Ministry of Agriculture & Rural Development CARD Project Progress Report 050/04VIE: Improvement of export and domestic
markets for Vietnamese fruit through improved
post-harvest and supply chain management.

MS2: FIRST SIX-MONTHLY REPORT December 2005

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1. Institute Information
Project Name
Improvement of export and domestic markets for
Vietnamese fruit through improved post-harvest and
supply chain management.

Project Leader
Fax:
+61 07 54412235
Organisation
Queensland Department
of Primary Industries
and Fisheries (DPI & F)
Email:

In Australia: Administrative contact
Name:
Michelle Robbins
Telephone:
+61 07 3346 2711
Position:
Senior Planning
Officer
(Emerging
Technologies)
Fax:
+61 07 3346 2727
Organisation
Queensland
Department of
Primary
Industries and
Fisheries (DPI &
F)
Email:
michelle@

The fruit industry in Vietnam has a great potential and plays an important role in
agricultural production. Vietnam is experiencing difficulties in competing with other
Asian nations in export markets and its own domestic market, especially with China and
Thailand. This suggests that horticultural industries require substantial development to be
globally competitive. This project aims to fill capacity gaps and reduce major weaknesses
in pre-and post-harvest technology, product quality and consistency, cluster organisation
and supply chain management and planning. Highly specialised targeted training
programs for government and industry stakeholders will be provided. This project
addresses serious constraints through identifying key Vietnamese stakeholders and
empowering them to focusing on the total supply chain network, and identifying where
benefits are to be gained. In addition, if quality management systems are implemented,
greater employment will be provided for the farming community. This project embraces
the five CARD strategies for rural development; and in particular; strategies to increase
production and competitiveness of agricultural systems; reduce poverty and vulnerability,
and increase stakeholder participation whilst ensuring sustainability.
3. Executive Summary
Significant information gathering on mango and pomelo internationally, country wide
and locally has been initiated by Australian and Vietnamese collaborators.
Globalisation is having an affect on agribusiness practices causing significant and
dramatic change. It is imperative that these factors be taken into account during this
project.

at SIAEP, SOFRI and Nha Trang. All material supplied is under copyright of
QDPI&F but relevant information will be extracted and incorporated into manuals
that are applicable to Vietnamese conditions. New books will be developed and
written in Vietnamese for both the mango and citrus (pomelo) industries in Vietnam
as per the CARD project log frame.

One electronic copy of the Agrilink Mango Information Kit produced by DPI&F has
been translated into Vietnamese’s and handed to SIAEP and SOFRI staff to conduct
training of stakeholders in Vietnam.

Regular meetings have been held with Australian project team members as well as
regular information exchanges via email with Vietnamese collaborators to determine
if changes are needed to be made to the objectives, outputs and activities. These
meetings determined that the process outlined in the approved CARD Project
document is still valid and no change is needed. These meetings also determined the
processes to obtain good agricultural practices (GAP) and development of best
practice manuals (BPM) for pre and post harvest production, supply chain
development and management, for mango and pomelo.

Both, Australian and Vietnamese collaborators were in agreement, that Adult
Learning Processes, such as the use of Participatory Action Learning (PAL) and Train
the Trainer (TTT) is the most appropriate methods to use. Train the trainer (TTT) will
ensure that new concepts and methodologies (knowledge, information and training
tools) provided by the Australian team members to collaborating Vietnamese
institutes (SOFRI and SIAEP) will improve the projects effectiveness and
sustainability by providing a resource through which the Vietnamese mango and
pomelo industries can utilise.

Pollution is a problem, particularly in the Mekong Delta. The culture and attitudes of
the farming population and villages, especially the poor need to be changed. To

and customer needs as serious constraints to the development of fruit and vegetable
industries in Vietnam.

This project addresses these serious constraints through identifying key Vietnamese
stakeholders from both the government and industry sectors. It will then engage and
empower them by focusing on the total supply chain network, and identifying where
benefits are to be gained. The project will fill capacity gaps and reduce major
weaknesses in post-harvest technology, product quality and consistency, cluster
organisation and supply chain management and planning. This project will also
provide highly specialised targeted training programs appropriate for government and
industry stakeholders.

The proposed approach involves a whole of supply chain or cluster approach, driven
by identification of consumer needs (domestic and export) for the mango and pomelo,
building on published and unpublished research work and incorporates advanced
technology transfer to improve pre- and post-harvest quality of mangoes and pomelo,
while at the same time attempting to improve farm incomes by empowering growers
to form groups. The key components are:
• Selection of the key stakeholders and identification of key pre and
post-harvest and cultural constraints
• Mapping and identifying strengths and weaknesses in existing
domestic and export chains for mango and pomelo, with particular

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emphasis on determining consumer preferences and needs, and feeding
results back to farmers.
• Developing improved export and domestic supply chains for mango
and pomelo
• Setting up of new, improved farmer groups/organisations for exporting



5. Progress to Date
5.1 Implementation Highlights
INFORMATION GATHERING
Due to fast changing nature of agribusiness practices, primarily due to globalisation
affects, it has been imperative from the projects perspective and inception, that
identification of new information published on:
• mango and pomelo pre- and post-harvest production and marketing issues

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• agricultural supply chains (analysis, development processes, and design) be
included in this project.

Generic supply chain analysis and development processes have changed recently to
one of creating value for participants in the supply chain, therefore supply chains are
now being transformed into value chains.

Some examples of information sourced:-
• FAO stats on mango and pomelo production, tonnages, exports and imports,
consumption patterns for Asia and major producing countries in the world.
(study effects on Vietnamese mango and pomelo industries and competitive
analysis as per CARD Project log frame)
• DPI&F articles, greater than 23 articles on pre-and post-harvest aspects of
mango and citrus production (Information to be used for development of pre-
and post-harvest manuals and quality assurance manuals)
• Over 50 web published articles and presentation on supply chain analysis,
processes and design reviewed from USA and Europe and Australia
o For example Australian material on supply chains:-
 National Food Industry strategy- Food Chain Capability
Development Program (Australian)

material suitable for inclusion in this CARD Project. This information being sourced
will ensure that this CARD project will build capacity in the Vietnamese

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collaborators. By removing out of date information, decisions are based on reliable
and up to date information, therefore ensuring sustainable CARD project outcomes.

PROJECT LINKAGES
Linkages to other projects and these include:-
Agency Project No Project Title
Queensland Department of
Primary Industries and
Fisheries (DPI&F)
PN94/947
Adaptation of low-chill temperate fruit to Australia and
Thailand. Project initiated in 1996 and completed in
1999.
Queensland Department of
Primary Industries and
Fisheries (DPI&F)
PN2127 Adaptation of low-chill temperate fruits to Thailand,
Laos, Vietnam and Australia. Project initiated in 2001
and completed in June 2004. Extension initiated in
June 2004 and work is continuing in Thailand and
Laos.
World Vision Project CTE/2000/165 Facilitating farmer uptake of ACIAR project results:
temperate fruit orchards for quality of life development
in Chiang Rai province. This project is continuing but
urgently needs technical support by DPI&F to be
successful.

European market. Whilst at SOFRI in south Vietnam in November 2005, Mr. Nissen,
Mr. Tucker and Miss Rankin made contact with Mr. John Campbell of HortResearch.
Mr. Campbell was conducting training on Quality Assurance in the Dragon Fruit
Supply Chain. Brief discussions held between Mr. Nissen and Mr. Campbell on
project outlines of quality assurance training to be undertaken in each project. A

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verbal agreement was made to undertake further communications and develop
information flows between both projects on quality assurance aspects.

AADCP Program Stream Project
AADCP Program Stream: Quality Assurance Systems for ASEAN Fruit and
Vegetables. The quality assurance aspects and issues in this project have been
incorporated and modified for this CARD project with permission from the AADCP
Program Stream Project personnel. QDPI&F personnel have developed the quality
assurance training manuals and processes as well as carrying out quality assurance
training in Vietnam. Linkage with this project has ensured that a united message is
being delivered to all Vietnamese collaborators. This avoids mixed messages being
delivered, removing any confusion as to what constitutes quality assurance. This
project linkage will ensure sustainability outcomes for this CARD project.

TRAINING UNDERTAKEN AND CAPACITY BUILDING

Australian Personnel Travel
Three Australian personnel travelled to Vietnam for a scheduled project visit of two
weeks. Team members were Mr. Nissen Mr. Tucker, Mss Rankin. The trip was
undertaken in late November 2005 (14
th
to 29
th

and marketing issues as well as supply chain management.

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Books (Hard Copy)

Agrilnk Mango Information Kits:- Sent four copies of the QDPI&F Agrilink
Mango Information Kit is a best practice manual developed for mango farmers in
Australia. Agrilink is built around several important principles. This product
focuses on the core information that is most needed and regularly sought by first
time and intermediate farmers. This is approximately a 250 page manual. Issues
and areas covered in the manual are:
Before You Start Section
• An overview of the Queensland mango industry
• The mango tree
• Know what you are getting into
• What you can expect to make
• The capital you need
• The farm you need
• The machinery and equipment you need
• The labour you need
• Other considerations
Getting the crop started Section
• Plan the orchard layout
• Choose varieties
• Tree spacing
• Order trees
• Clear the land, leaving appropriate windbreaks
• Mark out the rows
• Deep rip along the rows

seriously affect the quantity and quality of subsequent yield. Some post-harvest
diseases damage fruit at the very worst time, when they are ripening and ready to
be displayed before buyers. Others show disease symptoms at harvest, enabling
affected fruit to be culled during grading and packing. Many, however, become
established on fruit in the field. Field control is an important step in reducing
post-harvest losses from these diseases.

Tropical Fruit :- Postharvest diseases of horticultural produce volume 2:-
Sent three copies of Tropical Fruit :- Postharvest diseases of horticultural produce
volume 2. This book outlines some general principles of postharvest handling.
Details are given in the sections.
There are three main causes of loss during transport and marketing of fruit:
• diseases caused by fungi and bacteria
• disorders caused by the disturbance of normal fruit metabolism
• injuries caused by temperature extremes,
• mechanical means, chemicals or insects.

While disease can usually be distinguished clearly from all other causes of loss,
the distinction between disorders and injuries is arbitrary, but helpful in
diagnosing and fixing problems. Diseases are discussed in order of decreasing
importance, assessed in terms of how common they are generally in the
marketplace. (Of course there will be some regional differences in importance.)
Disorders and injuries are divided into the following subgroups: disorders;
temperature injury; mechanical injury; chemical and gas injury; and insect injury.
Reducing postharvest loss and preventing deterioration of quality requires care in
all aspects of handling, such as:
• use of effective disease control programs when the crop is growing in the
orchard or plantation
• strict adherence to the guidelines for sanitation and hygiene in the
packinghouse

established in Australian citrus for many years. However, increased consumer
demand for 'clean and green' products, greater understanding of occupational
health and safety on farms, and higher chemical costs have all combined to
highlight the need for universal adoption of IPM by citrus growers in their quest
for international competitiveness and sustainability.

Citrus pests and their natural enemies deals with over one hundred pests. Some
cause problems every season, but most cause significant damage in some areas in
some seasons. Anamazingly high number of natural enemies of pests are active in
the citrus orchard. By encouraging these natural enemies to control pests, growers
can reduce pesticide use to a light spray program of low-toxicity chemicals, and
produce the desired 'clean and green' fruit. An essential part of such integrated
pest management is the systematic and regular monitoring or orchards to identify
pests, their natural enemies, and action levels (when pest control is needed).

Citrus Pests a Filed Guide a Companion to Citrus Pests and their natural
Enemies, Integrated Pest Management in Australia.
Sent three copies of, Citrus Pests a Filed Guide a Companion to Citrus Pests and
their natural Enemies, Integrated Pest Management in Australia. This citrus field
guide has over 200 plates illustrating insect and mite pests with descriptions
damaged caused and some of their natural enemies. This book is used in
conjunction with the integrated pest management (IPM). IPM is a strategy which
encourages the reduction of pesticide use by using a variety of controls in
harmonious combination to contain or manage pests below their economic injury
levels. The aim is to produce quality fruit at minimal cost by intelligently
managing pests. IPM is the complete opposite of relying solely on pesticides to
control pests (and diseases). It aims to maximise the use of biological and
cultural controls, and other measures, such as chemical control, must play a
supportive rather than disruptive role. Pesticides should be used strictly when
needed, as determined by systematic monitoring of pests and their natural

• Detailed information on the seven most important pests of Queensland
citrus
• Frequently asked questions about growing and marketing
• Guide to problem identification and solutions
• Directory of important product and service provide
• Monthly calendar of events for growing citrus
• Search for your topic of interest
• Detailed information on the five most important diseases of Queensland
citrus

Translated Electronic Version Agrilnk Mango Information Kit

Electronic Translation of DPI&F Agrilnk Mango Information Kit into
Vietnamese
One electronic copy of the Agrilink Mango Information Kit produced by DPI&F
has been translated into Vietnamese’s and handed to SIAEP and SOFRI staff to
conduct training of stakeholders in Vietnam.

5.2 Smallholder Benefits
The following workshops were conducted to inform potential stakeholders of project
aims, objectives and benefits to smallholders who will participate in this CARD
Project. Discussions with farmer groups, collectors and traders were well received.
Significant problems exist at the farmer level with pre-harvest production issues.

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Problems in obtaining high quality fruit due to tree size, pest and disease control
management systems and lack of quality control systems at the farm level were
identified. For example, less than 20% of the total mango crop is of high quality,
retailing at 50,000 VND to 60, 000 VND in Ho Chi Minh City, therefore any
improvement in pre and post harvest handling should have a significant impact on

• Several typical farmers (Mr Khuong Buu Hong Galaxy Farms, Mr Tam
Nguyen pomelo grower) and several cooperatives farming groups.
Several stakeholders have contacted both the CARD Project Australian and
Vietnamese team members to forge closer linkages. They also wished to obtain
further details and information on this CARD project objectives and processes to be
undertaken to build a more competitive and sustainable supply (value) chains for their
products in Vietnam.

5.3 Capacity Building
Five capacity workshops were conducted by the Australian team during the first
project visit in November 2005 to build capacity in SIAEP and SOFRI in Ho Chi
Minh City. Adult learning techniques via participatory action learning processes were
used to deliver workshop training sessions. Workshops delivered were:-

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WORKSHOP 1
Overview
Introduced the projects aim and address serious constraints for mango and pomelo
through identifying key Vietnamese stakeholders and introduce collaborators to the
concept of supply chains that create value (a value chain). These workshops provided
an understanding on how to analysis or divide the supply chain into segments for
analyse and to identify critical issues. A process was devised provided to
collaborators on how to achieve the project aim, and secure benefits from new
improved supply chains and processes that are to be undertaken during the project.

Outcome
This workshop was well received by all participants. After workshop questioning and
word of mouth feedback conveyed to trainers, participants indicated that they now
possessed and clear picture the project aims and objectives. They also indicated that

products (mango and pomelo). Further workshops are need to build on this concept to
enable participants to have a greater understanding on how to approach and build
supply (value) chains that will deliver improved benefits to all key participants in the
chain.

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W
ORKSHOP 3
Overview
Questionnaire design and interview techniques to help Vietnamese collaborators
(SIAEP and SOFRI) better understand agricultural value chains (supply chains)
• introduce concepts of questionnaires design and interview techniques
• Practical demonstrations on types of questions and how to administer
interviews
• Discuss production of manuals as per project milestones
• Interview skills and methods to process data

Outcome
This workshop was very well received by participants and surveying and questioning
of participants revealed that they had just undertaken a survey of Vietnamese Fruit
Industries to obtain based data on pre and post harvest activities. Participants
indicated that this workshop had been conducted in the early part of this year so their
survey and questionnaire designs to gather information on the Vietnamese Fruit
Industries could have been significantly improved.

W
ORKSHOP 4
Overview
Quality assurance, monitoring and sequential sampling to help Vietnamese

information flows and monetary flows and development of future training workshops
on post-harvest handling, packaging and ripening. All workshops will then be
reviewed with the intention to progress development of best practice manuals.

Outcome
All project members participated in this workshop which delivered the planning
activities for the next 6 months of the CARD Project (see section 8 next critical steps
for list of outcomes).
5.4 Publicity
One Australian press release has been drafted for release in January 2006. This draft
is to be sent to Hassall and Associates for passing on to the CARD Project
Management Committee for approval. It is expected to release a further two press
articles which will be released in the first half on next year (2006) detailing work
completed, progress made and outcomes achieved by both the Vietnamese and
Australian team members.

It is envisaged that a project web site be developed by our Vietnamese collaborators
to gain greater exposure for the project. There has been a significant increase in new
technology with many Vietnamese research institutes (government) and private
companies (i.e. exporters/importers etc.,) and international organisations as well as
researchers around the world having access to the web. This is one the cheapest,
quickest and most reliable methods to provide up to date information on the progress
of this CARD project.

5.5 Project Management
Planning and project development
The methodology to be used in managing this CARD project was developed initially
with the Vietnamese collaborators (SIAEP and SOFRI). Regular meetings have been
held with Australian project team members as well as regular information exchanges
via email with Vietnamese collaborators to determine if changes are needed to be


Methodology for problem solving and project management of Supply/Value Chains
In any society the availability and costs of food are closely linked with many of areas
of the countries society. La Gra (1990) states that decisions, of what to produce and
in what quantities are linked to many disciplines, including economics, sociology,
politics, health engineering, agronomy, entomology, pathology, food science and
other, interact to contribute to the understanding and functioning of a food system
(Figure 1). Several key factors such as markets and environment play critical roles.
Matching the product to the market (what consumers are demanding), and matching
the product to the growing environment) will provide food systems with a starting
point to create value for all involved.
Figure 1. Participants in a Value Chain (La Gra 1990)

We need to ask ourselves these basic questions when evaluating or studying a value
chain.
Who? How? What? When? Where? Why? and how much?, of a specific
product/commodity do we need to produce to fill the market demand. Therefore we

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need to have a process to identify key points and participants in the value chain.
Decisions made by the private sector participants are normally determined by the
desire gain economic security. Decision made by the public sector participants are
guided by a large number of socioeconomic and non economic decisions.

It is important to understand wrong decisions or problems occurring in the pre harvest
stage of the value chain will significantly affect food availability, quantity, quality and
ultimately its cost. If we start with a poor cultivar that is unmarketable, or poor

Figure 3. Principle components for a value chain assessment (La Gra 1990) Analysis of each relevant component for a particular product/commodity will provide
a good understanding of the process and value chain flows for the paddock to the plate
(consumer). It will show how product production is undertaken, affects on quality,
and costs associated with each systems can be quantified.

Therefore, planning and designing project to ensure vital and relevant information is
collected and documented, will significantly improve the understanding of the
processes involved in developing new and improved supply/value chains.
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We will this simple, interactive (step by step), logical, systematic approach to achieve
project outcomes.

6. Report on Cross-Cutting Issues
6.1 Environment
Pollution is a problem, particularly in the Mekong Delta. The culture and attitudes of
the farming population and villages, especially the poor need to be changed. To
reduce environmental degradation, villages need to be educated in the following
areas:
• over use of resources (over fishing and use of fish-raking boats)
• discharge of human wastes
• garbage disposal
• in correct use of agricultural pesticides
• land clearing
• salinity problems due to shrimp farming of good agricultural land to diversify


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• and domestic and international trade of agricultural products.

The Land Law of 1993 radically altered land tenure practices in Vietnam. While
prior to doi moi land was largely farmed on a collective basis, this law gives farmers
the right to inherit, mortgage, transfer, exchange and lease land. By 1999 about 10
million households, the bulk of which are in low-lying areas, had been issued Land
Use Certificates. These new property rights have created an increased commitment
on the part of the farming families to improve productivity; to wit, recent studies
indicate that as much as one third of recent economic growth in Vietnam is
attributable to the farmers’ new land rights.

In Vietnam now, the household is considered to be self-help-economic unit; the
Vietnamese Government has issued many policies to encourage households
contributing to national economic development. Household-based development and
organization of production will have many advantages, as the households can make
decisions and implement their own production plans. With the ethnic minority
people, the local hamlet is their traditional social centre, with the life of each
individual is closely linked with the community. Many traditional customs still
remain now with actual strength and not only in the people’s spirit and mental life.
Although household is a self-relying economic unit but production activities (land
use, production seasons, crop harvesting) still strongly depend on the hamlet
community.

The market opportunities created by doi moi have stimulated the diversification of
agricultural production and the development of Vietnam’s agro-industries.
Agricultural diversification has resulted both in a reduction of poverty among
agricultural households, and an increase in foreign exchange earnings due to the
export of high value agricultural products. Vietnam Living Standards Surveys reveal

Lao PDR have:
• Higher birth rates
• Lower life expectancy
• Higher rates of infant and mother mortality
• Lower per capita income
• Lower access to credit
• Lower road-density

Livelihood of the majority of farmers has improved in recent years.

In Vietnam, farmers' household income has increased by over 10% since 1995,
specifically from 7.7 million VND in 1993 to 9.8 million VND in 1998 (Figure 1).
National food security has basically been maintained. The number of poor and
hungry people has been reduced from 30% in 1992 to 13% in 1999, equivalent to the
average level of 2% a year.

6.2.1 Figure 1 GDP per capita in Vietnam
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7. Implementation & Sustainability Issues
7.1 Issues and Constraints
Delayed Start of Project Due to Signing of Contract
Our CARD project started several months late (June 2005) due to protracted contract
negotiations. The project team tried to develop and speed up the processes to keep the
project on track, but the short time periods made it impracticable for information


By allowing the movement of these three milestones to July 2007, as proposed in the
new Adjusted Table of Milestones, these adjustments will align with originally
Approved CARD Project Document. Therefore, input requirements and time
allocation will not have to be adjusted.

Please find enclosed in Section 7.2 Options the new Adjusted Milestone Descriptions.
These descriptions have not been change only the date of completion changed. We
respectfully request that approval be given by the CARD Project Management
Committee for agreement with these adjusted times for project milestone deliverables.

Milestone Payments

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