Project overview
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The Mekong Delta (MD) produces 53.4% of Vietnam’s rice of which 90% is exported (Nguyen 2017). Vietnam is now the world’s third largest rice exporter (The Anh et al., 2020). Rice land occupies 2.4 million ha or 56% of the MD which with intensification to 2-3 crops/year is equivalent to 4.3 million ha (2016) of rice cropping per year (Van Kien et al., 2020).
Typical farm size in MD is around 1.4-2.5 ha and hence there are ~1.5 million smallholder men and women famers who rely on rice production for their livelihood (Van Kien et al., 2020). As such rice production is one of the most important agricultural sectors in MD. In 2016, 4.5 million tons of rice worth USD 2 billion was exported (Van Kien et al., 2020). However, with this intensified rice production system, a number of issues have arisen. For example, returns to farmers have reduced, soil degradation has increased, environmental pollution has increased, seed purity and quality has declined. |
The Vietnamese Government has recognised these issues and in 2017 issued a resolution and developed policy encouraging reduction in total rice production and a focus on high quality rice production with the aim to export to premium markets.
To achieve this a number of agronomic strategies have been implemented by government and development organisations in the previous two decades (Dung et al 2018), for example:
These projects appear to have succeeded in training many thousands of farmers in improved production practices. However, without market incentive these practices appear not to be adopted long term. While lack of access (including direct access) to international markets is identified as a key limitation, further research is required to gain a deeper understanding of the factors that promote and hinder production of high-quality export rice.
As part of its global rice sourcing program, SunRice is establishing a quality-assured, traceable value chain in Vietnam’s MD which will feature quality seed supply, high yields, optimal input use, harvest and post-harvest processes and milling and packing that maintains quality, traceability and variety integrity. This value chain will align with SunRice’s own Supplier Sustainability Code, which aligns with the UN Sustainable Development Goals.
This will be partially achieved with implementation of the Sustainable Rice Platform (SRP) within farmer co-operatives engaged by SunRice. The SRP framework developed by global multi-stakeholders to promote sustainable rice cultivation, is a relatively novel program in the MD. SRP promotes resource-use efficiency and climate change resilience in rice systems (both on-farm and throughout value chains). It pursues transformation initiatives by developing sustainable production standards, indicators, incentive mechanisms, and outreach mechanisms to boost wide-scale adoption of sustainable best practices throughout rice value chains. SRP’s goal is to minimize environmental impacts of rice production and consumption while enhancing smallholder incomes and contributing to food security (SRP 2019). A further summary of the SRP can be found in Appendix C.
Typically, the rice supply chain in MD is long and complex, with at least 5-6 supply agents between farmgate and the consumer (ADB, 2013). SunRice aims to achieve some vertical integration and coordination, reducing fragmentation and improving efficiencies.
SunRice’s needs are an opportunity for rice farmers in the MD to profit from becoming part of a modern value chain, benefitting their household livelihoods and enhancing the productivity and sustainability of MD rice systems. SunRice requires specific types of rice, namely medium grain Japonica rice (with specific characteristics), to service specific market requirements.
Japonica rice is not typically grown in the MD (Indica types are dominant). This presents new challenges for breeders and new market opportunity for farmers. This project will explore the knowledge gap in understanding the advantages and disadvantages (including economic costs and benefits) for smallholder farmers and associated actors in engaging in a high-quality export value chain (with stricter requirements in relation to food safety and quality control measures).
To achieve this a number of agronomic strategies have been implemented by government and development organisations in the previous two decades (Dung et al 2018), for example:
- 3 must do/3 reductions (3M3R),
- 1 must do/5 reductions (1M5R),
- 1must do/6 reductions (1M6R),
- small farmer-large field,
- GobalGAP, VietGAP, and more recently
- Sustainable Rice Platform (SRP).
These projects appear to have succeeded in training many thousands of farmers in improved production practices. However, without market incentive these practices appear not to be adopted long term. While lack of access (including direct access) to international markets is identified as a key limitation, further research is required to gain a deeper understanding of the factors that promote and hinder production of high-quality export rice.
As part of its global rice sourcing program, SunRice is establishing a quality-assured, traceable value chain in Vietnam’s MD which will feature quality seed supply, high yields, optimal input use, harvest and post-harvest processes and milling and packing that maintains quality, traceability and variety integrity. This value chain will align with SunRice’s own Supplier Sustainability Code, which aligns with the UN Sustainable Development Goals.
This will be partially achieved with implementation of the Sustainable Rice Platform (SRP) within farmer co-operatives engaged by SunRice. The SRP framework developed by global multi-stakeholders to promote sustainable rice cultivation, is a relatively novel program in the MD. SRP promotes resource-use efficiency and climate change resilience in rice systems (both on-farm and throughout value chains). It pursues transformation initiatives by developing sustainable production standards, indicators, incentive mechanisms, and outreach mechanisms to boost wide-scale adoption of sustainable best practices throughout rice value chains. SRP’s goal is to minimize environmental impacts of rice production and consumption while enhancing smallholder incomes and contributing to food security (SRP 2019). A further summary of the SRP can be found in Appendix C.
Typically, the rice supply chain in MD is long and complex, with at least 5-6 supply agents between farmgate and the consumer (ADB, 2013). SunRice aims to achieve some vertical integration and coordination, reducing fragmentation and improving efficiencies.
SunRice’s needs are an opportunity for rice farmers in the MD to profit from becoming part of a modern value chain, benefitting their household livelihoods and enhancing the productivity and sustainability of MD rice systems. SunRice requires specific types of rice, namely medium grain Japonica rice (with specific characteristics), to service specific market requirements.
Japonica rice is not typically grown in the MD (Indica types are dominant). This presents new challenges for breeders and new market opportunity for farmers. This project will explore the knowledge gap in understanding the advantages and disadvantages (including economic costs and benefits) for smallholder farmers and associated actors in engaging in a high-quality export value chain (with stricter requirements in relation to food safety and quality control measures).