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
  • Hỗ trợ tăng trưởng

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

The Aquaculture Innovation Challenge successfully kicks-off in HCMC

Seafood Trade Intelligence Portal (STIP), Fresh Studio and Solidaridad successfully 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.

The kick-off event was honored to welcome Mr. Arie Veldhuizen – Agriculture Counsellor from Embassy of the Kingdom of the Netherlands sharing with background information that lead to the mission of the Aquaculture Innovation Challenge (AIC): to find the bright minds and enabling them to realize their ambition by connecting them to finance and capital.

With the participation of representatives ranging from Vietnamese and foreign individuals, students, start-ups, project teams and companies working in the aquaculture sector, key information of the Aquaculture Innovation Challenge was fully released with the overview, categories and how to apply, the jury model and what participants can gain from the Challenge with selection criteria for the awards.

Joining the event, participants were also deeply inspired during different small group discussions and valuable presentations delivered by key-note speakers. All key-note speakers were selected on their diverse backgrounds (commercial bank, NGO, consultancy firm, successful start-up model) as a company or organization in the aquaculture sector.

Join the Aquaculture Innovation Challenge

The Challenge is now open for online and offline applications from 6 December 2016 until 18 February 2017. Finalists will be invited to an intensive business plan boot camp and pitching event in June 2017. The best business plans will be awarded a cash investment for initiating the business plan.

See in which category you can participate during the Aquaculture Innovation Challenge and apply for the Aquaculture Innovation Challenge.

Read more about the Aquaculture Innovation Challenge here: visit the website

Enhancing the capabilities of Vietnamese key-trainers in protected horticulture in South Vietnam

HollandDoor and Fresh Studio in collaboration with Nong Lam University organized the first training week of a 2 week practical training course to build the capacity of 20 key persons active in protected horticulture in the south of Vietnam.

The practical training course was held from 24 – 28 October at the Agricultural High Tech Park in Cu Chi. For this training week 3 greenhouse crops (tomato, melon and lettuce) were established as practical training locations.

The training deals with:

  1. Knowledge transfer and skills training in the field of market-oriented, sustainable (protected) cultivation
  2. Training on appropriate, practical training methods for farmers, engineers and students (including course and materials development)
  3. Training on the concept of knowledge sharing between farmers and sme’s (study groups)

During the first practical training week participants were trained by Jos Leeters, Geerten van der Lugt, Lo Xuan Dung and René van Rensen in:

  • Fertigation and irrigation strategies for greenhouse crops
  • Measuring and monitoring farm activities and greenhouse crops
  • Training methodology
  • Substrate characteristics and usage
  • Supply chain and market trends

Through presentations, practical exercises and group discussion the trainees gained valuable insights in these subjects and how to apply these within the local situation. The enthusiasm of both the trainers and trainees resulted not only in a very successful and but also enjoyable training week as can be seen in the photo impression of the training week.

This practical training course was offered with the financial support of EP Nuffic and the Ministry of Foreign Affairs of the Netherlands.

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:

Vitalising the Vietnamese potato sector

To reinforce potato production and boost potato consumption in Vietnam 3 companies and 1 institution with the aid of the Dutch government, joined forces to vitalise the Vietnamese potato sector as part of the project “Growing out of poverty with potato”.

Download the latest project results below:

Background

Vietnam is one of the most rapidly developing economies in Southeast Asia, which culminated into the status of middle-income country in 2009. The associated urbanisation and transformation of agricultural land into industry and housing has put pressure on food provision. Despite the fact that there is currently no food shortage in Vietnam, food security is high on the national agenda and the country is essentially depending on rice- 94% of total arable land is rice production.

There is ample potential for the development of a professional potato sector in Vietnam. The tuber offers abundant opportunities to improve food security. Besides, it provides an addition income for farmers due to cultivation period in the rice off-season in North-Vietnam and high yield potential.

Although potato consumption is still low, recent trade statistics clearly demonstrate that the Vietnamese potato sector is not able to produce sufficient potatoes to meet this growing domestic demand. From an import level of fresh potatoes of just US$ 1.1 million in 2003, fresh potato imports expand to US$ 44.6 million in 2011 (UN COMTRADE statistics, 2012). The real figure will probably be double as high, as the large majority of imported potatoes are imported through the Chinese-Vietnamese border, and accurate data of this volume is not available.

Despite the fact that domestic potato demand is higher than local supply, to date potato has remained a low interest crop to both producers and consumers. The development of a professional potato sector is currently trapped in a vicious circle of low-interest – low quality produce: Most farmers are unaware of the economic potential of potato farming. They lack the knowledge on advanced cultivation techniques and good planting materials. Therewith the productivity is low and the disease pressure is high. As a consequence the market, both professional processing industry and end-consumers are met with an inconsistent volume and quality supply. Low yields for farmers and low quality to end-users keep potato in the low interest category.

But even despite being of limited interest, a small increase in per capita potato consumption results in steep rise in demand on a national level with a population approaching 90 million.

Approach

“Growing out of Poverty with potato” is a project of Fresh Studio, PepsiCo Food Vietnam, Agrico and Applied Plant Research-WUR and the Ministry of Foreign Affairs of the Netherlands within the Facility for Sustainable Entrepreneurship and Food Security (FDOV).

To actually realise potato as an important crop for food security, pro-poor development and dietary improvements a holistic approach will be essential in which both the table and processing potato sector will be vitalised simultaneously. The processing potato sourcing is an important economic driver for sector development in terms of economy of scale, continuity and purchase certainty of the production. On the other hand the processing potato sector will benefit from a thriving table potato sector. A larger potato sector will in general result in higher quality production and more interest of farmers to start potato cultivation. Better quality production will result in better consumer appreciation and higher potato consumption levels.

Expected outcome

The desired result for this project is to make Vietnam more self-sufficient in potato production: to create a sustainable potato sector that is able to compete with Chinese imports and is able to supply the domestic table potato market and potato processing industry with a consistent volume and quality offer. The project aims to realise this by:

  • Meeting increasing demand with domestic production by realising larger volumes of better quality and prolonged shelf-life/storability for both processing and table potatoes. Therewith potato consumption contributes effectively to the national food security program of the Vietnam government; a sector of importance to be able to provide a staple alternative to rice.
  • Improved livelihoods through better economic inclusion of the poorest farmer communities through improved and stable income levels resulting from potato cultivation with better quality and higher yields.
  • Improved nutrition of (poor farmer) households; increased table potato consumption to decrease micronutrient deficiency in particular iron in order to diminish anaemia.
  • Increased potato consumption beyond chips and French fries, through increased awareness of the versatility and nutrition of table potato. To introduce table potato as a nutritious alternative to rice.
  • Adoption of new high quality Dutch cultivars in the Vietnam diet: table potatoes that are both different in external appearance and preparation qualities, ones that are more trusted and preferred than imported potatoes.
  • Environmental sustainability: reduce environment pressure and enlarge productivity in terms of both caloric as well as nutritional value per m2.

Newsletters developed by: Schuttelaar & Partners

Successful Zespri Event brings joy for young and old reaching over 3,000 visitors

Between the rainy days in Ho Chi Minh City Fresh Studio organized together with its client Zespri a special Consumer Event called ‘Wake Up with Zespri kiwifruit’ in one of the larger shopping malls in the city.

This event was organized to bring an interactive and pervasive Zespri brand experience to participants by entertaining and educative activities. The event reached over 3,000 visitors.

Interactive brand experience

During 1 whole day from 9 to 10 PM visitors of the AEON shopping mall could enjoy games such as basketball, sack jumping and puzzle games. The games were created for (1) entertainment and (2) to educate visitors of every age about the origin and the nutrition of New Zealand kiwi fruit.

The interactive brand experience was furthermore translated into a real-life orchard for visitors to experience, play and learn about how the Zespri kiwi fruit is grown in New Zealand.

Interested to organize a unique, entertaining and educative event for your brand? Liên hệ for more information!

Online brand activation

A special area was set up where people could take photos (read: selfies) with famous Zespri landmarks such as the New Zealand kiwi orchards and the giant kiwi fruit in Te Puke. Visitors created a buzz about Zespri online by sharing their photos on Facebook using hashtags such as #ZespriVN, #Zesprikiwifruit, #Zesprikiwi.

Entertainment

Besides games and photo areas the daily program included dance teams and several cooking shows on stage where kids were able to cook small dishes for their parents by the helping hand of a professional chef.

With Fresh Studio leading the Vietnamese campaign, the volume growth of Zespri in the Vietnamese market has been impressive. The marketing activities, such as this event, have significantly driven and contributed to the double-digit year-on-year sales growth since 2008.

Are you interested to organize a unique, entertaining and educative event for your company, your brand or any other purpose kindly contact us for more information!

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