Experience in Development of Value Chains in Northern Uplands of Vietnam

IFAD Vietnam Team

IFAD in Vietnam

• 9 on-going projects include: (i) the Rural Income Diversification Project (RIDP) in Tuyen Quang; (ii) the Decentralized Program for Rural Poverty Reduction (DPRPR) in Ha Giang and Quang Binh; and (iii) the Program for Improving Market Participation of the Poor Program (PIMPP) in Ha Tinh and Tra Vinh and (iv) the Developing Business with the Rural Poor Programme in Cao Bang and Ben Tre provinces (v) the Business Development with Rural Poor Project in Bac Kan Province.

• 5 of the 9 projects support for markets development using value chain approach

New IFAD Approach

Capacity Building

Private Sector

Institutions

Sustainable Poverty Reduction

Markets for the Poor

COSOP 2008 -12Strategic Objectives

• SO1: Private and public sector increase investment in upland areas linking rural poor households to markets

• SO2: Poorest and vulnerable households access productive safety nets and respond to profitable business opportunities

• SO3: Upland poor communities adopt sustainable natural resource management practices and rewarded with payments for environmental services

• SO4: Provincial institutions’ enhanced capacity to implement pro-poor, market driven, agricultural policies based on participatory multi-stakeholder processes

Developing Business With Rural Poor Project in Cao Bang Province

Experience in Assisting Poor Farmers to Raise Hmong Cows and Link with Supermarkets in Hanoi

Cao Bằng

Cattle value chain

Collectors

Small traders

Slaughtery in Hanoi

Whosale agents

Shop sellers

Production farmers

Local slaughter

Supermarkets

Slaughter outside

Hanoi

Restaurant/hotel

Local collectors

Supermarketsị

Hotel/restaurant

Traders to the South

Consumers

80%10%

20%

5%

5%

10%

70%

60%

40%

15%

10%

5%

70%

70%

20%

10%

Production & Consumption in Cao Bang

Consumption outside Cao

Bang

Bắc Kạn

Lạng Sơn

Bảo Lâm

Hà Giang

Chợ Nà Giàng

China

MAI ĐỘNG

ĐÔNG ANH

Thái Nguyên

40% of beef consumed in Hanoi came from Cao Bang, however 50% of them

Imported from China

8/2007

• Value chain studies including the beef value chain• Set up work plans for improvement of institutions and

policies enabling markets linkages• Call for private sector investment to the value chain• Develop trademark & markets for commodities• Assist the poor farmers in techniques and credits for

increased production• Establish Common Interest Groups

Activities under Developing Business With Rural Poor Project in Cao Bang Province

Establishment of CIGs Name of

CommuneName of village Features of the CIG

Ha Thon

Lũng Hoài

25 households of ethnic minorities, 80% from Hmong group, 20% from Nung group; 65% are poor households Each household has from 2 to 3 cattles

Ràng Khoen 25 households from Hmong group60 % are poor, each household has from 2 to 3 cattles

Ma Ba Lũng Rản 26 households, 100% are Hmong63% are poor households, in average each household has 2.9 cattles

Thin Tẳng 27 households, 100% from Nung Each has 2 to 3 cattles; 64% are poor households

Planting forage for cattles

Linking CIGs with MarketsActivi

tyTime & Venue

Objective Results

First Workshop

07/09/07Cao Bang

Linking CIGs with Quality Distribution Networks

More than 40 participants including traders from Hanoi. BRDP projects objectives were informed to traders

Second

31/03/08Cao Bang

Introduction of high quality of Cao Bang beef to media and large consumers such as hotels and restaurants

More than 50 participants attended

Third 22/05/08Hanoi

First marketing activity in Hanoi to enlarge awareness on Cao Bang cattles

30 participants including the Big C, Square Pho, Women’s Consumers Association in Hanoi, etc.

Fourth 25/04/09Big C – Hanoi

Come and Eat Event organized at the Big C Supermarket

More than 100 people attended with many television and newspaper reporters

Come and Taste Beef at the Big C on 25 April 2009

Bulletin number 9 of Big C in May 2009

AT Big C

Implemented by:

Ha Giang DPPR

With consultation of CASR&D

REPORT ON INVESTIGATION RESULTS OF SHAN TUYET TEA

VALUE CHAIN IN HA GIANG

Status of Shan Tuyet Tea Value Chain in Ha Giang

• Production:Provincial level: In 2007, tea cultivated area was 15.064 ha;

fresh tea leave productivity was 32,5 quintal/ha/year. In 2009, tea cultivated area was 17.332 ha. Tea leave productivity was 35,4 quintal/ha/year. Expected tea leave yield is 47.000 ton. Tea is planted in Vi Xuyen, Hoang Su Phi, Xin Man, Bac Quang, Quang Binh district….

Quang Binh district: Tea cultivated area is 1896,6 ha.Xuan Minh commune: Tea cultivated area is 375 ha.

• Processing: At present, Ha Giang has 1 joint-stock company, 12 enterprises, 23 co-operatives and nearly 536 households trading and processing tea.

• Consumer markets are: China, India, England, Russia, and domestic markets

Shan Tea

Tea Production

Geographical location of agents

Notes: Processing area: Purchasing unit:Processing unit:

Diagram of Ha Giang Shan Tuyet Tea Value Chain

:Fresh tea: Semi-finished

tea: Processed tea

Notes

80%

80%

20%

14%73%

13%

20%75%

25%

50%

30%20% 95%

5%

Input

Households cultivating tea

Small purchasing unit

Intermediary purchasing unit

Big purchasing unit

Small processing unit

Processing company

Export

Domestic Consumption

Participatory of the poor in the value chain.

Specific input

Production

Purchase Process

Consumption

Not participate - Planting, taking care, harvest- Labour

- Loading and unloading- Packaging- Transport

- Gathering tea- Hiring labour

- A little- Loading and unloading

The poor mainly participate in production process (reaching 100% of

households)

without pre-processing and poor harvesting techniques Low income

Training on harvesting techniquesto Tea CIG members

Tea Mini Pre-Processing Machine

Project: Build up tea hatcheries