Session 4_CRS Experience

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CRS's Supports to Agro-Enterprise
Development
in Nghe An province, Vietnam.
Hanoi May, 2008
Catholic Relief Services
Agriculture and Rural Enterprise Development Program
Contents
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•
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Rational
Project management and implementation structure.
Process of agro-enterprise development.
Initial achievements
– Strengthened ability of government agencies.
– Diversified agriculture production with market orientation
– Improved livelihood of the targeted communities.
• Created of new jobs
• Value added
• Environmental and healthy issues ensured
• Issues and lessons learnt
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–
–
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"Clean/organic products".
Continuity of supports
Project supports: capacity building or material supports or both.
Food security and cash income.
Situation of agricultural production
• Characteristics of Traditional agricultural
production:
– Primary concern in food security, therefore efforts focused
on increasing production.
– Oversupply in local market when production increase
causes failing price and as result of this farmers’ income
reducing
– Farmers and their service providers/ facilitators try to find
market for agriculture products
– Farmers are forced to sell their products at very low price
because products are not what that market desires
As consequence: Economic prospects for rural communities
are improving slowly
Options to improve Economic
prospects for rural communities
 Improving the competitiveness of their
products in local, national and regional
markets.
 Achieving economies of scale through
collective action for production and
marketing
 Gaining access to business development
services that improves access to higher
value / more competitive markets and
provides employment opportunities
Implementation structure for Agro-enterprise
development
in Nghe An province
CRS in partnership with Nghe An authority to
promote territory approach to agro-enterprise
development.
 Ensure the project will be implemented through the
Government administration structure (changing a system not
a segment).
 Improve skill and knowledge of government staff in
promoting market oriented production (sustainability,
continuity).
 Promote ownership and sustainability of the project
(participation & sustainability).
 Looking for policy improvement for poverty alleviation
through agro-enterprise development (scaling up).
CRS Vietnam
CRS
ARED
Provincial
DPI
DMB
CIB
Farmer
AE Group
Provincial
People's
Committee
District
People’s
committee
Commune
People's
Committee
Farmer AE
Group
....
Process of Agro-Enterprise
development
1. Territorial selection and partnership
development.
2. Market opportunities identification
3. Enterprise design and
implementation.
4. Strengthening of business support
services
5. Advocacy for pro-poor marketing and
trade policy
Initial achievements to date
 Strengthen ability of government agencies in
promoting agro-enterprise development and project
management.
• 3 Project area resource assessments – 30 advantaged products
proposed
• 7 Rapid market analysis (RMA) – 19 market potential products
identified.
• Participatory market opportunity identification - 18 products
selected under decision of farmer producers, traders, buyers and
relating people.
• Facilitating 51 farmer groups in group establishment, designing and
implementing agro-enterprise activities. 8 products tested as
market requirements. 6 products contractually supplied to the buyers.
• Facilitating linkages between farmer groups and markets/
traders: Metro supermarket in Hanoi, the North Nghe An Exporting
and Importing Company, Huong Nam Company in Hai Phong
province, Chipsgood Processing Company in Hung Yen province and
big traders in Nghe An province.
Cabbage sold in the Metro supermarket
Initial achievements to date
 Diversify agriculture
production with market
orientation
11 new varieties introduced for
products met market
requirements:
•
•
•
•
•
Hot chilli: Thai met exporting standards
Cabbage: Greenhelmet Japanese
Green squash: F2 Thanh Long
Spring onion
Tomato: Thai Perfect 89, F1 Thanh
Nong, American F1 VL 2500 and F1
609
• Bean: F1 Indian
• Water melon: CS 202 and TN 46.
Improved livelihoods of target
communities
 Created new jobs:
• Project interventions introduced to improve product’s quality:
packaged and processed (rotten selection, classifying, stalk
removal, drying).
• Farmer uses their leisure time to remove stalk of chilly as
buyer required
• Farmers clean spring onion before delivering to the buyers.
 Value added
• Chilli with stalk removed has higher price (1,000 VND/kilo
compared with unremoval).
• Cabbage is packaged, labelled and sold in Supermarket for
1,700 VND/kilo higher price compared with no package.
• Tomato is sold with 500-1,000 VND/kilo higher than price of
local variety.
• New watermelon varieties have met market requirements on
quality so the price is 1,000 VND/kilo higher than local variety
Improved livelihoods of target
communities
Increased income of target farmers.
 Income from cabbage sold in supermarket is 51% higher than
sold in local market at the same time.
 Income from watermelon sold in supermarket is 36% higher
than sold in local market at the same time.
 Yield of new tomato variety increased – income from tomato
increased 40% compared with local variety.
 Income from cabbage produced on the same landarea (500m2)
is 46% higher than field cabbage.
 Field cabbage produced in off-season generated 50% of
income compared with produced in main crop.
 Income from field cabbage is 83% higher than maize on the
same landarea ( reduce half of growing time: 4 months to 2
months)
 Income from spring onion is 50% higher than maize on the
same landarea.
Income improved
Normal crop structure
Formula 1
Total income
Tomato
from new
Spring onion
crop
Spring onion
formula/stru Leafy vegetable
cture
Carrot
increased by Total
44% in
Formula 2
comparison Leafy vegetable
with normal Spring onion
crop
Spring onion
structure.
Spring onion
Tomato
Total
New crop structure
Formula 1
5,000,000 Spring onion
2,400,000
2,400,000 Tomato
5,000,000
2,400,000 Leafy vegetable
1,000,000
1,000,000 Spring onion
2,400,000
3,000,000 Cabbage
5,000,000
13,800,000 Total
15,800,000
Formula 2
1,000,000 Spring onion
2,400,000
2,400,000 Water melon
8,170,000
2,400,000 Spring onion
2,400,000
2,400,000 Leafy vegetable
1,000,000
5,000,000 Cabbage
5,000,000
13,200,000 Total
18,970,000
Livelihood of the targeted
communities improved
Environmental and health issues ensured:
 Use of pesticide and chemicals reduced.
 Increased use of microorganic fertilizer and biopesticide that improve soil quality and ensure safe
of products.
 Quality of products supplied to supermarket are
certified by authorized bodies that ensure safe for
human health.
Issues and lessons learnt
 “Clean/ organic products”. (Production costs - producer's
economic profit and consumer’s acceptance and sustainability of support).
 Continuity of supports to promote agro-enterprise
development. (Roles of actors involved in promotion agro-enterprise
development esp. management office, service institution)
 Focus on capacity building or material supports or
both.(interests from local authorities and donors)
 Food security and income.(Balance between market attention
and Accessibility to food)
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