Situation, policy

and innovations

on reducing post-

harvest loss in

Vietnam

Dang Kim Khoi

2017 APEC Expert Consultation on Food Losses and Waste ReductionJune 12-13, 2017 Taipei City

Content

• Overview Vietnam’s Agriculture

• Food loss and waste in agriculture and post-

harvest loss in rice sector in Vietnam

• Post harvest loss institution, policy and

implementation in Vietnam

• Innovation in Vietnam

• Possible approaches to reduce post harvest

loss/waste

Share of Agriculture GDP

Nguồn: GSO, 2016

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

19

86

19

87

19

88

19

89

1990

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

2011

20

12

20

13

20

14

20

15

Share of GDP by main sectors, current price

Agriculture Industry Service

Agricultural growth rate of Vietnam and

other countries

-15

-10

-5

0

5

10

15

China Malaysia

Philippines Thailand

Vietnam Indonesia

Source: ADB, 2016

Agricultural land area and productivity

0

5

10

15

20

25

30

23000

23500

24000

24500

25000

25500

26000

26500

27000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Agricultural land area ('000ha) Agricultural land productivity (mill VND/ha)

Source: GSO (2017)

Agricultural exports

6.9

3.43.1

2.8

2.42.2

1.7 1.71.4

1.0

0

1

2

3

4

5

6

7

Source: MARD (2017)

0%

5%

10%

15%

20%

25%

30%

2001

2002

20

03

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

20

14

2015

Rice

Coffee

Pepper

Cashew

Natural

Rubber

Fishery

products

Fruits and

Vegetables

Wood

Billion USD

Pepper

Cashew

Rice

Source: Trademap (2016)

2016

Challenges for food sector in Vietnam

• Population: Providing food and nutrition to 91.713 million people now and

104.699 million people by 2050

• Natural resources (land, water, forest, fisheries): Depleting

• Agricultural land productivity: Reaching the ceiling

• Climate Risks: Vietnam is very disaster prone, among the countries worse

affected by climate change. Long coast, low land, complex geography.

Yearly huge lost due to disasters

• Urbanization: rate 3.4%/year, fastest among Southeast Asia

• Food safety: 2016: Meat infected Salbutamol 6/345 (0.44%); Fruits,

Vegetables and Meat is in excess of antibiotic residues – 11/1345 (0.82%);

Fruits and Vegetables is in excess of plant protection products – 4.1%;

Aquaculture products – 91/2472 (3.68%)

• Food security: Undernourishment - 11% of population (2015); children are

stunted due to malnutrition – 23% (2015)

Food loss and waste – Definition

5. Consumption

1. Production

2. Handling and Storage

3. Processing

4. Distribution and Market

Post-harvested

Loss

FAO definition:

• Food loss: the decrease in edible food mass available for human

consumption throughout the different segments of the supply chain.

• Food waste: food losses resulting from decisions to discard food that still

has value.

Perceptions of the major food security

issues in Vietnam

Source: Project ADP/2015/01, ACIAR

Comparison of total kcal lost and wasted between different regions, 2009

Source: WRI analysis based on FAO (2011)

6.23 4.71

9.25 9.85 9.20 9.94

- 2.00 4.00 6.00 8.00

10.00 12.00 14.00 16.00

Rice Fruits Vegetables Rice Fruits Vegetables

2003 2013

China India Pakistan Thailand Vietnam

Source: FAOSTAT (2015)

Food loss and waste in Vietnam

8.0

8.5

9.0

9.5

10.0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Rice Vegetables Fruits, excluding wine

Comparison post-harvest loss in rice between

Vietnam and Thailand

Stage Vietnam (MRD) Thailand

Harvesting 2-3% 2%

Distribution 0,9% 0,4%

Drying 4,2% 1,7%

Storage 2,6% 1,2%

Milling 3% 2,3%

Total 13,7% 7,6%

Source: VIAEP (2016), VIAEP&FAO (2014)

Annual post-harvest loss of rice in MRD: ~ USD 150 - 300 million

Polishing/Exporting

Rice Mills (Husking, Whitening)

Po

licie

s

83%13%

4%

13%

4%

11% 69%

69%13%

11%

70%15%

30%

Paddy Brown rice Rice

Source: CASRAD,MARD (2014, 2015)

Cooper

atives/g

roup

Rice value chain in MRD

Integrated

Large

Fields

Pro

du

ctio

n

se

rvic

es

Po

st-h

arv

este

d s

erv

ices a

nd

d

istrib

utio

n

Inputs: seed, fertilizers, pesticide...

Farmers

Traders/Brokers/Collectors

Wholesale/Retail

Domestic consumers

Export enterprise

13

Thailand

China

Vietnam

Reaper Small combine

harvester

Large and modern combine harvester

MRD has 11.000 harvesters, in which 6.000 combine harvesters.

Share of total area using harvesters: RRD 30%, MRD 76%.

Using harvester reduce loss by approximately 3-4%

Hand/Manual

Harvesting technologies

Source:MARD (2016) & CASRAD, 2014 & Research Institute for Biotechnology and Environment, 2016

Harvested by machines

Sun Fixed Bed

Batch

Dryer

Re-

circulating

Batch Dryer

Continuou

s Flow

Dryer

Open bag Inside

Storage

Silo

Vietnam

Thailand

Japan

Drying and Storing technologies

Source: MARD (2016)

Drying by machines

RRD 5%

MRD: 46% (Fixed Bed Bath Dryer 90%, Re-circulating

Batch Dryer 10%)

Using Dryers reduce loss in MRD, keep loss rate of this

stage at 3%.

Inside Storage: only 6 mill tons (24%).

(<20% HHs with good

storage facilities

Steel plate

milling

machine

Rulo rubber

milling

machine

Vertical shaft

tapering

machine

Horizontal shaft

tapering

polishers (Stone

and rubber disk)

Vibratory

Sieve

separator

Laser

stacking

machine

Vietnam

Thailand

Japan

Only whitening husking: >70%

Combine stacking, whitening husking and polishing :

<30%

Separating: 90%

Processing Technologies

Source: CASRAD (2015)16

Had Sack

Sewing

Sack Packing

Line

Closed Bag

Sealing

Machine

Closed Bag

Sealing Line

Vacuum

Absorption

Machine

Packing and

vacuum

absorption line

Vietnam

Thailand

Japan

Packing Technologies

Handing Sack Sewing: 65%, Closed Bag Sealing Line: 20%Closed Bag Sealing Machine: 15%Vacuum Absorption Machine: 5%

Source: CASRAD, 201517

Distribution/ Transportation/Market

Stakeholders relateds to food loss

management in Vietnam

Department of pr

ocessing and

market

development for

agricultural

products

Institute of

Agricultural

Engineering and

Post Harvest

Technology

National

Agricultu

ral

Extension

Center

(project,

program,

pilot

model)

Ministry of Agriculture and Rural Development

VAAS

Other institutes: rice,

maize, aquaculture,

horticulture, coffee,..

Other departments:

S&T, crop, livestock,

fisheries,…

Other

s

(IPS

ARD,

Other ministries

Ministry of

Industry and

Trade (policy)

Ministry of

Science and

Technology

(project,

program)

Ministry of

Education and

Training

(universities)

Mass organizations

Farmer,

women,

youth,

veteran, father

front

(training,

education)

Banks (credit)National assembly

Banks (credit)Private sector

Policy on reducing post-harvest loss

in Vietnam

2007

• The Master Plan on development of the agro-forest product-processing industry in agricultural and rural industrialization and modernization up to 2010 and orientations towards 2020

2009

• Resolution No. 48/NQ-CP providing mechanisms and policies to reduce post-harvest losses in agricultural and fishery products

2010

• Decision No. 63/2010/QĐ-TTg on policy on subsidies to reduce post-harvest losses in agriculture and aquaculture

• Decision No. 65/2011/QĐ-TTg amending Decision No. 63/2010/QĐ-TTg on policy on subsidies to reduce post-harvest losses in agriculture and aquaculture

2013

• Decision No. 68/2013/QĐ-TTg providing support policies to reduce losses in agriculture, and implement respective measures for each commodity value chain (substituted for Decision 63 and 65 aboved)

2014

•The Scheme on improving added value in the processing of agro-forestry and fishery

products and reducing post-harvest losses

Policy implementation results

• Total lending capital in financial support program on reducing agricultural

post harvested had reached 4,470 billion VND with outstanding loans of

2,440 billion VND (30 July 2016).

• 11,732 customer turns were accessed to this financial support scheme

• Total agricultural machines increased

– Tractor: increased by 1.6 times compare to 2006

– Dryer: decreased by 8% but drying capacity increased by 20%

– Harvester: increased by 25.6 times (MRD 75% of total harvester of

VN)

• The mechanization of rice, sugarcane and maize work increased rapidly:

– Land preparation: 92% (rice), doubled to 2000

– Sowing and Transplanting: 30% (rice and sugarcane); 70% (rubber)

– Spraying and Caring: 60% (rice), 70% (tea and sugarcane)

– Harvesting (rice): 42% (5% in 2000); RRD 20% and MRD 76%; 20%

(tea)Source: Report of enhancing mechanization for restructuring agricultural sector, Department of Processing and Trade for Agro-forestry

Fisheries Products and Salt Production

Challenges in reducing post harvest

loss

• Small and fragmented land

• Lack of financial access and high interest rate

• Inadequate farmer knowledge and skills in post

harvest loss reduction

• Technology and research capacity

• Environment and climate change

• Infrastructure and Market system

Innovations

Technology application:

• 2007-2015: 150 inventions (Vietnam society of agricultural engineering)

• 2011-2015: 147 mechanization model in rice production help increasing

labor productivity 10-30 times and reduce 20-25% of total production cost

(Extension program)

Agricultural mechanic industry:

• Tractor producing capacity: Vietnam can produce diesel machine of 30 HP;

40,000 machines/year (30% of total domestic market share)

• Combine harvester: Vietnam has 15 factories but only 3 factories with

capacity 1,000 machines/year

• Threshing machine: 3 factories with capacity 6,000 machine/year (in the

North)

• Rice milling machine and Dryer: >90% of total market share produced

domestically (Bui Van Ngo company, SINCO, LAMICO, etc with the

capacity 4 – 48 tons/hour; Dryer with capacity 30 – 200 tons/turn and

exported to other countries.

Bui Van Ngo Industrial & Agricultural

Machinery Co. Ltd

• 75% of agricultural machinery market share in MRD and

export to many countries (Thailand, Philippines,

Malaysia, Brazil,...)

Milling Chain Dryer Polishing machine

Loc Troi Group• Leading seed trader in Vietnam

• Own and operate their own science research center

• Invest and apply modern technologies and machines

• Establish the Together-three agricultural engineers* (2006)

• Develop the “Together with Farmers to the Field” Progame (2006)

• Sign directly contracts with 40.000 farmers

• Develop sustainable agricultural value chain

Rice MillsToge-three engineerScience research

Business model of Loc troi group

• 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)

• 4 factories (380,000 tons)

• Sell stocks for 6,000

smallholders

• Economic profits:

smallholders who have

contracts with Loc Troi have

$US550/ha/year higher than

others (Nghia 2012)

F F

FF

F

FF

F F

FF

F

FF

F F

FF

F

FF

Farmer

group

Farmer

group

Farmer

group

AG

PPC

Husking

,

processi

ng

Seed, pesticide, fertilizer

Agri

extension

services

Export

Domestic

market

Fresh paddy/Dry paddyLarge-field

production

zone

Large-field

production

zone

Large-field

production

zone

Source: Nghia (2012)

Material Primary Refinement Drying Tower Storage

Brow rice Paddy

Separator

Sorter Hulling

machine

Stone

Refinement

Whitening

Machine Polishers Grain

Separator

Color

SeparatorPacking

Rice processing technologies of Loc Troi

White

Rice 27

Lasuco – Lam Son sugar company

• Apply GIS, big data,

machine learning to

manage the raw

material zone of

company (contract

farming, harvest,

transportation,

processing) reduce

post-harvest loss

Summary

• Vietnam has achieved significant results in agricultural

productivity

• Food loss in Vietnam is still high compared to other countries

• Food loss and waste are still new concept to Vietnamese people

• The institutional and policy framework for post-harvest loss is

still incomplete

• The impact of these policies is still low

• However, there are some innovations that work in reality

(shorten the value chain, farmer-enterprise linkage, industrial

4.0)