Project on market oriented agro-forestryPresentation Transcript
Project on Market-Oriented Agro-forestry to Reduce Poverty in Quang Nam Province, Vietnam “Improving gardens and support systems to reduce poverty” Presentation during the “International Symposium on Sustainable Land Use andRural Development in Mountainous Regions of Southeast Asia” on 21-23 July 2010, Hanoi, Viet Nam
The Sites in Central Viet Nam Six communes in two districts, Quang Nam Province Phu Ninh Dist •Tam Lọc Tien Phuoc Dist • Tien Ha, Tien Cam • Tien Son • Tien Phong • Tien Tho
The Players• Donor: Italian Government• Executing Agency: FAO• Implementing Agency: – Department of Agriculture and Rural Development (DARD) of Quang Nam Province• Local officials in 6 communes and in 2 districts: – Tien Phuoc District (Tien Ha, Tien Cam, Tien Son, Tien Tho, Tien Phong) – Phu Ninh District (Tam Loc)
Objectives Development objectives (vision) 1. Contribute to Quang Nam’s efforts to reduce poverty 2. Help conserve natural resources by supporting sustainable and high quality Market-Oriented Agro-Forestry (MOAF) systems Specific objectivesWith 6 communes:Improve and/or develop 1,500 ha of market-driven gardensStrengthen enterprise-oriented coops and groupsPilot viable micro-finance with village groupsWith province and 2 districts:• Strengthen extension delivery system• Develop market research information system
The process of translating innovative practices into reality and leaving a legacy of lessons and models for scaling up and replication PROVINCE OF QUANG NAM DISTRICTS OTHER COMMUNES COMMUNES OTHER FARMERS IN 6 COMMUNES FARMERS IN 6 COMMUNES
Baseline diagnostics from PRA, consultations, and field visits Marginal soils - sandy to sandy loam, low organic content, acidic, easily drained soils Typhoon-prone area Ave annual rainfall of 2,200-3,500 mm; rainy months during Sept-Dec Small farm size holdings – Ave of 0.5-1.4 ha Home gardens crowded with 10-15 species/ha “A little of everything “from harvests of crops and sale of livestock No on-site product consolidation before marketing Limited processing of farm products Layers of middlemen from farms to markets Monopsonistic market for pulpwood Low prices of pulpwood, cinnamon bark
Baseline diagnostics from PRA, consultations, and field visits Unmanaged home gardens -60 to70% – overcrowding with low market value species Low-value species planted in high value farms No thinning in most densely-planted forest farms Diseases of black pepper, citrus, ginger & turmeric Proliferation of inefficient mini-sawmills Limited capacity in delivering client- & market- oriented extension services Fragmented market information systems Limited local supply of high value planting materials Limited access to financing Too focused on subsidized loans instead of savings promotion 23% -70% belong to poor HHs Limited HH labor
HH Income- Major Sources % of HH % of HH % of HH % of HH % of HH income income % of HH % of HH Income income income from from income incomeHH Income from from from black other from pulp- from saw-sources rice fruits livestock pepper crops wood timberGardens=62% 0.13 0.12 0.25 0.01 0.03 0.05 0.03Off-farm=38%
Basic information on land resources, population, and income (2007) Parameter Tien Tien Ha Tien Tien Tien Tho Tam Son Tam Cam Son Phong Loc1. Total land area (ha) 1,710 3,784 2,324 2,070 2,580 5,402 3,440 1.1 Agricultural land (ha) 961 1,257 826.1 480 923 1,544 1,384.8 1.2 Forestland (ha) 665.3 1,920 519.7 1,011 488 3,090 753 1.3. Unused land 597 501 800.0 523 533 768 1,206.8 1.3.1 Potential for forest 487 300 650.0 400 530 714 1,167.3 production (ha) 1.3.2 Potential for agriculture 109 201 150 123 3 54 39.55 1.4. Others 106 178.2 56 637 - 95.22. No. of households (HH) 668 879 906 995 1,448 1,104 1,8043. Ave. agri land/HH ( in ha) 1.4 1.4 0.9 0.5 0.6 1.4 0.84. Ave. annual income per capita 2.80 2.80 3.0 3.05 3.54 2.650 4.44 (mil dong)5. Ave. annual income/ 2.18 2.15 2.0 1.94 1.92 1.80 1.40 capita poor HH (mil. dong)6. No. poor households 152 328 589 694 868 (60%) 523 (47%) 413 (23 %) (37 %) (65 %) (70%) (23%)
Can Market-Oriented Agro-forestry Demonstrate How Households can get out of POVERTY? HH Income in VND Increased HH income Self-sufficiency Poverty Threshold Line = VND 1.7 m/capita Agro-forestrySubsistence farming Time
Will Collaborative Implementation Work? OUTPUTS Garden owners, 1,500 ha gardens entrepreneurs Rural enterprises Assist Microfinance Model PROJECT Strengthened with extension delivery 6 communes, system 2 Districts, Market research Provincial DARD information system developed
Will Single Message in all Activities Sink in?Tag Line: “Improving gardens and support systems to reduce poverty”Meaning:“Improving the market-orientation of agro-forestry enterprises combined with responsivesupport systems will increase household incomes,increase household asset values, and reducepoverty in Quang Nam”.
Where do we start? Enterprises Products – goods & services Buyers & consumers Fruits, spices, livestock, Tien Ky, Tam Ky,1. Home gardens timber, essential oil, grains, Hoi An, Danang leaves, bark Pulpwood, saw timber, Traders, sawmills (27 in2. Forest gardens Tien Phuoc, 17 in Phu non-timber sp Ninh) Planting materials of high3. Nurseries value spp - fruits, spices, Garden owners timber, ornamentals4. Savings & Relending, advisory, and Members of savings Relending training services groups5. Agri- & forestry Processed agro-forestry Consumers of incense rural products; inputs for gardens products, farmers enterprises
A. What Garden Technologies will Improve Market Orientation?Enterprises Specific Strategies Planting high value short-, medium-, and long-term agro- forestry species and eliminating low-value species1. Home Reducing number of species from 10-15 per ha to 4-5 per hagardens Improving management of high value local crops such as black pepper Timber-oriented thinning and pruning densely-planted forest2. Forest farms combined with 50% labor subsidygardens Enriching forest farms with long-term high value species such as Khaya, Hopea and Acquilaria spp (source of agar)
B. What Enterprises will Support and Improve Value Chains? Enterprises Strategies Contracts with local cooperators for raising high value planting materials to pump prime enterprises3. Nurseries Technical training, cross visits, and linkages with established nurseries and sources of seeds, cuttings, and suckers4. Savings & Support for savings and relending from % of per diem and labor Relending subsidy with matching fund & repayments from enterprise loans Training on technical operations, business planning, pre-5. Agri & operations; forestry Enterprise loans for buying equipment & initial working capital. enterprises Repayments to savings and relending groups.
C. What Incentives and tools will facilitate adoption of market-oriented practices?Assistance in commune-led planning andimplementationFull funding for approved commune agro-forestry plansOne on-site technician per communeRegular feedbacks and updatesSubsidized inputs and support forequipment, working capital and pre-operations of enterprisesContracts to pump prime nurseryenterprisesTraining, cross visits, study toursExpertise for analysis, design, prototyping,and evaluation
Are the Interventions Working?Enterprises Status after more than a year 1,770 HHs improved 314 ha of home gardens, each HH planting 20 high value seedlings. Banana (51% of seedlings) as the high value short-term crops1. Home Mangosteen (16%) as the long-term speciesgardens Citrus – pomelo & mandarin (11%) as the medium- term crop Agreement on an approach for reviving Tien Phuoc black pepper after assessment Seedling survival of 74% based on sampling 752 HHs improved 107 ha of forest gardens with2. Forest species enrichment using Khaya senegalenses andgardens replanting keo after the typhoon in September
Are the Interventions Working? Enterprises Status after more than a year Trained 18 potential nursery cooperators on plant propagation, nursery mgt, and business planning; BUT …3. Nurseries Only 7 committed to raise high value planting materials with initial business contracts to prime up the initial nursery enterprises Formed 40 village savings & credit groups with a total savings of more than VND 50 million4. Savings & Repayments of 5 enterprise loan contracts amounting to Relending VND 172 million to be part of savings & credit group accounts Commune relending policies finalized for approval Trained entrepreneurs on the technical aspects and5. Agri & business planning of incense making, making pre-mixed forestry fertilizer, and trading of feedmeals and fertilizer enterprises Enterprise loan agreements with 5 entrepreneurs in 3 communes
Has Client-Responsiveness of Extension Services Improved?• More active commune technicians in partnership with project staff in assisting garden farmers adopt market-oriented practices• Limited participation of district and province technicians• Mixed responses on serious training needs assessments with follow-on institutional commitments• “What’s in it for me” attitudes prevail
Lessons Learned• Assessment and analysis may help refine interventions, and figure out innovative, effective, & efficient entry points• A cost center approach in fully funding commune-led planning and implementation may trigger active participation and counterpart commitments from local leaders and farmer participants• Incentives that support farmer’s self-interests could facilitate adoption – subsidized inputs for improving home gardens, matching funds for savings, partial subsidy for wage labor for improving forest gardens.• A savings-oriented microfinance with matching fund can link and integrate various project interventions such as training, subsidies, production contracts, and enterprise loans.
Lessons Learned• Supporting local interests may give rise to acceptable combinations of short-, medium-, and long-term agro-forestry species (e.g. bananas and durian, bananas and mangosteen, Khaya and Hopea as long-term forest species, reviving black pepper)• Improving market orientation and client- responsiveness are changing mind-sets which does not happen overnight.• Right combinations of local cross visits, study tours, and village training ignite adoptions. “To see is to believe” - coffee and black pepper in central highlands, nurseries in the south, banana- and citrus-based home gardens, farmer-owned khaya and hopea farms, etc)
Emerging Models• Commune-level extension services is more effective in changing farmer’s behaviors & facilitating technology transfer among garden owners.• Integrating job generation, training, and enterprise loans with savings-focused microfinance program at the commune level• Supporting self-interested local entrepreneurs with training, priming up contracts, and/or working capital loans: Enterprise-oriented village nurseries for raising high value planting materials Local processing or manufacturing based on competitive advantages in raw materials and access to markets Mixing, repacking, and direct trading of inputs for home and garden forest improvements
Remaining Challenges• Institutionalizing emerging models and best practices in: – microfinance, – enterprise-oriented village nurseries, and – commune-led extension delivery system• Determining initial subsidy for improved home and forest gardens in marginal lands that may yield at least 40% environmental benefits