Supports to Develop Rubber Smallholders in Vietnam Conference on “Lessons learnt from support programs to smallholder rubber plantations” Phnom Penh, 24 June 2009 Dr. TRAN Thi Thuy HOA Secretary General The Vietnam Rubber Association Overview of NR Development in Vietnam Current Situation of NR Producing in Vietnam • NR: 3rd largest exported agricultural commodity behind rice and coffee in Vietnam. • Vietnam: the 4th NR largest exporter in the world. • In 2008: - NR Export: 619,300 tons = US$ 1.6 billion 2.5% of Vietnam total export turnover - Rubber planted area: 618,600 ha - NR Production: 662,900 tons - NR Yield: 1661 kg/ha Area and Production of rubber tree in Vietnam, 2008 NORTHWEST: 4,730 ha (0.8%) COASTAL REGION: 62,034 ha (10%) 1,178 kg/ha / 28,517 tons (4.3%) HIGHLANDS: 154,226 ha (24.9 %) 1,343 kg/ha / 118,661 tons (17.9%) SOUTHEAST: 397,610 ha (64.3%) 1789 kg/ha / 515,723 tons (77.8%) TOTAL: 518,600 ha 662,900 tons Trend of Rubber Area and Production in Vietnam, 1976 - 2008 700,000 2008: 618,600 ha/ 662,900 tons 600,000 2000: 412,000 ha/ 290,800 tons 500,000 1990: 221,700 ha/ 57,900 tons 1980: 87,700 ha/ 41,100 tons 400,000 Ha Ton 300,000 200,000 100,000 0 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Source: VN General Statistics Office, compiled by VRA Trend of NR productivity in Vietnam 1980-2008 1900 2008: 1661 kg/ha 1700 1300 1100 900 700 500 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 kg/ha 1500 Source: VN General Statistics Office, compiled by VRA Area, Production and Yield of rubber plantations in Vietnam, 2006-2008 YEAR ha ton kg/ha 2006 522,200 555,400 1558 2007 556,300 601,700 1612 2008 618,600 662,900 1661 2008/2007 11.2% 10.2% 3.0% Source: VN General Statistics Office, compiled by VRA Overview of Rubber Smallholding Development in Vietnam Historically Development of Rubber Smallholding in Vietnam • Before 1975: Self-Investment of farmers for smallholder rubber plantations. • Since 1990: Government’ Policy has encouraged to develop rubber smallholder plantations under the Reforestation Project 327 and other Projects of Provinces (Daklak, Quang Tri, Thua Thien Hue...) • 1996: Starting Extension Program carried out by RRIV (Rubber Research Institute of Vietnam) under the fund of the Ministry of Agriculture and Rural Development. Historically Development of Rubber Smallholders in Vietnam • 1998 – 2006: The Agricultural Diversification Project under the long-term credit of WB and AFD to develop 30,000 ha of new planting and 17,000 ha of rehabilitation for rubber smallholders (phase 1): – VRG (Vietnam Rubber Group or Geruco): Technical Assistance: Rubber Experts for 9 province, providing planting material. – RRIV: Research for Rubber Smallholders: testing and recommending clones and techniques, inspection of planting material. Historically Development of Rubber Smallholders in Vietnam • Since 2007: Vietnam Rubber Group (VRG) has established joint-stock companies in the Northeast with farmers who contribute in land and labors. Companies ensure finance, materials, technical assistance, processing and marketing. • 2008: Feasibility Study for Rubber Smallholder Rubber Development under the long-term AFD (phase 2). Area of Rubber Smallholding and Estates in Vietnam, 1995-2008 (ha) 700 000 600 000 500 000 400 000 Smallholding ha 300 000 State-owned 200 000 100 000 0 1995 2000 2005 2006 2007 2008 Source: Provincial Dept of Agriculture and Rural Development, compiled by VRA Trend of Development on Rubber Smallholding and Estates in Vietnam, 2006-2008 State-owned Smallholding 2006 2007 2008 Area ha 299 272 296 250 323 276 Production Tons 396 530 398 100 421 251 Yield Kg/ha 1 641 1 690 1 709 Area ha 222 928 253 350 295 324 42.7% 45.6% 47.7% 158 870 203 600 241 649 32.2% 36.2% 38.2% 1 385 1 478 Production Yield Tons Kg/ha 1 585 Source: Provincial Dept of Agriculture and Rural Development, compiled by VRA Area, production and yield of Rubber Smallholding Plantations by region in Vietnam, 2008 Region Southeast Area (000 ha) Production Yield (000 ton) ton/ha/year 201,299 206,135 1628 Highlands 61,751 23,182 1501 South Coast 31,602 12,232 1183 North Coast 672 - - Total 295,324 241,649 1585 Source: Provincial Dept of Agriculture and Rural Development, compiled by VRA Area, Production and Yield of Rubber Smallholding Plantations in some Provinces of Vietnam, 2008 Province Ha Tons Kg/ha Binh Duong 72,090 80,870 1558 Binh Phuoc 64,060 62,850 1517 Tay Ninh 44,440 49,140 2050 Gia Lai 23,410 7,890 1128 Kon Tum 15,490 3,330 1212 Dak Nong 14,880 2,854 1594 Binh Thuan 13,710 8,475 1436 Quang Tri 10,120 7,080 1498 Distribution of rubber plantations according to size, 2001 and 2006 <0.5ha 0.5-1ha >1-2ha 9,395 12,534 20,464 12,384 2,404 16.4 21.9 No of family, 2006 19,732 22,492 % 18.6 21.2 No of family, 2001 % 35.8 >2-5ha 21.7 >5ha 4.2 Total 57,185 100 33,776 24,372 5,763 106,135 31.8 23.0 5.4 Source: Vietnam General Statistics Office, compiled by VRA 100 Managing and Supporting Rubber Smallholding • Individual rubber smallholders - Self-investment - Extension program provided by RRIV under the fund of the Ministry of Agriculture and Rural Development - Voluntary Cooperatives by farmers - Experience from close state-owned rubber companies • Organized rubber smallholders - Long-term loan and technical assistance of rubber companies (Dak Lak Province) - Long-term loan and technical assistance of WB and AFD Project (Highlands and Coastal areas, 1998-2006, 30.000 ha of new planting and 17,000 ha of rehabilitation) 2004-2005 Planting Recommendation for Rubber Smallholders by RRIV South of Coastal region PB 255 PB 260 RRIV 2 RRIV 4 RRIC 121 RRIM 600 RRIV 3 Highlands (550 – 700 m) PB 260 RRIM 600, RRIV 4 RRIC 121 RRIV 2, GT 1 RRIC 100 PB 235 PB 255, RRIV 3 Coastal region PB 260 PB 255 RRIM 600 RRIM 712 RRIC 100, GT 1, RRIC 121 RRIV 4, RRIV 2, RRIV 3, PB 235 Intercrops (groundnut) in Rubber Smallholding Plantations Intercrops (groundnut and pineapple) in Rubber Smallholding Plantations Intercrops (upland rice) in Rubber Smallholding Plantations Intercropping combined with no-tillage technique on hilly land About the Vietnam Rubber Association (VRA) ROLES of VRA • VRA has operated in national scale since the end of 2004. • VRA is a voluntary organization and legal entity which represents enterprises and organizations related to the rubber industry in Vietnam. Main Objectives of VRA • Support and Protection of Members’ Rights and Interests • Trade and Development Promotion for the Vietnam Rubber Industry • Providing information on rubber market and development • Representative of Members in Coordination with Government Institutions and Supporting Organizations in Vietnam • Representative of Members in Coordination with Rubber International Organizations Recent Support Activities of VRA and VRG for Rubber Smallholding Development Participating of VRA in the Conference to improve the capacity of rubber smallholder plantations Recent Support Activities of VRA and VRG for Rubber Smallholding Development: Feasibility Study for phase 2008-2013 • Participating in 2008 Feasibility Study for the Smallholder Rubber Development Project sponsored by AFD (phase 2 of Agricultural Diversification Project, 2008-2013) Introduction of Rubber Technical Books for Planters Proposed Activities of VRA to support rubber smallholders • Inform the policy and regulations of Government to develop NR industry and rubber smallholder plantations. • Provide information on advanced techniques and suitable planting material. • Notify NR prices on local and international market. (Through the VRA’s website, distribution of books and leaflets of relevant organizations) • ….. Proposed Activities of VRA to support rubber smallholders • ….. • Encourage to establish and strengthen cooperatives of small processors and farmers. • Organize and support visits and seminars for farmers to learn experiences of rubber cultivation. • Recommend members to buy NR from farmers for stockpiling in case of too low prices or strongly declined demand to help farmers’ income. Proposed Activities of VRG to support rubber smallholders • Provide high quality planting material. • Train technical practices such as tapping at the Rubber Industry College. • Buy rubber from farmers (field latex and coagulum) with competitive prices to process and export. • Establish joint-stock companies where farmers are shareholders and contribute in land and labors, VRG’ members ensure finance, materials, technical assistance, processing and marketing. • Buy rubber from farmers for stockpiling in case of too low prices or strongly declined demand to help farmers’ income. Thank you for your attention Presentation compiled by VRA and VRG