach, closely collaborating with client teams in sales, marketing, production and finance, we guided the client in the development of a business strategy for future growth.

The assignment resulted in a focused 5 year strategy, with clear objectives for portfolio and brand management.

Consumers at the starting point for new product development

Our client required a better understanding of the current market for (safe) vegetables and identification of opportunities for the future development of a new safe vegetable chain.

Fresh Studio was hired to design and conduct the consumer and market research, and to translate the insights into concrete strategy recommendations.

In realizing a demand-driven safe vegetable supply chain, our client wanted to kick-off their project with market and consumer research to provide them the insight for making strategic project choices.

Our aims included:

  • Understanding the current size and structure of the (safe) vegetable market
  • Understanding consumer behavior, motives perceptions and preferences regarding the consumption of (safe) vegetables

Developing a sustainable potato production system

One of the world’s largest potato processing firms, the world’s leading fertilizer company and the world’s largest crop protection product company contracted Fresh Studio to develop a higher yielding, higher quality and more sustainable potato production protocol in Vietnam.

Fresh Studio joined with leading Dutch potato breeding companies, to select new and potentially suitable potato varieties. In close collaboration with its clients, Fresh Studio developed a variety of cultivation protocols. These new varieties and protocols were tested in random block-design trials during four different seasons. The tests were conducted at Fresh Studio’s own R&D farm in the Central Highlands of Vietnam.

These trials resulted in the selection of two much higher yielding and higher quality potato varieties than the currently farmed standard. With these new varieties and improved cultivation protocols, yields were increased from 45% to 80%. Post-harvest and processing trials (fry tests) showed that the new varieties performed better than the current standard.

During our organized field days, hundreds of potato farmers were able to observe the difference between varieties, and related cultivation protocols. Fresh Studio is currently working closely with its clients to introduce these new varieties, conduct more potato trials all over Vietnam, as well as to develop a plan to train large numbers of farmers in new potato cultivation protocols.

Adding knowledge to the chain

Within the framework of the Vietnam Facility, The Netherland Ministry of Economic affairs, Agriculture and Innovation, contracted Fresh Studio.

Together with Applied Plant Research from Wageningen UR, Van Hall Larenstein of the Wageningen University, and Dalat University, Fresh Studio was contracted to manage and implement a project entitled: ‘Adding Knowledge to the Chain”.

This project aimed to find tailored practical solutions for a number of serious problems faced by the market oriented vegetable sector of the Dalat region in Vietnam.

These problems relate to productivity and profitability constraints in vegetable farming, irresponsible pesticide use, over-abundant fertilizer use, farmer safety and consumer food safety. The current vegetable sector in the Dalat region has limitations in current management skills, decision-making, and in finding innovative solutions to address modern market requirements (such as sustainable production methods, food safety and off-season production).

The project managed to establish a collaborative model between farmers, Fresh Studio, market players, Dalat University, agricultural policy makers, and others, which continuously applies innovative R&D, and to promote sustainable and profitable vegetable farming in the Dalat region of Vietnam.

Successfully developed innovations included lettuce production under rain shelters during the rainy season, and bell pepper production in local greenhouses on risky husk-based substrate.

Development of professional fresh fish chain

Since late 2010, the Fresh Studio aquaculture and fisheries team is working very hard for one of Fresh Studio’s clients to assist them in developing the first professional fresh fish chain of Vietnam.

While for exports the Vietnamese aquaculture sector just focuses on deep frozen export chains for pangasius and shrimp, this chain project focuses on the over 50 fish species which are popular in the domestic market.

The domestic chain is only fresh fish, which requires strict product quality control. During large fish farmer information sessions, widely covered by the Vietnamese tv and newspapers, the targets for the new fish sourcing system were presented. Hereafter an overwhelming number of farmers registered to join the program. Since then over 250 fish farmers have been trained in the required product specifications and good aquaculture production standard. Soon the first supply of fresh fish through a newly developed professional fresh fish processing facility will start.

Private label introduction for fresh products

Fresh Studio has successfully assisted one of the biggest fruit exporters of Vietnam in obtaining GLOBALG.A.P. certification for pomelo.

Our client is a fruit exporting company targeting both the Asian and the European market with a portfolio of Vietnamese fruits. With European retail channels requiring GLOBALG.A.P. our client requested our support for the implementation of the standard at a large number of Vietnamese contract farmers. Fresh Studio’s QA team first trained the QA staff and agronomists of the fruit company in the GLOBALG.A.P.  standard. Next Fresh Studio assisted the QA team and agronomists of the client in training the contracted farmers. Given that GLOBALG.A.P. is not yet common in Vietnam, the Fresh Studio team went to great lengths to make the multiple farmers understand the importance of the international quality standard.

Parallel to working with the farmers, Fresh Studio’s QA consultant assisted our client with the development of their internal quality management system (QMS). Although this QMS system had to be developed from scratch and it was a challenge to convince farmers to make the necessary investments like building adequate toilet and storage facilities to comply with the standard, after 6 months of hard work the fruit company passed the GLOBAL G.A.P.  audit.

Introducing new standards ASC and GLOBALGAP for pangasius in Tra Vinh

Fresh Studio is contracted by GIZ to develop an ASC & Globalgap certified smallholder pangasius (catfish) farmer group in Tra Vinh Province.

The assignment started with an extensive analysis of the gap between the current fish farming practices and the new standard of ASC for pangasius, as well as the GLOBALGAP standard. While most pangasius fish farms in the Mekong Delta have developed into quite large very intensivebusinesses, the Tra Vinh pangasius smallholders have developed a different but sustainable production system.

The Tra Vinh model is less intensive, fish are healthy, and can be seen as a “cradle to cradle” scheme. Indeed, outlet waters are often use for irrigation of fruits and coconut gardens , and mud for fertilization. We believe that this farming system deserves market for those consumers who care about sustainability and quality, instead of disappearing into a bulk commodity pangasius product.

Based on the gap analysis a detailed plan was made to assist the smallholders to comply with both the ASC and GlobalGAP standard, one of the most important steps in this process was to first screen Vietnamese pangasius processors/exporters and European importers, in order to link the pangasius farming smallholders to those parties who are keen to buy and sell sustainably produced fish. These parties need to be willing to invest into the training of the farmers and to take over the whole extension and Internal Control System (ICS) after the first phase of the project is finished. Various companies were screened and very interested companies were selected to join the program.

On September the 17th and 18th a successful workshop was organized by Fresh Studio in Tra Vinh, where all pangasius small holders, the fisheries association, GIZ, local governmental departments and the selected companies came together and agreed on a detailed work plan, formalized into a MoU. All parties openly shared their hopes and fears and strategies were developed to deal with some of the fears.

The coming six to nine months the fish farmers will go through an intensive training program and a ICS system will be developed.

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