ifpri - workshop on best practices in contract farming: challenges and opportunities in nepal -...
Post on 15-Jul-2015
279 Views
Preview:
TRANSCRIPT
Success story of Vegetable Value Chain Programme in the East from
Bhutan
Workshop on Best Practices in Contract Farming: Challenges and Opportunities in Nepal
February 10-11, 2015 Kathmandu, Nepal
Sangay Wangdi, Project Director, MAGIP Dorji Wangchuk, Marketing Officer, DAMC Karma Tenzin, Marketing Officer, RAMCO Ministry of Agriculture & Forests (MoAF)
Bhutan
Presentation outline • Country Profile • Project Profile • Background on VVCP-E in the east • Aim and objectives • Vegetable value chain map • Production support • Marketing support • Impact of VVCP-E • Constraints/Challenges • Opportunity
1. Bhutan - 38,394 km2
- 27.5274° N, 90.0453° E between China & India
- 20 districts, 15 sub-districts, 205 blocks
- Currency – Ngultrum (pegged with Indian Rupee)
- National language - Dzongkha
- Population - 748,500 (53% male: 47% female) [2014]
- Government - Parliamentary Democracy [2008]
- Flora & Fauna – Forest cover >72% & 60% under protection
- People - Tshanglas, Ngalops &Lhotshampas
- Religion – Mahayana Buddhism
• Market Access and Growth Intensification Project (MAGIP)
• Six eastern Dzongkhags (districts) of Bhutan comprising Lhuentse, Tashiyangtse, Trashigang, Mongar, Pemagatshel and Samdrup Jongkhar
• Ministry of Agriculture and Forests (Lead Implementing Agency); in collaboration with District Authorities (District and gewogs (blocks) RNR Sector Staff) RAMCO & SNV.
Project Profile
Goal
• to reduce poverty and improve food security and the standards of living of targeted rural households in six eastern dzongkhags.
Specific project purpose
• to improve the productivity of subsistence-based farming systems in communities with no road access, and to intensify the production of cash crops and dairy products, while enhancing smallholders’ access to markets, in communities with road access.
Outputs
• In 11 remote gewogs, some 880 households will be supported with the relevant low cost, labour-saving production technologies and quality inputs
• In 49 gewogs with good road access and the necessary agro-ecological potentials, the project will support some 3,600 producers organized in groups or cooperatives with the necessary inputs, training and services
Cost & Financing
IFAD loan: USD 8.49 million
IFAD grant: USD 2.0 million
RGOB: USD 1.99 million
SNV: USD 0.15 million
Beneficiaries: USD 0.86 million
Project Period:
5 years (22 April 2011 – June 2015)
Components
Component 1: Support to poor subsistence farming communities
Component 2: Agricultural intensification and support to market access
Component 3: Project organization and management
Background on VVCP-E • VVCP-E is a programme initiated to enhance
production and marketing of vegetables in the region • VVCP-E Programme was started in mid 2011 by
RAMCO/DAMC in collaboration with other stakeholders
• The programme has 119 FGs comprising of 1527 households in 35 Gewogs out of seventy
• The linking programme as a part of VVCP-E was initiated in 2012 based on.
a. Internal market study conducted in106 schools has huge vegetable demand (link)
• Till 2014, 90 FGs have been linked with 40 schools/institutions to supply vegetables.
Aims and Objectives • The aim of the programme is to promote semi-
commercial production and marketing of summer vegetables in order to increase income of more than 2500 households from 5 to 15 percent by 2016
Objectives: • To assist production of larger volumes of vegetables
required for both internal/external markets. • To explore both internal and external market
opportunities. • To identify, facilitate and link both local and Indian
traders with farmers groups
Supply seeds, fertilizers, training, equipment etc
Prepare land, grow, protect, harvest , clean and store
Assemble, grade, pack, carry to the road head and transport to school /local market or the auction yard
Load, Pack, transport & supply to schools, sell in the local market or export
Consume as vegetable, use for chips and crisp making or keep for seeds
Middlemen/ Local Traders
Consumers in India
Bidders at Auction
Yard
Local Vegetable Vendors
Consumers in Bhutan
DAO, RAMCO, MAGIP, SNV, RNR-RDC
FCBL
RNR-RDC, SNV, RAMCO, Dzongkhag
Disease, pest control, production
improvement
Market infrastructure,
MIS, Training on grading,
packaging
Auctioning of vegetables
VC Operators VC Supporters VC Functions
Training, technical
advice
Inputs
Production
Collection & Transportation
Trading (Wholesale &
Retail)
Consumption
Existing Value Chain Map of Vegetable Subsector
DEO, DAO, RAMCO, MAGIP,
SNV,RDC
MoE, MoAF, MoF and GNHC
Create enabling
environment
Institution
Vegetable Growers (119
FGs)
OSFS/ Commission
Agents
Dzongkhag
,RAMCO,
SNV, RNR-RDC
Contractual
agreement
Support to value chain actors
(Production) • Inputs like seeds, sprinklers and HDP pipe to the groups on
cost sharing basis (75:25) • Group Coordinators was introduced for better coordination
of group activities • Incentive mechanism was introduced for the group
coordinator for programme sustainability • Provide training to FGs (Postharvest, staggered sowing,
pests and diseases management) • Developed cropping calendar • CoP of 15 major vegetables
Marketing support • Identified various markets at nearby border towns to
market Bhutanese vegetables
• Conducted regular Buyers-Sellers meeting to discuss and understand the market mechanism
• Auctioning system was introduced mainly to export vegetables to India
• Provided timely market information, packaging materials (plastic trays), and value addition equipments.
• Provide capacity building support (entrepreneurial development, group advocacy, book keeping, leadership, marketing aspect, post harvest, exposure visit and consultative meeting )
Infrastructure development
support • To facilitate smooth marketing of vegetables market infrastructure like market sheds for Sunday market, sales outlet, collection shed, cold storage, and OSFS was supported.
Progress trend of VVCP-E
1307
1377
1527
1150
1200
1250
1300
1350
1400
1450
1500
1550
Year- 2012 Year- 2013 Year- 2014
Total number of members
29
104
119
0
20
40
60
80
100
120
140
Year 2012 Year 2013 Year 2014
Total number of groups
355.75
1229.36
1935.63
0
500
1000
1500
2000
2500
Year 2012 Year 2013 Year 2014
Total quantity sold (MT)
5.13
20.67
38.81
0
5
10
15
20
25
30
35
40
45
Year 2012 Year 2013 Year 2014
Total income earned (Nu in Million)
Impact of VVCP-E • The income generated by 119 FGs in 2014, Nu. 38.81 million
was quit impressive • Awareness among farmers on the opportunity of vegetable
production and marketing for income generation has greatly increased
• Several villages started producing summer vegetables on a semi-commercial scale for the first time as they were only used to kitchen gardening
• Group marketing has a history with potatoes, but not for vegetables. For the first time joint and collective marketing of vegetables was applied on a large scale
• More FGs came forward to link with schools/institutions • Schools have shown great interest to buy local vegetables • From the total production of vegetables FGs have sold 63% ,
19% used as home consumption and 18% were damaged.
Constraints/Challenges • The expected prices for vegetables by FGs are very
high, hence leading to low demand by local traders and consumers.
• There is shortage of farm labour in the communities.
• Limited landholding per household
• Not being able to compete with cheaper Indian vegetables – during vegetable season in India (Oct – April)
• Poor access (poor conditions of farm roads) and high transportation costs (increase in fuel price) are also hindrance to marketing of vegetables.
Opportunity • As vegetable cultivation is a business-oriented
activity: a. It has potential to attract the youths to the
rural areas thus solving labour shortage on the farm.
b. will create youth employment. c. It will curb rural-urban migration. d. Help to enhance income and livelihood e. Reduce import of vegetables
KADRINCHEY
top related