Vietnam Fruit producer expands sustainable supply chain in the Mekong Delta

The consequences of climate change in the Mekong Delta are leading to rising sea levels, more frequent flooding and increasing salinisation of the land, which is deteriorating the conditions for rice and fruit cultivation in the region. Because of a lack of economic prospects, more and more young farmers are migrating to the cities. Local fruit producers such as Les Vergers are seeing their supply chains threatened. The challenge is to shift fruit cultivation further inland, where there are more freshwater resources. In addition, the cultivation of pineapple, guava and other fruit varieties, which promise a significantly higher income compared to rice cultivation, is to be promoted in areas where rice has been predominantly planted until now. This improves the economic prospects of small farmers in rural areas. Les Vergers benefits from the establishment of reliable supply chains with high-quality products. This allows it to respond to the increased demand in the region and to further expand its processing capacities.

In order to improve the income and yields of fruit farmers and establish a reliable supply chain with high-quality products, the project partners implemented the following measures between 2016 and 2019 as part of develoPPP in Vietnam, with a total budget of close to 400,000 euros:

• Training programmes for 50 fruit farmers in agro-economics (including crop selection, use of organic fertiliser)
• Establishment of fruit collection points to improve logistics
• Introduction of a transparent traceability system (WeTrace App) to 755 fruit farmers
• Support for Vietgap certification.

Les Vergers contributed its expertise in establishing international supply chains in agro-economy as part of the project. DEG provided advice with experts on site.

Within three years, the project activities succeeded in offering more than 2,000 smallholders, most of whom had previously cultivated rice, job prospects in fruit farming in the Mekong Delta in Vietnam. They all managed to increase their yields over the course of the project and earn higher incomes. Since the investment, Les Vergers du Mékong has been able to increase its processed fruit volumes and improve their quality. This has included the introduction of a transparent traceability system (WEtrace) to close to 755 fruit farmers.

• 755 fruit growers use the WeTrace app
• 413 fruit growers trained in organic fruit cultivation
• 2,000 smallholders with higher and more regular incomes
• 30,000 fruit trees planted between 2017 and 2020
• 100,000 fruit trees to be planted between 2021 and 2023