PPP study By Vietnam Farmers’ Union

RESEARCH/TOOLS METHODOLOGY Qualitative methodology using un-structured questions for personal interviewing experts, farmers, farmers’ union, relevant agency representatives; group discussion among them with support of external/international experts; desk study, case study.

STUDIED MODELS 4 Partner- linkages: contract based production: one of initiatives on PPP. 4 partner-linkages on sugar in Thanh Hoa province PPP on sustainable coffee in Dak Lak province 4 partner- linkage on vermicelli (noodle) in Bac Kan province We are conducting one more case on PPP

PPP on sustainable coffee in Dak Lak PPP on sustainable coffee in Dak Lak province is a model of WEF-Government PPP models: Objectives: -Help farmers improve the value of agro- products -Ensure all partners enjoy the best benefits from a commodity-oriented agriculture.

PPP on sustainable coffee in Dak Lak Since Jun, 2010, initiative was put forth at WEF. Task force established with 6 multilateral meetings to identify the major challenges and develop the key strategies for sustainable development of coffee. Two pilot project on PPP on coffee, in Lam Dong, Dak Nong, Dak Lak, Central highland.

PPP on sustainable coffee in Dak Lak 2 major groups: One group in charge of inputs includes: Syngenta, Bayer, Yara International + MARD, Center of Agr. Extension. Another group in charge of quality of coffee, buying coffee includes Nestle, Neuman + MARD to improve the quality of coffee growing and processing. - Farmers are producers.

Role of Neslte & Minh Anh Company - Transfer technology to farmers’ groups to meet the standard of 4C (Common Code for the Coffee Community). -Buying coffee with 4C with market price -Follow up with farmers in production -Contribute to socio-economic development of locality

Role of Government, local authority: -Support farmers to avoid risks in production. -Good policy on loan, production, product quality…

Role of VNFU Technology transfer to farmers. Farmer leader at commune level work as group leader, Bridge between the farmers and the companies and encourage farmers production following safe standards. Protect rights for farmers through policy advocacy. Assist farmers with loans, agricultural inputs...

Roles of farmers Forming into commodity based groups and cooperative. (Beginning: 20 members, 2 hectare, 2 years later: 70 members with 20 hectare; own 500-2,000 square meters for growing coffee; applying NPK, ejector to pump water; productivity: 3.5 ton/ha; VND 35 million/ton) They want to sign contracts to sell coffee to get benefits for their life. Follow and ensure the quality of coffee

Initial results This model in agriculture is new and only pilot in some cases for short period, need more research later. Farmers can improve their capacity on production, market and can get benefits from this model. Farmers can have stable and profit sale of products. Farmers are getting familiar to contracts step by step.

Initial results Domestic companies are difficult to maintain the relationship. International Company are more successful in maintaining the relationship due to their big capacity on budget, resource…

Recommendations Farmers need more technology training and good price of inputs( seed, fertilizer…), convenient condition for land renting and loan borrowing for production. The Government should formulate the policies for creating favourable conditions for all stakeholders, especially the local companies to involve and invest in agriculture development( for example, tax policy, land policy, credit, science and technology policy…)

Recommendations The Government and local authority should invest in rural infrastructure, work out the regional agricultural production planning=> enterprises and farmers confidently to invest and work in agriculture areas for long term. The enterprises, particularly local enterprises should actively participate in PPP models and support farmers and sign contact farming with farmers.

Recommendations Farmers’ organizations should be strengthened and to build up collective farmers’ groups or cooperative so that FOs, collective farmers groups’, cooperative are strong enough to cooperate with enterprises, Government agencies, scientists, others stakeholders in PPP models to protect farmers’ interest and get more benefits Disseminating, documentation, expanding the successful cases on PPP. Need deeper research on PPP later.

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