Reduced-input fruit and vegetable value chain study in the Greater Mekong Sub-region Report commissioned by: ADB CASP 2 Prepared by: Fresh Studio Date: January 2018 ADB CASP 2 GMS value chain study Authors: <add authors, lead authors first, then alphabetically> Title Reduced-input fruit and vegetable value chain study in GMS region For ADB CASP 2 <add client address> By Fresh Studio T: +84 (0)8 5410 5533 F: +84 (0)8 5410 5488 [email protected] Date January 2018 Copyright No part of this publication may be reproduced in any form by print, photo print, microfilm or any other means without written permission of Fresh Studio Innovations Asia. Disclaimer Neither Fresh Studio Innovations Asia, nor its partners, accept any liability whatsoever for any direct or consequential loss howsoever arising from any use of this document or its contents or otherwise arising in connection herewith. Contact address Fresh Studio Hung Gia 4 area, Tan Phong Ward, District 7 Ho Chi Minh City, Vietnam T: +84 (0)8 5410 5533 F: +84 (0)8 5410 5488 W: www.freshstudio.vn Authors Le Thi Thu Huong Hoang Thi Thu Pham Thi Thanh Tran Thi Thien Uyen Dana Roelofs www.freshstudio.vn 2 ADB CASP 2 GMS value chain study www.freshstudio.vn 3 ADB CASP 2 GMS value chain study Table of Contents ABBREVIATIONS ........................................................................................................... 12 EXECUTIVE SUMMARY .................................................................................................. 13 Background .............................................................................................................................13 Case Study 1: Organic coconut in Ben Tre, Vietnam ..............................................................14 Case Study 2: Myanmar GAP mango in Mandalay and Sagaing, Myanmar ...........................15 Case Study 3: PGS vegetables in Suphan Buri, Thailand .........................................................16 Retail case study .....................................................................................................................17 Key findings ............................................................................................................................17 Recommendations ..................................................................................................................18 1. INTRODUCTION ................................................................................................ 21 1.1 ADB CASP 2 program .................................................................................................21 1.2 Scope and objectives of the assignment ...................................................................21 2. METHODOLOGY ............................................................................................... 23 2.1 Desk research ............................................................................................................23 2.1.1 Desk research ............................................................................................................23 2.1.2 Selection of case studies ...........................................................................................23 2.2 Field survey ................................................................................................................24 2.2.1 Rapid Diagnostic Appraisal method ..........................................................................24 2.2.2 RDA approach ............................................................................................................25 2.2.3 RDA tools ...................................................................................................................25 2.2.4 Quantitative survey ...................................................................................................26 2.2.5 Research team ...........................................................................................................26 2.3 Interviewed actors .....................................................................................................28 2.4 Data analysis and report writing ...............................................................................29 2.4.1 Gaps and biases of the study .....................................................................................29 2.4.2 Report structure ........................................................................................................30 3. OVERVIEW OF FRUIT AND VEGETABLE SECTORS IN THE GMS ............................. 31 3.1 Fruit production .........................................................................................................32 3.2 Vegetable production ................................................................................................33 www.freshstudio.vn 4 ADB CASP 2 GMS value chain study 3.3 Reduced-input production of fruit and vegetables in the GMS ................................34 3.4 Production constraints ..............................................................................................37 3.5 Trade of fruit and vegetable in the GMS ...................................................................40 3.5.1 Economic corridors and cross-border trade ..............................................................40 3.5.2 Trade of fruits ............................................................................................................41 3.5.3 Trade of vegetables ...................................................................................................42 3.5.4 Trade barriers ............................................................................................................43 4. CASE STUDY 1: ORGANIC COCONUT IN BEN TRE, VIETNAM ................................ 45 4.1 Background information ............................................................................................45 4.1.1 Coconut production and trade in the GMS ...............................................................45 4.1.2 Coconut production and trade in Vietnam................................................................46 4.1.3 Coconut production in Ben Tre Province ..................................................................47 4.2 Coconut farming practice ..........................................................................................50 4.2.1 Coconut varieties .......................................................................................................50 4.2.2 Coconut seedling stage..............................................................................................50 4.2.3 Production stage........................................................................................................51 4.3 Organic coconut supply chain in Ben Tre ..................................................................53 4.3.1 Organic coconut supply chain map ...........................................................................53 4.3.2 Actors of the chain ....................................................................................................54 4.4 Quality assurance system and traceability ................................................................67 4.4.1 Food safety and organic integrity risks along the production chain of organic coconut products .....................................................................................................................67 4.4.2 What is done to control: QA system .........................................................................71 4.5 Impacts of the chain ..................................................................................................73 4.5.1 Social impacts ............................................................................................................73 4.5.2 Environmental impacts ..............................................................................................74 4.6 Key findings ...............................................................................................................75 4.6.1 Access to inputs and bio-controls .............................................................................75 4.6.2 Economic penalties and future uncertainty ..............................................................76 4.6.3 Difficulty meeting organic requirements ..................................................................77 www.freshstudio.vn 5 ADB CASP 2 GMS value chain study 4.6.4 Challenges to quality assurance ................................................................................79 4.7 SWOT analysis and recommendations ......................................................................80 4.7.1 SWOT Analysis ...........................................................................................................80 4.7.2 Recommendations .....................................................................................................81 5. CASE STUDY 2: MYANMAR GAP MANGO IN MANDALAY AND SAGAING, MYANMAR ........................................................................................................................ 83 5.1 Background information ............................................................................................83 5.1.1 Mango production and trade in GMS ........................................................................83 5.1.2 Mango production and trade in Myanmar ................................................................85 5.1.3 Myanmar GAP for mango ..........................................................................................86