VIETNAM SUSTAINABLE TEA PROJECTS PPP FOR SUSTAINABLE AGRICULTURE DEVELOPMENT TASKFORCE UPDATE SEPT. 2015

TWO KEY ASPECTS OF VIETNAM TEA INITIATIVE 1.Sustainability 2.Improving Quality

CURRENT TEA PPP INITIATIVES IN VIETNAM 1.Unilever/IDH/RA Project: Increase Unilever procurement of Vietnamese tea through promoting sustainable tea development and improving tea quality (4.0 Index) 2.VITAS/IDH Project: Tackle Agro-chemical issue 3.VITAS/IDH/CBI Partnership:

UNILEVER/ IDH/ RA COOPERATION 1.Scope: to improve the long-term economic, environmental and social sustainability of Vietnamese small holder tea farmers and tea factory owners via provision of training on the Sustainable Agriculture Network Standard that can lead to RA certification. 2.Target provinces: Phu Tho, Tuyen Quang, Lam Dong, Yen Bai, Vinh Phuc, Nghe An 3.Budget: EUR 440,000 4.Duration: Nov 2013 – Dec 2015

2. VITAS / IDH / SECTOR PROGRAM Goal: agrochemical control & quality of tea production Specific objectives 1.Help smallholder farmers to increase yields and improve quality via improved practices in production, farm management, harvesting and post-harvest 2.Set up and enforce a monitoring system to ensure the right chemical usage and to guarantee the quality 3.Enhance manufacturing capacity by upgrading the conditions of factories 4.Help in market access 5.Help in advocacy and communication

VITAS / IDH / SECTOR PROGRAM Targets: 1.Create a model to address quality and production at sectoral level 2.Starting with 13+ factories 3.Provinces: Ha Tinh, Nghe An, PhuTho, Lam Dong, Lai Chau, Son La, Ha Giang 4.Investment: € from IDH & € private co-financing

3. VITAS/IDH/CBI PARTNERSHIP FarmersProducersExportersMarket VITAS MARD VietTrade CBI IDH

KEY CHALLENGES a.Farmers Education & Incentives a.Farmers Education & Incentives: -Most companies do not have their own farm and many find it difficult to develop linkages with smallholders -Difficult to expand the small-holder base. Farmers not yet convinced -Limited incentives to tea farmers & factories to apply sustainability practices b.Misuse of agro chemicals: -Middle men poorly regulated and poorly committed to quality, responsible agrochemical use -Many agrochemicals in the market

PROGRESS UPDATE # of Companies # of Factories # of Smallholders PotentialTargetTrainedCertified Certified pre- project Committed ,3206,2382,5681,424 Unclear612 8, Total ,380 7,4433,3012,097 Target # of Companies # of Factories Tons (all categories) PotentialTargetCertified Certified pre- project 252,300 7,0005,885 Committed ,50011,5213,999 Unclear612 24,100 1,2000 Total ,900 19,7219,884

KEY RECOMMENDATIONS 1.MARD/GOV to promote/support the establishment of Agri-teams by willing tea factories. 2.Revise the list of current approved/banned agrochemicals in agriculture 3.Set up accredited labs in tea growing areas to test tea materials/products for EU compliance at a low cost 4.MARD to support and be engaged in the development and dissemination of extension material for sustainable tea production, with emphasis on productivity and responsible agrochemical use (and its impact on health). Material to be aligned with the training programs conducted by Unilever, Vitas and IDH. 5.Empower the SC on Sustainable Tea to be the focal point on all the issues related to tea. Departments under MARD should be informed of this arrangement as to make the SC as central to the sustainable tea interventions

DIRECTION OF ACTIONS 1.The sharpening of the Govt regulations 2.The need for stricter control of agro chemicals (esp. the agencies selling chemicals) --- Agrochemicals Taskforce 3.The importance to work with factories to reach the farmers 4.INCENTIVES for farmers/ factories (VIETGAP) 5.Monitoring system

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