Setting a vegetable market information and
    consultation system in Vietnam



Paule Moustier, CIRAD, Hoang Bang An and ...
The context
   In the last 10 years the food sector of the region has
                   y                               g...
The context

 In the list of constraints expressed by
vegetable farmers in Vietnam marketing
                        Vietn...
Insights from literature review
(Jones, 1974; Goosens et al, 1994; Galtier et
Egg,1998; Shepherd
Egg 1998; Shepherd, 1997)...
Insights from literature review
        Mixed results of MIS

FAO assessment (Shepherd, 1997):
 53/120 countries with func...
Insights from literature review
  s g ts o      te atu e e e
 Problems with MIS :
   little use when other market constrai...
Insights from literature review
  s g ts o      te atu e e e
 Recommendations
   combine information with stakeholders ’ c...
Objective of Hanoi vegetable MICS
(set by Malica group)
             Medium-term planning
             M di    t
         ...
Method data ll ti
M th d – d t collection

Data collected   Origin, nature of intermediaries, quantities,
                ...
Method - consultation

                        Topic: Market seasonality

Hanoi                    7 producers, 2 wholesal...
Some examples of agreed vision on
 market opportunities


Market opportunity (quantity): tomato deficient
from July to Sep...
Some examples of agreed vision on
 market opportunities

Market opportunity (quality):
   products of South-Vietnam are re...
Some examples of agreed vision on
 market opportunities


 Change of vision by workshop participants:
imports from China n...
Results of survey on market information needs


Most
M t required market information = daily
          i d     k ti f    t...
Method
Data collected            Wholesale price, retail price

Frequency                  Daily
Commodities              ...
Results of survey on impact assessment


 Interviews of 84 farmers, 16 t d
 I t i        f    f            traders
 Listen...
Follow-up of consultation meetings
F ll       f      lt ti      ti

Alliance of safe vegetable production and distribution...
Follow-up of consultation meetings
       F ll       f      lt ti      ti
       Collaboration between Malica group and al...
Follow-up of consultation meetings
F ll       f      lt ti      ti

In October 2008, floods destroyed more than half of
cr...
Difficulties i
Diffi lti in running consultation meetings
                 i        lt ti      ti
   Difficulties of spont...
Conclusions
                  C   l i

Consultation systems on market seasonality and quality
requirements help to change ...
Conclusions
                     C   l i


Possible way which could be tested to sustain the MICS:

Commitments on action ...
Upcoming SlideShare
Loading in …5
×

Moustier CIRAD 2010

518 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
518
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Moustier CIRAD 2010

  1. 1. Setting a vegetable market information and consultation system in Vietnam Paule Moustier, CIRAD, Hoang Bang An and Nguyen Thi Tan Loc (FAVRI) Moustier, Presentation to CIRAD/AFD Workshop: “Agricultural Market Information Systems in Africa : renewal and impact” - 30/03/2010 impact 1
  2. 2. The context In the last 10 years the food sector of the region has y g gone through profound changes due to : (i) market liberalisation ; (ii) urban growth; (iii) market segmentation in the domestic and export sector (income, quality preferences) Vietnam Laos Thailand Urban. Rate 26.4 27.4 32.3 (2005) Urb. Growth rate 3.13 6.02 1.49 (2000-2005) (2000 2005) GDP growth rate 8.5 7.5 4.8 in 2007 Source: UNDP and nationmaster.com 2
  3. 3. The context In the list of constraints expressed by vegetable farmers in Vietnam marketing Vietnam, comes first (Phuong Anh et al., 2004) 3
  4. 4. Insights from literature review (Jones, 1974; Goosens et al, 1994; Galtier et Egg,1998; Shepherd Egg 1998; Shepherd, 1997) Advocates of MIS : increase market transparency and competition, improves farmers ’ bargaining power, allows time and space arbitrage Market information systems (MIS) are systems of regular M k i f i f l collection, analysis and dissemination of information relevant for public and p p private decision-making on marketing g g Market information is a public good (difficult to exclude some users, little profitable for private sector to invest in its supply). It is characterised b as metr (more available for some by asymetry a ailable stakeholders) Hence it is legitimate for the p g public sector to invest in MIS 4
  5. 5. Insights from literature review Mixed results of MIS FAO assessment (Shepherd, 1997): 53/120 countries with functioning MIS 5 with demonstrated utility (Indonesia, South Africa, Sri Lanka, China) Other Oth examples l Onion-potato price radio dissemination in Senegal: 19% of onion-potato farmers use it (47% listen to it) (Wade, David-Benz, Egg, 2004) 5
  6. 6. Insights from literature review s g ts o te atu e e e Problems with MIS : little use when other market constraints e.g. transport stakeholders have own channels of information (personalised networks) problems with accuracy and timeliness of data Recommendations R d ti adapt to diversity of users and needs adapt frequency of collection and dissemination to price varability p q y p y seek homogeneity of products, time of collection, units of sale 6
  7. 7. Insights from literature review s g ts o te atu e e e Recommendations combine information with stakeholders ’ consultation to deal with expressed constraints other than information (technologies, access to inputs and transport..) p p ) Stakeholders’ consultation need to be based on: (i) shared appraisal; (ii) shared objectives (Thoyer et al., 2000). Market information and consultation systems (MICS) are defined here as MIS combined with the organisation of debates between f d b t b t farmers, t d traders and d d development agents l t t to have common visions and strategies on marketing Wordplay/ marketing mix = price, product, promotion, place 7
  8. 8. Objective of Hanoi vegetable MICS (set by Malica group) Medium-term planning M di t (2002-2004) l i Definitions d i i Short-term decision Sh t t (2004-) Decision What crops? Bargaining prices What markets? Choice of final markets Market information and consultation At what time of the year? Harvest versus storage systems (MICS) are definedFarmers (esp.) MIS Beneficiaries Farmers here as Extension agents E t i t Consumers C combined suppliers organisation of debates Input with the Traders Policy makers between farmers, traders and developmentofagents to have common Information Calendar prices/quantities/origin Daily prices/markets visionsSpatial price variation on marketing surplus/deficits and strategies Indicators of Quality preferences of purchasers Technical information 8
  9. 9. Method data ll ti M th d – d t collection Data collected Origin, nature of intermediaries, quantities, prices Consumers and traders’ demand for quality traders Commodities 8 to 16 vegetables (80% of transactions) Markets Major wholesale and retail markets Frequency y 4 times/year y Dissemination 4 newsletters in 4 production sites and in MARD website 4 consultation workshops 9
  10. 10. Method - consultation Topic: Market seasonality Hanoi 7 producers, 2 wholesalers, 7 extension agents, 27 extension and research agents 4 villages of 15 to 20 farmers/village, 0 to 4 collectors, 3 production researchers Topic: Quality Hanoi 6 coop directors, 4 collectors, 3 retailers, 2 representatives of consumer association, 3 journalists, 3 extension agents, 10 researchers j li t t i t h Organisation of meetings: I. Presentation by researchers of market survey results; II. D b t t II Debate to reach i) shared vision of market opportunities; h h d i i f k t t iti ii) shared vision of strategy to take advantage of them III. Survey on needs for market information 10
  11. 11. Some examples of agreed vision on market opportunities Market opportunity (quantity): tomato deficient from July to September (imports from China, retail prices x 2) Strategy: use existing adapted varieties and technologies to produce tomato off-season off season Follow-up: a company specialized in production of seedlings for off season company off-season 11
  12. 12. Some examples of agreed vision on market opportunities Market opportunity (quality): products of South-Vietnam are reputed as safer than Chinese products in Hanoi, but origin is not labeled Chinese products are more appreciated than local p pp ones for some physical characteristics (ex: smaller cabbage) Strategies: label origin of p g product; improve rigor in control of ; p g product safety (public-private partnerships) 12 Harvest cabbage earlier to reach required size
  13. 13. Some examples of agreed vision on market opportunities Change of vision by workshop participants: imports from China not disruptive of local production; but rather an answer to the deficiencies of local production in terms of seasonal availability and quality Similar MICS organised and similar results obtained in Cambodia (relative to imports from Vietnam) and Laos (/Thailand) 13
  14. 14. Results of survey on market information needs Most M t required market information = daily i d k ti f ti d il wholesale and retail prices Preferred means of dissemination = television (note: radio in Laos and Cambodia) To answer these requirements, a daily price MIS was set by researchers 14
  15. 15. Method Data collected Wholesale price, retail price Frequency Daily Commodities 10 vegetables most present Average quality standards set for each vegetable Markets 3 wholesale, 2 retail in Hanoi Method f ll i M h d of collection 3 contact traders i each market contacted b phone d in h k d by h at 4 a.m. (wholesale) and 9 a.m. (retail) Method of dissemination Internet transfer to television TV programme everyday, 2 times/day Cost 5000 € Management Research institute then department of ministry of agriculture 15
  16. 16. Results of survey on impact assessment Interviews of 84 farmers, 16 t d I t i f f traders Listening to price information: everyday (62%) or several times a week (25%) Main use: bargaining prices; crop p g gp ; p planning g Characteristics of non users: small size; regular relationships with partners Transfer of system to a service of ministry of agriculture 16
  17. 17. Follow-up of consultation meetings F ll f lt ti ti Alliance of safe vegetable production and distribution coop established on 15/12/2008 by Hanoi municipality, headed by a dynamic head of coop y y p In response to mismatch between production and demand: Traders complain that they lack suppliers reliable in terms of safety-diversity Farmers trained to produce « safe vegetables » lack customers offering premium prices t ff i i i Few activities implemented (mainly political) 17
  18. 18. Follow-up of consultation meetings F ll f lt ti ti Collaboration between Malica group and alliance to develop marketing activities d l k ti ti iti Inventory of safe vegetable units was carried out and published Three consultation meetings organized 01/07/08 Presentation of 39 producers 2 traders 13 producers, traders, inventory, setting plan of researchers, 5 officials actions 19/09/08 Cooperation between 36 producers, 2 traders, 7 groups to to prepare researchers, 6 officials next season 13/11/08 Contacts between 30 producers, 13 traders, 10 groups and buyers to researchers, 12 officials prepare next season 18
  19. 19. Follow-up of consultation meetings F ll f lt ti ti In October 2008, floods destroyed more than half of crops so that crop planning was no more relevant Website established to facilitate contacts-cooperation between production units, and between production and distribution units But lack of financial and technical capacity in the alliance to run website and meetings 19
  20. 20. Difficulties i Diffi lti in running consultation meetings i lt ti ti Difficulties of spontaneous expression by Vietnamese p p y farmers and traders Difficulties in having traders represented Lack of local capacity for workshop facilitation p y p Climatic vagaries jeopardize validity of crop planning Problem of outreach beyond the workshop participants: weak extension services; fragmentation of p g production 20
  21. 21. Conclusions C l i Consultation systems on market seasonality and quality requirements help to change the vision of participants and to have them adjust their marketing strategies j g g But their impact beyond the participants is limited by the present weakness of extension services and sectorial organizations Price dissemination was more easy to sustain (with involvement of the public sector) than consultation on seasonality and quality in particular due to low local quality, capacity in terms of meeting facilitation 21
  22. 22. Conclusions C l i Possible way which could be tested to sustain the MICS: Commitments on action plans by representatives of public and private sector; monitoring of implementation by « neutral organisations », e.g., local research institutes or NGOs (see Manalili, VECO 2009 Manalili VECO, 2009, on chain networking for coffee in Indonesia) 22

×