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Collaboration with the private sector in Vietnam - Raf Somers (BTC)
- 1. Raf Somers Vietnam Belgium Dairy Project Brussels, 23 Nov 2016 Collaboration with the Private Sector in Vietnam
- 2. Vietnam Belgium Dairy Project Main activities: 1. Increase productivity Training of farmers Introduce practical innovations Strengthening Vet and AI services 2. Improve milk quality control and payment 3. Link Public and Private sector to enhance sustainable dairy development: Dairy Vietnam (www.dairyvietnam.org.vn)
- 3. Smallholder dairying in Vietnam HF & HF cross breeds Average farm size: 5-10 animals
- 4. Cut and carry Traditional forage: Elephant grass (Pennisetum Purpureum)
- 5. Milking
- 6. Milk Collection Center (MCC)
- 7. One price for the group Processing Company Farm Farm Farm Farm Farm Milk Collection Center Milk flow Payment Quality testing Milk collector
- 8. Result of a group price Farmers are not encouraged to produce good quality milk Bad farmers cannot be identified Penalties are shared among farmers Milk collectors always take their ‘collection fee’ Relationship between farmer and collector often determines the milk price for each farmer
- 9. Our philosophy Milk Quality can only improve if: Better quality milk receives a higher price Quality is tested for each farm!
- 11. The story behind the scene… The project became middle men We bought milk and paid individually based on our test (done by the milk collector) We sold milk to VINAMILK based on the quality of bulk tank Processing company did first not want to pay individually!
- 12. Software Software Field data (Kg, Fat%, SNF%) Laboratory data (BCC, SCC, AR) Farm Evaluation Individual payment for farmers
- 13. A new Public Private Organization Bringing stakeholders around the table A trustworty source of information Promoting domestoc milk production “More Safe Milk From Profitable Farms”
- 15. The story behind the scene… Dairy Vietnam did not survive after the program ended… The staff was dedicated, the private sponsors were ready to continue to pay… A challenge to find to ‘correct’ legal status But in the end, the SC did not allow Dairy Vietnam to become an independent organization -> it was put under the Department of livestock of the Ministry Staff was no longer motivated Sponsored lost interest A missed opportunity … because of trying to be “bilaterally” correct
- 16. Thank you for your attention !
- 17. The following slides were not presented but provide more info
- 18. Individual price Based on components of the milk (FAT%, SNF%) Penalty for poor quality high bacteria antibiotic residue Bonus for good practices Farm evaluation Low Somatic Cell Count
- 19. Stimulating growth! Farmers are encouraged to produce better quality milk because of the better price Actions to produce better quality will also result in better productivity!
- 20. Quality testing Components of the milk (FAT%, SNF%, added water) tested every delivery by milk analyzer Bacteria (MBT), antibiotic residue (Delvo test) tested every 14 days in the laboratory Farm evaluation, somatic cell count (DCC) every two months in the farm & laboratory PENALTY BONUS BASIC PRICE
- 21. New equipment Introducing IT solutions in the milk collection centers: Electronic scale Milk analyzer Smart cards Microprocessor We know the exact amount + quality of each farmer
- 25. picture transfer milk from milk can to scale
- 29. Payment to farmers Bank transfer (farmer’s choice!) Clear feedback 2x per month Bank get an insight in the creditability of farmers Milk collectors only receive a collection fee!
- 30. Evaluation of Phase 1 Good farmers highly appreciate our system Good milk price Bonus for good farming practices Fair and transparent Clear feedback Timely payment Thanks, my dear
- 31. Evaluation Phase 1 Bad farmers Angry when they receive individual penalty Complain that penalty period is too long Cannot receive bonus
- 32. Evaluation of Phase 1 Milk Collectors Many are not so happy Less profit than before (before they could easily cheat!) They do receive a very fair price, but many do not want to work honestly and they don’t like to be controlled Still allow bad quality milk to go into the bulk tank because they worry to lose farmers Only the processing company can successfully control the milk collectors!
- 33. Evaluation phase 1 Processing company: high appreciation! Want to intensify the collaboration with the project Report that our milk quality is better than in other regions They already apply the lessons learned in other MCC Individual testing Individual payment
- 34. Evaluation Phase 1 However, some processing companies still accept milk with added water pay a too high price for poor quality milk Bad farmers and collectors can still easily sell their milk elsewhere. Need for National Legislation!
- 35. Phase 2: Improvements Put one quality control staff in each MCP Collector does not perform quality control anymore Perform more tests in the MCC Increase frequency of testing For bacteria: daily methylene blue test For antibiotic residue: daily fermenation test, confirmation by delvo or copan test Reduce the penalty period
- 36. Repeatability? The equipment is only a tool, the intentions are more important: individual testing individual price We want to set an example for farmer organizations processing companies governments Raise awareness about the need for: Transparent quality control National legislation
- 37. Recommendations 1. Companies should make sure that farmers understand the basics about milk quality: • Milk composition (Fat, SNF, protein, ...) • Added water • Bacteria • Residues • Somatic cells
- 38. Recommendations 2. Limit as much as possible the role of intermediates between farmers and processors In Vietnam, we recommend that the processing company has a quality control staff in each MCC 3. Always do a good acceptance test • inspection of milk can (material, cleanliness) • organoleptic test (look, smell) • density test (added water) • alcohol test (bacteria, colostrum)
- 39. Recommendations 4. Basic tests can be done daily in the MCC Bacteria: dye reduction tests (Methylene Blue, resazurine) Cheap but only a rough indication Many false negatives! (This gives the wrong impression to farmers that the milk is good...) TPC is much better, but needs to be done in a lab and takes a lot of time Antibiotic residue: fermentation test cheap best is to confirm positive result by Delvo or Copan test
- 40. Recommendations 5. Milk composition: Basic milk analyzers can be placed in MCC: close to farmer (transparent) can detect added water easily BUT they need a lot of maintenance and spare parts! In many locations it might be better to test the composition once every 14 days in a central place or with a mobile unit.
- 41. Recommendations 6. Somatic cell count: Interesting information for farmer! Bonus for low SCC stimulates good hygiene practices On farm: CMT test (info about each quarter) In the MCC: DeLaval Cell Counter exact number relatively expensive per test (about 2 usd/test ) machine can be transported from MCC to MCC
- 42. Recommendations 7. Penalty Farmers should understand why they receive penalty Farmers prefer more regular testing and shorter penalty period Penalty should be balanced with bonus Farmers and Collectors should receive penalty for their faults, not for someone else fault!
- 43. Recommendations 8. Infrastructure in MCC Many poor quality cooling tanks Frequent power cuts Consider cooling tanks with an ice bank Short power cuts have no effect on quality Milk cools down faster (below critical 10°C) Use cheaper electricity at night to make ice
- 44. Recommendations 9. Cleaning protocol Milk cans & cooling tanks need to be cleaned following the 4 principles of good cleaning: Time Temperature Physical action Chemicals Acid to for protein Alkaline detergent for fat
- 45. Content Vietnam Belgium Dairy Project Smallholder dairy farming in Vietnam Importance of individual quality control Our intervention around Hanoi, Vietnam Lessons learned Recommendations
- 46. New Forages Bracchiaria mutica Avena sativaPanicum maximum Australian Mix
- 47. Innovations Silage bags Sprinkler irrigation Calf rearing practice Heat stress solutions
- 48. Milk transport to factory
- 49. Dairy Industry in Vietnam Dairy smallholders produce more than 90 % of the milk The informal market is small (about 10%) Popular dairy products are flavored milk, yoghurts and ice cream Self supply in Vietnam is only 20%
- 50. Milk collection from smallholders Dairy processors often struggle to collect the milk from smallholders poor quality milk small volume scattered farms difficult to do quality testing Almost no functioning cooperatives Smallholders often receive a group price Collectors earn too much compared to the farmers