1

Participatory Guarantee System (PGS) An Approach for Organic Quality Management

What?

Why?

How?

Tu Thi Tuyet Nhung Vietnam PGS President

National Consultant TA8163 IFOAM-ADB Prj

What?

Participatory Guarantee Systems (PGS) is quality assurance initiatives

It emphasize the participation of stakeholders, including producers and consumers a long supply chain

It operate outside the frame of third party certification but the same process

It is for small scale farmer and relevant for local markets

3

MARD issued a national standards for organic production and processing (TCN10-2006), but no certification system for organic

Consumers lose their trust in “clean/safe” products and lack knowledge of qualities organic products

IFOAM adopted the PGS (2004) as a guarantee system for small holders to help them sell organic products in local markets.

In 2008, Stakeholders agreed to set up PGS for organic farmers selling products under the ADDA prj (ADDA-VNFU prj 2005-2012)

Why PGS in Vietnam

Key Elements of the PGS System

Farm Family

Producer Group

Inter - Group

Coordination Group

The size of the boxes is proportionate to the level

of responsibility in PGS certification.

Farmers

Consumers

Local Organization (FU, WU, NGOs, …)

Traders

Gov agency

Scientist .....

System in PGS

Organization, people, rules, a mechanism test,

verification tools and methodologies for non-

compliance

Management systems are documented with forms,

databases, signs and labels

Farmers are organized into groups voluntarily

Inter-group make linkage between the local

producer groups create a network

Coordination Group responsibility for overall

governance regards to the integrity of the system

and the PGS standards

PGS guarantee Organic quality (group)

Participation and Cross check are the essential and dynamic of PGSs.

Farmers join in groups, attending training and sign pledge complying PGS rules and standards

Farmers with stakeholders are involved directly in monitoring, auditing and making decision

Non-compliance of Individual means all group has been dealt with violence.

PGS guarantee quality (Inter-Group)

Inter-group responsible for the day-to-day activities of groups be long to

Coordinate monitoring acts and peer review among groups regularly and randomly

Review inspection report and decide who will be certified or the actions to address non-compliance issues

Random sampling for residue testing and has right to dealt with group’s violations

Maintain monthly meeting to support and solve problems timely

PGS guarantee quality

(Coordination Committee-PGS.CC)

PGS.CC who will be selected at the annual general meeting for a term of two years take responsibility for the intergrity of overall system

Coordination Committee include the volunteer members have capacity and technical knowlede.

In order to protect the PGS seal the Coordination Group will have the right to check the internal workings of both the Producer and Inter-Groups

PGS.CC will also issue the certificates and have the right to withhold certification

Suspension of whole inter-group if repeated violation threatening the PGS integrity

9

Develop Market

It is very important factor to motivate production Link producer groups to retailers/traders

Organize talk show/workshop/social marketing campaign, fairs, media… to Increase awareness among consumers/people increased demand

Develop supply chain of organic vegetable: Organic PGS products sell through different channel: Special shop, home delivery, online…

Organize tours of consumers/students/school for sharing and learning on organic farming

10

Organic supply chain in Hanoi

Growing interest in organic vegetable among consumers Increase the volume of sale

- 2009: 8 -10 tons/month with 7,6 ha of 11 FGs

- 2012- 2013: 20 – 25 tons/month

- 2014: 328 tons (27 tons/month)

- 2015: 220 tons/6 months with 26,8 ha/41 FGs

More retailers seeking organic products, register as PGS member and pay fee to run PGS

- 2009: 4 retailers

- 2013: 9 retailers with > 25 outlets

- 2014: 12 retailers with 35 outlets in Hanoi city

- 2015: 9 retailers with 45 outlets

PGS operating a long supply chain to ensure quality from farm to table. Checking shops/agencies by volunteers

11

Outputs of the PGS

PGS significantly raised the awareness and capacity of farmers and stakeholders on food safety issue

Created grass root networks where farmer show up their responsibility for community and securing food safety

Sharing responsibilities and benefits between trader and farmer of monitoring and quality guarantee a long product chain (pay fee)

An effective guarantee with low cost for small farmer as well as for people meet to share and learn

Not only increase income per month (50-100%) but also improve relationship among community

More provinces are interest and adopt PGS (Hoi An city, Ben Tre province, Ho Chi Minh city)

12 12

Constraints

PGS is still has not yet recognized by government

even it has showed many advantages for

enhancing small-scale production.

AGS is not business Not many people know

including government

PGS has not yet to receive support from

government as a local market guarantee.

Limited consumer awareness of PGS/organic

Difficulty in scaling-up PGS if its without support

from government for land policy.

13

Inspection activity of farmers

14

Check record keeping

3 March, 2013 Tu Thi Tuyet Nhung - PGS/VOAA 15

Field visit

3 March, 2013 Tu Thi Tuyet Nhung - PGS/VOAA 16

Taking note and fulfill the forms

3 March, 2013 Tu Thi Tuyet Nhung - PGS/VOAA 17

Quick test

PGS = Direct Local Market

Weekend Market

Home delivery

Retail shop

Board sign to shop

19

PGS Organic vegetable at Bac Tom shop

PGS in Agroviet fair 2014

Organize tour for consumers

Tour of pupils

Tour of kids

PGS Hoi An

A pilot of CASP II (IFOAM-ADB)

3 March, 2013 25

Thank you!