Vietnam Fruit Production and Trade: The Opportunities and Challenges for Smallholders docx

Longan Lychee Mango Banana Avocado Pummelo Sweet orange Mandarin Mangosteen Rambutan Durian Sweetsop Soursop Sapodilla Grape Papaya Jackfruit Langsat Pineapple Guava Watermelon Dragon fruit Young coconut Passionfruit Plum Lime Star apple Babados cherry Vietnam Fruit Production and Trade: The Opportunities and Challenges for Smallholders Nguyen Van Hoa, Southern Fruit Res. Inst. VIETNAM hoappd@hcm.vnn.vn DT (x1000 ha) 346.4 384.8 426.1 384.4 496.0 544.0 609.6 677.5 692.2 747.8 0 100 200 300 400 500 600 700 800 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Graph 1: Vietnam fruit tree area during 1995-2004 (General statistic Department, MARD and Provincial Agriculture Services) Area (x1000ha) Plan up to 2010 Earlier program target 325023.1Western highland5. 386030.2Southern of Central Coastal region 4. 807058.5Northern of Central region 3. 1.000 380 150 230 90 90128.4South-East region6. 170178.4Northern highland2. 750767.1Total 250269.3M.D. region7. 6079.2Red River Delta1. Area in the year of 2005 LocationSNo. 1,000ha Table 1: Fruit production area in Vietnam (Source: MARD 2007) 8 AGRICULTURAL PRODUCTION ZONES IN VIETNAM North East Red River Delta Central South North West (19%) Central North Central Highland Mekong River Delta (34.1%) South East (17%) • There are 8 Agricultural production areas in Vietnam • The Mekong delta is producing a lot of citrus, mango, longan, sapodila, milk fruit (star apple ) , etc. • The Southern East is a major producer of durian, rambutan, mangosteen, jackfruit, etc. • The Central highland in the South produces avocado, persimmon, strawberry, etc. • The Central of the South is major producer area of dragon fruits, mango, grape, etc. • Up to HUE, the old Capital of Vietnam, we grow tropical fruits. • After HUE is sub –tropical condition, we have sub- tropical fruits like plum, peach, persimmon, litchi, longan, citrus, etc. 26.425.02.02.0Grape -133.3 13.5 8.5 Dragon fruit** -146.020.2 Durian 472.7414.947.444.3 Pineapple* 380.9337.778.777.5Mango 379.6507.5113.7110.2Lychee, Rambutan* 1,354.31,329.4103.4102.2Banana* 242.2209.330.428.6Pomelo * 606.4540.587.282.7Orange, lemon, mandarin 628.8606.4120.3121.1Longan * 2005 20042005 2004 Production (x1000 tonne)Area (x1000 ha) Fruit tree Table 2: Area and production of major fruit trees in Vietnam 2004 and 2005 (Source: MARD 2006) *Export fruit ** Number one fruit export Table 4: Vietnam major fruits and vegetables export value (VinaFruit-2005) 24,6040259,0822006 760,0002010 ( plan) 35,00036235,0002005 142,80142329,9002001 120,35133196,582000 67,06836182,5542003 121,52942219,6982002 20,63839178,8002004 China (1000 USD) Number of country Value (1000 USD)Year * From 2003, there is a sharp reduction export to China, as stronger competitions of fruits from Thailand, Philippines, and Malaysia, etc. Table 6: Fruit export markets, November 2006 (Vietnam Business news, 4th, Jan. 2007) Singapore, BruneiSapodilla13 Netherlands, JapanAcerola12 Netherlands, CambodiaCustard-apple11 Netherlands, France, ChinaLychee (dried)10 Canada, Netherlands, China, CambodiaRambutan9 Latvia, Russia, ChinaBanana8 UK, Malaysia, US, France, Singapore, ChinaJackfruit (dried)7 Taiwan, Canada, Malaysia, USA, Japan, France, Singapore, ChinaOther fruits6 Taiwan, South Korea, Malaysia, ChinaCoconut meat5 South Korea, France, China.Longan4 Taiwan, Canada, Hong Kong, Kuwait, Liberia, Malaysia, US, Sweden, Sudan. Fruit jams3 Germany, UK, Poland, Belgium, Estonia, Netherlands, South Korea, Italia, Mongolia, Malaysia, US, Norway, Russia, Japan, France, China. Pineapple canned2 Thailand, Hong Kong, Taiwan, Netherlands, Singapore, China, France, UK, Germany, Italia, Canada, Malaysia, Switzerland, Indonesia, Norway, Saudi Arabia, Belgium Dragon fruit1 Export Markets Commodities I. Potentials for development in production and export: 1. Large number of varieties with good to premium quality fruits in both tropical and subtropical fruits (deciduous fruits). 2. Conditions to increase in production area and yield are of potential for Vietnam fruit industry 3. The increasing in export value of Vietnam fruit is of potentiality which could increase in the coming time 4. The export volume of Vietnam fruits and its values are increasing and are accessing a number of markets in the world. 5 . The Vietnamese in Vietnam and Vietnamese overseas prefer to eat Vietnamese fruits, like mango, pomelo, star apple, etc. 6. The Government is considered fruits II. Efforts taken to enhance the marketing of tropical and sub-tropical fruits EFFORTS TAKEN FOR DOMESTIC MARKETS: -Implementing EUREPGAP standards for key fruits like: dragon fruit, mango, longan, pomelo, pineapple, lychee, etc. Among them , dragon fruits got EUREPGAP Certificate in 2006 - VietGAP is developing, so that Certification is going to do much more easy. - GAP Cluster is developing since 2005, a join efforts among farmers, traders, and local officers. - METRO, Supermarket System in many countries, is helping to improve Value chain in Vietnam which start first with pomelo in the South. II. Efforts taken to enhance the marketing of tropical and sub-tropical fruits EFFORTS TAKEN FOR DOMESTIC MARKETS: - Implementing EUREPGAP standards for key fruits like: dragon fruit, mango, longan, pomelo, pineapple, lychee, etc. Among them , dragon fruits got EUREPGAP Certificate in 2006 - VietGAP is developing, so that Certification is going to do much more easy. - GAP Cluster is developing since 2005, a join efforts among farmers, traders, and local officers. - METRO, Supermarket System in many countries, is helping to improve Value chain in Vietnam which start first with pomelo in the South. [...]... farmers improving their fruit quality to meet the demand of the buyers Challenges for fruit industry in VietNam - The drawback is of small land holder and scatter in which farm size is about 0.8 ha in Mekong Delta region and 3 to 5 ha in East-South region - No linking to each other between the farmers, hence, the fruit volume and stable quality, price are problems - Packaging techniques and facilities... have developed long before Vietnam (we started from 1990’s) Hence, Vietnam fruits facing strong competition from these countries for the same kind of fruits in the International markets - Vietnam fruit industry is still at developing stage for quality, safety, quantity to meet the demand of high value export markets, and to fulfill EurepGAP and BRC standards (post harvest standard) - Vietnam has not signed... link between the producers and the whole-sellers/ retailers - Most of the producers sell their fruits through the collectors, the farm gate price is around haft of the consumers price - Now with METRO SUPERMARKETS supports, a new Supply Chain are seting up for vegetables, and fruits - AusAID , Autralia is conducting a project to improve Supply Chain for Mango and Pomelo - With these support, the farmers... comparison with Thailand, etc - Export volume still lower than its capability and potential - Weak linking between traders and producers - Government policy still not clear IV Constraints in developing the markets for fresh fruit produce CONSTRAINS … .FOR LOCAL MARKETS: - Strong competition from China (deciduous fruit) , and Thailand (mangosteen and longkong) - Income of Vietnamese is still low in the region -... Agreement with many other countries like Thailand had done - Air transportation cost to Europe is higher than Thailand - Export promotion activities are little as compared with that of Thailand, etc V How small farmers should react to the rapid changing retailing sector and consumer preferences: - To join hand in production and marketing, by making group for bigger volume, stable quality, and lower price... Zealand, India, ADB, ect to support our Fruit Industry improvement GLOBALGAP For Producers • 20 ha of Dragon Fruit got EUREPGAP Certificate • Other 80 ha DF got GLOBALGAP Certificate • One Packhouse going to get BRC Certificate • 20 ha of Mango going to get GLOBALGAP on Feb, 2008 BRC For Packhouse BOOKS WRITTEN FOR GAP PRODUCTION Manual for Dragon Fruit Quality production III Supply chain mechanism... Good quality Vietnamese fruit are selling very high price in the local market, about 2 times higher than in Thailand, good durian 1,5 US/kg, good mango 3 US/kg -Stable quality and supply of local fruit are concerned by the Supermarkets (as a result of no link among farmers) -Poor packing, hence, high post harvest lost CONSTRAINS …… FOR EXPORT MARKETS: - Thailand, Malaysia, Philippines fruit industries,...EFFORTS TAKEN FOR INTERNATIONAL MARKETS: - Implementing steps like for domestic markets, - Try to Overcome Plant Quarantine Barriers with US, Japan, Australia, New Zealand SPS Agreement with US and Japan are in processing - Some efforts in producing Organic fruits started, first on Dragon Fruit - We are having International Projects from US, Japan, Australia, New Zealand, India, ADB,... consumer preferences: - To join hand in production and marketing, by making group for bigger volume, stable quality, and lower price - To produce Safety and Quality Fruit that meet the VIETGAP/ GLOBALGAP standards - To improve packing techniques, and invest in storage facilities, to reduce post harvest lost - To create link, sign contracts supermarkets, wholesellers with exporters, . Lime Star apple Babados cherry Vietnam Fruit Production and Trade: The Opportunities and Challenges for Smallholders Nguyen Van Hoa, Southern Fruit Res. Inst. VIETNAM hoappd@hcm.vnn.vn DT. of Vietnam fruits and its values are increasing and are accessing a number of markets in the world. 5 . The Vietnamese in Vietnam and Vietnamese overseas prefer to eat Vietnamese fruits, like. to meet the demand of the buyers. Challenges for fruit industry in VietNam - The drawback is of small land holder and scatter in which farm size is about 0.8 ha in Mekong Delta region and 3