Vietnam Gia Lai - Ended

"Professionalising coffee farming and establishing producer organisations"

Introduction

Gia Lai province is one of the major Robusta-producing areas in Vietnam. Eighthundred farmers signed up to establish Farmer Field Schools (FFS) in several communities in Chu Se district in Gia Lai. In these FFS, coffee producers receive a combination of theory and practice to learn about good agricultural and processing practices, certification and group organization.

In 2009, 564 producers signed up for an out-grower scheme for certification by UTZ Certified with Neumann Kaffee Gruppe (NKG), which functions as the certificate holder. The establishment of a warehouse receipt system by NKG enabled project producers to better market their coffee. Local authorities and organisations are actively involved in implementing the project, while various staff members from these organizations work as facilitators in the FFS. Together with 40 key farmers, they were trained for this role in technical issues as well as how to make learning easier in groups of adults.

Focus of the project

Establishing stable producer organizations and work to improve the agricultural and processing practices of producers. Certification by UTZ is expected to result in better market opportunities.

Activities

• Identifying the most important gaps in resources and know-how such as:
  • Technical knowledge of coffee production and processing
  • The organizational structure to assist producers with technical and marketing questions
  • Access to credit
• Building training capacity at district level to introduce Good Agricultural and Processing Practices among key producers and extension workers
• Helping establish farmer groups and assist these groups in achieving UTZ certification
• Producing content on coffee and sustainability

Results

Producer learning groups are attracting regular participation (90% of the farmers on average per meeting). Apart from topics on production and processing, training now also includes entrepreneurial skills, farm management and finance. Producers are recording field and processing activities in the so-called Farmer Field Book (FFB). These activities are analysed on agronomic, financial and environmental performance. Comparing these results in the Farmer Field Schools (FFS) provides a strong stimulus for producers to adapt their crop and farm management.

Project producers have indicated that they would like the project to help them identify how to become organized and trained in management skills. A study indicated that this could best be done in the form of cooperatives. From 2010 on, a project (which is co-funded by the DE Foundation, the Rabobank Foundation and the Ministry of Agriculture of the Netherlands), will be implemented to provide this assistance.

Analysis of the FFB data from 739 participants showed that per metric ton of green beans produced, project farmers were able to reduce production costs by about 28% in 2008 compared to 2007, due to more efficient use of fertilizers, irrigation and hired labor. This cost reduction is achieved in spite of the high inflation in 2008, and is in contrast with observations elsewhere in the Central Highlands. On a project basis, these cost reductions lead farmers to achieve a 103% Return on Investment (ROI) for 2008 and a ROI of 153% in 2009.

Partners

Gia Lai Department of Agriculture and Rural Development (implementation)
EDE Consulting (coordination): www.ede-consulting.de
Solidaridad: www.solidaridad.nl

Contact information

Dave D'Haeze: dhaeze@ede-consulting.com