Large-field production zones a sustainable rice production ... · 1000 ha 100kg/ha Diện tích...
Transcript of Large-field production zones a sustainable rice production ... · 1000 ha 100kg/ha Diện tích...
Large-field production zones – a sustainable rice production and water management model in
Mekong River Delta of Vietnam
Khoi Dang
Institute of Policy and Strategy for Agriculture and Rural Development
Presentation structure
• Importance of Vietnam’s rice sector
• Environmental issues in rice sector
• An Giang stock plant protection company
• Achievements of large-field production zone model
• Conclusion and policy recommendations
Importance of Vietnam’s rice sector
In 2013
• 7.8% agriculture’s GDP
• 17.8% agro–forestry–fishery export value
• 15.7% agricultural land area
• 9.27 million farming households
• 91% food structure
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20.0
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60.0
0
1000
2000
3000
4000
5000
6000
7000
8000
9000100kg/ha 1000 ha
Diện tích Năng suất Area Productivity
Source: General Statistics Office of Vietnam (2014)
Cultivated area and yield
Rice production and water related issues
• Rice land is small-scale and scattered hard to control water for irrigation when needed
• High risks of disasters, pest overuse of pesticide water pollution
• Farming schedules of farmers are different and lack of coordination at grass-root level conflicts between rice farmers, and between rice farmers with others
• Lack of knowledge and infrastructure on water management over use of water increase in GHG emission
High risks of disasters, pest, market (input, output)
Small production scale
Lack of knowledge,
infrastructure
Overuse of
fertilizer,
pesticide,
water,
conflict in
water use
Water
pollution,
GHG
emission
High
production
cost
Low
competitiveness
Health
problems
Some statistic on water related issues
0.00
0.50
1.00
1.50
2.00
2.50
3.00
19
61
19
63
19
65
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67
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69
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71
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73
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75
19
77
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79
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81
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83
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85
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87
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91
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93
19
95
19
97
19
99
20
01
20
03
20
05
20
07
20
09
100kg/ha
Trung Quốc Ấn Độ Indonesia
Philippines Thái Lan Việt Nam
China India
Thailand Vietnam
Source: Food and Agriculture Organization (2014)
0
20
40
60
80
100
120
140m3/t
Contaminated water volume due to the overuse of fertilizer with high nitrogen content
Use of chemical fertilizer in agriculture
Source: Twente University, Enschede, Netherland (2010)
37,429.77,
42%
Rice Livestock Forestry Fishery Other crops
Share of GHG emission
Source: Ministry of Agriculture and Rural Development (2014)
Development timeline of An Giang stock plant protection company
1993
AG Plant
Protection
Department
(state owned)
AG Plant
Protection
Service
Company
(Joint state
and private)
2004
AG Stock
Plant
Protection
Company
(private
owned)
Farmer’s
friends (FF)
network
2009 2011
Large-field
production
zones
6 limited
liability
companies
2013
Seed research centre,
pesticide factory, bag factor,
branches in HCM city, Ha
Noi, other provinces
Current business situation
• 5 main business sectors: pesticide, seed, bag, rice for export and tourism
• Human resource: 2000 staff (800 FF)
• Selling branches: 40 provinces, Cambodia
• 4 factories (380,000 tons)
AGSPP’s interventions
High risks of disasters, pest, market (input, output)
Small production scale
Lack of knowledge
Overuse of
fertilizer,
pesticide,
water
Water
pollution,
GHG
emission
High
production
cost
Low
competitiveness
Health
problems
Large-field production zones
Close linkage between farmers
and AGSPP
Farmer’s friend teams
Common
sustainable
production
process
Lower
water
pollution
Lower
production
cost
Higher
competitiveness
Better health
Establish material zones for AGSPP with stable price
Rice export with trademark
Domestic rice selling with trademark
Large field production zone – novel
business model of AGSPP
Contract to
supply seed,
fertilizer,
pesticide –
loans with
no interest in
120 days
Transfer,
monitor
production
process
Support
harvesting
Support to
transport to
factories of
AGSPP
Dry with
no fee
Free
storage in
30 days
Farmer can
choose:
- Selling time
- Selling price
Selling
Discuss with
farmers,
authorities to
consolidate
land
Shorten and strengthen rice value chain
F F
F F
F
F F
F F
F F
F
F F
F F
F F
F
F F
Farmer
group
Farmer
group
Farmer
group
AG PPC
Husking,
processing
Seed, pesticide, fertilizer
Agri
extension
services
Export
Domestic
market
Fresh paddy/Dry paddy Large-field
production
zone
Large-field
production
zone
Large-field
production
zone
Companies
Companies
Dealers
F F
F
F
F
Collectors
Export
Domestic
market
Companies
Current situation AG PPC
• Choose areas where farmers have relatively large plots
• Consolidate small plots of land to become bigger ones with the help of local authorities
• Share the cost of infrastructure (land, irrigation) with farmers
Field of F Field of F
Field of F
Field of F
Field of F
Field of F
Field of F Field of F
Field of F
Field of F
Field of F
Field of F
Field of F Field of F
Transportation Channel
Transportation Channel
Tran
spo
rtat
ion
Ch
ann
el
Storage, Processing
Field of F Field of F
Nat
ion
al r
oad
Establish large-field production zones
Improving in-field irrigation management
• Consolidate small plots to large plots with the help of local authorities
• Construct irrigation infrastructure with share of farmers and AGSPP
• Apply the same technical rice production process to reduce quantity of pesticide and chemical fertilizer (supervised by FF teams)
• Apply the same irrigation schedule (irrigate at the same time when rice needs water with the supervision of FF) for each large-field production zone
Sustainable production based on FF
Establish standard production process
Machine soil
preparation Use certified seed Seeding at the same time Line transplantation Balanced fertilizer use
Water saving and
active irrigation
Protect pest
enemies Pest management Apply machines, reduce post harvest loss
Achievements of large-field production zone model
Better selling
price
Larger
production
scale
Standardized
production
process,
reduce
production
cost
Enjoy credits
for high-
quality inputs
Receive
supports for
transportation
Better storage
Achievements of large-field production
zone model
Increase in farmer’s production scale
0
8000
0
80.0
0020
.000
40.0
0060
.000
100.
000
Die
n tic
h (m
2)
0 .25 .5 .75 1Ty le
Source: IPSARD (2013)
Reduction in farmer’s production inputs
Province Reduction in times of using
pesticide (times/crop) Reduction in water use (%)
Dong Thap 1.7 – 2.5 30
Long An 2.2 – 2.6 35
Bac Lieu 1.8 – 2.0 30
Tay Ninh 1.2 – 4.0 25
Tra Vinh 1.5 – 2.0 25
Source: Vietnam’s Ministry of Agricultural and Rural Development (2013)
Increase in farmer’s profit
Province Yield
(tons/ha)
Average profit
(Million
VND/ha)
Increase in
profit (Profit/ha)
Production
cost (VND/kg of
rice)
Decrease in
production cost
(VND/kg of
rice)
Dong Thap 6,00 16 – 18 2,3 – 2,5 2.493 120 – 300
Long An 7,00 15 – 20 2,5 – 3,0 2.860 150 – 250
Bac Lieu 6,00 19 – 20 2,8 – 3,0 2.763 200 – 360
Tay Ninh 5,00 15 – 16 2,2 – 2,4 3.100 150 – 200
Tra Vinh 7,23 26 – 27 7,0 – 7,5 2.300 500 – 600
Source: Vietnam’s Ministry of Agricultural and Rural Development (2013)
Better profit for AGSPP
• Rice production area: 2012 19,500 ha (6,500 smallholders), 2013 61,600ha (20,500 smallholders)
• Export: 2013, 300 tons to Japan (closed since 2008 due to high pesticide residue of VN)
Challenges
• Most farmer in Vietnam is small-scale hard to participate in large-field production zones
• Entrepreneurs require huge capital investment to establish large-field production zones big barrier for most entrepreneurs in agricultural sector in Vietnam
• Incentive for entrepreneurs to follow environmental friendly production practice is not strong if the market signal is not clear
Conclusion
• Large-field production zone model developed by the AGSPP company is a good example of promoting sustainable rice production
• This model has proved that it can reduce input (fertilizer, pesticide, water), increase yield and net profit of farmers.
• This model can also manage to export in highly demanding countries
• Policy recommendations: Withdraw labours out of agriculture, develop supplementary industries in agricultural sector
to create added value for products
Market signal needs to be strong
Government needs to share with AGSPP in prepareing infrastructure