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Ministry of Agriculture & Rural Development
CARD Project 050/04VIE

Improvement of export and domestic
markets for Vietnamese fruit through
improved post-harvest and supply chain
management

Milestone Report 10: SOFRI Capacity Development Date June 2009

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Table of Contents

1 Institute Information 3
2 Contact Officer(s) 4
3 Project Abstract 5
4 Executive Summary 5
4.1 Introduction & Background 8
4.2 Implementation Highlights 9

9.1.2 Top 5 Priority for the Pomelo Strategic Plan are: 52
9.1.3 Pre-harvest capacity building of mango and pomelo farmers 53
9.1.4 Postharvest capacity building for mango and pomelo farmers 62
9.1.5 Supply/value chain capacity building for mango and pomelo farmres 70
10 Examples of farmer groups and capacity built by CARD projects and benefits obtained 77
10.1 Mango 77

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10.2 Pomelo 80
11 Environment issues 82
12 Conclusions 83
12.1 At the Grower/Farmer level: 83
12.2 At the collector, trader and wholesaler level: 84
12.3 Options 84
12.4 Sustainability 85
13 Appendix 1 86

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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.
Vietnamese Institution Southern Sub-Institute of Agricultural
Engineering and Post-Harvest Technology
(SIAEP)
Vietnamese Project Team Leader Mr Nguyen Duy Duc, M. Eng.
Australian Organisation Queensland Department of Primary
Industries and Fisheries (DPI & F)
Australian Personnel Mr. Robert Nissen

In Vietnam
Name: Mr Nguyen Duy Duc, Telephone: +84 (8) 8481151
Position: Director SIAEP Fax: +84 (8) 8438842
Organisation Southern Sub-Institute of Agricultural
Engineering and Post-Harvest
Technology (SIAEP)
Email: 5
3 Project Abstract 4 Executive Summary
Having a good understanding of what constitutes a supply/value chain is critical to it understanding
how they operate, how to analyse the chain and how to make changes to the chain to benefit all
the chain members.

Many individual companies adopt and adapt what they consider are key elements or building
blocks of a supply/value chain. They put these building blocks together to suit their particular
needs without considering all the necessary supply/value chain elements to be successful.

Supply/value chain participants today must be highly adaptable, as inflexible participants will not
generate added value and will be forced out of their industry. These participants must adopt new
supply/value chain strategies that will deliver value for money to their customers and ultimately, the
end consumer.

Before the commencement of the CARD Project, SIAEP staff skills were confined to postharvest
aspects. They had some knowledge of pre-harvest practices, e.g. crop physiology, agronomy and
cultural methodology. Some of the SOFRI staff in the postharvest section were reasonably

• Mango Cultivation Handbook
• Mango Pest Quick Guide Booklet
• Mango Disease Quick Guide Booklet
• Pomelo Cultivation Handbook
• Pomelo Pest and Disease Quick Guide Booklet

By developing these manuals and booklets knowledge for both SIAEP and SOFRI was
substantially increased in the best practice and GAP pre-harvest factors. Also SIAEP and SOFRI
staff knowledge increased in how these pre-harvest factors affect the post-harvest fruit quality,
shelf-life and saleability of mango and pomelo

Participatory action learning training and capacity building in supply/value chains was conducted by
the Australian team for SIAEP and SOFRI. Staff of SIAEP and SOFRI, assisted by the Australian
team members then trained farmers and farmer groups to increase their knowledge of supply
chains and technical processes to maintain fruit quality improve shelf-life and saleability. This
capacity building consisted of 4 phases implemented during this project.
1. Understanding value/supply chains
2. Developing value/supply chains
3. Implementing new value/supply chains
4. Evaluating new value/supply chains

SIAEP and SOFRI have now developed good working relationships with various farmer groups and
private enterprises and these include:-
• Cat Hoa Loc Group
• Metro Cash and Carry
• Thu Duc Wholesale Markets
• COFIDEC Company - Mango processing
• EMU Vietnam (Khanh Hoa Province)
• My Hoa Pomelo Cooperative
• Cat Chu Mango Producers

accept extra, first and second grade fruit. Third grade fruit is returned to the
grower and the grower asked not to send any third grade fruit to the pack-
house in the future

In 2008 about 700kg to 1 tonne of Cat Hoa Loc grade 1 fruit were sold to Metro Cash & Carry
Vietnam Ltd., as a trial shipment. This fruit sold from 55,000 to 75,000 VND/kg. This is about
double to triple the normal price. At the end of the CARD Project, a contract was signed with Metro
Cash & Carry to supply 5 tonne of fruit. The group also supplies about 70 tonne of fruit to a
processor who exports to Japan.

The Nam Roi Pomelo My Hoa Farmers Group has obtained Global Gap certificate 2. Tthey
exported 18 twenty foot containers to Holland and received about 10,500 VND / kg. This is double
the local price paid for pomelo. In 2009 this group exported about 70 twenty foot containers (about
1000 tonne) to Holland and Belgium for about 8,700 VND / kg. They have now signed a contract
with Metro Cash and Carry for 34 tonnes of pomelo. They also supply supermarkets in Hanoi with
about 18 tonnes of pomelo. They have been trialing fruit vacuum bagging to reduce moisture loss
and extend the fruit shelf life. They have also trailed citra shine wax. They have implemented
GAP process such as:-
• CV for each orchard
• production procedure for each member
• cultivation procedures
In the pack-house they have also implemented quality assurance processes. Some processes put
in place at the pack-house are:-
• fruit are cleaned by water solution containing chlorine at 150 ppm
• trialing vacuum bagging and drying by fan of pomelo fruit for export to Europe
• trialing the use net bagging of fruit
• placing an origin stamp on fruit

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• constructed a cool room

project has also increased the knowledge and ability of the staff at the Sub-Institute of Engineering
and Postharvest Technology (SIAEP) and Southern Fruit Research Institute (SOFRI) to analyese,
develop and implement new technologies and change practices to supply chains presently
operating in Vietnam. Further training was also provided to farmer groups and chain participants.
Highly specialised targeted participatory action learning (PAL) training programs were developed
and provided to these institutions and industry stakeholders by this CARD Project 050/040 VIE.
CARD Project 050/040 VIE Milestone 10 is:
Assessment and documentation of SOFRI and SIAEP institute staff and the farmer group’s
competence in:-
• Application of supply chain analysis and methodology
• Application quality assurance procedures and processes 9
This report is based on case studies of Institutes SIAEP and SOFRI and farmer mango groups (Cat
Hoa Loc, Cam Thanh and Viet Hung Company) and the pomelo groups (My Hoa and Hoang Gia
Pomelo Company). Information presented in this report highlights the situation before the project
commenced (pre-project) and the project impacts (post-project). This report show how the
capacity of the institutes and farmer groups has been substantially increased. Each case study
also provides evidence of the application of supply chain analysis and methodology and quality
assurance procedures and processes.
4.2 Implementation Highlights
4.2.1.1 Background of supply/value chains
In the past supply chains were analysed using generic logistic processes such as Commodity
Management (CM) as implemented by large supermarkets. This analysis process has now
changed to one of creating value for all participants in the supply chain; therefore supply chains are
now transformed into value chains. A supply/value chain can be described as:
• The planned continuous improvement of processes and relationships that exist to support
the movement of goods and services through the value chain that benefits its customers
and members.

4.3 Southern Sub-Institution of Agricultural Engineering and
Postharvest Technology (SIAEP)
4.3.1.1 History of SIAEP
SIAEP is located in HCMC and is a merger between Post-harvest Technology Institute and the
Agriculture Electro Engineering Applied Centre in 2003. SIAEP is now involved with a range of
supply/value chain projects in the fruit and vegetable industries, with a focus on improved quality
management, management of maximum residue limits (MRL) and food safety issues. They have
used their sound technology base and are extending to combine this technology skill set with
business development skills to be, as a direction of MARD, a more market driven institution. Part
of this market driven approach is to engage more directly with the private sector and develop more
successful public:private partnership (PPP). These PPP have been developed primarily in the fruit
and vegetable wholesale markets of HCMC to support improved quality and food safety
management, but have the capability to be extended through the supply chain to smallholder
producers. Although based in HCMC, SIAEP has been involved in a number of projects that have
been focussed in a number of regional provinces in the Mekong Delta and South Central Coast of
Vietnam.
4.3.1.2 Pre CARD Project Implementation
4.3.1.2.1 P
RE-HARVEST KNOWLEDGE
Before the commencement of the CARD Project, SIAEP staff skills were confined to postharvest
aspects. They had some knowledge of pre-harvest practices, e.g. crop physiology, agronomy and
cultural methodology. Mr Binh was developing good agricultural practice (GAP) processes for
pomelo and mango farmers, but SIAEP staff did not have an understanding how pre-harvest
factors affect the postharvest fruit quality and shelf-life of mango and pomelo. Some staff
members also had the capability of indicating that a fruit was affected a disease or pest but did not
understand the factors contribution to these pests or disease. Areas where important knowledge
was lacking were:-
o Integrated Pest Management (IPM) and Integrated Disease Management (IDM)
concepts and how this can improve fruit quality, fruit shelf-life and saleability, and
reduce types and quality of chemicals applied and on-farm input costs.

o why packaging is important at the grower - collector level
o product temperature control along the supply chain from grower/collector/wholesaler to the
consumer
o cool room and ripening room design and development
4.3.1.2.3 S
UPPLY/VALUE CHAIN KNOWLEDGE
Some of SIAEP staff had little knowledge of what supply chains or value chains were, but they
lacked detailed knowledge on how to:-
• understand the complexities and analysis existing supply/value chains
o understanding what customers and consumers want and development of effective
and efficient logistic and distribution systems
o develop information sharing and communication channels
• assist chain members to improve their products and chain participation to achieve more
profitable outcomes
o how to create product value and share with other chain members the value
created
o how to get the product right for the consumer
o how to work with chain participants (groups of growers, wholesalers, retailers etc.,)
working with farmer groups to achieve the desired outcomes such as lead growers
implementing new techniques or
• develop or build new supply/value chains.
Having these skills is now critical for many public and private institutes/companies in Vietnam. This
is due to:-
• Adherence to the WTO rules of trade between nations and The Codex Alimentarius
Commission. This Commission was created in 1963 by FAO and WHO to develop food
standards, guidelines and texts on codes of practice under the Joint FAO/WHO Food
Standards Programme. The purpose of this programme is to protect the health of the
consumers and ensuring fair trade practices in the food trade, and promoting of all food
standards governmental and non-governmental organizations.
• Development of the Vietnamese VIET GAP standards.

4.4.1.2.1 PRE-HARVEST KNOWLEDGE
Before the commencement of the CARD Project, SOFRI staff skills were good in pre-harvest
aspects. They had good knowledge of pre-harvest practices for mango and pomelo in crop
physiology, agronomy and cultural methodology suited to Vietnamese conditions. For example
Mrs Minh was working on mango agronomic aspects and was developing documents on
manipulating mango flowering and fruit set for the off season. Staff members also had a good
understanding of pathological (disease) and entomological (pests) affecting mango and pomelo.
Staff of SOFRI did not have a high degree of understanding on how these pre-harvest factors
affected the postharvest fruit quality, shelf-life and saleability of mango and pomelo as fruit moved
down the supply/value chain.
4.4.1.2.2 POSTHARVEST KNOWLEDGE
Some of the SOFRI staff in the postharvest section were reasonably knowledgeable of the
postharvest aspects of mango and pomelo fruit and methods to maintain shelf-life in Vietnam under
Vietnamese conditions. For Example, staff of SIEAP (Mr Khanh, Mr Binh and Ms Sam Tram Anh)
carried out some preliminary work on vacuum wrapping of pomelo with poly film and heat treatment
of mango to extend shelf-life. Some work at SIAEP had also been carried out developing
fibreboard packaging but this is expensive in Vietnam compared to traditional bamboo packaging

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methods. Similarly, staff at SOFRI (Mr Hien and his wife Ms Hong) conducted experiments on
placing pomelo in poly bags and cool storage and heat treatment of mango to extend shelf-life.
Mango heat treatment experiments showed that fruit rots were significantly reduced as well as
increasing the shelf-life. Both SIAEP and SOFRI staff did not have first hand knowledge of new
postharvest methods developed overseas, especially on aspects such as:-
o reduction or elimination of sap burn (through the use of detergents)
o excess nitrogen effects or fruit ripening and internal fruit quality
o latest findings on internal fruit breakdown (stem end rots and internal rots)
o new methods of ripening mango fruit (ethylene injection vs. acetylene)
o ripening and storage temperatures
o and storage methods and their affects on fruit quality and shelf life

within their institutes to help complete their tasks. For example, Mrs Le Thi Thu
Houng of SOFRI
was in charge of organising SOFRI staff to carry out various tasks, they had to complete the

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manual on mango cultivation handbook. This farmer GAP mango manual was completed by Mrs.
Tran Nguyen Lien Minh, Mr Vo The Truyen.
4.5.1.2 Pre-harvest knowledge building
Key staff from both SIAEP and SOFRI were identified and then used to deliver training to
Vietnamese farmer grower groups assisted by the Australian trainers. Before training the
Vietnamese farmers, train the trainer sessions were conducted. Development of train the trainer
sessions allowed information to be freely exchanged and training sessions developed for the
Vietnamese farmers, farmer groups, collectors, traders, wholesalers, and retailers. The Australian
team members provided new information outside of the information available in Vietnam. For
example, new technologies for best practice and GAP in Vietnam were combination with the
Australian Best Practice Manual for Mango Growing. The Australian GAP manual was translated
into Vietnamese by the Queensland Department of Primary Industries and Fisheries and provided
to the Vietnamese trainers and institutes. Information from Australia was then combined with the
Vietnamese information and framer manual developed by Mrs Minh from SOFRI as indicated
above. Mrs Minh also delivered the best practice training on mango crop management, irrigation
and fertilising, crop regulation and assisted with orchard design workshops etc., before resigning
and leaving the CARD project to take up a new position. Mr Pham Hoang
Lam was ably assisted
by other SOFRI staff, Mr Vien Nghien Mr Do Minh Hien, Ms Nguyen Thi Ngoc Truc, Mr Le Quoc
Dien and other staff for pests and diseases and development of farmer handouts along with
assistance from Ms Tran Thi Ngoc Diep, Mr Le Minh Hung, Mr Ngo Van Binh, Mr Vu Cong Khanh,
Mr Tran Ngoc Linh, Ms Sam Tram Anh and Mrs Tran Thi Kim Oanh of SIAEP. For example, 5
booklets were developed for Vietnamese farmers as best practice GAP guides and there were:-
• Mango Cultivation Handbook
• Mango Pest Quick Guide Booklet

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Summary of Mango Pre-harvest Training Evaluations
0%
20%
40%
60%
80%
100%
Percentage
Very Good Good Not Suitable
Suitability of training facilities?


Understand
Did Not
Understand
Understand concepts?

17
0%
20%
40%
60%
80%
100%
Percentage
Very Useful Useful Not Useful
Usefulness of manuals/workbooks/materials?

0%
20%
40%
60%
80%
100%
Percentage
Very Useful Useful Not Useful
Information useful to your work?

0%

Percent age
Yes Not Sure No
Any cultural barriers to these concepts in
Vietnam?

0%
20%
40%
60%
80%
100%
Percentage
Very Good Good Not Good
Trainers' Knowledge

0%
20%
40%
60%
80%
100%
Percentage
VeryGood Good NotGood
Trainers' presentation

0%
20%
40%
60%
80%

100%
Percentage
Too Long Right Length Too Short
Length of training activities?

0%
20%
40%
60%
80%
100%
Percentage
All of it Most of it None
% of new information to you?

0%
20%
40%
60%
80%
100%
Percentage
Very Good
Understanding
Good
Understand
Did not
Understand
Understand concepts?


100%
Percent age
Yes Not Sure No
Would further training improve
confidence?

0%
20%
40%
60%
80%
100%
Percentage
Very Useful Usef ul Not Useful
Would you use these methods/processes in
your own work?
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0%
20%
40%
60%
80%
100%
Percentage
Yes Not Sure No
Any cultural barriers to these concepts in

Satisfied
Mos tly
Satisfied
Slightly
Satisfied
Training fulfilled your expectations?

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4.5.1.2.1 P
OSTHARVEST KNOWLEDGE
As indicated above in the pre-harvest section key staff from both SIAEP and SOFRI were identified
and then used to deliver training to Vietnamese farmer grower groups assisted by the Australian
trainers. Development of train the trainer sessions, allowed information to be freely exchanged and
training sessions developed for the Vietnamese farmers, farmer groups, collectors, traders,
wholesalers, and retailers. The Australian team members provided new information outside of the
information available in Vietnam. For example, Mr Nissen purchased and imported into Vietnam
the detergent/surfactant used for stopping sap burn on mango. Sap burn on mango allows
diseases, e.g. Anthracnose and Rhizopus rots etc., to quickly infect the fruit make fruit unsalable
with in a few days, especially under Vietnamese supply chain conditions. This detergent was
trailed via a demonstration session in train the trainer session. Effects on fruit quality, storage life
and saleability were assessed and results found the detergent to be highly effective, especially with
Cat Hoa Loc Mango. This was then demonstrated to farmers, farmer groups, wholesalers, traders,
etc., in training workshops conducted in the Mekong Delta and Nha Trang by SIAEP Staff (Ms Tran
Thi Ngoc Diep, Mr Le Minh Hung, Mr Vu Cong Khanh, Ms Sam Tram Anh and Mrs Tran Thi Kim
Oanh). Ms Tran Thi Ngoc Diep, Mr Le Minh Hung, Mr Vu Cong Khanh, Ms Sam Tram Anh and
Mrs Tran Thi Kim Oanh also conducted workshops assisted by the Australian team members on:-

20%
40%
60%
80%
100%
Percentage
Very Good Good Not Suitable
Suitability of training facilities

0%
20%
40%
60%
80%
100%
Percent age
Too Long Right Length Too Short
Length of trainig activities

0%
20%
40%
60%
80%
100%
Percentage
All of it Most of it None
% of new information to you?

0%

0%
20%
40%
60%
80%
100%
Percentage
Yes Not Sure No
Would further training improve your
confidence?

0%
20%
40%
60%
80%
100%
Percentage
Very Useful Useful Not Useful
Would you use these methods/process in
your work?

0%
20%
40%
60%
80%