Ministry of Agriculture & Rural Development

CARD Project Progress Report

037/04VIE
Developing GAP systems
for dragon fruit producers and exporters
in Binh Thuan and Tien Giang provinces
MS2: FIRST SIX MONTHLY REPORT
August 2005 1. Institute Information
Project Name
Developing GAP systems for dragon fruit

Organisation
HortResearch
Email:
[email protected]

In Australia: Administrative contact
Name:
Mrs Leonie Osborne
Telephone:
+64 9 815 8819
Position:
PA, Bioprotection Group Leader
Fax:
+64 9 815 4202
Organisation
HortResearch
Email:
[email protected]

In Vietnam
Name:
Dr Nguyen Minh Chau
Telephone:
+84 73 893 129
Position:
Project Champion
Fax:
+84 73 893 122
Organisation
SOFRI

Vietnamese growers can now only export to these high value markets if they have Good
Agricultural Practice (GAP) programmes in place. EUREPGAP is a comprehensive and
auditable GAP programme which is now the minimum fruit quality, safety and
sustainability standard required by most supermarket chains in Europe. This project will
develop the basis for EUREPGAP implementation amongst groups of dragon fruit
growers in Binh Thuan and Tien Giang provinces, to enable Vietnamese growers to
export dragon fruit to high value European markets. If successful it will also provide a
model GAP system for potential adoption by other Vietnamese fruit sectors. 3. Executive Summary
The delivery timing for the CARD 037/04VIE project Inception Report and First Progress
Report fall within one month of each other. As a result, this report combines both the project
inception and progress-to-date efforts.

HortResearch personnel made two visits to Vietnam in February and May 2005 during which
time the scope of the project was established. Contracts were developed and signed for project
implementation between Hassall and Associates International (HAI) and HortResearch also
Southern Fruit Research Institute (SOFRI) and HortResearch. A Memorandum Of
Understanding (MOU) and One Pager were developed and signed for the coordination of
various donor initiatives to improve Dragon fruit GAP production and export in Vietnam.

A change of Project Leader occurred for both HortResearch and SOFRI at project inception to
provide continuity of appropriate leadership for the duration of the project.

Implementation of the project has focused on establishing communication lines and the
benchmarking of 150 farmers in the Binh Thuan and Tien Giang provinces to evaluate current
dragon fruit production practices compared to those required under GAP. Some
benchmarking findings have been delivered through seminars to farmers.


• Improving the current understanding of dragon fruit agronomy within SOFRI and
establishment of systems for constant improvement and problem solving
• The development of pilot models of EUREPGAP-compliant Exporter/Packer/Farmer
group in the field
• Establishing manuals, Codes of Practice and the development of training material that is
appropriate, user friendly, developed by the Vietnamese extensionists, and appropriate to
the dragon fruit industry for transfer to subsequent “models” and ultimately other crops
• Establishing the required quality systems for the dragon fruit industry to adopt and obtain
proof of the system robustness, by obtaining EUREPGAP certification for the pilot model
• Maximising the impact of current initiatives to develop GAP in the dragon fruit industry
through full participation in the Dragon fruit GAP Project. 5. Progress to Date
5.1 Implementation Highlights
There have been two visits to date by New Zealand project personnel (Drs Barbara Waddell
and Jim Walker in February, and Dr Waddell and John Campbell in May 2005) with the
purpose of scoping the CARD project and finalising the various contracts. Contracts now
signed include:
• CARD 037/04VIE Developing GAP systems for dragon fruit producers and exporters
in Binh Thuan and Tien Giang provinces; between Hassall and Associates
International and The Horticulture and Food Research Institute of New Zealand Ltd
(HortResearch)

4
• A Collaboration Agreement for the project between The Horticulture and Food
Research Institute of New Zealand Ltd and Southern Fruit Research Institute (SOFRI)
in Vietnam
• A Memorandum of Understanding to coordinate the dragon fruit development
initiatives (Dragon fruit GAP Project - DGP) in Vietnam between the parties:

translated to English.
• HortResearch developed a database with web access for SOFRI to enter data.
• During the benchmarking recipients for the CARD project “Top Down Pilot” were
identified.
• A schedule of work during the New Zealand project leader’s second visit was
developed (Appendix 1).
• Communications within the DGP were established with fortnightly sessions by
internet telephone. These have been satisfactory between HortResearch and VNCI by
voice, but limited to written chat sessions with SOFRI. DGP coordination by Nguyen
Phuong Thao of VNCI has been established and is working well.
• Efforts to improve channels of communication between HortResearch and SOFRI
continue. 5
5.2 Smallholder Benefits
Benefits to the smallholder farmer will be generated and reported as the project
implementation gathers momentum.

5.3 Capacity Building
During the project scoping and subsequent project implementation visits by HortResearch
personnel considerable effort has, and will continue to be, made to identify individuals both in
the public and the private sectors who have the capacity to be leaders of change, and quality
systems development, improvement and maintenance.

A high priority will be given to all aspects of National Capacity Building to ensure
sustainability upon project completion.

5.4 Publicity
The CARD project has been publicly exposed through a Television Talk Back programme in

6.2 Gender and Social Issues
The CARD dragon fruit project implementation will systematically address gender and social
issues. For example, Good Agricultural Practices demand good working conditions,
appropriate treatment of labour, observation of good health and safety practices, etc. 7. Implementation & Sustainability Issues
7.1 Issues and Constraints
Issues and constraints will become evident as the project is implemented. However,
identification of appropriate key personnel, both in the private and public sector, is seen as
paramount to a successful outcome.

Communication, trust and co-operation between HortResearch and SOFRI personnel is
extremely important for the smooth implementation of the project between the periodic visits
by the HortResearch team to Vietnam.

7.2 Options
Options and problem solving will be an important component to project implementation. A
“Teamwork” approach is seen as the best method to ensure that the outcomes of both the
CARD and the DGP projects are achieved and lead to an improved ability of dragon fruit
farmers to access higher value markets.

7.3 Sustainability
Sustainability is being addressed by the project through:
• Development of the national capacity
• Training of exporters, packers and farmers by practical demonstration through the
Top Down pilot
• Systematically expanding the model to other groups and areas
• Providing the critical mass of EUREPGAP-compliant fruit for high value market
evaluation as early in the project as possible, to demonstrate the financial viability of

Contact: Robert Webster
Project Director, VNCI
Phone: (84-8) 827-9488
Email: [email protected]
www.vnci.org
EXPERT RECOMMENDS STRATEGY FOR MARKETING
DRAGON FRUIT IN EUROPE
HO CHI MINH CITY − Dragon fruit from Vietnam already enjoys a strong reputation among
European importers, but as competition from other exporting countries increases,
Vietnam’s fruit industry must take action to maintain and improve its market share.
Steven Humphreys, an international expert on marketing tropical fruits in Europe,
discussed these and other findings with over 60 fruit industry stakeholders today at a
workshop sponsored by USAID’s Vietnam Competitiveness Initiative (VNCI) project. A
similar event will also be held in Binh Thuan province on July 15.
According to Mr. Humphreys, the principal challenges confronting Vietnamese producers
and exporters in the European market include: high transportation costs, lack of access
to new varieties of fruit, and greater availability of dragon fruit from other countries such
as Thailand, Israel and Colombia. “In order to sustain its current position as the dominant
supplier of dragon fruit in Europe, the Vietnamese fruit industry should work together to
address these constraints. There are several specific steps that stakeholders can take,
including: improving fruit quality through application of EUREPGAP procedures and
adoption of new and better varieties, lowering air freight costs by consolidating
shipments and improving packaging, and focusing on key markets such as the
Netherlands and France, where the main buyers of dragon fruit are located,” he