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 MS3: SECOND SIX MONTHLY REPORT June 2006

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1. Institute Information
Project Name
Improvement of export and domestic markets for

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

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:
[email protected]

identified key pre-and post-harvest technology gaps that reduce product quality, safety
and consistency. Targeted training programs are focusing on the total supply chain and are
providing benefits by helping to implement quality management systems and GAP
systems at the village level providing greater employment 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
Baseline surveys were conducted for mango in Tien Gien and Khanh Hoa Provinces
and for pomelo in the Vinh Long Province. In total, over 120 farmers, 30 collectors
and 20 wholesalers were interviewed by the Vietnamese collaborators to obtain vital
information on how the mango and pomelo supply chians are operating.

Initial fact finding and surveys indicate that GAP, IPM and IDM issues are the largest
issues affecting fruit quality in both mango and pomelo supply chains. GAP manuals
are being developed based on current, and newly developed Asian Good Agricultural
Practice (GAP) principles. Initial drafts of manuals have been completed for Mango
Cultivation Handbook, Mango Pest Control Handbook, Mango Disease Handbook
and Pomelo Cultivation, Pest and Disease Control Handbook, and further
development of manuals is being undertaken. Post-harvest handbook for mango is
being developed in collaboration with SIAEP and SOFRI staff.
Workshops have been conducted using participatory action learning processes to
enhance the knowledge of SIAEP and SOFRI staff. Workshops were conducted on:
• developing supply chain maps on product movement, information and
monetary flows
• understanding of how supply chains function
• a strengths, weakness, opportunity and threats (SWOT) analysis
• a supply chain process analysis, that identified problems and solutions for
mango and pomelo supply chains

This project addresses serious constraints through identifying key Vietnamese
stakeholders from both government and industry sectors. It engages them and
empowers them by focusing on the total supply chain network, and identify where
benefits are to be gained.

Stakeholder/beneficiary analysis conducted at project scoping and development stage
showed that mango is an important fruit crop in the Mekong Delta (33 000 ha), and in
the Khanh Hoa central coastal province (9 200 ha). Pomelo is also important in the
Mekong Delta (9 000 ha). The objectives of the project are:

• Improved pre-harvest technologies to produce high quality mango
(integrated pest management, integrated crop management, fruit fly control,
maturity indices, reduced pesticide residues, better environmental and
human health etc)
• Improved mango and pomelo post-harvest technologies (eg cool chain
management, packaging, post-harvest dipping, ethylene ripening, waxing,
washing and wetting agents, quality assurance)
• Improved quality standards and quality assurance programs for mango and
pomelo. The approach and methodologies developed for these crops
through this project will be applied to other fruits and vegetables.

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• Mapping of current supply chains to domestic and selected export markets,
with particular emphasis on determining consumer preferences and needs,
and reporting results back to farmers.
• Provide a better understanding and possible improvements of the supply
chain by Vietnamese fruit industries for mango and pomelo.

This project will fill capacity gaps and reduce major weaknesses in pre-and post-
harvest technologies affecting product quality consistency and supply chain

lower poverty line defined by Vietnamese General Statistics Office (GSO) is;
expenditure per capita required for securing a minimum nutritional requirement (2100
calories per day). Therefore, the poverty rate below the lower limit calculated by the
(GSO) in 2003 showed that the total poverty percentage for each Vietnamese region
where this project is operating is:
• Mekong Delta 23.7%

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• South Central Cost 25.9%

These percentages are lower than Vietnam’s average poverty rate of 28.85 percent.

The only other region to record a poverty rate below this is the Red River Delta region
(22.4%).

The rural poverty rates have the similar trends and are:
• Mekong Delta 26.56%
• South Central Cost 31.27%

In total, over 120 farmers, 30 collectors and 20 wholesalers were interviewed by the
Vietnamese collaborators to obtain vital information on how the supply chains for
mango and pomelo are functioning in Vietnam. Surveys will be conducted at the end
of the project for further comparisons.

Survey data was presented at the first workshop during the second project trip in
April-May 2006. Information obtained was then used in subsequent workshops to
develop models of the supply chains for mango pomelo operating in Vietnam and to
develop the strategic plans for mango and pomelo.

Brief Summary of Mango Baseline Survey Information

• Price is usually set and established with farmers on day of sale or the day
before and based on the market supply on any given day.
• Majority of farmers do not know the price of mango at the HCMC wholesale
market.
• Wholesalers reported that most fruit will keep for 4 days with out the use of
special storage facilities. Presently there are no storage facilities located the
HCMC wholesale markets for wholesalers to use).
• At the wholesaler point in the supply chain, once the fruit is mature, for each
day that it is not sold, traders will reduce the price by 500-10 000 vnd/kg.

Brief Summary of Critical Pomelo Baseline Survey Information
• In the Mekong Delta, the Vin Long Province is considered as the leading
growing region in Vietnam for Pomelo.
• Total area and production in the Southeast is 1 422ha, producing 12 932
tonnes/year and for the Mekong Delta Region 8 298ha producing 108 916
tonnes/year.
• The pomelo variety “Man Roi” is considered the number one variety in
Vietnam.
• There are as many as 2 to 4 grades/standards of fruit depending upon market
and time of season. Each class grade standard changes, based on early season
production, mid-season and late-season production. For example, local market
there are 2 classes/grade standards, Hoang Gia Company uses 3 classes or
grade standards and the wholesale market in HCMC 4 classes or grade
standards.
• In the Mekong Delta, about 62% pomelo fruit are transported from farm to
collector by boat, and 66% transported by road to HCMC and the remainder
by boat in 80 to 85kg bamboo baskets.
• Of the total production from Vin Long Province it is estimated 5% to 6% is for
local consumption. In 2004, Metro Cash and Carry marketed 145 tonnes of
pomelo fruit. Also in 2004, 50 tonnes of pomelo was exported to Germany.

essential that these elements be corrected first before any substantial change can be
achieved though the supply chain. Participants downstream along the supply chain
cannot enhance fruit quality only maintain it with good practices and the saying
“garbage in garbage out’ is typical of any supply chain with poor quality fruit entering
the chain.

Integrated pest management (IPM) and biological control methods have been well
established in many developed countries. However, increased consumer demand for
'clean and green' products, greater understanding of occupational health and safety on
farms, and ecological and environmental issues and higher chemical costs have all
combined to highlight the need for greater IPM and IDM type practices. Vietnamese
growers must develop practical IPM and IDM systems to suit their own industry
situations and implement them to be international and domestically competitive as
well as scio-economically and environmentally sustainable.

Mango and Pomelo Industry Development

Three Australian team members travelled to Vietnam in April-May 2006 to conduct
capacity building exercises and run a series of 6 workshops. These workshops used
participatory action learning processes and capacity building for SIAEP and SOFRI
staff to develop:
• supply chain maps
• conduct a strengths, weakness, opportunity and threats (SWOT) analyse
• carry out a supply chain process analysis
• develop strategic plans for mango and pomelo supply chains for participating
CARD project members.

CARD Project members participating in these workshops were SIAEP and SOFRI
staff, farmers, collectors, traders, wholesalers and marketers etc., (see Appendix B).
All were involved in a participatory action learning process to develop the supply

Maintain stable incomes (prices) and consistent access to good markets by improving
pre-and post-harvest practices, QA standards, and obtain a balance between supply
chain partners, and investment in infrastructure so that consistent quality and quantity
is supplied to our customers.

Pomelo
Develop production/post-harvest and marketing practices that will provide the right
quality and quantity of fruit to our markets (export, domestic and processing),
consistently and for the long-term.

Mango Strategic Plan (Summary)
Skills &
Technology
Infrastructure Information Other
1. Improve
production process
(e.g. follow GAP)
(5i,5v)
Priority 1
3. Need handling
equipment
(coldroom,
packhouse and
transportation)
(1i,1v)
7. Need market
information for
export and
domestic markets
(4i, 3v)

5. Need technical
support to improve
storing, packing
9. Need info
services like
internet
12. Need to
improve the
linkages between

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and packaging
material
(2i,3v)
Combined as
Priority 4
(3i, 1v) farmers – traders –
customers.
Scientists and
government also
need to be
involved.
(4 links)
(4i,4v)
Priority 2
6. Post-harvest
handling,
chemicals and
storage
(1i,1v)

farming-harvesting (Guidance for GAP)
(5i,6v+2i,2v) +point 4
Priority 1
2 Lack of capital Difficult policy of loan Supporting capital/investment in
infrastructure
(6i, 0v + point 13) Priority 2

3 Advice/counsel on
standards/specifications of products
(0i, 6v) Priority 3

4
Abuse of
pesticides/chemic
als
Lack of knowledge

No guidance/ instruction
received from technicians
Training on IPM
(2i, 2v) combined with 1
TRADERS

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12 Poor quality products Collecting from small-scale
farmers
Intensively farming & programming
production area – monoculture (1i,
4v) Priority 4
13 Weakly competitive

Workshop evaluations
The ORID system was used to evaluate the effectiveness of the workshops. ORID
stands for Objective, Reflective, Interpretive, and Decisional. Both Vietnamese
industry and institute staff were surveyed at the end of our workshop and a summary
presented below.

The workbooks and materials supplied to participants and translation of these
workshops into Vietnamese showed that 55% found them very useful, while the
remaining 45% found them highly useful. Fifty percent understood workshop
concepts very well, while the remaining 50% said satisfactory. Eighty three percent
of the group indicated they would be confident in using these concepts with other
supply chains and this training fulfilled their expectations while 100% indicated they
would like further training. This will be carried out as this CARD Project enters its 2
and 3 years.

Smallholder Benefits
Each of the CARD project groups and have show greater initiative by looking for new
approaches to solving problems. A good example, is a group of mango
grower/farmers have been stimulated into proactively addressing and developing new
and improved harvesting, handling and packaging systems which resulted in improved

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net returns last year. This provided greater socio-economic benefits to the village and
wider community. This cooperative has increased Class 1 fruit sales by 10%. New
methods for picking and handling of fruit after harvesting, packaging of fruit in
fibreboard cartons have been developed and are carried out at the cooperative level.
Fruit are marketed under this groups own cooperative trademark. This has
highlighted the benefits of have both public and private sector involvement in such
projects and how ordinary farmer’s can become leaders of change and build capacity
at the local level.

Trainer’s workbook and workshop manuals were provided to each participant.

Workshop 2 was for the CARD project supply chain participants (grower/farmers,
cooperatives, collectors, traders, wholesalers and marketers, etc). Each workshop
participant was trained using participatory action learning methods. This workshop
enhanced their knowledge of:
• how supply chains function and develop maps of product movement,
information flows, monetary flows
• an audit of strengths, weakness, opportunity and threats (SWOT analyses) on
the supply chains

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• develop strategic plans for mango and pomelo supply chains and this CARD
project.

Workshop 3, 4 and 5 were carried out at the village grower/farmer collector level.
Each participant was trained using participatory action learning methods. SIAEP and
SOFRI staff were trained in supply chain process analyse and conducted these process
analysis at each workshop undertaken with these groups. These workshops provide
additional training in the processes used during Workshop 2 and subsequent field
days. They were to:
• confirm the accuracy of information obtained during Workshop 2
• obtain additional information about commercial practices, quality loss etc.
• confirm whether the proposed strategic plan is accurate and appropriate

Workshop 6 was to:
• develop and discuss how to implement the relevant sections of the action plan
developed from the strategic plan
• plan the activities for the next 12 months of the project in view of the
requirements of the action plan

• supply chain development and evaluation processes

There has been no change to the project team during this reporting period.

6. Report on Cross-Cutting Issues
Environment
Many environmental issues were identified during consultation with grower/farmers
during the participatory action learning workshops. Conducting the supply chain
process analysis during these workshops issues raised were:
• contamination of irrigation water (salt and grey water)
• disposal of grey water and by product contamination of waterways
• agricultural spray application methodology and practices
• type and amount of fertiliser, their application methods to reduce
environmental contamination
• mixed farming methodology and cultural practices (mixed plant and animal
farming practices)

Poor agricultural practices can create serious problems in the Mekong Delta and
contamination of land and waterways through:
• soil management and disturbance (particularly acid sulphate soils (ASS))
• incorrect water management and irrigation systems
• incorrect and constant use of agricultural chemicals (insecticides, growth
regulators etc.)
• incorrect use of fertilisers (both organic and inorganic)

This may lead to:
• increase salinity
• decrease in productivity of crops and local aquaculture
• spread of contaminates, poisoning and increase of infectious diseases with in
the local community

• flowering and fruit set
• fruit development
• and vegetative growth phases

Therefore, monitoring of soil water is essential to eliminate excessive plant stress at
these critical times. Excessive moisture stress (drought) or over-watering can affect
cropping capacity and product quality as well as nutrient and pesticide runoff into the
environment. Good farm and orchard design is essential to ensure any runoff is
trapped on farm. This is an essential element of GAP. This element is often
overlooked or neglected due to the cost of re-establishing an orchard or loss of viable
producing area to ensure the environment is protected. There are no incentives or
subsidies and farmers/growers are forced to provide these costs out their own pocket,
reducing their viability even though there are wider social, ecological and
environmental benefits, such as reduced incidences of contractible diseases, cleaner
environment (fewer pollutants) and a healthier life for the community from such
practices.

Agricultural Chemical Usage
Ministry of Agriculture and Rural Development Department (MARD) Plant
Protection unit have documented that farmers and other pesticide users usually ignore
the risks, safety instructions and essential protective measures in using chemicals.
Records showed that 11% of all poisonings in the country are due to pesticides:
approximately 840 poisonings in 53 cities and provinces in 1999 in Vietnam. Surveys
conducted by the Plant Protection Department have shown that 80% of farmers in the
South of Vietnam consider pesticide application the essential component of the
production system compared with other control practices.

On farm chemical management involves many aspects:
• types of chemical (formulations)
• mode of action (contact or systemic)

the project. At the farmer level, there have been difficulties in past projects to
encourage women to join as members of cooperatives with very few represented both
as general members and even less at a management level. This is an ongoing
challenge facing cooperative development as in general, the patriarch of the
households will join as members of the cooperative and the female member of the
household will only attend meetings if her male partner is unable. However, it has
been recognised that women play a variety of roles at all levels of both mango and
pomelo supply chains and strategies are being trialled to seek out and encourage the
involvement of women in the project.

Past experience has shown that at a farmer level, women are most likely to provide
input and participate in training when it is of a more informal nature and not overly
time consuming. Small group meetings held in members’ homes (outside of common
meal times) where female family members have been encouraged to participate have
proven to be a successful technique in drawing out opinions and gaining valuable
insight into the role they play as multi-task managers both in the home and as part of
the agricultural production activities. Book keeping is often a role taken on by
women at a farm level and many have a good understanding of fluctuating input
prices, market prices and impact on overall farm profitability. This information is
particularly valuable when attempting to analyse existing supply chains in terms of
resource flows.

Women are often heavily involved in the post-harvest marketing and sale of the fruit
also. They often represent the majority of collectors, wholesalers, traders and retailers
in both local and HCMC markets, so further upstream training should be designed to
address these roles and encourage their participation. In the recent project visit, one
particular female collector who runs a large business collecting, grading and

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transporting fruit from southern Vietnam to central and northern markets was visited

Standardised harvesting practices will be difficult to implement for both mango and
pomelo. When prices are high, grower/farmers will harvest immature fruit to take
advantage of high prices (market supply and demand curves:- high demand =
increased prices plus low supply = small quantity available). Convincing
grower/farmers to stick to standards when market prices are high and to establish a
name or their trademark or brand will be extremely difficult.

Fruit grade standards for mango will be difficult to implement, particularly when
current practices by grower/farmers who selling mixed fruit classes (Class 1 to Class
3) in the same baskets. They see quantity as the primary indicator of money returns to
farming as opposed to fruit quality being the primary indicator of increased farm
returns.

Many grower/farmers have received IPM training but found it extremely difficult to
implement and many revert back to previous practices. Training is often carried out
in other regions and no demonstrations are carried out on farms in their locality.

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Calender spray regimes are used to control pests and diseases and these do not suite
local environmental conditions being experienced when sprays have to be applied.

All grower/farmers have experienced severe difficulties in implementing GAP.
Significant problems raised were during workshop and discussions centred on issues
such as:
• pollution of irrigation water
• intercropping (citrus and cash crops under trees)
• animals (chickens) running loose in the orchards
• difficulties in applying sprays
• fruit bats are a causing significant problems
• fruit fly is also a problem


Emu Exports Vietnam are constructing a packing facility and training centre. This will
be operational by March next year in the Cam Ranh District, Khanh Hoa Province.
This facility will be have a cool and ripening rooms, line grader, packaging equipment
etc. Fibreboard boxes will be used to package mango fruit for export. The CARD
project will take supply chain participants to visit these facilities and provide training

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on how Emu Exports Vietnam is implementing and maintain GAP principles (pre-and
post- harvest), grade standards and their supply chain to markets.

During this CARD Project training in IPM and IDM will be provided at the local
level.
• how to conduct and carry out monitoring for pest and disease
• identification of type crop damage
• identification of pest and disease causing crop damage
• when and how to spray
• on farm chemical management (as indicated above in 6 Report on Cross
Cutting Issues, Environment Agricultural Chemical Usage)
• and implementation of GAP principles

Sustainability
This project is addressing sustainability issues through
• participatory action learning process involving CARD project supply chain
participants (grower/farmers, collectors, traders, wholesalers, exporters)
section of champions or industry leaders.
• train the trainer workshops of SIAEP and SOFRI project staff who will have
capability to expand methodologies and process used in this project to other
industries
• workshops that provide information on GAP, IPM and IDM principles and

selected better retail outlets
• Improve linkages between growers, traders, customers, scientists and
government also need to be involved.
• Develop high value supply chain
• Improve practices to provide high quality fruit
• Re cycle orchards as a long term plan to provide high quality fruit

For a complete breakdown of the CARD project critical steps see the Mango and
Pomelo Action Plans outlined in Appendix C.

9. Conclusion
This project is still receiving support and a high level of commitment from all the
project participants (grower/farmers, collectors, traders, wholesalers, exporters,
Vietnamese Institutes (SIAEP and SOFRI) and Australian staff involved.

Information gathering and surveys methodologies undertaken have proven to be
highly successfully in obtaining an understanding of the Vietnamese mango and
pomelo supply chains and have identifying problems areas and possible solutions.

Significant progress has been made on documenting the supply chain for mango and
pomelo and excellent progress in developing the strategic and action plans for mango
and pomelo.

SIAEP and SOFRI have committed and provided staff for implementation of the
mango and pomelo action plans and strategic plans that will ensure the objectives of
the CARD project are met.