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Báo cáo nghiên cứu nông nghiệp " Extending export opportunities to small-plot dragon fruit growers through Good Agricultural Practices " Milestone 2

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Producers of dragon fruit in Vietnam have seen prices for their fruit decline by about 60% since 2000 which can be attributed, in part, to their dependence on local and nearby exports. There are about 10 major exporters in Vietnam but a significant portion of the total production is sourced from many small-holder growers. During the previous dragon fruit GAP project 037/04VIE, growers were evaluated through a benchmarking study to determine the status of the dragon fruit producers against the standards required by high value export markets....

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Nội dung Text: Báo cáo nghiên cứu nông nghiệp " Extending export opportunities to small-plot dragon fruit growers through Good Agricultural Practices " Milestone 2

  1. Extending export opportunities to small- plot dragon fruit growers through Good Agricultural Practices Campbell J, Nguyen Van Hoa, Nguyen Huu Hoang July 2008 Milestone 2 report to Hassall and Associates International HortResearch Client Report No. 26264 HortResearch Contract No. 22663 Campbell J The Horticulture and Food Research Institute of New Zealand Ltd HortResearch Nelson Region PO Box 220 Motueka 7143 NEW ZEALAND Tel: +64-3-989 7595 Fax: +64-3-989 7596 Nguyen Van Hoa Nguyen Huu Hoang Southern Fruit Research Institute PO Box 203 My Tho Long Dinh – Chau Thanh Tien Giang VIETNAM Tel: +84 73 834 699
  2. DISCLAIMER The Horticulture and Food Research Institute of New Zealand has exercised reasonable skill, care and diligence in preparing the information described in this report but shall not be liable for the commercial performance of any products or any losses arising from the use of the information contained herein. This report has been prepared by The Horticulture & Food Research Institute of NZ Ltd (HortResearch), which has its Head Office at Mt Albert Research Centre, Private Bag 92 169, Auckland. This report has been approved by: _________________________________ _________________________________ Research Scientist Group Leader, Bioprotection Date: 15 August 2008 Date: 15 August 2008
  3. Ministry of Agriculture & Rural Development Project Progress Report 0029/07/VIE Extending export opportunities to small-plot dragon fruit growers through Good Agricultural Practices OPERATIONAL PILOT REPORT “Milestone 2” Date: June 2008
  4. Table of Contents 1. Institute Information ___________________________________________________ 1 2. Project Abstract _______________________________________________________ 2 3. Executive Summary ____________________________________________________ 2 4. Introduction & Background _____________________________________________ 3 5. Progress to Date _______________________________________________________ 4 5.1 Implementation Highlights ________________________________________________ 4 5.2 Smallholder Benefits _____________________________________________________ 8 5.3 Capacity Building _______________________________________________________ 8 5.4 Publicity _______________________________________________________________ 8 5.5 Project Management _____________________________________________________ 9 6. Report on Cross-Cutting Issues___________________________________________ 9 6.1 Environment ___________________________________________________________ 9 6.2 Gender and Social Issues _________________________________________________ 9 7. Implementation & Sustainability Issues ___________________________________ 10 7.1 Issues and Constraints___________________________________________________ 10 7.2 Options _______________________________________________________________ 10 7.3 Sustainability __________________________________________________________ 10 8. Next Critical Steps ____________________________________________________ 11 9. Conclusion __________________________________________________________ 11 10. Statutory Declaration________________________________________________ 11 11. Appendix 1 – Farmer Training Status __________________________________ 17 12. Appendix 2 – A Promise by the US to Consider Imports of Dragon Fruit ______ 18 13. Appendix 3 – Thanh Nien Daily 3 July, WTO ____________________________ 20 14. Appendix 4 – AsiaFruit Article ________________________________________ 22 15. Appendix 5 – Vietnam Fruit Industry and Global Competitiveness Presentation 24
  5. Glossary BRC British Retailers Consortium: Global Standard - FOOD CARD Collaboration for Agriculture and Rural Development EUREPGAP Euro-Retailer Produce Working Group; Good Agricultural Practice GAP Good Agricultural Practice GLOBALGAP Global Good Agricultural Practice HAI Hassall and Associates International SGS Société Générale de Surveillance SOFRI Southern Fruit Research Institute UK United Kingdom USA United States of America WTO World Trade Organisation
  6. 1. Institute Information Extending export opportunities to Project Name small-plot dragon fruit growers through Good Agricultural Practices Southern Fruit Research Institute Vietnamese Institution Nguyen Van Hoa Vietnamese Project Team Leader The Horticulture and Food Research Australian Organisation Institute of New Zealand John Campbell, Allan Woolf and Australian Personnel Leonie Osborne February 2008 Date commenced February 2010 Completion date (original) Completion date (revised) Milestone 2: Operational Pilot Reporting period Contact Officer(s) In Australia: Team Leader John Campbell +64 3 989 7602 ddi Name: Telephone: Project Leader +64 3 989 7596 Position: Fax: Organisation HortResearch jcampbell@hortresearch.co.nz Email: In Australia: Administrative contact Mrs Leonie Osborne +64 9 925 7232 Name: Telephone: Personal Assistant +64 9 925 8626 Position: Fax: Organisation HortResearch losborne@hortresearch.co.nz Email: In Vietnam Dr Nguyen Minh Chau +84 73 893 129 Name: Telephone: Project Champion +84 73 893 122 Position: Fax: Organisation SOFRI mch@hcm.vnn.vn Email: 1
  7. 2. Project Abstract Producers of dragon fruit in Vietnam have seen prices for their fruit decline by about 60% since 2000 which can be attributed, in part, to their dependence on local and nearby exports. There are about 10 major exporters in Vietnam but a significant portion of the total production is sourced from many small-holder growers. During the previous dragon fruit GAP project 037/04VIE, growers were evaluated through a benchmarking study to determine the status of the dragon fruit producers against the standards required by high value export markets. The project then proceeded to implement documented quality systems, training and mentoring in a “Pilot” of exporter, packer, large and small-holder dragon fruit farms that met the standards of BRC Global – Food in the packhouse and EUREPGAP on the farms. The established “working quality model” is now in a position to test the high value markets of the United Kingdom and Europe. This project, “Extending export opportunities to small-plot dragon fruit growers through good agricultural practices”, will complete the linkages with the high value markets, consolidate the pilot establishment to ensure sustainability, provide expansion of the pilot operation and establish new commercial operations in the Binh Thuan, Tien Giang and Long An provinces. Large numbers of small-plot growers will have the opportunity to access high monetary value markets for their dragon fruit. 3. Executive Summary This report, Milestone 2 of the new dragon fruit project 029/07VIE, covers the milestone description “Operational pilot”. Because this is the first project report we have included actions of the “in-between projects period” and such items that would normally appear in an “inception report”. All personnel from the previous project hold similar responsibilities in the new project. The SOFRI postharvest specialist, Mr Do Minh Hien, has been added to the team to enhance delivery of the postharvest component. It was hoped that the project pilot packhouse would have achieved BRC Global Standard for Food Safety (Issue 3) certification at the end of the previous project. This wasn’t possible and the SOFRI project team continued to assist the packhouse to prepare for certification. BRC certification was moved to become an output of the new project. Since then, BRC have issued a new standard (BRC Global Standard for Food Safety – Issue 5), which came into effect on 1 July 2008. The packhouse will now be audited against this standard (Issue 3 is no longer legal). SGS Vietnam has conducted a pre-audit of the packhouse and the project is working through a list of non-conformities. A full certification audit will be scheduled prior to September. The project aim is to have the quality system base for exporter, packer and farmer housed in the packhouse quality system. Project emphasis has been to have the packhouse certified and operating efficiently before the drive to incorporate small-holder farmers commences in earnest. Export of dragon fruit from GLOBALGAP-compliant farms to high value markets is in its infancy and as such is experiencing many management, postharvest, logistical, transport, market access and documentation issues that need to be resolved/improved before significant increased returns can be delivered to producers. The numbers, farm size, crop production and high value market returns will be reported when meaningful information is available. 2
  8. Progress has been made by the project towards preferred supplier/customer at the pilot level and this is expected to expand as GAP certified product/suppliers/markets increase. In July a HortResearch postharvest specialist, Dr Allan Woolf, will travel to the project to work closely with Mr Hien to establish practical dragon fruit grade standards, to research ways to extend the storage life of dragon fruit and to address market access issues. Some excellent publicity for the two CARD dragon fruit GAP projects are noted in this report. It is great to report that all project management and project delivery personnel from the first dragon fruit GAP project have the same positions in this project. Retention of the skills developed during the previous project and enhanced during this project will ensure project success. 4. Introduction & Background This project is a continuation of the earlier project: “Developing Good Agricultural Practice (GAP) systems for dragon fruit producers and exporters in Binh Thuan and Tien Giang provinces” 037/04VIE. The aim of this project is to consolidate the GAP work of the previous project, deliver high value market benefits to increasing numbers of small-holder dragon fruit farmers of the Tien Giang and Long An as well as the Binh Thuan provinces, increase the capability of national personnel to implement GAP systems to international market standards and establish improvement programmes for postharvest treatments and practices. The specific project objectives are: Objective 1 To develop and maintain the market-driven GAP dragon fruit exporter, packer and farmer group working pilot, to: Attain BRC Certification for the pilot packhouse Maintain GLOBALGAP (EUREPGAP) compliance for the farmer group Link the pilot with high value export markets for compliant dragon fruit Expand the working model pilot to the wider Binh Thuan dragon fruit production area and into the provinces of Tien Giang and Long An. Objective 2 To develop the postharvest and production models to enable small-holder dragon fruit farmers access to high value markets, to: Establish replicates of the pilot model quality system to ensure market-driven compliance and to facilitate farmer access to high value markets Create a quality system environment in each developed unit that provides the technical and quality leadership that enables dragon fruit producers to meet and maintain the standards necessary to export to high value markets Establish methods to mitigate constraints preventing dragon fruit farmers from accessing high value markets (for example: the role of the collector and traceability disruption). 3
  9. Objective 3 To develop quality systems technology delivery capability within SOFRI and the private sector: Encourage linkages between SOFRI and the private sector to expand the dragon fruit pilot model Mentor GAP technology transfer capability at SOFRI Mentor application of postharvest capability at SOFRI for direct application for quality improvement, extending shelf-life and problem solving. The approach and methodology of this project will be similar to the previous project. For example: The New Zealand project team provides mentoring for GAP, understanding quality systems and technology delivery to SOFRI project and other personnel SOFRI personnel deliver their GAP quality system and technology skills to the dragon fruit industry The private sector takes up the technology and expands/improves the model at the level required by high value export markets The systems applied enable the small-holder dragon fruit farmer to access increased revenue from compliant fruit being exported As the project progresses, the New Zealand project team will reduce their input into project management and increase their role of mentoring. 5. Progress to Date 5.1 Implementation Highlights 5.1.1 Contract signing: The project contract between HortResearch and CARD/HAI was signed in April 2008. The sub-contract between the Southern Fruit Research Institute and HortResearch for project management was signed in June 2008. 5.1.2 Pilot packhouse BRC certification progress: Since the end of the previous project in December 2007, the SOFRI project team continued to provide assistance to the project pilot packhouse to facilitate its advance towards compliance with the BRC Standard. A BRC pre-audit of the pilot packhouse by the external auditors from SGS Vietnam was undertaken on May 20th, which coincided with the first visit of the project leader for the new project. The pre-audit was undertaken in a friendly and informative way and resulted in a great training exercise for the project and pilot teams. 4
  10. The pre-audit exercise enabled the pilot packhouse to implement procedures stated in the dragon fruit manual and involved: Audit undertaken Audit report received Conduct of a packhouse management review meeting with: o An agenda o Meeting minutes recorded o Recommendations Implementation of corrective actions Documentation of changes Archiving of old documents. Following the pre-audit, and after the departure of the SGS Vietnam auditors, the project team assisted the pilot packhouse to implement corrective action for all non-conformities highlighted in the pre-audit report. In early June a full Internal Audit of the pilot was undertaken by the SOFRI project team and packhouse staff in preparation for calling for the full BRC Standard Certification audit. Again this audit was conducted in accordance with the dragon fruit manual protocol, which is a requirement of the standard and will be audited. The full internal audit process involved: Undertaking a full audit using the BRC Global Standard – Food Issue 3, Evaluation Report Documenting of all conformities and non-conformities and make comments Holding a management review meeting at the packhouse to go systematically through the internal audit report and minute proceedings Documenting corrective actions for all non-conformities Providing resources for the corrective actions Documenting changes Archiving old documents Undertake verification that corrective action changes are in place, are understood and that part of the process has been brought into conformity. Arrangements were made for SGS Vietnam to conduct a pre-certification audit against the BRC Global Standard for Food Issue 5 on 8 July 2008 (only Issue 5 can be used after 1 July 2008). The pre-audit found issues of non-conformity during the packhouse pilot audit. Corrective action for all non-conformities will be implemented and an audit for certification will be called within a 90 day period. The project leader will visit the project to assist with the preparation for BRC compliance. 5.1.3 Documentation of numbers and volumes of dragon fruit from small-holder farmers Fruit from the larger dragon fruit producers who received GLOBALGAP Certification have had their fruit harvested, graded, packed and exported to the high value markets for the pilot packhouse. The main emphasis of this project is to now bring the small-holder dragon fruit farmer into the established quality systems of the pilot in a sustainable way. The project will expand the 5
  11. GAP working pilot model to the wider Binh Thuan province, as well as the Tien Giang and Long An Provinces. See Appendix 1 Farmer training status spreadsheet. 5.1.4 Documentation of volume and returns to compliant GLOBALGAP (EUREPGAP) growers from UK/European markets compared with returns for other export and local markets Export of dragon fruit from GLOBALGAP-compliant farms to high value markets is in its infancy and as such is experiencing management, postharvest, logistical, transport, market access and documentation issues that need to be resolved or improved before significant increased returns can be delivered to producers. It was stated by the pilot packer/exporter that the higher costs incurred while complying with the high value customer standards, freight to distant markets and low packouts precluded him being able to increase prices for product from the farmer. The project will be addressing these issues and will attempt to get transparency on the documentation of all processes, to enable establishment of improvement processes, waste reduction and higher returns. Dragon fruit returns to the farmer during May were: large - 0.5 kg, 10,500 dong; medium - 0.3 kg, 6,500 dong; small - 0.26 kg, 3,000 dong. These returns were similar to prices paid to farmers during the project leader’s previous project visits. These prices are those advertised for dragon fruit supplied by uncertified producers – The advertised prices can be misleading due to packout percentage variation with sometimes a small portion of the consignment receiving the advertised price and much fruit downgraded to lower prices. Certified EUREPGAP product being exported is still in the process of being developed and as such it was reported that increased compliance costs absorbed most of the high value market advantage. Issues that are influencing higher costs which can be significantly improved include: • Improved pack-out: farmers are not producing/harvesting/selecting fruit that is close to the market demanded standard. Pack-outs as low as 30% were noted • Compliance costs in the early stage of the pilot are spread across small quantities of product having a significant negative effect on price • High value markets being supplied are slow to recognise the quality/competitive package being supplied • Elite markets with elevated prices have not been addressed yet • Coordinated marketing of Vietnamese dragon fruit is not being pursued. Compliant fruit is currently competing for markets with non-compliant fruit through multiple exporters – prices are being driven down! 5.1.5 Development as preferred provider status and opportunities for expansion for high value markets As part of the previous project some potential high value export markets were identified. In addition to the project pilot exporter/packer’s regular contacts, the most significant market identification was the high value marketer, Utopia UK. Utopia had heard the dragon fruit GAP project was making progress towards GAP production and showed interest in sourcing regular supplies of EUREPGAP/BRC Global Standard for Food Safety compliant dragon fruit. The current status of identified high value markets includes: 6
  12. Correspondence with Utopia UK, who import product for Tesco plc. The Utopia UK contact has changed and no correspondence has yet been entered into with the replacement. Tesco undertook a third party ethical audit of the Hoang Hau packhouse during 2007 and it is understood that purchase of supplies from the project pilot packhouse were to commence in early 2008. The emphasis of the previous Utopia UK contact was to establish long-term preferred provider status with the packer/exporter. The use of advanced packaging/presentation and continuous supply had been discussed. Fresh Studio is an exporting company that operates in Vietnam. The project facilitated Fresh Studio accessing EUREPGAP-certified product from the pilot packer/exporter for high value customers in China. Initial quality interpretation problems during the first shipment were overcome by the exporter and it is believed that the packer now exports a 40-foot container weekly to that market. A contact in Holland had been actively seeking EUREPGAP-compliant dragon fruit, but this market has not been encouraged/pursued to date because of a lack of compliant fruit being available. Opportunities for dragon fruit exports to high value markets may materialise from granting of market access for dragon fruit to the USA. See “A promise by the US to consider importing dragon fruit from Vietnam this year could be a breakthrough for farmers in Binh Thuan Province who produce over 70 percent of the country’s total” Appendix 2. It has been reported that a Japanese operator; Son Son Company, intends to build large dragon fruit packhouses in Binh Thuan and possibly Tien Giang to pack dragon fruit, which will then be irradiated and exported to the USA. 5.1.6 Review of postharvest practices and recommendations for immediate improvements and opportunities for further research to improve postharvest performance of dragon fruit Although some communication has already taken place between Dr Allan Woolf and Mr Do Minh Hien, the postharvest component of this project is scheduled to commence with Dr Woolf’s visit to SOFRI and the project pilot from 17-23 July. Areas to be addressed include: Develop grade standards for the dragon fruit industry: o Generate text grade standard descriptors for all quality parameters o Generate colour charts to match the grade standards descriptors o Generate appropriate flash cards for dragon fruit farmers to assist fruit selection for specific markets at harvest time o Place the developed grade standards on a web site (possibly a dragon fruit web site or SOFRI website with links to certified packhouse operators) o Develop an instructions protocol and include in the project recipient quality manuals. Undertake trials with the aim of extending the storage capability of dragon fruit. The target storage period is intended to enable the shipping of dragon fruit by sea to most current and potential markets. Sea freight will reduce freight costs and reduce the carbon footprint (a marketing advantage with some discerning supermarkets such as Tesco). Trial shipments to specific markets are anticipated during the second year of the project. It is also expected the trial shipments will be inspected at out-turn in the market place by project personnel. 7
  13. Market identification and access will be pursued by the project. This could involve project mentoring/coordination for the use of postharvest disinfestation, protocol development for specific market access and project coordination (Appendix 3 Thanh Nien Daily 3 July; WTO). 5.2 Smallholder Benefits The main emphasis of this project is to support the previous project pilot farmer group and packhouse/exporter to attain and maintain compliance with the market-driven standards of BRC Global (packer) and GLOBALGAP (EUREPGAP – farmer). The project will then facilitate the introduction of a growing number of small-holder farmers to the pilot and expand the project pilot model to other export/packer/farmer units in Binh Thuan, Tien Giang and Long An provinces. High value markets will continue to be identified and preferred provider export status established. The current minimal “GAP supply to high value markets” advantage compared with the pre-project situation will increase through continual improvements, direct access to elite markets, reduction of waste and encouraging the exporter/packer to pass the rewards on to the farmer. 5.3 Capacity Building This project is continuing to develop the GAP capability of both the public and private sectors of Vietnam’s horticulture. A key benefit to this new project is that all project personnel from both sectors have similar responsibilities in the new project. During the first visit to the new project, the project leader was delighted to observe great enthusiasm for the new project, both at SOFRI and at the previous pilot. Expectations of the new project, and indeed the whole dragon fruit GAP quality initiative, are very high. Again it is expected, with the capability that has been and will continue to be developed, that this project, like the former, will exceed those expectations. 5.4 Publicity The following notes some of the previous project (037.04VIE) and the current project publicity: ASIAFRUIT MAGAZINE interview and article by Mr John Hey, April/May 2008, Issue No.77, page 43/44: Those interviewed were Dr Michael Lay-Yee, Ms Barbara Waddell and Mr John Campbell – all of HortResearch: Appendix 4 Fresh Produce Vietnam Conference; April 2008: Dr Michael Lay-Yee, HortResearch’s General Manager for International, was a guest speaker and gave a PowerPoint® presentation that included an overview of the previous dragon fruit project: Appendix 5 CARD/HAI organised a work shop and field-day at the previous project pilot packhouse and grower group for 21 and 22 July 2008. Preparation for the workshop/field-day involved some publicity TV appearances by Vietnam Team Hoang: presentation to ministerial group in Hanoi 8
  14. The HAI/CARD website contains all the previous project reports and other project publications/information. The site has been visited by many interested parties and this has generated enquiries of a general nature, as well as product request from marketers wishing to access supplies of GAP-produced dragon fruit from Vietnam. 5.5 Project Management The management team for this project is the same as the team that managed the previous dragon fruit GAP project. Because of an increase in the postharvest component of this project, a senior SOFRI postharvest person, Mr Do Minh Hien, has been added to the project management team. Mr Hien’s postharvest, quality systems and management, dragon fruit knowledge and technology transfer skills will greatly enhance project delivery. During the life of this project, the project leader expects to transform his leadership role progressively to that of a mentor for the SOFRI project team and a resource person for the project recipients. It is anticipated that at project end, the transfer of the project leader’s skills relating to the project scope will have been complete. The SOFRI project team and the project pilot will be capable of continuing this and the previous project initiatives unassisted, to develop sustainable GAP dragon fruit and other crop industries in Vietnam. 6. Report on Cross-Cutting Issues 6.1 Environment This project is designed to implement, as a minimum, quality systems to the market standards of BRC Global – Food for the exporter/packhouse and GLOBALGAP (EUREPGAP) for all supplying dragon fruit farmers. As part of both standards, there are documented systems to ensure that all environmental impacts are evaluated, issues identified, corrective action implemented/risk minimised/mitigated and documented. This new project continues to train recipients to the same continuously improved standards and to manage their operations in a manner that will have minimal impact on the environment. The project will also continue to explore ways to reduce the carbon footprint within the GAP dragon fruit industry. 6.2 Gender and Social Issues During both CARD dragon fruit projects, implementation has systematically addressed gender and social issues. For example, Good Agricultural Practices demand good working conditions, appropriate treatment of labour, observation of good health and safety practices, and equal opportunity for both men and women. These conditions are reinforced through the implementation of the quality standards of GLOBALGAP (EUREPGAP) and BRC. Documentation of good working conditions, responsibilities and accountabilities appears in the Dragon fruit Quality Manual text, specifically in the position description section. The dragon fruit pilot packhouse employs a far greater number of women than men under very good working conditions that have been improved to comply with the BRC standards. 9
  15. 7. Implementation & Sustainability Issues 7.1 Issues and Constraints The issues and constraints identified in the previous project are still relevant for this project and, as with the previous project; it will systematically address and resolve those issues. At the farmer level The concern is how to attract increasing numbers of small-holder farmers into the project pilot-demonstrated GAP systems, to enable them to access high value market advantages? Where can the small-holder farmer access resources to enable them to implement required changes? Can basic business training be provided for small-holder farmers to enable them to break out of the collector hold and poverty cycle? At the Industry level The project pilot has been developed to the highest standards to ensure the farmer, packer and exporter consistently and sustainably deliver product that is safe, legal and of the quality equal to or better than the customer’s expectation The pilot has been developed to a high standard for the quality practitioners to use as a demonstration for replication to other dragon fruit areas and other crops and to offset any quality decrease during replication Interest in GAP has resulted in other operators entering the arena: Standards will differ and the dragon fruit industry needs to become organised to prevent substandard operators from contaminating/destroying the market in the initial stages. There will be a great deal of pressure on a high quality dragon fruit industry if returns from the high value markets are strong A high quality dragon fruit industry will need to be organised and in control of sustainability issues such as marketing (single desk selling), branding, promotion, regulatory, research and development. 7.2 Options As this is the first project report for the project, it is reasonable to conclude that the project document has been prepared to mitigate all perceived and actual issues and constraints. The team will appropriately address any issues and constraints as they emerge during the project. 7.3 Sustainability Full implementation of the project as described in the project document will establish a GAP dragon fruit industry with strong markets and trained personnel that will provide the best chance for the quality initiative to be sustainable. 10
  16. 8. Next Critical Steps The next critical steps include: 1 Existing project pilot Achieve BRC certification for the pilot packhouse and mentor continuous compliance/sustainability Facilitate small-holder dragon fruit farmers to achieve GLOBALGAP compliance and contracted suppliers to the pilot packer Commence the development of other exporter/packer/farmer group units based on the project pilot GAP working model for the wider Binh Thuan, Tien Giang and Long An Provinces. 2 Postharvest: Develop dragon fruit industry grade standards Commence dragon fruit storage life extension trials; transport options, customer demands Identify high value markets and advance the preferred provider status between the packer/exporter and the market. 3 Workshop field-day Assist with preparation for the CARD workshop/field-day Make presentations at the workshop/field-day 4 Reporting Prepare Milestone 3 report It is anticipated the roll of reporting will gradually shift from HortResearch to SOFRI. There are no major constraints to project implementation. 9. Conclusion This project has just commenced implementation and is destined to capitalise on the strong foundation for dragon fruit GAP production, postharvest and exporting established in the previous project 037/04VIE. The national capability developed by the previous project in both the public and private sectors will ensure this project delivers the outcomes documented in the project document. The capability that has been, and will continue to be, developed through the two CARD projects is very appropriate to the evolving dragon fruit GAP industry in a very changing and challenging time. 10. Statutory Declaration The CARD contract is a lump sum outputs-based contract. CARD does not require institutions to submit receipts (although they need to be retained by institutions for accounting and taxation purposes). CARD does need to be assured that the inputs detailed in the Contract Schedules have been delivered. The statutory declaration below is to be used to provide this assurance. 11
  17. STATUTORY DECLARATION COLLABORATION FOR AGRICULTURE AND RURAL DEVELOPMENT PROGRAM CARD Project Title: Extending export opportunities to small-plot dragon fruit growers through Good Agricultural Practices CARD Project Number: 0029/07VIE We the undersigned hereby declare that during the period 20/04/2008 to 30/06/2008 we have delivered the following inputs to assist in implementation of the above project. 1: PERSONNEL INPUTS Australian Personnel Days in Days in Trips to Provided (Name) Vietnam New Vietnam Zealand John Campbell 10 5 1 Allan Woolf Leonie Osborne 0 1 0 Total 10 6 1 Vietnamese Personnel Days in Provided Vietnam Dr. Nguyen Minh Chau 25 Dr. Nguyen Van Hoa 50 Mr. Nguyen Huu Hoang 60 Mr. Do Minh Hien 20 Mr. Huynh Thanh Loc 15 Other 40 Total 210 2: EQUIPMENT AND OTHER SERVICES Equipment & Other Services Description Budget Limit Year 1 Packhouse Facilities Upgrade $54,000 Year 2 Packhouse Facilities Upgrade $58,800 12
  18. Signed for the Australian Institution by a duly Signature of Witness authorised officer in the presence of witness Philippa Stevens Leonie Osborne Group Leader, Bioprotection Personal Assistant 3; EQUIPMENT AND SERVICES HANDOVER This is to certify that the above personnel inputs have been delivered and the equipment and services identified above provided has been handed over to the Lead Vietnamese Institution Signed for the Vietnamese Institution by a Signature of Witness duly authorised officer in the presence of witness Insert Name and Title Insert Name and Title 13
  19. Project Progress Against Proposed Objectives, Outputs, Activities And Inputs CODE NARRATIVE PERFORMANCE ASSUMPTIONS/RISKS INCEPTION REPORT MEASURES Information Required Objective 1 Market driven pilot Output 1.1 Pilot linkage with a High value market in Risk: Pilot fails to achieve/maintain • Some high value markets have been established • • • and are advancing towards preferred provider high value market UK/Europe purchases BRC/EUREPGAP Certification status. Any quality, delivery, other issues are pilot fruit being addressed in a mutually beneficial and sustainable manner between the packer/exporter and market Activity 1.1.1 Identify and negotiate High value markets Assumption that compliance is • Acceleration of high value market identification • • • and supply will increase in step with certified with high value established maintained product increases markets for the sale of Risks from not maintaining • compliant fruit from compliance; non-compliant operators the pilot contaminating the market place Activity 1.1.2 Pilot in compliance Successful external Risk: corrective action for non- • Systematic progress has been made for the pilot • • • packhouse to meet compliance with the BRC audit by Certifying compliances not completed Standard – Certification is expected to be Body confirmed by end of September • Mentoring for the EUREPGAP certified farmer group to operate in compliance continues Activity 1.1.3 Pilot improvement Pilot responds to Assuming there is a need • Detail progress on completion of activities • • • • Comment on relevance and likely timing of market-driven Assuming personnel with the • completion of activities. Identify any issues improvements and appropriate skills are available for relating to completion of activities and potential special initiatives improvement implementation impact on project achievements Activity 1.1.3 Research new and New high value market Assuming GAP dragon fruit industry • Detail progress on completion of activities • • • • Comment on relevance and likely timing of extend existing markets opportunities identified. maintains compliance completion of activities. Identify any issues Existing markets Assuming Industry willing to respond • • relating to completion of activities and potential developed into to market improvement challenge impact on project achievements increased value opportunities Output 1.2 Previous project pilot At least one packhouse Assuming the financial viability of • The project team will make presentations at the • • • CARD workshop and field-day to be held at the outreach delivery and associated grower implementing GAP at the high value pilot. This will greatly assist the project outreach 14
  20. CODE NARRATIVE PERFORMANCE ASSUMPTIONS/RISKS INCEPTION REPORT MEASURES Information Required programme unit established each in market standards Tien Giang and Long Risk: inability to identify key lead • An personnel with the resources/desire to implement GAP Activity 1.2.1 Identify a leading and Packhouse operator Assuming the financial viability of • Initial contact has been made another leading • • • dragon fruit packer/exporter to adopt the project interested packhouse identified implementing GAP to the high value pilot model in Binh Thuan, also Tien Giang and operator (exporter) and market standards. Inability to identify Dragon fruit grower • possibly Long An grower group in Tien key lead personnel with the group identified Giang and Long An resources/desire to implement GAP Activity 1.2.2 Train the packhouse Compliance with the Assumes a genuine desire to • Some GAP training of dragon fruit farmers in • • • Tien Giang has been undertaken operator and grower Dragon fruit Quality implement the training supply group in GAP Manual progressively Risks are a lack of honesty and • to the pilot standards implemented respect for the high value market importance Objective 2 Postharvest models Output 2.1 High value market Expanding high value Risks include sub-standard product • Discussions for the inclusion of increasing • • • numbers of small-holder dragon fruit farmers to access for small-holder markets, available to the presented in the market, non- become certified and contract suppliers to the dragon fruit growers pilot, subsequently to maintenance of compliance pilot packer have progressed compliant exporter, Loss of market confidence in supplier • packer and grower units Market access constraints • Activity 2.1.1 Evaluate ways to Identify ways to Dragon fruit consignments from the • Constraint mitigation to enable small-holder • • • dragon fruit growers to access high value increase the number of mitigate constraints of farm too small markets continues small-holder dragon the “collector”. Co-operative group eroded by farmer • fruit growers accessing Evaluate the potential defections • high value markets for co-operative Being unable to maintain GAP • establishment production Objective 3 Permanent advisory service Output 3.1 Establishment of a SOFRI technology Assuming availability of suitable • The SOFRI project team played a major role in • • • the success of the previous project, have permanent and transfer group personnel dedicated to the purpose continued the transfer of their GAP quality skills commercial advisory established and Assuming support for the initiative • 15
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