MUSHROOMS WITH A MISSION MONTHLY REPORT February & March 2010
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1 RESTORING THE ENVIRONMENT AND NEUTRALIZING THE EFFECTS OF THE WAR DỰ ÁN PHỤC HỒI MÔI TRƯỜNG VÀ KHẮC PHỤC HẬU QUẢ CHIẾN TRANH 103 Nguyen Binh Khiem St. Dong Ha City Quang Tri Province, Vietnam T: F: E: W: MONTHLY REPORT February & March 2010
2 Monthly Report for February & March 2010 MONTHLY REPORT For February & March 2010 Program Title: Project Partners: Country: Mushrooms with a Mission (MwM) Humpty Dumpty Institute, Project RENEW Quang Tri Province, Vietnam Program Period: October, October, 2011 Program Goals: Improve livelihoods and reduce poverty among ERW victims and their families in Quang Tri Province, Vietnam through the initiative Mushrooms with a Mission Program Objectives with Taiwanese funding: To build a demonstration pilot model as a foundation for a larger MwM project including the following main activities: To bring 25 families into the MwM program during the next 2 years 10 families in the first year and 15 more families in the second year as contracted growers for this pilot model; To establish a centralized processing facility which will be in charge of purchasing, processing and packing mushroom products from growers to stabilize pricing and marketing structures and to expand distribution channels for MwM products; To develop new marketing approaches and test and introduce the MwM or similar product brand into the market. 1 Overview 2 Activities carried out during the reporting period Key activities taken Activities Status as per 31 March For output 1: 25 families brought to the pilot growing model 1. Finalized purchase contract with growing families Done 2. Finalized agreement with Trieu Phong Farmer Union on Done Management MwM program at local level 3. Followed up mushrooms production and harvesting activities On going For output 2: Centralized processing facility 1. Found locations for processing facility Done 2. Repaired the store into processing facility Done 3. Recruited labour for processing and buying mushrooms Done Project RENEW Coordination Office 1
3 Monthly Report for February & March 2010 Activities Status as per 31 March 4. Purchased equipment On going 5. Bought mushrooms On going For output 3: Marketing Finalisation of purchase contract with the mushrooms growing families Finalisation of purchase contract with the mushrooms growing families The price of dry wood ear mushrooms was strongly effected by the Vietnamese Traditional Tet holiday. In the beginning of February, the market price for dry wood ear mushrooms was very high at 80,000 VND per kilo while its price was only about 50,000 VND per kilo in the previous month.. Therefore, during discussion with the growing families on the articles of purchase contract, they all concerned about the low price of 50,000 VND per kilo in contract and suggested the Project Renew should revise the price term. Some of the families also suggested the price should be somewhere from 60,000 to 65,000 VND per kilo as frame it will have a justification according to the wholesale price at the time of purchase. However, according to datas of pricing from the past few years, the price for dry wood ear mushrooms usually climbs to a high at Tet and then drops quickly and stays low for quite a bit of the year. Therefore, as consultation of NMC, it was not suitable to negotiate pricing with the families at that time. The contract should hold and wait for 2-3 weeks after Tet holiday when the market price was more stable and a fixed price should be identified in the contract. As information gathered on dry wood ear mushrooms at local market during four weeks after Tet holiday), the wholesale price of dry wood ear mushrooms ranged between 65,000 and 70,000 VND per kilo while the retail price was about 85,000 95,000 VND per kilo. A price of 60,000 VND per kilo of dry wood ear mushrooms was discussed and agreed among the Project Renew and the families in consultation of Trieu Phong Farmer Union. The purchase price and contract were commented and approved by HDI and then the purchase contracts were signed by the Project Renew and the families on 17 March under the witness of Trieu Phong Farmer Union. Conducting the first purchase of mushrooms from the participating families. In the beginning of the crop, mushrooms were growing very well and giving a good production for the first harvest. However, unusual weather variations after Tet holiday had some effects to mushrooms production of the second and the third time. By the end of March, almost families have completed harvesting mushrooms for the second time but some of them have not completed drying process. In last weeks of March, together with Trieu Phong Farmer Union, the Project Renew organised the first purchase of all dry mushrooms harvested from blocks provided. The total of 640 kg of dry mushrooms has purchased at the price of VND 60,000 and all mushrooms were transported to the processing facility in Cam Lo. Although, these mushrooms were mainly harvested from the first time, but after deduction of micro credit on those blocks, all families have certain income. An average income is about 1,000,000 VND per family. If taking into account the estimation of 195 kg dry mushrooms will be produced additionally by the end of the crop, the average gross income will be about 2,000,000 VND per family for the whole crop of 4 months. This is an additional income outside their main income from traditional cultivation and animal husbandry activities. Project RENEW Coordination Office 2
4 Monthly Report for February & March 2010 Finalisation of Agreement with Trieu Phong Farmer Union in management of MwM program at local level. As identified in the action plans, Trieu Phong Farmer Union played a key partner in implementation of MwM program. Beside support the Project Renew in selection of mushrooms growing families in the pilot model, Trieu Phong Farmer Union also played the roles of provision of technical guidance, management, monitoring and reporting MwM program activities at local level as well as supported the Project Renew in purchasing mushrooms from the families. In order to translate responsibilities of Trieu Phong Farmer Union in implementation of MwM program into legal document, an agreement between the Project Renew and Trieu Phong Farmer Union has been signed. Setting up the processing facility of MwM program After the HDI approved the location of mushrooms processing facility, the Project Renew discussed and negotiated with CAST on lease contract and technical assistance for the Project Renew on implementation of MwM Program. The lease contract was signed in the beginning of March. A site visit was carried out with participation of the Project Renew, CAST and the XP Construction Consultancy Joint stock Company. After survey and discussion among participants, the repair items were identified and agreed. The XP Construction Consultancy Joint stock company was responsible for formulation of technical design and cost estimation according to Vietnamese construction regulations. After that, a construction company was selected to conduct the repair works for the mushrooms processing facility. At the end of March, the construction works completed. Arrangement for processing steps are planed in the annex 4. In March, the Project Renew recruited a person who is in charge of mushrooms buying and processing activities. She already started working in the middle of March to assist the MwM Program Manager in buying mushrooms from the growing families to the processing facility in Cam Lo. In consultation with NMC, the equipments for mushrooms facility were identified. The Project Renew will rent the available drier at the CAST and it was accepted by the CAST. The Project Renew has been looking for suppliers and quotations of the other equipments. The procurement processes are under implementation and all equipment will be completed in early April. 3 Financial figures (as of March 31, 2010) US dollar Year 2009 Jan Feb Mar Accum. Beginning balance 13, , , Total income 20, , Fund received 20, , Interest Total expenditures 6, , , , , Balance at the end of month 13, , , Project RENEW Coordination Office 3
5 Monthly Report for February & March Annexes Annex 1: Photos of mushrooms growing and harvesting Annex 2: Mushrooms purchasing and transporting to the processing facility Annex 3: Photos on repairing mushrooms processing facility in Cam Lo Annex 4: Plan of arrangement for processing steps Date of report: 02 April 2010 Reported by: Le Thi Lan Huong, MwM Program Manager Approved by: Hoang Nam, Project RENEW Coordinator Project RENEW Coordination Office 4
6 Monthly Report for February & March 2010 Annex 1 Photos of mushrooms growing and harvesting Mushrooms are ready for harvesting The son helped his parents picking mushrooms Project RENEW Coordination Office Mushrooms are growing well Mushrooms are drying 5
7 Monthly Report for February & March 2010 Annex 2 Mushrooms purchasing and transporting to the processing facility. Mushrooms were checked by Farmer Union Mushrooms were weighted The family were signing the handing over minute Shipping mushrooms from the family to the vehicle Loading and tightening mushrooms bags on the vehicle Project RENEW Coordination Office 6
8 Monthly Report for February & March 2010 Annex 3 Photos on repairing mushrooms processing facility in Cam Lo. Situation of mushrooms processing facility before repairing Mushrooms processing facility after completion of repairing The hall ground before repairing and after repairing Inside the processing facility Final checking up Project RENEW Coordination Office 7
9 Monthly Report for February & March 2010 Annex 4 Plan of arrangement for processing steps hall Working room Storage Packing Storage Drying Cleaning stage Classificati oon WC Project RENEW Coordination Office 0
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