1. Enabling diversification to high-value crops inthe remote uplands of Vietnam:Lessons from the development of chayote productionand marketing in Tan Lac district

2. structure of the presentation Section 1: Some background information on the uplands of Tan Lac Section 2: Context behind CIAT’s intervention Section 3: Intervention strategy during the first marketing season Section 4: CIAT interventions during the first season Section 5: Outcomes and impacts during the first season Section 6: Intervention strategy during the second season Section 7: CIAT interventions during the second season Section 8: Outcomes and impacts during the second season Section 9: Cost-effectiveness, sustainability and scalability Section 10: Some final considerations

3. Section 1Some background information on the uplandsof Tan Lac district

4. cluster of 5 communes

5. remote…

6. ethnic minority (Muong) population, relatively high poverty rates

7. an agricultural-based, undiversified economy…

8. Section 2Context behind CIAT’s intervention

10. maize is a low-value crop (its dominance is explained by relatively low-input requirements and low production and marketing risks)maize cultivation in sloped lands is also associatedwith serious soil erosion problems…

12. suitable local agro-climatic conditions for cultivation during the off-season (mid-April to early November)

14. high potential yields(25 tons in low-input system; 60 tons in high-input system)

15. regular cash income during 6-7 months(2-3 harvests a week)

17. no vegetable input distribution networks in the uplandsof Tan Lac

18. no vegetable marketing networks in the uplands ofTan Lac

20. but at the start of the harvesting season (April 08)farmers had no buyers for their chayote. was this about to become another failed, subsidy-driven pilot?

21. it was then that CIAT (through SADU project) decided to work with local stakeholders to addressmarket access problems

22. Section 3Intervention strategy during the first marketing season (April – October 2008)

23. TAM ĐẢO TÂN LAC target markets: provincial

24. key entry point for intervention:development of a local collection network

26. feasibility of intermediate means of transport (motorbike)

27. lower risk of product spoilage

28. less strict buyer requirements (product quality, regularity of supply)

31. mobilization of district traders would be difficult in view of the small product volumes and the marketing risks involved

32. potential for generating local income from marketing activities would be lost

34. but attempts to instigate group action failed!

35. Section 4CIAT interventions during the first season

36. 1. identification and mobilization of farmers who couldtake on the role of collectors

37. 2. provision of market information to new farmer-collectors(as well as local government staff and farmers)

38. 3. provision of advisory and mentoring servicesto the new collectors(bargaining strategies, record keeping etc)

39. 4. transfer of production and post-harvest know-how to farmers: harvesting skills…

40. and bundling skills

41. Section 5Outcomes and impacts during the first season

42. production

43. marketing

44. 26% chayote chain 87 farmers 40% 34% 5 collectors Phuong Huyen Restaurants Retailers Consumers in Hoa Binh Province

45. one farmer-collector (w/ helmet) selling to retailersin Hoa Binh town

46. another farmer-collector selling to consumersin Hoa Binh town

47. income impacts: additional local net incomes in 2008(assuming no production pilot subsidy) Note: maize is the counterfactual crop

48. encouraged by these positive results, local government agencies decided to expand the pilot area

49. Section 6Intervention strategy during the second season(December – October 2009)

50. target markets: Long Bien, Hanoi(largest wholesale market for fresh produce in Hanoi)

53. the transport logistics associated with deliveries to supermarkets are challenging and transportation costs too high

54. suppliers to supermarkets must be formally registered and have a bank account

56. facilitate an expansion and consolidation ofthe collectors’ network

57. support the development of commercialinput distribution networks

58. Section 7CIAT interventions during the second season

60. exposure visits involving collectors and commune officers

61. markets within the province and in neighbouring provinces

62. Long Bien, Hanoi (main target market)

63. Tam Dao (largest production area in Vietnam, main competitor)

64. mediation between collectors and wholesalers in Hanoi, especially during the initial stages

66. promotion of collective action amongst collectors to ensure

67. joint negotiation with wholesalers in Hanoi

68. minimum daily deliveries to key buyer in Hanoi

69. standardized product quality, in line with the requirements of wholesalers in Hanoi

71. one collector and one commune officer discussing the market situation and opportunities with retailers in a neighboring province

72. collectors and one district officer checking the qualityof chayote in Long Bien night market

73. collectors discussing the market situation and opportunitiesin Long Bien night market

74. collectors from the uplands of Tan Lac loading chayoteinto a truck on its way to Long Bien market

75. collector in a neighboring district linked to the Tan Lac chain

78. one of the collectors that supplied dau trau to farmers

80. production practices

81. bundling

83. improving bundling skills

84. practicing bundling

87. Mrs. Tam (a farmer and trader from Tam Dao) and her husband leased 3 ha within the same commercial farm for cultivation of chayote leaves and other vegetables

88. 5. policy and strategy dialogue with local authorities and collectors: scaling-up and diversification strategies

89. Section 8Outcomes and impacts during the second season

90. production

91. marketing

92. chayote chain 197 farmers 11% 25% 64% 49% 15% Phuong Huyen 9 collectors Long Bien night market, Hanoi Restaurants Retailers Restaurants Retailers Consumers Hoa Binh Province Consumers Red River Delta

93. income impacts: additional local net incomes in 2009(assuming no production pilot subsidy) Note: the data excludes the profits earned by Phuong Huyen, wages at the two commercial vegetable farms, and the additional income flowing to the Mai Chau trader and30 pilot growers in that district

94. Section 9Cost-effectiveness, sustainability and scalability

95. cost of SADU Intervention (two seasons)

96. how sustainable and scalable are these processes? skills and knowledge commercialinput distribution chains PROFIT marketing networks

97. but there is a danger that Moc Chau will become anew, major supplier… the market is growingbutremains thin risk of oversupply need for diversification beyondchayote leaves

99. consolidation of input distribution chains

100. increase in yields

101. diversification of buyers

102. significant reduction in marketing costs  ↑ farm-gate price

103. diversification to chayote fruits

106. facilitative

107. pragmatic

109. agribusiness-inclusive (working w/ the private sector for pro-poor innovation and leverage)

110. chain competitiveness and value as guiding concepts

112. flexibility in the design and implementation of interventions (log-frame; planning procedures)