Báo cáo nghiên cứu khoa học " Developing an Agricultural Research and Development Priority Framework for Vietnam Crops Sub-Sector Workshop " pot

Developing an Agricultural Research and Development Priority Framework for Vietnam Crops Sub-Sector Workshop Data and Information Sheets: Areas of Research & Development Opportunity (ARDOs) ARDO 1: ARDO 2: ARDO 3: ARDO 4: ARDO 5: ARDO 6: ARDO 7: ARDO 8: ARDO 9: Rice Upland Crops Food Legumes Industrial Crops Fruit Vegetables Flowers Animal Feeds Crops for New Uses October 2006 ARDO 1: RICE ARDO DEFINITION 1.1 National Goal Increase yield, and quality of rice to ensure national food security, competitiveness in export markets, reduce the cost of production and maintain exports at 4-5 millions ton/year 1.2 R&D Scope Research into genetic improvement and development of agronomic techniques (GAP, ICM, IPM) improving quality standards and food safety and further develop harvest and post-harvest management including storage and processing and development new and improved products to meet identified market needs 1.3 Coverage:     Improved varieties F1 hybrid varieties Locally purified varieties Varieties with high yield good quality and possess aromatic character (Aroma varieties)  For all varieties high yield, good grain quality (to meet exporting markets), suitable for different ecological environments (intensive cultivation areas, adverse condition areas such as salinity soils, acid-sulphate soils, floating areas, rain fed lowland as well rain fed upland conditions etc.) through out country  These varieties should be divided in to mainly groups base on growth duration Very early maturity (< 90 days from seed to seed); Early maturity (90-100 days); Medium maturity (>100 - 125 days); Late maturity and/or Mua group (for most photosensitive varieties, growth duration relates to day length) Production zone High priority Northern of country Very early, Early maturity: and highland zones - Improved varieties - F1 hybrid varieties Red rive delta Very early, Early maturity: (RD) - Improved varieties - F1 hybrid varieties - Aromatic varieties Very early, Early maturity: Central zones - Improved varieties - F1 hybrid varieties - Aromatic varieties Medium priority Locally uniform varieties Low priority Locally uniform varieties Medium maturity: - Locally uniform varieties - Aromatic varieties Late maturity: Medium maturity: Late maturity: - Aromatic varieties Locally varieties Central plateau Medium maturity: - Aromatic varieties - Local uniform varieties Very early maturity: - Improved varieties - F1 hybrid varieties Crops Priority Workshop Data & Information Sheets - Aromatic varieties uniform Mekong Delta (MD) Very early, Early maturity: - Improved varieties - Aromatic varieties - F1 hybrid variety -Uniform varieties Late maturity: Locally uniform varieties - Aromatic varieties INDUSTRY STATISTICS 2.1 Medium maturity: - F1 hybrid variety - Improved varieties - Aromatic varieties - Locally uniform variety Introduction Rice production in Vietnam started more than 4,000 years ago The skill and knowledge of producers has grown over time in keeping with neighbouring countries including China, Thailand and Indonesia Rice is very important food crop It provides about 20% energy requirement for the world, 60-70% for Asia people and 35 - 59% for more than billion people (FAO,1984), particularly in Asia countries including Vietnam Rice crop can develop and tolerate many disadvantageous environmental conditions (long time flooding soil, salt and acid soil) which many other crops cannot For this reason rice is sometimes called a “volunteer plant” and in the tropical monsoon reason is one of the few annual crops that can be successfully grown Rice is a core component of food security in many Asian countries including Vietnam, and has been grown repeatedly in the same areas for thousands of years Diversification into more profitable crops has only been achieved once household and national food security needs have been met Rice plays important role the daily nutrient and health requirements of many rice eating nations New varieties, high in protein, ‘golden rice” with pro-vitamin A are now becoming available for further improvement in human nutrition 2.2 Industry Characteristics and Prospects Area and Productivity According to statistical data (Agriculture Development - GSO), in 2005, Viet-Nam had 7326,400 of rice divided into groups  Winter-Spring (W-Sp, from November to April the next year) rice crop season 2942,000ha;  Summer-Autumn (S-Aut, From April to October) rice crop season: 2348,600  Mua (from July to December in the North and from August to February the next year in the South) rice crop season 2035,800 (table No.1) Table Area and Production of Rice in (1990-2005) Year Area Of which Spring Autumn paddy paddy Thousand Hectares 6006,8 2037,6 1215,7 6765,6 2421,3 1742,4 7666,3 3013,2 2292,8 7492,7 3056,9 2210,8 Total 1990 1995 2000 2001 Total Winter paddy 2753,5 2601,9 2360,3 2225,0 19225,1 24963,7 32529,5 32108,4 Crops Priority Workshop Data & Information Sheets Production Of which Spring Autumn paddy paddy Thousand Tonnes 7865,6 4090,5 10736,6 6500,8 15571,2 8625,0 15474,4 8328,4 Winter paddy 7269,0 7726,3 8333,3 8305,6 2002 2003 2004 2005 7504,3 7452,2 7445,3 7326,4 3033,0 3022,9 2978,5 2942,0 1990 1995 2000 2001 2002 2003 2004 2005 102,2 102,5 100,2 97,7 100,2 99,3 99,9 98,4 104,1 101,7 104,3 101,5 99,2 99,7 98,5 98,8 2293,7 2177,6 34447,2 16719,6 2320,0 2109,3 34568,8 16822,7 2366,2 2100,6 36148,9 17078,0 2348,6 2035,8 35790,8 17331,7 Index (Previous year = 100)-% 106,6 99,1 101,2 104,3 109,9 98,9 106,1 102,2 97,9 97,4 103,6 110,4 96,4 94,3 98,7 99,4 103,7 97,9 107,3 108,0 101,1 96,9 100,4 100,6 102,2 99,2 103,8 101,5 99,3 96,9 99,0 101,5 9188,7 9400,8 10430,9 10415,1 8538,9 8354,3 8640,0 8044,0 100,7 114,5 98,5 96,6 110,3 102,3 109,6 99,8 98,3 105,3 97,7 99,7 102,8 97,7 101,7 93,1 Rice production in Vietnam is characterized by:  main rice seasons in the North (W-Sp) and Mua crop that coincides with dry and wet seasons  main crops in Central and the South (W-Sp, S-Aut and Mua)  The Green Revolution in 1960’s when a lot of new varieties with short growth duration, short stem, resistance to logging, adapt to intensive farming condition, high yield etc were developed This enabled more intensive cropping systems to be developed that significantly increased total yield and income  From 1990 to 2005, the total area of rice has expanded by 22% (W-Sp rice up 44.8%, S-Aut rice up 93.4% and Mua rice down 26.2%) Since 2001 there has been a small (2.5%) decrease in the total area of rice grown  The total yield of rice has increased by 86% from 1990 – 2005  The big change in production over the years has occurred for the following reasons (Table 2) o Strongly supportive Government of Viet Nam policies in agriculture e.g Improvements in irrigation systems, development of improved varieties, food security and poverty reduction o Increased funding for rice research enabling development of new varieties and replacement of old varieties throughout the country o Introduction of F1 hybrids, mainly in RRD and parts of the Central Plateau o Photosensitive varieties that have a high yield and good quality as well as better adaptation and better tolerance/resistance to pests and diseases o Mua crop varieties have declined and been replaced by improved varieties, especially in the RRD region Table Area, Yield and Production of Paddy (1961-2005)* Year Area Thousand Index (Previous year=100%) Ton /ha Yield Index (previous year=100%) Crops Priority Workshop Data & Information Sheets Production Thousand Index ton (previous year=100%) 1961 1965 1970 1975 1980 1985 1990 1995 2000 2001 2002 2003 2004 2005 4.744.000 4.826.300 4.724.400 4.855.900 5.600.200 5.730.900 6.027.700 6.765.600 7.666.300 7.492.700 7.504.300 7.449.300 7.445.300 7.326.400 101,73 97,88 102,78 115,32 102,33 105,17 102,53 100,23 97,73 100,15 99,26 99,94 98,40 1.896 1.941 2.153 2.120 2.080 2.783 3.189 3.690 4.240 4.290 4.590 4.630 4.860 4.890 102,37 110,92 98,46 98,11 133,79 114,58 103,47 103,28 101,17 106,99 100,87 104,96 100,61 8.997.400 9.369.900 10.173.300 10.293.600 11.647.400 15.874.800 19.225.104 24.963.700 32.529.500 32.108.400 34.447.200 34.518.600 36.148.900 35.790.800 104,14 108,57 101,18 113,15 136,29 121,10 106,10 103,61 98,70 107,28 100,20 104,72 99,00 * Source from Ministry of Agriculture and Rural Development Average yields have increased 2.2% per year from 1961 – 1990 (1.896 to 3.189 tons/ha) This increase is attributed to the Green Revolution impact of rice breeding From 1990 - 2005 total yield increased 2.3% per year (3.69 to 4.89 tons/ha) Most of this increase can be attributed to application of hybrid rice in the North (RRD) and high yielding varieties in the South (MKD) In addition improved rice cultivation and improved seeding techniques, and application of “3 increases deceases”, (ICM, IPM and GAP) Over the last 30 years, total production of rice in Vietnam has increased about 6.6%/year – the first rank in the world Vietnam now is the second/third largest rice exporting nation Value and Markets Export Markets  Six countries (Thailand (30%), Vietnam (14%), America (14%), India (12%), China (9%) occupied 86% of the world rice export market (FAOSTAT, 2004)  World production of rice has increased increase from 144 million tons (1975) to 606 million tons (2005) (FAOSTAT, 2004)  FAO predicts that demand will increase to 800 million tons by 2030 – an annual increase of 1% per year  Since 1975 the world price has declined from 750USD/ton (1975) to 240 USD/ton (2005) Relatively small increases in annual production can severely disrupt price  The quality of exports varies: Egypt, EU, America, Australia, China, India, Argentina, Uruguay (India and Pakistan export Basmati variety) export rice with high quality India, Thailand, Vietnam export rice with medium quality and India, Pakistan, Thailand, China, Vietnam export rice with low quality  Some major exporting countries (Thailand, China and Vietnam are diversifying from rice into other crops while other producers (Cambodia) have increased area and yield as national goals Crops Priority Workshop Data & Information Sheets Table Rice Exports from Vietnam (1989- 2005) Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Export quantity (tons) 1.420.000 1.624.000 1.033.000 1.945.800 1.722.000 1.983.000 1.988.000 3.500.000 3.574.804 3.800.000 4.550.000 3.476.000 3.730.000 3.480.000 3.813.000 4.059.740 5.250.270 Price (USD/tons) 204 248 283 239 209 230 289 303 256 288 228 177 154 180 189 233 268 Value (1000 USD) 290.000 304.637 234.482 417.742 310.000 359.600 391.900 750.000 870.892 1.023.997 1.037.400 600.000 545.000 560.000 727.000 950.390 1.407.230 Worldwide imported rice (tons) 19.700.000 18.800.000 27.200.000 24.900.000 22.300.000 21.500.000 23.800.000 24.900.000 27.230.000 Source: FAOSTAT, 2000; Tran Van Dat, 2004 and Trading Ministry of Vietnam Crops Priority Workshop Data & Information Sheets Table Export Markets Destination Market Total Nth America United States Europe EU25 EU15 Eastern Europe Asia ASEAN Middle East Japan China Hong Kong Australia + Oceania Other countries 2002 Quantity Value (1.000t0n) (million USD) 3.135,20 560.000 301,1 137,00 137,00 2.078,10 1.185,60 886,30 4,70 1,50 2004 Quantity (1.000ton) 2005 100,0 4.059,74 1,12 0,89 324,41 46,29 13,48 141,17 1.914,42 1.401,22 351,02 75,36 82,62 2,20 4,48 Value (million USD) 950,39 0,32 0,24 70,75 9,97 3,70 32,50 456,83 313,25 102,02 16,06 19,21 0,67 0,95 Quantity (1.000ton) 5.250,27 87,38 10,14 9,34 69,60 2.484,08 2.224,95 12,03 196,83 48,28 1,13 3,20 Value (million USD) 1.407.23 23,24 3,33 3,07 18,01 686.03 616,89 3,12 53,42 11,97 0,29 0,84 519,00 1.815,31 421,54 2.675,61 697.12  Rice exports form Viet Nam commenced in 1998 and have increased annually The value of the rice crop in 2005 was approximately 40% of total agriculture GDP  Export volumes are 3.6 times higher in 2005 compared to 1989, and rice exports have increased 21.1%/year on average  Main exports are to Asia (40-60% of annual exporting volume) Europe, Africa, Middle East and Japan are also markets of Vietnam but are unlikely to increase in the foreseeable future Domestic markets:  Viet Nam has a population of 80 million and rice as the main food in the diet As living conditions improve the demand is for better quality rice  The domestic market is estimated to be 22 million tons with a market value of US$5 billion  A further million tons of poor quality and split grain rice is used for animal feed (Value approximately US$1 billion)  Almost all regions of Vietnam are self-sufficient in rice – the majority – 80-90% of exports are from the Cuu Long River Delta Government Policies Rice development is given high priority by the Government It is not only for national food security but for maintaining 4-5 ton milled rice to export It is also very important to farmers, especially in the MKD region, whose main income is based on rice production Four major rice programs are supported by government: Crops Priority Workshop Data & Information Sheets     Improved variety: Genetics improvement, breeding for very early and early maturity for Mekong delta areas, Red river delta areas, central areas, and intensive cultivation areas to meet the demand of importing markets, overcome floating and drought, rotation with winter crops ( vegetables, potato, sweet potato, corn, water melon) F1 Hybrid rice: A big government, it contributes to increasing the yield from Red river delta areas, central areas, and central plateau to ensure national food security In the coming year Viet-Nam will produce its own F1 hybrid seed to ensure rice production is based on domestic seed Aromatic rice: Strong attention to improvement genetics to release varieties (with very early and early maturity but high yield and aromatic character and good resistance/tolerance to disease and insect pets) to meet demand from rice markets as well as increase national income from exporting rice Locally uniform variety: Purification of Special rice varieties from local varieties such as Lua -Tam, Tam -Xoan, Nang-Thom, Nang-Thom -Cho-Dao.from to improve value in exporting markets Comparative Advantage  Viet-Nam is a member of AFTA and as a member of WTO at the end of this year, the level of taxes and protection for export crops, including rice will be reduced  The rice world market is expected to increase with increasing population and demand for affordable food  Viet-Nam has well defined markets, in developing countries, where living standards are still low Rice from Viet-Nam imports is not so expensive and Viet-Nam has a comparative advantage in these markets  At present Vietnamese breeders have been released some of high quality with aroma varieties those are testing in lager scale These varieties would be grown as national varieties on larger areas in the near future years Industry Analysis 3.1 Structure Households and Size of Holdings  In the MKD the area of rice per farmer household is rather large, may be several hectare for each household  In other regions, especial in the RD regions, rice area of a household is very moderate, of some hundreds and thousands m²  On some river banks rice planting area of a farmer household is not so large - usually less than a hectare for each household  In river delta regions, especial in the MKD and RRD regions, rice planting area is reduced; rice is replaced by crops that are more profitable such as vegetables, fruit trees, and flowers 3.2  Supporting Infrastructure At present irrigation systems for rice production are almost completed in RRD to MKD Crops Priority Workshop Data & Information Sheets  Seed production Plant protection centres are sufficient and good enough to control disease and insect pest  Agricultural extension bureau belong to MARD and extension centres from provinces are strongly supporting in rice production, too  There are 270,000 rice millers in Mekong Delta with total capacity of 21,000 tons paddy batch (equal to 11 million rice/year), more than 300 machines for polishing rice, and some rice grading machines are produced in Vietnam 3.3 Future Trends and Key Market Issues Market for rice is rather convenient to export and there is high domestic consumption demand Rice areas will decrease year to year due to developing industry and diversification into more profitable crops The challenge is how to produce sufficient amount for market meanwhile In 1989 Viet-Nam exported rice (1,420,000 tons) Since 2000 Viet-Nam has become the second largest rice exporter Value of exports was billion USD meanwhile to meet domestic demand Target for 2010 is to maintain 35 million ton of paddy rice with better quality and aromatic although rice areas would be decrease yearly also      R&D Information 4.1 Main Research Areas  Genetic improvement in yield and quality including development of hybrid varieties, and selection for very early and early maturity, Uniform varieties, aromatic varieties  Introduction and evaluation of new F1 hybrid varieties  Development of production packages incorporating agronomic practices, pest and disease management and commercial production systems  Improvement harvesting and post harvest processing  The 1978-2000 national science and technology program for food crops (major crop rice) had a focus on germplasm collection, breeding and selecting new varieties for intensive areas and disadvantage areas  The 2001 – 2005 varieties program for crops, animal and forest is focused on breeding and selecting rice varieties for intensive farming areas as well as disadvantaged areas, breeding and selecting hybrid rice, super rice variety, special rice variety, high quality rice for exportation  Main research disciplines/fields include: - Bio technology, breeding, regional planning/projecting, farming/crop systems, soil science, plant protection, post harvest technology 4.2 Major Research Providers Ministry of Agriculture and Rural Development   Viet-Nam Agricultural Science Institute (VASI) (now Vietnam Academy of Agricultural Sciences – VAAS) Institute of Agricultural Science for Southern Vietnam (IAS) Crops Priority Workshop Data & Information Sheets     Agricultural Genetics Institute, National Centre of Variety Evaluation and Seed Certification (NCVESC), Cuu Long Rice Research Institute, Food Crop Research Institute Universities      Hanoi Agricultural University, Thai -Nguyen Agro-Forestry University, Ho- Chi - Minh Agricultural University, Hue Agricultural University Can -Tho University Others  Vietnam Atomic Energy Commission (Mutation rice breeding)  IAEA (mutation rice breeding)  International cooperation on R & D of the rice crops is very active in training, scientific information exchange and particularly in germplasm for breeding as well as solutions F1 hybrid seed production in Viet-Nam  International Rice Research Institute (IRRI)  Provincial seed companies with trained technicians  Hundreds senior scientists and thousands researchers with different research fields such as bio-technology, plant breeding, farming systems, regional project, variety pattern, soil research, fertilizer, irrigation, plant protection, agriculture, engineering and post harvest technology and protection of Vietnamese as well as foreign Intellectual Property especially in rice hybrid seed  Total researchers working in rice crops are thousands people many of them are trained from developed countries (RUSIA, USA, UK, JAPAN, HOLAN, CHINA, INDIA )  Crop seed Companies, Agri Science and Tech service Companies of Vietnam and from out side which are investing in Vietnam just after Viet-Nam became a member of WTO  Foreigner companies have invested for seed production in Vietnam, it needs to encourage in introduce new varieties and new materials into Vietnam for research collaboration 4.3  Funding Mainly from the Government and partly from international cooperation projects Budget for rice research and development are always much considered, many billion VND yearly This amount would be increased in the next years also  4.4 Major Achievements to Date  Selecting and maintaining germplasm for local special varieties  Breeding and selecting high quality rice varieties for exportation including: Crops Priority Workshop Data & Information Sheets 68  Even if the projected increase in area of green forages is achieved the national livestock herd will be energy and protein deficient for significant periods of the years unless some form of relatively high protein content supplementary feed can be provided Table Prediction of livestock number and demand (green and raw feed 20052010 Number of livestock (1000 head ) Meat cattle Dairy cows Goats and sheep (according to provinces’ reports) Volume of green and raw feed (1000 ton /year ) From Unimproved Grasslands and other sources (estimate) Dry Matter Protein (7%/ kg DM) Metabolisable Energy, MJ/kg DM (million MJ), From Improved Green Forages Dry Matter Protein, 10%/kg DM Metabolisable energy, MJ/kg DM (million MJ) From agricultural by-products 2005 5.541 104 1.324 2006 5.708 118 1.231 2010 6.900 202 1.807 2015 8.855 300 1.987 9900 693 79200 7300 511 58400 6500 455 52000 5300 371 42400 925 93 8325 3040 304 27360 6180 618 55620 11100 1110 999000 Dry Matter Protein, Metabolisable energy (million MJ) Agricultural by–products not used for husbandry Demand for Livestock (1000 ton DM /year ) Dry Matter Protein, 11 – 12%/kg DM of forages Metabolisable energy, 9–10 MJ/kg DM of forage (million MJ) Rate of provided green forage and roughage dry matter for ruminants (%) based on planting area planed yearly and Agricultural by–products used for husbandry Rate of provided protein from roughage for ruminants (%) based on planting area planed yearly and Agricultural by– products used for husbandry 5176 310 20704 24340 6037 362 30185 23140 7245 435 36225 14100 8976 540 44880 15300 16000 1920 144000 38.1 16350 1960 147000 55.5 19900 2400 180000 67.5 25300 3040 228000 79.4 1096 (57,1) 1177 (60,1) 1508 (62,8) 3040 (66,4) Rate of provided ME from roughage for ruminants (%) based on planting area planed yearly and Agricultural by–products used for husbandry 108230 (75,2) 115950 (78,9) 143850 (79.9) 187180 (82,1) Value and Markets  There is no data on the annual production of green forages and roughage contribution to total GDP Agriculture provides a 25% contribution to total GDP 23% of this contribution comes from livestock  The biggest market for grass products, grass seeds and processed raw and green production are big livestock raising areas in the country and in some countries of the region  Over five recent years, some markets of selling grass have been operating in southern regions (in Dong Nai and some areas around Ho Chi Minh City) This activity has paved out away to commodity market for grass growers  Ghine grass or Pas grass (Panicum maximum TD58 or Paspalum atratum) produces Crops Priority Workshop Data & Information Sheets 69 25t DM (North) and 32t DM (South) With prices of 1400-1500 VND/kg DM producers can earn 37.5 to 45 million VND/ha Profit after investment cost of about 20-25 million VND/year is 13-18 million VND/ha Comparative Advantage  Stylo has potential for storage in bales (15-20t DM/ha with 17-19% CP) especially for high producing animals (milk cows and milk goats) in dry season/winter Compared to imported Alfalfa hay costs around 230/ton excluded tax and transportation cost (equivalent to 3600 VND/kg), whereas the predicted proce of stylo (after processing is around 2300-2500 VNd/kg)  There are many areas of favourable climate and soils for legume production for animal feed and Vietnamese production is likely to be cheaper and of similar quality to imported high quality animal feeds  There has been little work on improvement of grassland species but the potential for improved grasslands in poor fertility areas is considered important  Yield and quality of most forages and grass species is not high compared with other countries Predominant use of elephant grass, while it produces high yields has very low protein and rapid lignification results in low digestibility  Forage production cycles take 25 – 45 days and produce a regular cash flow for farmers who sell forage and this encourage farmers to produce Government Policies  16 provinces and cities have support policies for poor households to develop green animal feeds and pasture (e.g Yen Bai, 2.4m; Ha Giang, 1.6 m, Ha Tay 5m, Quang Binh, 1.6m, Binh Thuan, 2m, KonTum, 0.5m VND/ha Quang Tri province with 150 million VND and Lam Dong province with 100 million VND Total support includes Total (million VND) Supporting fund and seeds for developing improved grass and legume cultivation area 154 of additional In 2005-2010 million/ha 616 grass In 2010-2015 144 of addtional grass million/ha 576 Importing new seeds for 10 research 200 kg/research centre 300.000 /kilo 600 centres 10 training Training in technology 15 million/class 9,600 classes/province Investing in dry forages/rice straw machine/province 20 million/machine 5,120 grinding machines Grass-cutting machines 10 machines/province 10 million/machine 6,400 Combine harvesters systems 280 million/system 1,400 Clean and identify seeders 10 systems 65 million 650 Total 30,262 Explanation Quantity Crops Priority Workshop Data & Information Sheets Support (VND) price 70 Industry Analysis 3.1 Structure Households and Size of Holdings  90% of ruminant livestock husbandry is based on farming households (200m2 - 0.2 ha) which are small-scale, scattered and lack investment  Land for grass planting is mainly based on waste and poor land without investment in finance and sustainable cultivation management systems  Most of production is for self-sufficient Apart from a few government or joint stock companies there are few large scale (200-800ha), or intensive ruminant farming systems  Apart from some farmers specializing in forage (e.g Đong Nai and areas around Ho Chi Minh City) there are few farms that produce commercial green forages and roughage or seeds for livestock 3.2 Supporting Infrastructure  Most forage seeds come from Research Centres and National Farms Out of 15 sites providing forage seeds only are private sites Greater involvement of commercial seed companies in production of forage and grass seeds are desirable  Most green feed processing is by farming households using traditional methods Feed conservation through ensilage has been applied but only in dairy cow raising areas Livestock raisers have used dry straw, maize leaves and stoves, sugarcane leaves and tops, cassava leaves and use them as animal feeds in dry seasons  Industry growing and processing of forages has not been established in Vietnam 3.3 Value and Markets  Fresh feed commodity markets are slowly developing especially in the North Prices range from US$0.15-0.20/kg DM  Vietnam imports about US$10m of maize per year for animal feed at a cost of approximately US$0.25c/kgDM 3.4 Future Trends and Key Market Issues  Local production forage seeds is adequate to meet farmers’ needs Vietnam has favourable conditions for production and exporting forage seeds, but as yet has not been able to produce for export  Production of grass seeds does not meet farmer’s requirements and about 1.5 billion VND is spent on importing grass and legume seeds from the countries like Thailand, Indonesia, Australia and other countries  Past focus has been on evaluating imported varieties  It is anticipated that in order to meet national livestock production targets several important changes will be required: o Intensification and development of larger scale livestock production systems Crops Priority Workshop Data & Information Sheets 71 o Intensification and expansion of forage growing areas o Land use planning to use higher quality land for production of forages to obtain higher yield than those currently obtained from the use of waste land (grass) and poor fertility land (forages) o Investment in machinery and technology for intensive production of improved grassed and legumes and seeds o Development of conservation techniques and improved utilisation of byproducts for use in the dry season or in winter when production of feed does not meet animal requirements R&D INFORMATION 4.1 Main Research Areas  Evaluation of imported varieties of forage for adaptation and yield under differing environments  Development of a genebank for forage crops especially winter/dry adapted genes  Intensive cultivation (rotational cultivation, overlaping crop, manure and irrigation) of improved forage in a market-oriented way  Fertiliser and water trials to improve yields and seed production  Processing, preservation techniques and improving forage quality 4.2 Major Research Providers Ministry of Agriculture and Rural Development  National Institute of Animal Husbandry  Research Centre for Dairy Cattle and Pasture research, Ba Vi, Ha Tay  Mountainous Husbandry Development and Research Centre in Song Cong, Thai Nguyen  Song Be Ruminant Research Centre  Vietnam Agriculture Science Institute  Goat and Rabbit Research Centre in Son Tay, Ha Tay Universities  Hanoi – Agriculture University  Hue University  Can Tho University  Thu Duc Agriculture University  Tay Nguyen University Others  The Ministry of Science and Technology, the Ministry of Agriculture and Rural development, the provincial Dept of ARD, SIDA-SAREC program, FSP program, Crops Priority Workshop Data & Information Sheets 72 SEA pasture program, FAO program, Hunger eradication and poverty alleviation programs sponsored by WB and ADB 4.3 Funding  Major financial source: From national budgets and some international projects  It is estimated (National Institute of Animal Husbandry) that funding for pasture/forage research from 2002 to 2006 was 2.05 billion VND, including funds for selecting, producing seeds and building demonstrations  In 2006, 1.1 billion VND has been invested in research in processing of green and raw feed and rice straw Funding is very low and without significant increase achievement of livestock production, targets will be difficult to achieve 4.4 Research Achievements to Date  Vietnam has not kept pace with the rest of the world in forage production For example in Queensland Australia the DM yield of B Ruzisinensis can reach 2324ton/ha compared with 10-17ton/ha in Vietnam  Some studies for evaluation of imported varieties and selection of high yield quality varieties completed but are narrow and dispersed and there is little linkage between laboratory results, research institute results and mass-production in farmer’s fields Major R&D achievements up to now:  Development of high quality improved varieties (more than 20 species)  Technical solutions for small-scale process and preservation in forage production  Forage development through small-scale household production models Crops Priority Workshop Data & Information Sheets 73 SWOT Analysis Strengths         Suitable tropical weather conditions appropriate to planting many kinds of forage and legumes Suitable semi-perennial varieties available that are relatively tolerant of (insect, dry conditions, shade, and trampling) Easy to cultivate and propagate by seed or slips (clumps) Once established provide several harvest each year and therefore regular cash flow in growing season As livestock numbers grow the demand for forage crops and improved grasslands will increase Relatively high protein content, especially the forage legumes Low risk and low technology required if suitable varieties of forage produced for sale Labour intensive and may provide alternative employment opportunities Weaknesses              Opportunities     Further evaluation and demonstration of high producing, high quality forages Linking forage production to improved livestock production systems Projections of growth in livestock numbers will increase feed demands and raise the value of improved forages and feeds Development of forage commodity markets, together with low cost, high quality conservation/preservation systems in areas with high livestock intensities Forage cultivation is not yet considered as a cash crop like other crops Poorly developed commodity markets for sale of forages Cut and carry systems of harvesting are labour and transport intensive Small holdings with little development of larger scale lands for improved forage or pastures Relatively poor mechanisation leading to poor conservation/preservation of forages Lack of suitable machinery produced in Vietnam and high cost of imported machinery High cost of conservation/preservation and storage of forage Low productivity compared with natural potential for production Low quality of grass forages and low areas of legume forages planted Poor organization of seed production for grasses and legume forages Many livestock producers rely on imported processed feeds (grains) to meet animal feed demands Low level of awareness of importance of high quality diets in improved livestock production is low Most forages grown in poor and marginal lands Threats   Uncontrolled grazing and exploitation of natural grassland resources negatively effects the environment through water pollution and soil erosion, especially in higher lands Natural disaster, flood, rainstorm and fire Crops Priority Workshop Data & Information Sheets 74  Significant increases in production and income to farmers likely to be obtained if land that is marginal for rice and other crop production is converted to forage production  Mechanization of small scale harvest and conservation practices  Development of intensive larger scale animal and forage production systems Crops Priority Workshop Data & Information Sheets 75 ARDO 9: NEW AND INNOVATIVE CROPS ARDO DEFENITION 1.1 National Goal: Evaluate the potential for new and innovative crops to provide economic, social and environmental benefits to producers, processors and the Nation 1.2 R&D Scope: Enhance the use of selected crops through carrying out researches on their plant genetic resources, potential use values, adaptabilities, breeding, and cultivation techniques 1.3 Coverage: Crops for new uses: diesel plant Jatropha (Jatropha curcas L.), Sorghum (Sorghum bicolor), Jojoba (Simmodsia chinensis / / Simmondsia californicaL.) Moringa (Moringa oleifera Lam.), Curcuma (Curcuma sp L.) and Mugwort (Artemisia vulgaris, Artemisia annua) INDUSTRY ANALYSIS 2.1 Introduction Despite of long history of the country’s agricultural civilization and outstanding achievements in crop production, there are numerous underutilized crops, among them many with high potential values in the national economic development and environmental protection Almost all crops have multi-uses and the potential for income generation or expenditure reduction for small and large producers It is estimated, Vietnam has used only 15% of its total bio-fuel production capability With the increase in environmental degradation, climatic change and natural resources erosion, development and use of underutilized crops will be of key importance in the poverty alleviation, food security, environmental protection and sustainable agricultural development Very few of the new and innovative crops are currently used as income generating opportunities but the potential for this is good, particularly on marginal lands where other crop options are not so attractive Most of these crops also have intrinsic values including pharmaceutical and nutriceutical uses, amelioration of soil degradation and fire and pest tolerance 2.2 Industry Characteristics and Prospects Growing Areas There is little data on the areas of new crops  Jatropha: A perennial woody crop that can be easily propagated vegetatively Widely adapted to different growth conditions at altitudes up to 900m, high drought tolerant, growing well in marginal/poor and saline soils Cultivated in various locations, from North to South, and has been used as a medicinal plant It is also grown for home garden and field fences Jatropha can be planted in 33 million of waste, 120,000 of heavily eroded, 30,000 of saline and 300,000 arid and semi-arid lands distributed from North to South for the protection of environment, Crops Priority Workshop Data & Information Sheets 76 and of land and water resources Also, with high resistance to fire and pests it can be used as live fences and fire protection  Sorghum: As a C4 annual plant with very high drought (as low as 500 mm/year), saline (up to 0.6%) and waterlog tolerance, good pest resistance, it can be cultivable in marginal/infertile soils, sorghum is highly valuable for land recovery and protection, for sustaining and diversifying agro-ecosystems  Jojoba: A perennial woody crop Have a natural life span of at least 100 years and perhaps over 200 years As a home garden plant cultivable in all kinds of soils at the evaluations under 800 m, throughout the country Has environmental protection and agricultural diversification values and is of value in gardening and horticulture  Moringa: As a home garden plant cultivable in all kinds of soils at the evaluations under 500 m, throughout the country Moringa has been widely planted in the South, from Quang Nam, Da Nang to Kien Giang, Phu Quoc in home gardens and plantations mainly as supporting plant In the North it is grown in some places as ornamental and shade plant Has environmental protection and agricultural diversification values and is of value in gardening, horticulture  Curcuma: As perennial root plants with high tolerance to pests and diseases and not require fertile and good soils, curcuma is widely distributed and easily cultivated at the altitudes of less than 1500 m Only C longa L has been planted for commercial production, both in-door and out-door The others have been only exploited as wild plants  Artemisia: Mugwort is an ‘easy plant’ which can grow well in poor and dry soils, and thus can also have value in the protection of soil and environment About 150ha is grown in Langson and Quang Ninh It commonly grows in the wild in North Vietnam and is also widely cultivated in Vietnamese home gardens and medicinal plant gardens for use in traditional medicine and as vegetable Along with China and India, Vietnam is a major international cultivator of artemisia annua, and producer of artemisinin Potential Use  Jatropha: (i) Bio-diesel production: Studies indicate that from 2-5 to 50- 60 years after planting, annually this plant can yield of 3-12 tones of nut s/ha Kernels contain as much as 30 – 60% oil which can be transferred to bio-diesel fuel through esterification Filtered oil from pressed nuts can be substituted for diesel in small diesel generators (ii) Traditional medicines: Traditionally leaves, roots, stems, and seed oil can also be used for cure of different diseases, such as hemorrhoids, edema, malaria, worm, and bites by snakes Recent research results show that there are substrates of anti-cancer and leukocyte cure effects (iii) Plant pest control: High toxicity of seeds has potential as a bio-pesticide) (iv) Production of soap, vecni (a wood polishing oil), glycerin, dye  Sorghum: (i) Food: grains: Yield of – 12 t/ha Grain protein content is 28% which exceeds that of maize and rice with (10%) and 28%, respectively For the plant’s high regeneration capacity, grains can be harvested 2-3 times for planting season As animal feed: stems and leaves with 2-3% proteins, 0.2 – 0.5% lipids can be used Crops Priority Workshop Data & Information Sheets 77 to contribute to maintenance diets for large and small ruminants Forage yields of up to 20t DM/ha can be ensiled for productive diets for ruminants As paper production materials: 14-36 tones of dried materials/3-4 months with high cellulose contents of 50 –60% Raw material can be used for production of cakes, powder, alcohol, beer and dyes  Jojoba: (1) Bio-diesel; A renewable source of unique high-quality oil : Jojoba – fuelled engines have fewer pollutants, run more quietly and for longer, and perform just as well as diesels Studies indicate that from 4-5 years after planting, yields are 13 kg clean, dry seed per plant (about 5-13 tones of nuts/ha) Mature Jojoba seeds contain approximately 3% moisture, 15% protein, 42% to 58% liquid wax esters, 5% to 7% simmondsin (an appetite suppressant) and the balance carbohydrate and fiber (ii) Cosmetics: Jojoba wax: (Called oil) is used as the raw material to produce a number of chemically modified wax preparations useful in cosmetic formulations, especially skin care and hair care (iii) Traditional medicine: Seed oil can also be used to treat sores and wounds and can be used as an antifoaming agent in antibiotic production and as a treatment for skin disorders (iv) Animal feed: meal contains up to 30% protein (v) Other uses: In production of candles, plastics, detergents, fire retardants, transformer oils and for the leather industry  Moringa: (i) Vegetable (leaves and young branches) (ii) Spices and cooking oil (seeds) (iii) Essential oil and perfumes (seeds) (iv) Traditional medicine (root, fruits, flowers, seeds and sap) (v) Paper production (powder for import substitution) (vi) Supporting plants for pepper and other plants  Curcuma: (i) Essential Oils Dried root contain 1.3 – 3,8% of essential oils The essential oil of each species is characterized with special substrates (ii) Traditional medicine as a tonic and an astringent, and for the cure of illnesses in digestion system, respiratory system and livers, dermatological diseases and wounds Extracts have a bactericidal effect (iii) Other uses In food processing as a unique spice and a safe food colorant, and- In the production of different cosmetic products  Artemisia: (i) Medicine: Artemisinin is the central, essential drug component of artemisinin combination therapy (ACT) ACT is recognised as the most effective anti-malarial treatment for falciparum malaria, the severe variant of malaria The degree of superiority of artemisinin to other anti-malarials has led to ACT becoming a central component of falciparum malaria treatment (ii) Essential oil Accounting for 0.2-0.34% of the plant dry matter content and up to 30% in the flowers that can be used for the regulation of menstruation, promotion of digestion, control of metrorrhagia (iii) Other uses The leaf and stem hairs are used in acupuncture The plant leaves and stems are popularly used for relieving metatar salgia As species and vegetable: Leaves and stems are cooked together with some foods to increase their nutritious values such as chicken, eggs etc., and can also be boiled and eaten as vegetable Potential Value Crops Priority Workshop Data & Information Sheets 78 Jatropha: Domestic and global demands for diesel are growing while reserves are falling In 2005 Vietnam imported 5.4 tones of diesel (US$2billion) Studies by the Chemistry and Natural Substrates Institute show that there is a high potential for this diesel plant to be planted in Vietnam, including in marginal and infertile lands, for bio-diesel fuel production and other purposes There are a few varieties/genotypes occurring in Vietnam, including a non-toxic one India and Indonesia plan to produce 7.5 million tones of bio-diesel by 2010 Planting in combination with other agricultural, horticultural, herbs, or pastoral plants to develop ecologically variable, economically profitable and socially acceptable agro- forestry systems and multilayer agricultural systems Each 1,000 Jatropha creates 45 permanent and 840 part-time jobs As the plant does not require much input, it production is low costeffective and thus appropriate also for poor resource farmers, especially those in the marginal areas The plant is a valuable source of drought, saline and pest resistance genes  Sorghum: Worldwide, Sorghum ranks 5th among the most important food crops after rice, wheat, maize, and barley The national gene bank at the Plant Resources Center (VAAS) has 48 sorghum accessions which have been characterized morphologically and evaluated in terms of some agronomic traits America is the world’s greatest producer and each year exports to Japan more than million tonnes There are increasing demands for raw materials for production of paper, beer and alcohol, both locally and internationally Vietnam is likely to be competitive provided it can produce marketable volumes and quality Has potential to create jobs and income opportunities for poor farmers living in marginal areas (poor mountainous, border, arid, semi-arid and coastal saline areas) as sorghum normally requires low input and is low risk due to the plant’s high tolerance to adverse growth conditions and resistance to pests It is a valuable source of drought, saline and pest resistance genes  Jojoba: Jojoba oil is a straight chain was ester, 36 to 46 carbon atoms in length The physical properties of jojoba oil are: high viscosity, high flash and fire point, high dielectric constant, high stability and low volatility South America has set up a plan for commercial planting for bio-diesel by 2010 Has the potential for job creation and income generation if produced commercially It is a valuable source of drought, salty soil and pest resistance genes  Moringa: Vietnam imports a large amount of paper powder equivalent to some ten millions USD Development of Moringa will contribute to self-reliance in paper powder, job creation and income generation for resource poor farmers: The plant is easily grown in all kind of soils, and thus farmers all over the country can cultivate it in their home gardens for multiuse Provides a valuable source of drought, saline and pest resistance genes  Curcuma: Small exports to Singapore, Hong Kong and Japan India has 130,000 planted with exports of 20,000 tones of dried curcuma roots There are around 15 species of Curcuma L identified in Vietnam There is increasing demands for medicinal and cosmetic products produced from curcuma Substrates from roots can be extracted and used to produce valuable medicine for the cure of important diseases such as cancer and HIVII Dried roots contain 1.3 – 3.8% of essential oils The essential oil of each species is characterized with special substrates With a Crops Priority Workshop Data & Information Sheets 79 large species number of varieties curcuma has a high level of within- and betweenspecies diversity, which can be a valuable source of genetic materials for plant breeding and other research purposes  Artemisia: Worldwide ACT production in 2004 was estimated at 25-50 million treatments Anticipated demand for ACTs in 2005 is 131-219 million treatments Production of ACTs from cultivation to finished product takes months-1 year to complete At this time, artemisinin production from companies in Vietnam does not meet ‘Good Manufacturing Practice’ (GMP) standard In the future, artemisinin produced at GMP standard is likely to be a prerequisite for its sale Industry Analysis 3.1 Structure Households and size of holdings  Most plants (exception sorghum) are held in household gardens or naturally occurring in the wild  Few examples of plantings for income generation Industry Infrastructure  Poorly developed – little investment in processing both at the farm and commercial level  Local markets poorly developed  Low number of exporters of raw materials and low volume of exports R&D INFORMATION 4.1 Main Research Areas  The most important programs include the national seed program, the national plant genetic resources program, national integrated pest management program, and the national biotechnology program  To date very low investment in research and development potential of new crops, but little other research activity  Some work on identification of species/varieties and evaluation of cultivars 4.2 A few studies on Research Providers Ministry of Agriculture and rural Development  Plant Resources Centre of Vietnam Academy of Agricultural Sciences(VAAS)  Soil and Fertilizer Institute of VAAS  Northern mountainous Institute for forest-agricultural technology and sciences of VAAS  Northern coastal institute for agricultural technology and sciences of VAAS  Institute for agricultural machine and Post harvest technology Others Crops Priority Workshop Data & Information Sheets 80  Hanoi University  Chemistry and Natural Substrates Institute  National Institute of Medicinal Materials  Department of natural resources and environment, MONRE 4.3  Funding Very low funding levels Sorghum about 200,000,000 VND (US$12,500), Jatropha : 8,000,000 VND, Curcuma about 20,000,000 VND, Artemisia Not known but not much, Moringa oleifera: 000,000 VND 4.4 Major Achievements to Date  Some genetic resources collected and characterized morphologically (sorghum) Other species identified  Studies on potential uses of new crops Crops Priority Workshop Data & Information Sheets 81 SWOT Analysis Strengths           Most valuable species already exist in Vietnam, mainly in the wild, but with a few small commercial plantings Wide range of genetic resources available Most new crops are suitable for marginal lands and a wide range of soil types and adapted to wide climatic variances Most crops require low inputs and are low risk in terms of climate and pests and diseases Strong adaptation and high propagation capacity of the proposed crops Large are of available lands with little potential for other crops and income generation Most plants are not fresh foods, but require processing so can be accumulated before transport and processing Some potential for semi-processing at the farm level (e.g bio-diesel) Well coordinated/cooperative structures may assist in development of marketable volumes Small export markets for some crops already identified Weaknesses           Few certified crops, with low level of knowledge on chemical characteristics No investment in processing both on a commercial scale or for semi-processing at the farm level Very little experience of growing on a commercial scale, or of the potential for income generation Poorly developed local and export markets Little research or support for research at the national level Relatively low level of collaboration between research providers and with extension services Inadequate understandings of indigenous knowledge and plant uses Local customs of using familiar/"traditional" products may reduce adoption No established export markets or exporters For plants that are used for medicinal purposes GAP and GMP will be required before they will be accepted by WHO or WTO Opportunities      Opportunities for income generation especially for resource poor farmers in remote areas Potential for good local and export markets in the longer term Could provide import substitution for some products (e.g paper powders) Sorghums have potential on poor lands to provide bulk feed for ruminants and is suitable for conservation Membership of WTO may facilitate exports of quality products Threats  High toxicity of jatropha may cause problems if not properly managed  Poor transport infrastructure may inhibit access to potential markets Crops Priority Workshop Data & Information Sheets 82 Crops Priority Workshop Data & Information Sheets ... standards and food safety and further developing harvest and post-harvest processing, storage and preservation and conservation techniques 1.3 Coverage: Maize, sweet potatoes, cassava and potatoes... market and expanding new markets (the Middle East and Eastern Europe) Establish and develop trade/brand names Apply international standards of food safety and quality management based on ISO, GMP and. .. consider legume crops (mainly groundnut, soybean and mungbean) as important crops, with groundnut and mungbean being earmarked for export and soybean for domestic consumption  The State plans to increase