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)
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