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1.Apr.2015
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Pepper

Pepper has been promoted by the SMNR-CV project as a new Value Chain since early 2008. The selection of the sub-sector was based on the analysis of demand and increasing world market prices for pepper, in particular black pepper from Vietnam, which is by far the leading exporting country for pepper. Even though total production of pepper in Quang Binh province is small compared to the main production regions in South Vietnam, it is of significant importance for the economic and income situation in two pepper clusters in Le Thuy and Bo Trach districts.
Before intervention, market and technical analysis indicated that common problems among the producers included a typical pepper plant decease and a general lack of technical, marketing and organisational knowledge. The upgrading strategy for the value chain, formulated in a stakeholder workshop, targeted these technical and organisational bottlenecks and aimed to improve the producers’ linkages to input and output markets.
On project side, the facilitation strategy was jointly formulated with another project of CPI, an international NGO, which supported the cluster in Bo Trach district while the SMNR-CV supported Le Thuy district.
Facilitation was organized in close collaboration with other stakeholders, such as the Provincial Agricultural Extension Centre (PAFEC), the Plant Protection Department, a research centre in Dak Lak province (WASI) and the major traders and exporters.

Activities implemented in Le Thuy pepper cluster have so far included:

  • Elaboration of a technical manual on pepper cultivation and pest management; based on the manual TOT and training of farmers on advanced cultivation techniques
  • Setting up of demonstration plots on existing farms, organizing farmer-to farmer visits to exchange experience on best practice
  • Organizing study tour for exchange of experience with other strong pepper clusters in Dak Lak and Gia Lai provinces, and to initiate direct contacts with some exporting companies
  • Setting up of producer groups (pepper clubs), supported by trainings on organizational and marketing issues
  • Initiating revolving savings-credit funds with the pepper clubs, supported by trainings on credit management
  • Improving linkages between farmers and traders/input suppliers in the form of meetings, workshops and contract negotiations.

 

Achievements in the year 2008 include a significant reduction in the occurrence of plant diseases which has contributed to an increase in annual production of 11 %. In general, conventional cultivating practices of pepper producers improved towards a more professional and sustainable approach. The pepper clubs are still informal, but operational and meet a growing interest of non-organized producers to join or to form their own clubs. Small credits are extended to those members most in need, often very poor women who would otherwise be forced to sell their pepper pre-mature at a much lower price. The clubs are in a better bargaining position against traders and realized better prices. Pre-processors and traders get pepper of improved and harmonized quality and find it easier to sell this on to exporters.

 
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