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 MS6: FOURTH SIX MONTHLY REPORT

July 2007

1
Table of Contents

1. Institute Information 1
2. Project Abstract 3
3. Executive Summary 3
4. Introduction & Background 5
5. Progress to Date 6
Implementation Highlights 6
Smallholder Benefits 12

Australian Personnel
Mr. Robert Nissen
Dr. Peter Hofman
Mr Brett Tucker
Mr. Roland Holmes
Ms Marlo Rankin
Date commenced
June 2005
Completion date (original)
May 2008
Completion date (revised)
June 2008
Reporting period
Progress Report 3 Six Monthly January
2007

Contact Officer(s)
In Australia: Team Leader
Name:
Mr. Robert Nissen
Telephone:
+61 07 54449631
Position:
Project Leader
Fax:
+61 07 54412235
Organisation
Queensland Department of
Primary Industries and
Fisheries (DPI & F)

+84 (8) 8438842
Organisation
Southern Sub-Institute of
Agricultural Engineering and Post-
Harvest Technology (SIAEP)
Email:
2
2. Project Abstract

The fruit industry in Vietnam has a great potential and plays an important role in
agricultural production. In 2003, Vietnam exported US$43 million of high value fruit to
high-income countries and imported US$14 million of fruit and vegetables. 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 Vietnam’s
horticultural industries require substantial development to be globally competitive.
Vietnamese consumers are demanding safer and higher quality fruit. This project has
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
Studies on mango and pomelo fruit quality characteristics have been carried out. Results will
help establish fruit quality characteristics that will be used to develop quality guides for the

2. Need to improve the linkages between farmers – traders – customers, scientists and
government also need to be involved
3. Need market information for export and domestic markets
4. Improve packing and storing procedures/Need technical support to improve storing,
packing and packaging material
5. Government to help with planning and development for specialised fruit growing area

Top 5 Priorities for the Pomelo Strategic Plan:- Listing in Order of Importance for Mango
Industry
1. Supporting techniques from seedling–farming-harvesting (Guidance for GAP)
2. Advice/counsel on standards/specifications of products
3. Intensively farming and programming production area
4. Training on IPM
5. Improving applicability of farming techniques and technologies of harvesting,
packing and transporting

Preliminary socio-economic farmer surveys on Xoai (Mango) cultivar “Cat Hoa Loc”
farmers in the Hoa Hung Commune, Cai Be District, Tien giang Province in the Mekong
Delta of Vietnam indicates that:-
• Growers with high levels of management practices and high input levels obtain a
profit of VND 15,105,000 per 1000m
2
, 2.1 times greater than growers with mid level
management practices and mid level inputs and 3.7 times greater than grower with
low level management practices and inputs.
• For a 1000m
2
area of mango the average farmer input is VND 6,405,000.
• The average yield per 1000m
2

has a comparative advantage, particularly where land holdings are small, labour is abundant
and markets reasonable accessible (Weinberger and Lumpkin, 2006). This situation is
particularly true in Mekong Delta and Central South Cost Province of Khanh Hoa, Viet Nam.

Ford et al., (2003), suggested the competitiveness of Vietnamese fruit industries were failing
due to poor, unstable product quality, no quality standards, poor post harvest technologies
and pre-harvest practices, lack of group co-operative marketing structures and little
information about supply chains, prices and customers needs.

This project is addressing these constraints by engaging with key Vietnamese stakeholders
from research institutes (SIAEP and SOFRI) and local farmers in the mango and pomelo
industries in Southern Viet Nam. This project has taken account of the total supply chain
network and focused on where significant benefits are to be gained in the pre- harvest, post-
harvest and marketing sectors.

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.
• 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


For example, studies on pomelo cv. “Nam Roi” and “Da Xanh” have been carried out and
data collected on fruit quality characteristics. Market requirement characteristics reported on
include:
Fruit shape
• Skin Colour
• Weight
• General Appearance
• Number of seed
• Rind colour, thickness and easiness to peel
• Flesh firmness, colour, juiciness flavour and separation flesh sacks from the segment
locular wall.

Studies on fruit quality characteristics for mango cv. “Cat Hoa Loc” and “Cat Chu” to
develop market quality characteristics included:
• Fruit shape, size, appearance
• Skin colour
• Brix levels
• Damage and defects (sapburn, disease and pest, cuts punctures, abrasion marks etc.)

See Appendix B for summary of pomelo and mango quality characteristics to be used for the
quality manual guides for Vietnam’s pomelo and mango industries.

Studies on mango sapbrun undertaken by SOFRI staff showed that the percentage of mango
fruit affected by sapburn ranged from 16% to 50% with an average of 33% across 5 markets
in Can Tho city.


for Sale in Northern Vietnam). Many fruit had multiple defects severely affecting consumer
acceptance and product saleability.

The disease Anthracnose (Colletotrichum gloesporiodies) severely affects mango post-
harvest life and fruit quality. The fungus remains dormant on green fruit until it begins to
ripen. As the natural resistance of green fruit breaks down, the fungus can grow unchecked
unless post-harvest treatments to control the disease are applied.

Therefore training on mango post-harvest physiology was conducted by the Australian team
in July 2007. One demonstration conducted during this training showed the use of a mango
stem sap remover which eliminates fruit sapburn. The use of this product alone will have a
significant impact on fruit quality and post-harvest storage life of mango as it will also help
stop fruit being affected by Anthracnose. Post-harvest treatment with Sportak ® is also
recommended.

In Australia there are two main treatments available. A hot dip using carbendazim (Spin
flo®) or a dip or flood spray with prochloraz (Sportak®). Your choice of treatment depends
on the level of disease in the orchard and the incidence of the other major fungus, stem-end
rot. If stem-end rot is not a problem, you can treat with prochloraz alone; if it is a problem,
you will need to use a hot carbendazim dip.

Post-harvest treatment trials conducted a SOFRI on controlling Anthracnose have proven to
be highly successful (see Appendix B) but skin scalding and browning and los of water from
the fruit are evident.

7

For Vietnamese growers, adopting such practices will be difficult. Chemical costs,
implementation of correct chemical dipping rates and controlling the hot water temperatures
and treatment practices involve complex processes. In Australia, many mango growers still

milestones 4, 7 and 9.

Top 5 Priorities for the Mango Strategic Plan:- Listing in Order of Importance for Mango
Industry
6. Improve production process (e.g. follow GAP)
7. Need to improve the linkages between farmers – traders – customers, scientists and
government also need to be involved
8. Need market information for export and domestic markets
9. Improve packing and storing procedures/Need technical support to improve storing,
packing and packaging material
10. Government to help with planning and development for specialised fruit growing area

Top 5 Priorities for the Pomelo Strategic Plan:- Listing in Order of Importance for Mango
Industry
6. Supporting techniques from seedling–farming-harvesting (Guidance for GAP)
7.
Advice/counsel on standards/specifications of products

8
8. Intensively farming and programming production area
9. Training on IPM
10. Improving applicability of farming techniques and technologies of harvesting,
packing and transporting

Action Plans for the Implementation of the Strategic Plans
In May 2006, key roles and responsibilities were allocated for the implementation of the
strategic plans developed. Actions undertaken as per these plans are as follows:-

Action 1. Development of GAP including pest and disease management (IPM/IDM)
Mango Priorities 1, 2 & 5

c. Analysing Supply Chains
d. Determining Improvements and Developing new Supply Chains
e.
Developing Action Plans
f. Evaluating and Monitoring Supply chains
4. Supply/Value Chain Analysis: Surveys and Interview techniques and questionnaires
Design
5. Quality Flows: Monitoring Quality via Sequential Sampling of Mango and Pomelo
down the length of the Supply/Value Chain
6. Developing New Improved Horticultural Supply Chains

9
a. How to Develop a New Supply Chain
b. Market Research and Segmentation
c. Building and Marketing Strategy
d. Supply Chain Development
i. Getting The Product right
ii. Building Effective Information and Communication Strategy
iii. Building and Effective Distribution and Logistics System
iv. Building Effective Relationships
v. Creating Shared Value
1. Monitoring Quality
2. Packaging
7. Mango and Citrus Orchard Design
a. Orchard Layout
b. Farm access and facilities
c. Water courses and dams
d. Positioning rows
e. Training and pruning systems
f. Planting trees

10
Workshop evaluations
The ORID system was used to evaluate the effectiveness of the four workshops conducted in
July 2007. Both Vietnamese farmers and SIAEP and SOFRI staff were surveyed at the
completion of each workshop. The workshops conducted were:
• Mango Post-Harvest Physiology Workshop
• Designing Training Workshops for Mango and Pomelo Farmers
• Developing Fruit Quality Guides for Mango and Pomelo Industries
• Socio-economic Analyses of Supply Chains

Analysis of the four workshops using the ORID system showed on average that:-
• workshop length:- 92% of participants found that the workshops were of the right
time length with the remaining 8% indicating that they were too short.
• trainees understanding of concepts:- 50% of participants understood the concepts very
well, with the remaining 50% understanding concepts well.
• new information:- 91% of all participants indicted that a high proportion of
information presented was new to them with the remaining 9% indicating most of the
information was new to them.
• usefulness of information provided:- 72% of participants indicated that the
information would be very usefully in working with other professionals and growers
to develop new supply chains, whilst the remaining 28% indicated that all the
information would be useful.
• trainees use of methods and material:- 85% of participants indicated that training
methods used and information provided would be used by them to conduct their own
workshops.
• trainees confidence in using techniques and methodology:- 91% of participants
indicated that their confidence would improve with further training.

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• Mile stone 4 January 2007
o Methodology, analytical techniques and training material for supply chain
analysis and development
o Supply Chain maps for Mangos and Pomelos.
o Strategic Plan for Mangos and Pomelos
• Milestone 5 January 2007
o 3
rd
Six monthly report submitted and statutory declaration and training inputs
highlighted
• Milestone 6 September 2007
o 4
th
Six monthly report submitted and statutory declaration and training inputs
highlighted.

Smallholder Benefits
This CARD project has also demonstrated that improved on farm practices (new orchard
designs; pruning and training systems; IPM and IDM systems) will greatly improve the
living standards of farmers via implementation of improved farming and supply chain
practices. Whilst many of these practices are a significant improvement on traditional
practices they are only part of a sustainable GAP system. On farm socio-economic studies
carried out by SOFRI and SIAEP staff showed that improvements via increased inputs and
management practices significantly improve farmer’s returns in the Mekong Delta.

Mango
Preliminary surveys of Xoai (Mango) cultivar “Cat Hoa Loc” farmers in the Hoa Hung
Commune, Cai Be District, Tien giang Province in the Mekong Delta of Vietnam indicates
that:-

Medium
Ratio
(times)
High vs.
Low
Unit production cost
(VND 1000/kg)
6.7 7.8 8.7 7.7 0.9 0.8
Unit production profit
(VND 1000/kg)
11.4 8.6 6.8 8.9 1.3 1.7
Input profit (%) 2.1 1.2 0.8 1.4 1.7 2.6
Unit of Profit of area
(VND 1000/1000m
2
)
15,105 7,332 4,112 8,850 2.1 3.7

12Pomelo
Preliminary surveys of Buoi (Pomelo) cultivar “Nan Roi” in the My Hoa Commune, Binh
Minh District, Vinh Long Province in the Mekong Delta of Vietnam indicates that:-
• Growers with high levels of management practices and high input levels obtain a
profit of VND 3,576,000 per 1000m
2
, 2.4 times greater than growers with mid level
management practices and mid level inputs and 3.9 times greater than grower with
low level management practices and inputs.

Unit production cost
(VND 1000/kg)
1.8 2.1 2.3 2.1 0.8 0.8
Unit production profit
(VND 1000/kg)
2.5 1.8 1.6 1.9 1.4 1.6
Input profit (%) 150 90 80 110 1.7 2.0
Unit of Profit of area
(VND 1000/1000m
2
)
6,427 2,624 1,652 3,567 2.4 3.9 Developing new chains
This CARD project is through SIAEP and SOFRI staff are working with the various groups
of the supply chain participants (farmers to consumers) in the mango and pomelo supply
chains in Vietnam. Many farmer groups and chain participants are now taking greater
initiatives by developing new alliances and approaches. For example:- groups are now
preparing to supply retailers “Metro” and “CopMart” with product sourced from the Mekong
Delta. This is an example of how this project has developed the capacity of farmers,
collectors, traders and wholesalers to link with large consumer outlets even though there are
many problems to overcome. Significant improvements in product quality and food safety
will not be achieved overnight. Careful planning and development of these supply chains
will have to be undertaken to ensure that all chain participants create value and receive a fair
share of the rewards.

Capacity Building
Training workshops processes
SIAEP and SOFRI Staff members along with several key growers participated in four

-31
st
July 2007:- Workshop 1
• 1
st
-2
nd
August 2007:- Workshop 2
• 3
rd
-4
th
August 2007:- Workshop 3
• 6
th
-7
th
August 2007:- Workshop 4
• 7
th
-8
th
August 2007;- Workshop 5

Field visit to SOFRI was undertaken where the “Developing quality assurance guides for
mango and pomleo in Vietnam” was conducted in conjunction with farmers.

Training manuals and PowerPoint presentations developed for workshops were:
• Post-harvest physiology and handling of mango
• Designing workshop for mango and pomelo farmers in Vietnam

industries provide a product suited to the overseas target market ; and
• the provision of training in post-harvest fruit handling to approx 700 Vietnamese fruit
growers and supply chain participants.

Governments and agribusiness enterprises in fast growing economies in countries in South
East Asia are fast tracking industry improvement by importing state of the art research,
production and supply chain management expertise. DPI&F, with a range of government and
commercial partners, will continue to take advantage of a growing market for the
international transfer of primary industries skills and knowledge.

The model used in this project will improve DPI&F’s capability and capacity to take
advantage of similar opportunities in the future.

Mr Nissen has written a paper on “Development of new processes for evaluation and
implementing new improved horticultural supply chains operating in the transitional
economies of south-east Asia”. Mr Nissen will orally present this paper at the International
Society of Horticultural Science Conference in Hanoi, September 2007. Processes developed
and used in the AusAID CARD funded project and their successes will be highlighted at this
conference by Mr Nissen.
Project Management
Linkages to other projects
Even closer linkages with the joint RMIT and DPI&F project staff working on Quality
Assurance Systems for ASEAN Fruit and Vegetables (QASAFV) have been undertaken.
The QASAFV project is one of 10 projects initiated under the ASEAN Australian
Development Cooperation Program (AADCP). Exchange of information has occurred on a
regular basis. The information exchanged covered areas such as:
• product quality concepts and quality assurance guidelines
• development of ASEAN GAP standards
• supply chain development and evaluation processes


Reasons for the delay in project activities from May until July-August 2007 are:-
• Dr. Peter Hofman’s wife has been hospitalised to have a hip operation on the 24
th
of
April. It is expected that her recovery will take two months. Dr Peter Hofman does
not wish to travel for two months until his wife has recovered. Dr. Peter Hofman is
one of the principal trainers for the post-harvest physiology section and was to train
the Vietnamese collaborators in mango post-harvest physiology.
• Dr Peter Hofman injured his back in June and is unable to travel. In July 2007 Dr
Peter Hofmam is still recovering from a back injury sustained earlier in the year and
due to its slow recovery is working from home. Dr Peter Hofman has been advised
not to travel in 2007 and therefore will not be available for travel for the rest of this
year.
• Emu Exports Pty Ltd (Vietnam) is the Qld based company we are working closely
with in Vietnam. We were to visit Emu Exports facilities and use their training rooms
and packing shed near Nha Tran in Vietnam to train the Vietnamese farmers and
collaborators. Training was to include:- harvesting, transport, handling, sorting and
grading and packing. Emu Exports has had a crop failure in Vietnam there is less

16
than one container on the 10ha orchard. Therefore, no fruit is available for training
the Vietnamese farmers and collaborators. We have negotiated with Emu Exports
(Vietnam) and have rescheduled this training for May 2008.
• Our Vietnamese collaborators at the Southern Sub-Institute of Agricultural
Engineering and Post-harvest technology (SIAEP) are installing some equipment at
the Emu Export packing shed near Nha Trang in Vietnam. The delivery and
installation of this machinery has not been completed and SIEAP requested that the
training be held off until the machinery installation has been completed.
• Mr Nissen was scheduled to go into hospital in May, for a minor procedure. Due to
the timing of this procedure Mr Nissen was not able to travel as per the scheduled

water and by product contamination of waterways and over watering and nutrient
leaching and runoff 17

Agricultural spray application, methodology and practices
Understanding how risk plays a very important role in decision making processes used by
many Vietnamese farmers is critical to developing solutions to problems with agricultural
spray applications. Even though risk is not directly spelt out in surveys or answers provided
by farmers in Surveys conducted as part of the CARD Project, risk does impact heavily on
their decision making process.

Whilst many farmers are conscious of environmental impacts, they indicate problems with
incorrect chemical usage and overuse of chemicals is happening. The harsh reality is; if they
do not use chemicals, the fear of crop loss is very high and the impact on family income
overrides their many of their concerns listed above. This issue was very evident during the
farmer CARD Project training workshop in November 2006 on mango and citrus orchard
design. As a consequence of these fears, continual use of unregistered chemical sprays and
calendar spray regimes are practiced. This practice can lead to food safety issues, as well as
the environmental contamination of waterways and disease resistance due to incorrect
chemical rates and overuse.

At times there are only a few alternatives to calendar spray regimes but training in IPM and
IDM systems will lead to a substantial change in agricultural chemical usage.
Implementation of good IPM/IDM systems and demonstrations are essential to achieve
farmer acceptance of such a system. The use of monitoring systems can substantially
decrease chemical usage, decreasing food safety issues and chemical impact on the
environment. Monitoring systems need to include:
• weather conditions

Project in November 2006 using participatory action learning and farmer training farmers
methods. This highly successful workshop resulted in many farmers drawing orchard plans
and discussion on how to change existing orchards. GAP on farm practices to eliminate:-
• acid sulphate soils (ASS) disturbance
• nutrient runoff
• irrigation and water management

Chemicals:- The use of targeted chemicals specially designed to control a particular disease
is essential. Reliance on continual use of a calendar chemical spray regime and especially in
tropical regions can quickly result in disease resistance. Orchard monitoring for the disease
and correct timing of chemicals applications at the correct rates can significantly reduce:-
• incidence of the disease in the orchard and on the fruit
• number of sprays required
• farmer input costs (chemical and application costs)
• chemical residues on fruit, therefore eliminating food safety concerns
• environmental contamination of soil and water ways

Farmer training in orchard pest and disease practices will be carried in October 2007 with
mango and pomelo farmers in the Mekong Delta (Tien Giang and Vinh Long provinces) and
Nha Trang province.

Post-harvest management practices:- Temperature management of fruit after harvest is
also critical in reducing post-harvest problems with anthracnose. Therefore, making sure
fruit are cooled within 48 hours after harvest for storage and transport is critical. Post-
harvest dipping of fruit, correct handling during and after harvest and packaging stacking and
storing is essential to reduce the incidence of anthracnose on marketed fruit. Training was
conducted by this CARD project in July 2007 on mango post-harvest techniques.

Gender and Social Issues
Social Issues

o disease free material, pumps, chemicals, spray tanks, packaging etc.
• monetary resources
o purchase equipment and implements new practices and systems etc.
• knowledge and information
o how to obtain knowledge:- from whom and where
o how carry out GAP practices (Example:- how to apply sprays correctly,
timing of sprays for control of pests and diseases as well as fertiliser, and
irrigation practices etc.

As mentioned above surveys conducted as part of this CARD project have found that mango
farmers with high levels of management practices and high input levels obtain a profit of
VND 15,105,000 per 1000m
2
, 2.1 times greater than growers with mid level management
practices and mid level inputs and 3.7 times greater than grower with low level management
practices and inputs. For pomelo farmers with high levels of management practices and high
input levels obtain a profit of VND 3,576,000 per 1000m
2
, 2.4 times greater than growers
with mid level management practices and mid level inputs and 3.9 times greater than grower
with low level management practices and inputs.

Whilst forming small farmers into groups has creating greater economies of scale and
reduced the number of participants in the supply chain, the benefits to individual farmers in
the group, appear to be tightly linked to education levels. For example, many farmers have
insufficient information on which to make decision on what chemical to apply and what is
the most economical way to apply. It has been observed that many farmers and labours do
not take adequate protection from pesticides. There is a need to educate farmers in the
correct handling of pesticides and possible risks to their health. Many farmers are also are
not aware of over use of chemicals and the problems of pest and disease resistance that can


7. Implementation & Sustainability Issues
Issues and Constraints
Fruit quality and safety standards
As reported in previous reports, higher grade standards through the traditional supply chains
will be very difficult to achieve. Fruit grade standards for mango and pomelo will be
difficult to implement, especially when topping is practiced by the majority of participants in
the supply chain. This CARD Project has developed preliminary quality standards but
acceptance by all of the supply chain participants will have to be obtained by training
collectors wholesalers, traders and retailers.

Developing new supply chians
Training of researchers, extension agents and farmers on developing new supply chains was
conducted by this CARD Project in November 2006. The development of new supply chain
will rest with supply chain champions who want to improve their performance, product
quality and income. Therefore the development of these new supply chains:-

• cannot be enforced by the researchers and extension agent
• researchers and extension agents can assist supply chain champions with technical
advice and training workshops to ensure that they (the champions) obtain maximum
benefits from the new supply chains
• business to business transactions have to be constructed and conducted by the chain
champions themselves, but advice may be provided by researchers and extension
agents and other business professionals

Many farmers and supply chain champions are risk adverse. They will not change from
traditional practices. Many farmers and supply chain champions believe that before change
can be undertaken, their families’ security, food and social welfare etc., has to be assured and

21

• work together as members of an informal chain group
• agree to follow the same management practices
o pest and disease agrochemical programs to ensure a safe product
o harvesting practices (maturity index)
o ensure grade/quality standards
o use similar packaging to ensure protection of their brand and trade marks

This CARD project in October 2007 will be conduction training workshops and visiting Emu
Exports at Cam Ranh, Nha Trang province. The CARD project will training farmers and
supply chain participants on how Emu Exports Vietnam is implementing and maintain GAP
principles (pre-and post- harvest), grade standards and their supply chain to markets. These
participatory action learning farmer workshops will be on IPM/IDM, harvesting, packaging,
stacking and handling.

This CARD Project will continue training in IPM and IDM 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

22
• when and how to spray
• on farm chemical management
• and implementation of GAP principles

Sustainability
As reported this project is addressing sustainability issues through
• “participatory action learning” (PAL) and “farmer training framer” (FTF) 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

packing and transporting. Training to be carried out in October 2007, January 2008
and May 2008.
• Reducing post-harvest losses by establishing a demonstration of production, sorting,
packing and transport systems to provide the quality required by selected better retail
outlets. These activities will depend entirely on Emu Export Vietnam Ltd and

23