MARKETING INITIATIVES OF VNFU

PRESENT BY Mr LE KHAC LAP- VICE -DIRECTOR OF ECONOMIC

DEPT OF VNFU

THE NUMBER OF FARMERS INVOLVED

Crop : Vegetable

Number interviewed : 46

Number of farmers involve : 632

Crop : Fresh lychee

Number interviewed : 1546

Number of farmers involve : 3405

Crop : Dryed Lychee

Number interviewed : 12

Number of farmers involve : 527

Crop : Lychee wine

Number interviewed : 1

Number of farmers involve : 52

Crop : Tea

Number interviewed : 8

Number of farmers involve : 570

• The number of provinces has been reseached : 4

• Bac Giang province : 1 company; 3 initiatives

• Thai Nguyen province : 2 companies; 3 cooperatives; 7 initiatives

• Ha Noi : 1 wholle sale market; 3 initiatives

• Ninh Binh province : 1 company; 5 initiatives

Volume being marketed

• For tea product : in the project frame we planned for marketing in November 2009.

• Sending document to provinces where has a big area for tea growing such as : Lai Chau Prov; Dien Bien Prov; lao Cai Prov; Tuyen Quang Prov; Phu Tho Prov….

• We will send expert to Tuyen Quang and Phu Tho Province to carrying out training courses for farmers.

Marketing partners

• In Thai Nguyen province : Commercial Center of Thai Nguyen; Hoang Binh Company.

• In Ha Noi : some big shops /agencies

• All partners are invited to attend the workshop on setting up mid – market mechanism will be held on October and November 2009.

History of the initiatives

• The initiatives mentioned above are divided in to 3 kinds :

• - The cooperatives has been transferred from agricultural cooperative to services cooperative sine 1990.

• Dong Giao company has been transferred from government company to joint stock company since 1990.

• Hoang Binh, Thinh Bien companies are Ltd companies sin 2000.

• The whole sale market Long Bien since 1980s

Current status of the initiatives

• All initiatives are running well, however its effected by the global financial crisis : the market curtailed .

Current management structure

• 1 Director• 1 Marketing staff• 1 accountant• 1 cashier• 1 consultative committee• 1 Technical group • The relationship to the national structure is

an independent center of VNFU.

The Enabling and hindering factors

• Supporting policy of Viet Nam Gov : giving capital to farmers for their production.

• The small farmers do not have information on marketing;

• The processing technical is backward

Lesson learned and insights

• Capacity building for small farmers and poor farmers is in accordance with the point of view of VN Government and need the time about 3 years for carrying out.

• Its needs 100,000USD – 150,000USD for setting up the models and develop, maintaining it in 3 years.

• Should be concentrated in propagandizing through the conferences; workshops… .

• The local staff needs to be trained .

Challenges ahead

• The market price of in put and out put are changing.

• The Competition with big companies, group make difficulties for small farmers.

• Purchasing power is getting down caused by the global financial crisis lead to unmarketable products.

Recommendation to farmer engaging the market

• The farmers necessary active liking together for a big volume of products.

• Applying a new technology on production• Observed the GAP regulation on

production; Making good plan for products can be completed in the market .

• Apply new technology on food processing in order to reduce the price and upgrade the quality.

Intervention/support needed

Aspect Needed support- national level

Needed support regional level

Technical support

Needed Needed for food processing

Marketing support

Marketing - needed

Marketing needed

Policy support needed