GRAISEA 2 IN VIETNAM
Market linkages are weak or not existing because farmers lack market information, and business development and management of agricultural cooperatives are insufficient. Only 6-7% of total rice cultivation area of the province is contracted with the companies for annual purchase order. Like other provinces in Mekong Delta, An Giang is facing severe impact of climate change such as drought, seasonal rain, and erratic flood.
Long An
Dong Nai
y Cit
Farmers prioritise production volume over product quality. The application of sustainable farming practices such as VietGAP, GlobalGAP, SRP is quite challenging to small-scale producers because of their complicated & demanding requirements and high cost of GAP certification. Most producers are now doing 3 REDUCE 3 INCREASE, 1 MUST 5 REDUCE which are much simpler and reasonable practices with active support by local governments.
Total land area: 3,536.7
nh Mi
Rice production in An Giang has not brought about high value and faces difficulties due to small farmers' fragmented production area. 81.5% of households have rice area less than 2 ha; 31.5% of households have that under 0.5 ha.
km2 Population (2019): 2,378,947 Ethnic groups: Kinh, Khmer, Hoa and Cham Poverty rates: 2.14% (Long Xuyen) and 2.02% (Chau Doc) Administration: 8 districts, 1 town and 2 cities
Binh Phuoc hi
Rice is one of three key industries of An Giang province defined in the Provincial Development Scheme vision 2030. Rice cultivation area in 2018 was 669,011 ha, 3.97 million tons, 70% of the rice uses high quality varieties.
AN GIANG PROVINCE C Ho
RICE SECTOR IN AN GIANG PROVINCE
An Giang Kien Can Giang Tho Ca Mau
Tra Soc Vinh Bac Trang Lieu
Project area: Thoai Son district Total area: 458.69
km2
Population: 180,633, Administration: 17
mainly Kinh and Khmer people
administrative units include 3 towns
OXFAM’S PARTNERS IN RICE VALUE CHAIN Research Center for Resources and Rural Development (RECERD) is a non-state organisation, under the management of the Vietnam Union of Science and Technology Associations (VUSTA), based in Hanoi and Can Tho city. RECERD’s mission is to contribute to sustainable development of biological, agricultural and rural development by carrying out scientific research, implement projects and programmes and promoting the transfer of science and technology. Under GRAISEA project, RECERD is responsible for managing and implementing project activities to promote sustainable and inclusive rice value chain. RECERD with support from Oxfam will facilitate the organisational, technical & commercial capacity building for men and women producers in rice value chain to help rice producers improve market access and fair share with other market actors. One of intervention focuses is on strengthening the role, voice and agency of women at household & group levels for improving their economy empowerment. In addition, it‘s crucial to facilitate the relationship building between small-scale producers’ groups and enterprises in the chain, bridging them with markets, and influencing companies to practice social responsibilities, increase their responsible investment and develop inclusive & resilient business models through the development of public private cooperation models and multi-stakeholder initiatives (MSIs).
Thanh Giang Cooperative
General information • Established in 2013 • Charter capital: 6.54 billion VND • Production area: 192 ha • Members: 115 (9 women, 106 men) • Services offered by the Cooperative: input supply (rice seeds, fertiliser and chemicals); credit service • Located in Thoai Giang commune, Thoai Son district, An Giang province • Input suppliers: Anh Tai Co., Ut Oai Co., Distribution agencies of Bayers, ADC, VFC, Loc Troi Group • Farming practices: 1 MUST 5 REDUCE, 3 REDUCE 3 INCREASE, SRP (34 households, 143.5 ha) • Buyers: GENTRACO Company & Local traders
Strength • Has received strong support from the local authority during their operation, production and business doing; • Has gained experiences in working with enterprises; • The production capacity of its members is at good level; • Local infrastructure is well serving the production activities & the location of its office & storage is easily accessed by members and stakeholders; • Agile and responsive to development opportunities.
Challenges • Fragmented production; • Weak management & governing capacity of the Cooperative; • Difficulties in accessing credit as the Cooperative has no collateral; • The Cooperative are competed with local input suppliers in providing inputs to its members; • Dependence on buying companies; • The number of women in the Cooperative and in its activities remains small; • High exposure to risks of natural disasters and market fluctuations.
GENTRACO
Joint Stock Company General information • Over 20 years working in rice processing for export • Ranked top ten of the biggest rice exporters in Vietnam • Total capital of 2,031 billion VND • Export turnover in 2017 reached 39.8 million USD • Exported over 157 thousand tons in 2017
Main markets The main export markets are Asian countries (70%), Europe (5%), Africa and the Middle East (25%). The company sells rice domestically to food processing companies and agents and supermarkets.
Linkage with rice producers 10% of rice for processing is bought from producer groups. Gentraco has been cooperating with three collaborative groups in An Giang for SRP & EU-required standard rice & 3 others in Can Tho for Jasmine rice. For qualified rice, it offers SSPs the higher price than market price, ranging from VND 50 ($0.002) to VND 250/kg ($0.01)
Sustainable product quality standards The company now attempts to meet the specific quality requirement of each market, regulated on chemical standards, sensory standards, and pesticide residue standards. The company are also focusing on achieving sustainable production standards such as VietGAP, GlobalGAP, ISO, SRP to expand domestic market and reach demanding international markets.
Gender equality and climate change adaptation policy The company complies with legal regulations for female workers. Women are encouraged to participate in the company’s training activities. SRP has been piloted in rice production and processing for the purpose of sustainable rice production, less negative impact on environment.
Needs of support • Capacity building for the staff on value chain linkage • Improved technical capacity on SRP standards • Branding & marketing development for clean products • Better linkage with producers’ groups/cooperatives.
Vinacam
Agrifood Joint Stock Company General information
Main markets The main export markets are Australia (70%), China (20%), and the U.S., the Philippines and the Middle East (about 10%).
• Established in July 2011
Domestic markets accounts for 10%, mainly through retailers, collective kitchens/canteens, and army kitchens.
• Ranked 5th in rice export and ranked first in the export of Japonica rice (Japanese rice) in Vietnam
Linkage with rice producers
• Charter capital of VND 160 billion VND • Rice export turnover in 2017 reached 100.9 million USD • Exported 217 thousand tons of rice in 2017
Vinacam has bought 50% of rice for processing from producer groups. It has been cooperating with 2 Cooperatives in An Giang (Vinacam Tri Ton - 300 ha & Vinacam Hon Dat – 700 ha) to produce Japonica rice for export. The buying price is the same as market price; however, the producers who are members of the Cooperatives will be paid VND10/kg higher than non-member ones.
Sustainable product quality standards The company now attempts to meet the specific quality requirement of each market, regulated on chemical standards, sensory standards, and pesticide residue standards. The company are also focusing on achieving sustainable production standards such as VietGAP, GlobalGAP, ISO, SRP to expand domestic market and reach demanding international markets.
Gender equality and climate change adaptation policy The company complies with legal regulations for female workers. The company invests in research and purchases the copyright of rice varieties that are resilient to climate change.
Needs of support • Capacity building for the staff on value chain linkage • Improved technical capacity on SRP standards • Branding & marketing development for clean products • Better linkage with producers’ groups/cooperatives.
GRAISEA 2 IN VIETNAM
SOC TRANG PROVINCE
y Cit
Shrimp farmers have not received significant benefits when joining the value chain due to unsustainable farming practices, resource shortage, weak linkages with enterprises, shortage of inclusive investment from businesses, limited market access, and lack of supporting policies.
nh Mi
Soc Trang has made considerable achievements in shrimp where black tiger shrimp and white shrimp become fundamental commercial aquaculture products in both domestic and international market.
km2 Dong Nai Population (2016): 1,289,441 Long An An Ethnic groups: Kinh, Khmer Giang Provincial poverty rate (2016): 17.89% Kien Can Tra Giang Tho Soc Vinh Agriculture: 39.6% Trang Bac Ca Lieu Industry and construction: 25.1% Mau Service: 35.3% Total export value: 630 million USD Administration: 1 city (Soc Trang) and 10 districts Prioritised agricultural sub-sectors: Rice, seafood (shrimp), vegetables (purple onion), short-term plants (sugar-cane), fruits, breeding (pig, cow, poultry). hi
Soc Trang is one of three provinces having the largest shrimp production area and biggest shrimp yield.
C Ho
SHRIMP SECTOR IN SOC TRANG PROVINCE
Total land area: 3,311.7629
Binh Phuoc
Project area: my xuyen district Total area: 370.95
km2 Population: 160,000 people, mainly Kinh, Hoa and Khmer Administration: 10 communes and 1 towns
OXFAM’S PARTNERS IN SHRIMP VALUE CHAIN ICAFIS (International Collaborating Centre for Aquaculture and Fisheries Sustainability) was established in 2010 to enhance image, brand value, and enhance the competitiveness of Vietnamese fisheries sector, supporting people capacity to integrate into international community. ICAFIS is responsible for project interventions in Soc Trang & Bac Lieu province. MCD (Centre for Marinelife Conservation and Community Development), established in 2003, is a leading Vietnamese NGO in the field of coastal and marine ecosystem conservation, striving for a coastal zone of Vietnam with healthy ecosystems and a good quality of life for coastal communities, especially the most vulnerable. MCD is in charge of shrimp value chain in Ca Mau province. The partners with support from Oxfam will facilitate the organisational, technical & commercial capacity building for men and women producers in shrimp value chain to help improve market access and get fair share with other market actors. In addition, it’s crucial to facilitate the relationship building between small-scale producers’ groups and enterprises in the chain, bridging them with markets, and influencing companies to practice social responsibilities, increase their responsible investment and develop inclusive & resilient business models through the development of public private cooperation models and multi-stakeholder initiatives (MSIs).
Hoa De
Cooperative General information • Established in October 2014 • 81 household members • 83 ha of shrimp-rice production area. • Annual yield is around 120 tons of shrimp and around 220 tons of rice.
Recent achievements • Improved gender equality: women are more actively engaged in both family production and the cooperative activities. • New added value products: shrimp crackers, grilled fish, dried shrimp • Pursue sustainable production standards: ASC and organic standard • Increased linkages with input suppliers • Have a contract with Ho Quang shrimp processing company to farm organic rice (the cooperative produced and sold 50 tons of organic rice in 2018)
Thanh Dat Cooperative
General information • Established in July 2016 • 76 members • 111 ha of rice – shrimp production. • Annual shrimp yield is about 260 tons.
Recent achievements • Gender equality: More women become confident in making decisions in families and the community. • Increased linkages with input suppliers • Successfully applied ASC sustainable production standards • Increased access to finance: Cooperative members can borrow the self-help group fund and the revolving fund to invest in production. • Diversified service activities: providing shrimp feed, chemical and probiotics for members. • Revenue: about 700 million VND in 2018.
STAPIMEX General information STAPIMEX, founded in 1978, is a seafood processor and exporter. The company is one of Vietnam’s leading seafood enterprises in processing and exporting tiger shrimp. STAPIMEX mainly exports processed tiger shrimp such as NOBASHI shrimp, Breaded shrimp, Sushi, Raw PTO, CPTO, HLSO, RING shrimp, HLSO, Xuyen que (Skewer) , Raw PD. Since 2003, STAPIMEX has successfully applied the material traceability system. The company has pioneered managing fresh and safe raw materials. The company purchases raw materials through three main sources: • Raw materials purchased from investment ponds (60%) • Raw materials purchased from agents (10%) • Raw materials purchased directly from farmers (no investment) (30%) Soc Trang is the main sourcing area (80%), followed by Bac Lieu & Ca Mau provinces (20%)
Market Currently the company’s products are present in around 20 countries around the world, with the US and Japan being the two largest export markets. STAPIMEX is now growing to EU market which is targeted 10% of the company’s annual export turnover.