Overview of SADU Vietnam. Small-Scale Agro-Enterprise Development in the Upland of Vietnam

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1 Overview of SADU Vietnam Small-Scale Agro-Enterprise Development in the Upland of Vietnam Tiago Wandschneider (SADU) CRS/FAO Mekong Sub-Regional Workshop Linking Farmers to Markets, Hanoi, November 2008

2 Structure of Presentation 1. Background 2. Supply chain development 3. Lessons

3 1. Background Project Goal and Objectives Goal Improve the livelihoods of smallholder farmers, especially the marginalized poor and women, in project areas and other upland and ethnic minority regions Objective Develop the capacity of service providers and value chain actors so that they are better able to respond to and benefit from market opportunities, resulting in higher incomes for smallholder farmers in project areas and beyond

4 Project Component 1 Pro-poor supply chain development Persimmon, Aluoi and Da Bac Potato, Tan Lac Chayote/vegetables, Tan Lac Banana, Aluoi Cassava, Krong Bong Cattle, M Drak

5 Project Component 2 Mainstreaming of approaches, methods and tools Good practices and lessons for supply chain development Market research Marketing extension

6 Project Areas Hoa Binh Da Bac Tan Lac Thua Thien Hue Aluoi Dak Lak Krong Bong M Drak

7 Project Partners National Level MARD/DOST Provinces DARD Districts DPC, Economic Section

8 Project Phases June 2003 April 2005 Project inception Piloting of interventions in Nam Dong, Thua Thien Hue May 2005 December 2005 Geographical scaling-out (3 provinces, 5-6 districts) January 2006 December 2009 Supply chain development in 5 districts (+ +)

9 Approach to Supply Chain Development Product Selection Documentation/dissemination of lessons Rapid Market Appraisal Impact assessment Design of Interventions Fine-tuning of interventions Implementation of Interventions Monitoring and evaluation Monitoring and evaluation Fine-tuning of interventions

10 Approach Opportunistic Work w/ a wide range of stakeholders Farmers Private sector (service providers, supply chain actors) Provincial and district agencies Research institutes Universities No direct subsidies to agro-enterprises (farm, trading, processing)

11 Project Role Provision of information Delivery of advisory and mentoring services Development of capacities Facilitation of stakeholder and market linkages Demonstration of technologies and approaches Documentation and dissemination of lessons

12 2. Supply Chain Development

13 Persimmon Supply Chain Enhancing the Competitiveness of Da Bac Persimmon

14 1. Promote a shift to high-value, non-astringent varieties 2. Promote adoption of improved cultivation practices 3. Pilot the supermarket chain Target beneficiaries = 300 farmers

15 Persimmon Supply Chain Enhancing the Competitiveness of Aluoi Persimmon

16 1. Promote a shift to higher-value varieties 2. Promote adoption of improved cultivation practices Target beneficiaries = 100 farmers

17 Potato Supply Chain Developing Potato Cultivation Under Contract

18 1. Facilitation of linkages between An Lac Company, local staff and farmers 2. Dialogue w/ An Lac for contract design and implementation 3. Development of extension materials w/ An Lac 4. Support to collective action for product assembly Target beneficiaries = 1,000 farmers

19 Chayote Supply Chain Linking Farmers to High-Value Markets

20 1. Facilitation of input market linkages 2. Facilitation of output market linkages 3. Piloting of the supermarket chain ( safe chayote from Tan Lac ) Target beneficiaries = 400 farmers

21 Banana Supply Chain Collective Action for Market Access

22 1. Support collective action for market access 2. Facilitate linkages with traders 3. Promote improved cultivation practice Target beneficiaries = 40 farmers

23 Cassava Supply Chain Improving the Returns from and sustainability of Cassava Cultivation

24 1. Dialogue with Yang Kang factory for improved design and implementation of contracts 2. Support the development of more profitable and more sustainable cassava cultivation models that also meet the needs of the Yang Kang factory for off-season supplies 3. Develop the capacity of local extension to provide technical services to farmers 4. Promote labour-saving technologies Target beneficiaries = 2,000 farmers

25 Cattle Supply Chain Support the Commercialization of Cattle Enterprises in M Drak

26 1. Promote improved feeding practices 2. Support the development of animal health services as a business 3. Inform decisions about the establishment of wholesale cattle markets Target beneficiaries = 100 farmers

27 3. Lessons

28 SADU is becoming a laboratory for very diverse market linkage models Market linkage models Contract farming (cassava, potato) Farmer-collector (chayote) Group marketing (banana, persimmon, chayote, potato) Agribusiness (persimmon, chayote) Establishment of wholesale markets (cattle) Product development (persimmon, banana, chayote, cattle)

29 Entry points for intervention (product development versus market linkage) Market linkage models Working with the private sector Contract farming Collective action for market access Technology adoption Involvement of local government partners Development of market-oriented farmer advisory services