Analysis of mango value chain in Dong Thap province - 1

Project "Solutions to improve the efficiency of the value chain of the Cat Mango industry in the province"

Author

From Thi Kim Trang

THANK

To carry out this topic, first of all, I would like to sincerely thank the teachers of the Faculty of Economics and Business Administration, Can Tho University for helping me in the process of completing the course and defending the topic.

In particular, I would like to thank Associate Professor Dr. Duong Ngoc Thanh for his dedicated guidance in helping me complete my master's thesis.

I would like to sincerely thank Master Truong Hong Vo Tuan Kiet for enthusiastically supporting me throughout the process of my thesis.

Thank you to my family for encouraging me and supporting me throughout the course.

I would like to thank my friends, colleagues, agencies and departments who helped me in the data collection process, and all the respondents who spent their valuable time answering the survey questionnaire for the topic.

Author

From Thi Kim Trang

SUMMARY

Dong Thap has the largest mango growing area in the Mekong Delta, 9,031ha (2012). Of which, the Cat Chu Cao Lanh mango growing area accounts for 60% (Cat Chu). Mango growers have a lot of production experience and have successfully applied flowering treatment techniques, so the mango harvest season is year-round. However, the implementation of linkages in production and consumption still faces many difficulties and obstacles. Therefore, a systematic study is necessary to find out the problems that exist from production to consumption.

In this study, the approach of Kaplinsky & Morris (2000), Recklies (2001), Eschborn GTZ (2007), M4P (2007) and Vo Thi Thanh Loc (2013) is used to analyze the operation of the Cat mango value chain in Dong Thap province. The objectives are (i) to examine the market activities of the actors participating in the value chain, (ii) to increase the economic value of the chain, (iii) to increase the income of gardeners and other actors in the chain. The data of the project is collected by the stratified random method for

with the mango gardener agent remaining data of other agents

(traders; warehouses; retailers, etc.) are collected according to the value chain linkage.

Result

shows the production scale of small gardeners

retail, whole province

Dong Thap has only one mango cooperative, no mango processing company, and no primary processing factory located in the raw material area. Export market channel

export turnover

accounting for 74.5% of total mango consumption

(owner

weak

Fresh mango exports to the Chinese market, the domestic consumption market of Cat Chu Cao Lanh mango is mainly in the outer provinces, markets in Hanoi, Long Bien, Hue,...

In both domestic and export markets, mango growers have very low income compared to other actors in the chain. On average, mango growers account for about 20% of the total income in the two types of mango. However, the profit ratio for the entire chain is dominated by growers, at about 54%. The added value in the value chain is not evenly distributed and profits are not shared among themselves. Shortening the market channel and linking garden producers helps reduce costs and increase profits for participating actors. In order for mango products in Dong Thap to develop sustainably in the future, many combined strategies are needed, such as: (i)

Quality improvement strategy. (ii) Investment strategy Redistribution strategy.

technology. (iii)

Keywords: value chain, added value, Cat Chu Cao Lanh mango

ABSTRACT

Mango area of ​​the Dong Thap is the largest in Mekong Delta about 9,031ha (2012). In particular, In which Chu mango area is about 60% of total mango area in the Dong Thap. Mango growers have production experience, They have been successful in application of techniques for flower processing. So, the mango crop is harvested year round. However, the implementation of linkages in the production and consumption of many difficulties. Therefore, a systematic study is needed to find out the existing problems from production to consumption of mango in Dong Thap province.

In this study, the approach used by Kaplinsky & Morris (2000), Recklies (2001), GTZ Eschborn (2007), M4P (2007) and Vo Thi Thanh Loc (2013) to analyze the operation of Cat mango value chain in Dong Thap province. With the aim of (i) to review the activities of market actors in the value chain, (ii) enhance the economic value chain, (iii) to raise income for cultivating another agent in the chain. Data from this subject were collected by the method of stratified random for mango grower agents remaining of the other actors (traders, barns, retail, ...) are collected under linkage value chain.

The results show that the production scale of mango growers is small gardens. Until now, Dong Thap province has only one mango cooperative, no mango processing company, and also as no preprocessing factories in the area of ​​materials. Channel export market accounted for 74.5% of all large mango consumption (mainly fresh mango exports to the Chinese market) for Cao Lanh Chu mango. The domestic market is mainly Chu Cao Lanh mango is consumed mainly outside the region, markets in Hanoi, Long Bien, Hue, ...

In the both markets for domestic consumption and export, the mango grower has very low incomes compared with other sectors in the chain at the two kind mangoes accounted for 20 % of total income. However, the proportion of profits for the whole chain of growers dominated at the average of 54 % for the both value chain of Chu Cao Lanh mango. Value added of both the value chain of mangoes uneven distribution and profitsharing for another. The shortened channel market and associated linkage of growers to help reduce costs and increase profits for the participating agents. For mango products in Dong Thap province sustainable development in the future need to be more strategic combinations as: (i) improve the quality strategy, (ii) Strategic technology investments, (iii) redistribution strategy.

Keywords: value chain, value added, Chu Cao Lanh mango.

INDEX

Page

COVER i

FROM THI KIM TRANG i

LIST OF FIGURES AND DIAGRAMS xv

ABBREVIATION xvii

Figure 2.1 Administrative map of Dong Thap province 16

Figure 2.2 Fruit tree area in Dong Thap province (2000-2010) 20

Figure 2.3 Fruit tree output in Dong Thap province (2000-2010) 21

Figure 2.4 Mango area in Dong Thap province in 2011, 2012 22

Figure 2.5 Mango output in Dong Thap province in 2011, 2012 23

Figure 3.1 Price increases along the marketing chain 33

 Value chain selection method to analyze the value chain of Cat Mango (tool 1) 35

 Draw a chain diagram and describe the value chain of Cat Mango (tool 2) 36

 Economic analysis of the value chain of Mango Cat (tool 3) [2, page 34] 37

 Micheal Porter's approach to competitive advantage analysis [2, page 59] for Cat Mango products in Dong Thap province 39

Figure 3.2 Model of 5 competitive pressures 42

 SWOT analysis of the entire Xoai Cat product chain (tool 7) 42

 Upgrading the value chain of Cat Mango (tool 9) [2, page 6673] 43

Table 3.1. Sample size and data collection methods 46

Figure 3.2 Progress of implementing research on the value chain of Cat Mango. .47 Figure 3.3 SWOT matrix analysis model 49

Figure 4.1 Seasonal calendar of Cat Chu Cao Lanh Mango 52

Table 4.1 Mango sales target of gardeners 54

4.2.1.2 Agricultural Materials Store (AMS) 56

Table 4.2 General information of Agricultural Materials store owners. 57 Table 4.3 Age distribution of Mango Cat production household owners. 58

Dong Thap is a province with a long tradition of mango cultivation and the largest mango cultivation area in the Mekong Delta. Gardeners here mainly

self-propagation (especially the two varieties of Cat Chu Cao Lanh Mango and Cat Xoai Cao Lanh), accounting for 59% of households, 23% of households both self-propagate and buy seedlings, only 18% of households buy seedlings for planting. The majority of gardeners buy seedlings from seedling farms, accounting for 73.3%, gardeners buy floating seedlings accounting for 12.3%, and buy seedlings from the provincial Seedling Center 14.4%.

................................................................ ................................................................ ............. 59

Table 4.4 Mango production experience of households 59

The survey results from Table 4.5 show that the most popular training type is the technique of stimulating flowering and fruit set (46.9%), and mango production according to VietGap standards is also widely transferred (43%). The premise for forming the habit of GAP production is production according to safety standards 60

Table 4.5 Forms of participation in technical training of farmers 60

Table 4.6 Number of people in the production garden 61

The results from Figure 4.2 show that the most grown variety is Cat Chu Cao Lanh Mango, with 46% of the gardeners producing it. This is an easy-to-cultivate mango variety with a fairly high yield, suitable for local soil conditions and the current trend of intensive farming to increase productivity. Next is the Cao Lanh Mango variety (commonly known as Hoa Loc Mango) with 26% of households growing it. This is also a local specialty mango variety. Cao Lanh Mango is more difficult to process than Cat Chu Cao Lanh Mango, and its yield is also lower but its selling price is higher than Cat Chu Cao Lanh Mango. Therefore, some gardeners with good off-season processing experience choose the Cao Lanh Mango variety. The Grafted Mango (3-rainy season mango) and Taiwanese varieties are also chosen by gardeners. These two mango varieties are intercropped in Cao Lanh Mango and Chu Cao Lanh Mango gardens by gardeners to diversify mango varieties and meet the diverse needs of consumers. 62

................................................................ ................................................................ ............. 62

Figure 4.2 Structure of Cat Mango varieties produced by gardeners 62

Table 4.8 Mango consumption sources of Mango producers 63

The study shows that mango growers rarely borrow capital, only about 26.7% of households borrow capital. Most households use the loan for the right purpose (90.6%), borrowing to buy input materials for mango production. The main source of loans is from the Bank for Agriculture and Rural Development (71.7%), followed by the Bank for Social Policies (13.2%) and Commercial Banks, credit funds.