report · production in 3 provinces dong thap, kien giang, and hau giang implemented by: hoàng vũ...

i

Better Rice Initiative Asia (BRIA)

Sustainable Management of Rice production systems through

introduction of improved Technologies (SMART)- Vietnam

REPORT

Baseline survey for monitoring and evaluating the

impact of PPP model on large-scale rice field

production in 3 provinces Dong Thap, Kien

Giang, and Hau Giang

Implemented by:

Hoàng Vũ Quang

Nguyễn Tiến Định

Hoàng Minh Huy

Ha Noi, December 2015

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Contents

List of Table ....................................................................................................................... iv

List of Figure ..................................................................................................................... vii

List of abbreviation ......................................................................................................... viii

Executive summary ........................................................................................................... ix

I. Context, objective and methodology of baseline survey .............................................. 1

1.2 Objective ..................................................................................................................... 2

1.3. Methodology .............................................................................................................. 3

1.3.1. Sample ................................................................................................. 3

1.3.2. Data collection method ........................................................................ 4

1.3.3 Method of data treatment ...................................................................... 4

II. General characteristics of rice production in three surveyed provinces ................. 5

2.1. Planting area and production volume ........................................................................ 5

2.2. Use of rice variety and application of sustainable rice production process ............... 6

2.3. Linkage in production-consumption with large scale rice field ................................. 7

III. Characteristics in rice production in 3 PPP models ................................................. 7

3.1. Characteristics in rice production in PPP model in Dong Thap ................................ 7

3.2. Characteristics of rice production in PPP model in Kien Giang ................................ 8

3.3. Characteristics of rice production in PPP model in Hau Giang ................................. 9

IV. Characteristics of households enregistered in PPP model ..................................... 10

4.1. Demographic chracteristics ...................................................................................... 10

4.2. Poverty and income of HH ...................................................................................... 12

4.3. Households’ experience in rice production .............................................................. 14

4.4. Rice arable land size of HHs .................................................................................... 15

4.5. Supply source of seeds, inputs for rice production of HHs ..................................... 17

V. Current situation of rice production practices of HHS involved in PPP models .. 19

5.1. Area of rice plot enregistered in LSRF based PPP model ....................................... 19

5.2. Application of sustainable rice production process ................................................. 19

5.3. Technology and technique applied in rice production ............................................. 20

5.3.1. Seed rice............................................................................................. 20

5.3.2. Technical practices in rice production ............................................... 21

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5.3.3. Using fertilizers and chemicals.......................................................... 23

3.3.4. use of family labor in rice production ............................................... 25

VI. Economic efficiency of rice production of HHs ....................................................... 28

6.1. Productivity .............................................................................................................. 28

6.2. Rice production cost ................................................................................................ 29

6.3. Profit of rice production ........................................................................................... 33

VII. Linkage in rice production and rice commercialization ....................................... 35

VIII. Practices in rice production and environmental protection ............................... 40

IX. Difficulties and supporting needs for rice producer households ........................... 43

X. Conclusion .................................................................................................................... 44

References .......................................................................................................................... 46

Annex: Tables of data analysis ........................................................................................ 47

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List of Table

Table 1: Place and survey sample .................................................................................. 4

Table 2: Rice production in 3 surveyed provinces ......................................................... 6

Table 3: Gender and age of head of household ............................................................ 11

Table 4: Education level of head of household (%) ..................................................... 11

Table 5: Percentage of poor and near poor HH in PPP model ..................................... 12

Table 6: Annual income of HHS in PPP models .......................................................... 12

Table 7: Experience of HHs in rice production ............................................................ 14

Table 8: Percentage of HHs are participated in rice production technique training .... 15

Table 9: Rice production size of HHs .......................................................................... 16

Table 10: Supplying source of inputs for rice production of HHs ............................... 17

Table 11: Percentage of HHs satisfying to quality of seed rice, inputs supplied by

agencies ........................................................................................................................ 18

Table 12: Form of payment for buying input from agencies ....................................... 18

Table 13: Area (ha) of HH’s rice plot registered in PPP model ................................... 19

Table 14: Percentage of HHs applying SRP process ................................................... 19

Table 15: Percentage of rice varieties planted in Winter – Spring crop 2015 ............. 20

Table 16: Use of seed rice of HHs in PPP models ....................................................... 21

Table 17: Application of machines in rice production and harvest .............................. 23

Table 18: Quantity of fertilizers used in rice production in Winter - Spring crop 2015

...................................................................................................................................... 24

Table 19: Cost of fertilizers, chemicals in rice production in Winter - Spring crop

2015 .............................................................................................................................. 25

Table 20: Number of family working days per hectare of cultivating rice .................. 26

Table 21: Using hiring services of HHs for rice production ....................................... 27

Table 22: Rice production cost in Winter – Spring crop .............................................. 30

Table 23: Rice production cost in Winter – Spring crop .............................................. 31

Table 24: Profit of rice production in theWinter – Spring crop 2015 .......................... 34

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Table 25: Profit of rice production in the crop of Summer - Autumn 2015 ............... 35

Table 26: Linkage and rice selling in the crop of Summer - Autumn 2015 ................. 36

Table 27: Reasons HHs are not pleased to present paddy marketing .......................... 38

Table 28: Kinds of supports that HHs receive from linkage partner in rice production

...................................................................................................................................... 39

Table 29: Kind of support for HHs from trading company having linkage with HHs 39

Table 30 : Channels provide guiding on environmental protecion to HHs ................. 40

Table 31: Percentage of HHs understand completely about regulation of application

plant protection chemicals. ........................................................................................... 41

Table 32 : Methods of treatment package of plant protection chemicals of HHs ........ 42

Table 33: Percentage of HHs wash sprayers after sprying at different place .............. 43

Table 34: Percentage of HHs have difficulty in rice production .................................. 43

Table 35: Supporting need of rice producer households (% HHs) ............................... 44

Table 36: Application of machine in rice production and harvest in Dong Thap

province ........................................................................................................................ 47

Table 37: Appication of machine in rice production and harvest in Kien Giang

province ........................................................................................................................ 48

Table 38: Use of machine in rice production and harvest ............................................ 49

Table 39: Percentage of rice varieties Cutivatted in the Summer - Autumn crop 2015

...................................................................................................................................... 50

Table 40: Economic efficiency of 2 main rice varieties in Kien Giang model ............ 51

Table 41: Economic efficiency of main rice varieties in Dong Thap model ............... 52

Table 42: Economic efficiency of 2 main rice varieties in Hau Giang model ............. 53

Table 43: Quantitty of seed rice for sowing of some main varieties cultivated in

Winter – Spring crop .................................................................................................... 54

Table 44: Quantity of seed rice for sowing of some main varieties cultivated in

Summer – Autumn crop ............................................................................................... 54

Table 45: Cost of input materials in crop Summer - Autumn 2015 ............................. 55

Table 46: Annual income of HH .................................................................................. 56

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Table 47: Percentage of HHs apply the sustainable rice production in Winter - Spring

crop 2015 ...................................................................................................................... 57

Table 48: Percentage of HHs apply the sustainable rice production in Summer -

Autumn crop 2015 ........................................................................................................ 57

Table 49: Percentage of HHs apply machines in rice production ................................ 60

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List of Figure

Figure 1: Income structure of HHs ............................................................................... 13

Figure 2: Structure of income from rice crops ............................................................. 13

Figure 3: Quantity of seed rice uses for sowing by hand and by machines ................. 22

Figure 4: Percentage of services that HHs hire in the stages of rice production .......... 28

Figure 5: Rice productivity (wet paddy) of Winter - Spring crop 2015 and Summer -

Autumn crop 2015 ........................................................................................................ 29

Figure 6: Structure of rice production cost in the Winter - Spring crop 2015 ............ 31

Figure 7: Structure of rice production cost in the Summer - Autumn crop 2015 ........ 32

Figure 8: Cost price of 1 kg dried paddy in Winter-Spring and Summer–Autumn crops

...................................................................................................................................... 33

Figure 9: Percentage of HHs have contract for selling their paddy ............................. 37

Figure 10: Selling prices of wet paddy in Winter - Spring and Summer - Autumn

crops .............................................................................................................................. 37

Figure 11: Percentage of HHs wear personal protevtive equipment when spraying

plant protection chemicals ............................................................................................ 41

Figure 12: Methods of treatment package of plant protection chemicals of HHs ....... 42

Hình 13 : Percentage of hiring external production service of HHs in Dong Thap

model ............................................................................................................................ 58

Hình 14: Percentage of hiring external production service of HHs in Kien Giang

model ............................................................................................................................ 58

Hình 15: Percentage of hiring external production service of HHs in Hau Giang model

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

Hình 16: Selling price of paddy of some main varieties in 3 provinces ...................... 61

Hình 17: Production cost of 1 kg paddy of some main varieties in 3 provinces .......... 61

Figure 18: Rice productivity of some main varieties cultivated in 3 models ............... 62

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List of abbreviation

Abbreviation Meaning

1M5R 1 Must - 5 Reduction

3R3I 3 Reduction- 3 Increase

AEC Agriculture Extension Services

Coops Cooperative

DARD Department of Agriculture and Rural Development

FG Farmer Group

HH Household

LSRF Large scale rice field

LSF Large scale field

PPC Plant protection chemicals

PPP Public – Private Partnership

SRP Sustainable Rice Production

VietGAP Good Agriculture Practice of Vietnam

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Executive summary

Principal objective of this survey is to collect the information, data aiming to

service to monitor and evaluate the implementation progress and the impact of the

Better Rice Initiative Asia (BRIA). This report presents current technology,

production practices, access to services of the individual households (HHs) in 3 large

scale rice field (LSRF) based PPP model in three provinces Dong Thap, Kien Giang

and Hau Giang. The evaluation in this report covered two rice crops including Winter

- Spring 2014-2015 and Summer - Autumn 2015. The results are based on direct

survey of 300 producer households in three provinces (100 HHs in each province) and

throughout in-depth interview, meetings with public agencies related to rice

production in three provinces. Some key findings are following:

- In three provinces, the rice area that participated in LSRF in linkage with trading

companies is still low, less than 10% of total planting area. The difficulties in

signing contract to sell high quality rice and limited role of coops and FGs are

reasons of this shortcomings.

- On average, HHs have been cultivating rice for about 23 years. More than 80% of

HHs cultivate rice above 10 years.

- Above 90% of HHs in the models in Kien Giang and Hau Giang province cultivate

high quality rice varieties. In Kien Giang, main rice variety that HHs planted is

OM4900 while the major variety in Hau Giang is OM5451. In Dong Thap model,

more than 85% of HHs grow rice variety that is normal quality IR50404. The HHs

in Kien Giang have been supporting from LSRF model which is implementing by

provincial Agriculture Extension Center. The HHs in Hau Giang model have

cooperation with a private company in producing high quality rice while in Dong

Thap model, HHs plant rice without cooperation with company and do not receive

any supports from LSRF model.

- About 50% of HHs plant high quality variety and use certified seeds. Approximate

40% of HHs applied sustainable rice production (SRP) process such as 1M5R,

3R3I, VietGAP. Approximate 80% of HHs were trained on rice production

practices

- Some works in rice production is majority mechanized such as tillage, harvest,

irrigation, drainage. The works doing mainly by hands are weeding, fertilizing, and

eliminating exotic species. The works that are partly mechanized are sowing,

spraying plant protection chemicals (PPC).

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- The HHs mainly purchase fertilizers, plant protection chemicals, and other

chemicals from input agencies and buy in credit with more than 70% of used input.

- Majority of HHs apply machines, chemicals and external production services, thus

the family labor involved in rice production is very few, only 13 working days for

one hectare.

- Rice productivity in the Winter – Spring crop is higher than the Summer – Autumn

crop. The productivity in Winter - Spring crop fluctuates from 7.4 to 8.2 ton/ha

(average: 7.9 ton/ha). The productivity in Summer – Autumn crop varies from 5.0

to 6.4 tons/ha (average: 6.0 ton/ha).

- The rice production cost in Winter - Spring crop in three provinces is averagely

VND 17.5 million/ha (fluctuating from 17.0 to 17.8 million/ha). Of which, the cost

of seed rice represents 8.5%, fertilizer 25.3%, plant protection chemicals 22.5%,

production services 40.7% and other cost 3.1%.

- The mean of rice production cost in Summer - Autumn crop in three provinces is

about VND 17.3 million/ha (fluctuating from 16.7 to 17.7 million/ha). Of which,

the cost of seed rice occupies 8.3%, fertilizers 25.8%, plant protection chemicals

21.7%, production services 40.0% and other cost 2.8%.

- There is not significant difference in total production cost as well as in cost

structure for one hectare planting rice between two crops of Winter – Spring 2015

and Summer – Autumn 2015.

- The production cost of one kilogram of paddy in Winter – Spring crop is 2,000

VND/kg and is 2,700 VND/kg in Summer – Autumn crop. The reason explains

this difference is that the productivity in Winter – Spring crop is higher than

Summer – Autumn crop while the production cost per hectare is not different.

- In the same crop, the selling prices of paddy produced by HHs in Kien Giang and

Hau Giang models are higher from 7% to 17% than of the HHs in Dong Thap

model. The reason is that the HHs in Dong Thap model cultivated mainly normal

quality rice varieties while in two provinces Kien Giang and Hau Giang, the HHs

planted major high quality rice varieties.

- 75% of HHs were trained on the application of safety methods of environmental

protection in rice production. Majority of HHs applied the recommended methods

to protect the environment.

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- Presently, the most difficulties of rice producers are the unstable of rice price, the

lack of companies engaged to buy HHs’ paddy in long-term and high price of

input. Therefore, the most need of HHs is stably engaged to buy their paddy.

- The profit from rice production occupies a big part in total annual income of HHs

in all three models. in Kien Giang and Dong Thap provinces, it contributes more

74% of total annual income of HHs, and this percentage is 64% in Hau Giang.

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I. Context, objective and methodology of baseline survey

BRIA project aims to “improve livelihood of farmers through sustainable

developing rice production system toward ecology and enhance linkage with high

quality product market in three provinces in the Mekong Delta Dong Thap, Hau Giang

and Kien Giang. The targets of project are:

1. At least 3,000 rice farmers in three provinces apply recommended successfully

tested smart rice cultivation systems. (bi-annual assessments based on farmer

interviews, indicator fulfilled by end of the project)

2. Developed concepts for smart rice cultivation systems show 20% gross margin

increase through enhanced productivity and/or reduced application of

agricultural inputs (indicator fulfilled: 20% gross margin increased on

demonstration sites, Source of Verification: gross margin calculation)

compared to farmers’ current practice

3. Suitable and appropriate rice standards for quality markets have been

developed and officially approved (documentations on standard development,

indicator to be fulfilled by end of the project)

4. At least 270 tons of high quality rice (according to the new rice standard) were

produced in each of the three provinces (Baseline: 0 tons at pre-project

conditions, indicator to be fulfilled by end of the project)

5. Concepts for the successful implementation of public-private-partnership

projects have been developed and submitted to the Ministry of Agriculture and

Rural Development. (documentations, minutes of meetings, indicator to be

fulfilled by end of the project)

For these objectives, BRIA project support three provinces Dong Thap, Hau

Giang and Kien Giang in running pilot models of PPP in the linkage in production to

sale of large-scale rice field. This PPP model has charactersistics as follow:

- Farmers produce rice in the large-scale field using same rice seeds and follow

same technical process of cultivation.

- Paddy output is purchased by enterprises

- Farmers are trained and apply technical proress of substainable planting and

effectiveness in order to increase farmer’s income, reduce enviromental

pollution and ensure the health of producers thierself and of comminity.

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- Producing paddy with higher quality and has quality certificate.

This model will be started in winter-spring rice crop 2015 – 2016 and it is

planned to implement in two years (ending in Autumn – Winter crop 2017). To

implement this model, BRIA project provides support activities, including:

- Support farmers using certified rice seed which is quality guaranteed and has

higher quality.

- Trainning and providing guidance to farmers in application technical process

of sustainable cultivation.

- Support linkage in production and sale of rice between enterprises and

famers

- Providing support for activities of cooperative in order to provide more

services to its member.

In order to evaluate the impact of the project, it is necessary to conduct a

baseline survey aiming to collect initial information before project implementation. It

will allow to quantify the impact of project before and after intervention.

1.2 Objective

The overall objective of this baseline survey is to collect data and information

before the intervention of BRIA project aiming to monitor and evaluate the

implemention and impact of the project (mid term and project end evaluation).

Concretely, the collected data and information will focus on the indicators allowing

for monitoring and evaluating the achievement of the first objective of BRIA project

that is “At least 3,000 rice farmers in three provinces apply recommended successfully

tested smart rice cultivation systems (bi-annual assessments based on farmer

interviews, indicator fulfilled by end of the project).

The collected data and information have to allow to monitor and evaluate the

change in the cultivation system (manifested in cultivation saison, technical

application,..), access to services, performance of rice production and contribution to

the environmental protection.

Specific objectives:

- Build the baseline database for monitoring and doing mid-term and project end

evaluation.

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- Identifying the difficulties and supporting need of cooperatives, farmer groups

and rice producers in the implementation of the large scale rice production model.

1.3. Methodology

1.3.1. Sample

The survey is implemented with rice producer households that will participate

into value chain-based PPP model in rice production supported by BRIA project. The

sample in three provinces Dong Thap, Hau Giang, and Kien Giang is 300 rice

producer households, of which each province has100 households.

Sampling method:

The steps of selection of surveyed households in each province are following:

(i) Identifying the total households of every cooperative (coops) or farmer group

(FG) registered the participation into rice PPP model of province. The number of

housholds to be selected in each coops/FG is equal the percentage of household of the

coops/FG enregisterd in rice PPP model en comparison to total number of household

in province enregisterd in rice PPP model of province.

(ii) Make a list of rice producer hoseholds involved in PPP model of every

coops/FG. The criteria to choose the household in the list are: (i) HH enregistered in

PPP model of BRIA project; (ii) HH is cultivatingrice on their area (land area is

distributed or renting, hiring) and is local resident, living in commune (it does not

select the HH coming from other communes, but bought, rent or hired rice land in

survey commune to produce rice car it is difficult to make an appointment with them

for the interview).

(iii) If the list of rice HH is less than 100 per province, other HHs having the

potential in invoving to PPP model in near furtue will be seleted in order to assure that

100 rice HHs in every province will be surveyed.

(iv) Divide the total of rice HHs in the established list of each coops/FG to total

number of sample in each coops/FG (number of HHs identified in step (i)) to fix

sampling coefficient (t). The first HH for the survey is the first HH of the list and next

survey HH are 1 +1t, 1+2t,…, 1+nt.

Moreover, the information about coops and FG are collected throughout the

direct inteview towards the direction of coops or FG.

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Table 1: Place and survey sample

# Province Name of coops /

FG

Number of

surveyed HH

Total HH involved

in PPP model

1 Kien Giang

FG Phước Hảo 50 62

FG Phước Tân 40 51

Other HHs 10

Total 100 113

2 Hau Giang

FG 1 27 58

FG 2 40 88

FG 3 16 28

FG 4 17 35

Total 100 210

3 Dong Thap Coops Bình Hiệp B 100 172

Total 300 495

1.3.2. Data collection method

Collecting information/data from rice producer HHs: Direct interview rice HH

producer with closed questionnaire sheet. The collected information are about HHs’

characteristics, rice production practices, use of inputs and services in rice production,

performance of rice production, environmental protection, etc. The interviewees is the

person who understand well rice production and make the decision in rice production

(the interviewees may mot be head of HH) in order to collect the information exactly.

Coops and FGs: the open questionnaire is use for intervewing the Coops’

Director and Chief of FG to collect the information about: the characteristics,

activities of coops/FG, as well as activities, plans of coops/FG in near future, etc.

1.3.3 Method of data treatment

The data from HH survey are entered by Microsoft Access software, and then

are processed by Stata software with version 13.

In rice production, there is big difference between HHs about supplying source

of inputs, used labors and services. The HHs can use input produced by themselves or

buy from local market, use of family labor or hire labor, or hiring service. To avoid

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these differences in use of inputs and services, the rice production cost is calculated

based on following principles:

- All inputs and services, including those produced by HHs themselves or

bought or hired are taken into account to calculate the cost.

- Family labor is remunerated at average local rate applied for activity that HH

implements. For example, if HHs sows rice by themselves, the cost for

sowing is cost if HH have to pay for hiring labor to do it.

- The inputs produced by HHs are calculate equal with market price if HH

have to buy them.

- The cost does not include the interest of loan if HH have to borrow money

for rice production because majority of HH buy on credit the input from

input agencies.

- The cost does not include fee of renting land in case HHs rent land for

planting rice.

In this report, the data analysis is come from the survey of 300 HHs in three

PPP models in three provinces. Therefore, the results only reflect current situation in

rice production in three models, but not for rice production of province as a whole.

In this report, the term “head of HH” represent for interviewee whi well

understand rice production and make the decision in rice production of HHs.

II. General characteristics of rice production in three surveyed provinces

2.1. Planting area and production volume

All of three provinces have big planting area and production volume, especially

Kien Giang and Dong Thap province. Rice is cultivated in three crops: Winter -

Spring, Summer - Autumn, and Autumn - Winter. However, the Winter - Spring crop

and Summer – Autumn cop are main crops with cultivated area is more than crop of

Autumn - Winter. The cultivated area in the Autumn - Winter crop is reduced because

some area is flooded and have huge risk of failure if cultivating rice, so HH do not

cultivate rice. In three crops, the Winter - Spring crop gives the highest productivity,

more 7.2 tons/ha, then Summer - Autumn crop and the lowest productivity is Autumn

– Winter crop.

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Table 2: Rice production in 3 surveyed provinces

Item Crop Dong Thap Hau Giang Kien Giang

Area

(1000 ha)

Winter - Spring 207.4 80.0 307.3

Summer - Autumn 198.3 77.1 300.3

Autumn - Winter 122.4 49.8 75.5

Whole year 528.2 206.9 683.2

Productivity

(tons/ha)

Winter - Spring 7.2 7.3 7.3

Summer - Autumn 5.7 5.8 5.6

Autumn - Winter 5.4 4.6 5.5

Whole year 6.3 6.3 6.3

Production

(1000 ton)

Winter - Spring 1,497 619 2,228

Summer - Autumn 1,158 446 1,669

Autumn - Winter 662 229 396

Whole year 3,317 1,294 4,293

Source: DARD of provinces Kien Giang, Dong Thap, and Hau Giang, 2015.

2.2. Use of rice variety and application of sustainable rice production process

Several high quality rice varieties have been introducing in production as

OM6976, OM5451, OM7347, OM2517, GKG1, Jasmine85, and OM4900. In Kien

Giang province, the cultivated area planted high quality rice variety accounts for 70%,

and 40% in Hau Giang province.

The sustainable rice production (SRP) process as 1 must 5 reduction (1M5R), 3

reduction 3 increase (3R3I), VietGAP have been introducing in production, but

mainly at pilot model and have not yet scaled up. In Kien Giang province, the

application of VietGAP in rice production is only on 1470 ha, in Dong Thap province

is 100ha. VietGAP has not been applied in Hau Giang province. In Hau Giang, the

process 3R3I is applied on about 40% of high quality rice area. However, this

application is not strict, such as only reduce volume of fertilizer and chemicals, but

not reduce the quantity of seed rice used.

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2.3. Linkage in production-consumption with large scale rice field

In 2014, Kien Giang province implemented the model of large scale rice field

(LSRF) in linkage to companies with rice area of 9,833.2 ha, representing 1.9% of

total annual rice area. In 2015, Provincial Agriculture Extension Center implemented

13 models of LSRF with area of 1470 ha.

In Hau Giang province, in 2014 the area of LSRF is 1758.28 ha, representing

0.85% of total rice area of whole province. The participation into LSRF and linkage to

companies is the coops (5) and FGs (30). The area of LSRF increase rapdily in the

crop of Winter - Spring 2014-2015 with the area of 5146 ha, representing 6.8% of

total rice area of the crop. In the crop of Summer - Autumn 2015, the area of LSRF is

also nearly 5000 ha.

Dong Thap is province where the movement of rice production on LSRF is

relatively strong of Mekong delta. In the crop of Winter - Spring 2014-2015, the

linkage with companies in rice production – consumption is implemented on 11,048

ha (representing 4% of total rice area of province). In the Summer – Autumn crop, the

linkage with companies in rice production – consumption is 8820 ha (representing

2.9% of total rice area of province).

The percentage of rice area under LSRF model and linkage with companies is

low. There are several reasons. An important reason of those is that the companies

lack of stable markets. To link with rice producers, the companies have to invest a part

of seeds, fertiliser and chemical substance for rice producers and have to invest to

build warehouses, drying system, etc while the companies lack of capital and are

difficult to access to credit. The lack of producer’s effictive organizations (as coops,

FGs) also limits the capacity of companies in the linkage wih rice producer HHs.

III. Characteristics in rice production in 3 PPP models

3.1. Characteristics in rice production in PPP model in Dong Thap

The PPP model in LSRF in Dong Thap province is implemented at the

cooperative named Bình Hiệp B, in Lap Vo district. The coops has 106 members with

322 ha of rice area belongs to its members. The charter capital of coops is VND 150

millions (about USD 7500) . The coops has 3 irrigation service teams with 25

technical staff. The coops have not reregistered as required in the Law on cooperative

2012. The management board of the coops includes cooperative manager, deputy of

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manager, head of control board. Although the managing board of the coops have

many experimence years in managing and operativing coops, they only educated at

secondary level and are not ability to use computer and internet access. The coops has

one accountant who has vocaltional degree.

The main activities at survey year are to give irrigation service for rice to its

members and to other HHS in commune. In addition, the coops cooperates with

companies aiming to sell the paddy of its members. The coops has linked to

companies as Võ Thị Thu Hà (in 2012-2013), Phát Tài (2014-2015, and finished at the

end of 2015). From 2014 to Sept 2015, the coops links to Cuu Long Delta Rice

Research Institute in producing seed rice with the area of 45 ha (30 ha of coops

members and 15 ha of HHs outside coops).

The LSRF based PPP model piloted in Bình Hiệp B is implemented with area of

215ha belong to 173 HH, in which 70 HHs is members of coops. Presently, the HH in

the model do not apply any collective practice cultivation process and mainly use the

rice variety IR50404, a variety with low rice quality. When participating into PPP

model, the HHs will use the rice variety with high rice quality as required by

companies that links to coops ( for example, Jasmine85).

Participation in the PPP model in the project, the coops is expected to receive

following supports:

- Support Coops re-registration to conformity with the Law on coops 2012. The

financial support is about VND 10 million;

- Training and capacity building for Coops on administration of coops, linkage to

access market;

- Training and guiding production techniques for HHs participating in the PPP

model in the project.

- Support water pumper to Coops to enable Coops provide irrigation services.

The co-financial contribution is the project contribute 70% and Coops contrbute

30%.

3.2. Characteristics of rice production in PPP model in Kien Giang

The PPP model will be implemented on base of LSRF model supported by

Agriculture Extension Center (AEC) of Kien Giang province in commune of Mỹ

Phước. The HHs in LSRF model is using the same variety OM4900 with high rice

quality and the seed rice is certificated quality. The HHs have trained the rice practice

process of 3R3I, 1M5R, VietGAP. About 70% HHs apply the process 1M5R and 3R3I

9

and about 50% HHs apply process VietGAP1. The LSRF does still not apply the same

and unique rice practice process.

The LSRF based PPP model will be piloted in 2 FGs as Phuoc Tan and Phuong

Hao. FG Phuoc Tan, formed in nearly 2015, has 51 members, the total rice area

enregistered in PPP model is 116.8 ha. FG Phước Hảo formed in nearly 2014, has 62

members, the total rice area enregistered in PPP model is 116.2 ha. Presently, the 2

FGs have only some services as receiving the seeds and fertilizers from the State’s

support and redistributed them to their members. Both of FGs are not officially

registered by Commune People Committee and do not have clear orientation of

operation.

The HHs in LSRF model sell their paddy to Kien Giang Agriculture Product

Trading Joint Stock Company (KiGiTraco). However, the company only buy their

paddy, but not invest anything for HHs.

3.3. Characteristics of rice production in PPP model in Hau Giang

There are 210 HHs, with rice area of 249.97 ha, enregistered in LSRF-based PPP

model in Hau Giang province. These HHs belongs to 4 FGs (total member of all of

these 4 FGs are 232). Presently, the HHs in these FGS are using 2 varieties of high

rice quality named OM5451 and RVT as requested by private company.

The HHs enregistered in LSRF-based PPP model do not apply any collective

rice production proces. The reason is that the company only bought their paddy and

did not asked the HHs to apply the same rice production process. Ervery HH practices

rice production in baisis of technical instruction of agricultural services.

All of 04 FG formed in 2014, but they did not certificated by commune

authority. The reason are that these FGs are lack of charter, running regulation. These

4 FGs want to be form an coops on basis of merging these 4 FGs by following

reasons:

The coops is legal entity, that is more favourabe for signing of contract

with the companies in linkage in production and marketing the produced

paddy. In addition, the coops is proactive in contracting to buy the inputs

for serving to their members at lower prices.

1 A HH can apply together some rice practice process on different rice plots.

10

With formation of coops, it is easier for planing of crop schedule,

coordinating harvest plan between members in order to fit to company’s

capacity in buying, drying, and storing.

The coops can receive the supports from State because there are presently

many support policies applied to agricultural coops while lack of supports

to FGs.

The services that FGS want to do when they can form the coops are following:

Supplying seeds, fertiliser, chemical substance to HHs. The coops signs

direct contract with input supply companies to have lower price, then resell

them to their members.

Seeking, discussing and signing the contract with companies to market

paddy for their members.

Providing productiong service to members such as spray chemicals, soild

preparation, sowing, irrigation and draining water.

Organizing a team for transporting paddy from rice field to boat or truck.

Presently, company pay for this transportation cost , but HHs must do it

themselves. If coops can organize this team, the transport of paddy is more

favourable to HHs. This team will receive transport cost paid by marketing

companies.

IV. Characteristics of households enregistered in PPP model

4.1. Demographic chracteristics

The interview answer is person who make decision in rice production of HH and

in this report this person is mentioned as “head of HH”. In survey sample, majority of

head of HH are male (92.3%). The percentage of head of HH being female is only

7.7%. The average age of head of HH is 50 year old. 58.6% of head of HH is in group

from 30 to 50 year old. Kien Giang is province having the highest percentage of head

of HH in group 30 – 50 years old (70%). Only 3.5% of head of HH have the age of

under 30 years old.

On evarage, a HH has 4.3 people, in which 3.1 persons is in the group of 16-70

years old and is doing different works. Each HH has about 2 persons involving in rice

production (representing 64% of family labor force).

11

Table 3: Gender and age of head of household

Source: Field survey, Oct 2015.

73.5% of head of HHs have the education from primary to secondary levels.

18.5% head of HHs have the education level of high school. The head of HHs with the

level of vocaitional training and more represent only 4.7%. 3.4% head of HH are

illiterate.

Table 4: Education level of head of household (%)

# Level Dong

Thap

Kien

Giang

Hau

Giang Total

1 Illiterate 6.1 3.0 1.0 3.4

2 From primary to secondary 85.7 70.0 65.0 73.5

3 High school 7.1 21.0 27.0 18.5

4 Vocational training 0.0 2.0 0.0 0.7

5 College 0.0 3.0 1.0 1.3

6 University and higher 1.0 1.0 6.0 2.7


# Criteria Dong

Thap

Kien

Giang

Hau

Giang Total

1 % head of HH is male 92.0 89.0 96.0 92.3

2 % head of HH is female 8.0 11.0 4.0 7.7

3 Age of head of HH (year) 47.7 46.3 54.9 49.7

4 % head of HH of age less than 30 10.0 0.0 0.0 3.5

5 % head of HH of age of 30-50 60.0 70.0 44.4 58.6

6 % head of HH of age more than 50 30.0 30.0 55.6 37.9

7 Number of people per HH 4.8 3.9 4.2 4.3

8 Labor force of HH (people) 3.3 2.8 3.3 3.1

9 Number of family labor involving in

rice production 1.7 2.0 2.1 2.0

12

4.2. Poverty and income of HH

The participation of poor and near poor HHs into LSRF-based PPP model is

very few (0.3% poor HHs and 2.0 near poor HHs) because these HHs do not have

arable land.

Table 5: Percentage of poor and near poor HH in PPP model

# Category Dong

Thap

Kien

Giang

Hau

Giang Total

1 Percentage of poor HH 0.0 0.0 1.0 0.3

2 Percentage of near poor HH 0.0 1.0 5.0 2.0

3 Percentage of non-poor HH 100.0 99.0 94.0 97.7


Average income of HH in Kien Giang PPP model is about VND 183 million,

nearly 2 time higher than income of HHs in PPP models in provinces of Dong Thap

and Hau Giang. The reason is that the rice area of HHs in Kien Giang is 2.5 times

higher than rice area of HHs in Dong Thap and Hau Giang.

Table 6: Annual income of HHS in PPP models

Unit: Million VND

TT Thu nhập Dong

Thap

Kien

Giang

Hau

Giang Chung

1 Total income 85,2 183,0 81,5 116,6

2 Income from rice production 63,1 148,4 52,6 88,0

3 Other income 22,1 34,6 28,9 28,5


Rice production contributes majority part to the income of HHs. Total annual

income of HHs is VND 116 million, in which rice production contributes 75.5%.

Thence, if income from rice production increase, the total income of HH will increase

significantly.

13

Figure 1: Income structure of HHs


In 3 crops, the Winter – Spring crop is the most important which contributes the

highest part (54.3%) into income from rice production of HHs. The Winter - Spring

crop usually has high productivity, high rice quality, and so it has higher sale price.

Figure 2: Structure of income from rice crops


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dong Thap Kien Giang Hau Giang Total

74% 81%

65% 76%

8% 1%

8%

5%

17% 18% 27%

20%

Rice production Other Agricultural Activities Non-Agricultural Activities

0%

20%

40%

60%

80%

100%


28

0 10.9 8.9

44.4

56.8

59.1 54.3

27.6 43.2

30 36.9

Autumn - Winter Crop Winter - Spring Crop Summer - Autumn Crop

14

4.3. Households’ experience in rice production

The HHs involves in LSRF-based PPP models have much experience in rice

production. On average, the head of HHs has 23 years of experience in rice

production. More 80% HHs has more 10 years of rice production. The HHs having the

rice experience less than 5 year only represent 4.4%.

Table 7: Experience of HHs in rice production

# Item Dong

Thap

Kien

Giang

Hau

Giang Total

1 Number of years in rice production

of HH 23.2 20.5 28.0 23.2

2 % HHs produces rice ≤ 5 years 6.1 6.2 1.0 4.4

3 % HHs produce rice in 5 – 10 years 10.2 13.4 11.1 11.6

4 % HHs produces rice ≥ 10 years 83.7 80.4 87.9 84.0


About training: 80.3% HHS are trained about technical practices in rice

production. The training content covers prevention and treatment to diseases and

insects, use of chemical substances to disease and insects, technique of application

fertiliser, technique of sowing seeds, and preparation of land. Nearly 50% HHs were

trained on process of rice production in way of saving and efficient use of fertiliser

and chemical substances as 1M5R, 3R3I. However, very few HHs are trained and

guided on rice production process of VietGAP. In summary, HHs have experience in

rice production, but the application of SRP with certificated rice quality is very few.

That relate to production reorganization, promote the HHs use together a collective

and unique rice production process. To do that, the role of coops and FGs needs to be

reenforced.

15

Table 8: Percentage of HHs are participated in rice production technique training

# Indicator Dong

Thap

Kien

Giang

Hau

Giang Total

1 % HHs are trained 71.0 80.0 90.0 80.3

2 % HHs are trained on plant

protection 58.0 54.0 72.0 61.3

3 % HHs are trained on

application fertilizer technique 63.0 47.0 69.0 59.7

4 % HHs are trained on seeding

technique 52.0 41.0 71.0 54.7

5 % HHs are trained on land

preparation technique 37.0 36.0 67.0 46.7

6 % HHs are trained on 1M5R 43.0 66.0 29.0 46.0

7 % HHs are trained 3R3I 47.0 30.0 70.0 49.0

8 % HHs are trained on VietGAP 6.0 37.0 5.0 16.0

9 % HHs are trained on other

techniques 0.0 1.0 1.0 0.7


4.4. Rice arable land size of HHs

The rice planting area in crops are different. In PPP model in Dong Thap,

planting area is relatively similar in all of 3 crops. Meanwhile, in the models in Kien

Giang and Hau Giang, the Winter – Spring and Summer – Autumn crops have higher

cultivation area, the Autumn - Winter crop has planting area lower than 2 others. In

Kien Giang, the HHs do not plant rice in the Autumn – Winter crop because LSRF

based PPP model is piloted in flooded area in raining season where famers can only

cultivate rice in 2 crops as Winter - Spring and Summer - Autumn.

96% of HHs in Kien Giang and Hau Giang use high quality rice varieties. The

reason is that in Kien Giang, the LSRF based PPP model is piloted in commune where

the LSRF pilot model of province were implemented, therefore nearly all of HHs have

used high quality rice varieties (OM4900) as recommended by provincial AES. In

Hau Giang, the PPP model will be implemented in the commune with FGs that have

been contracting with a company on buying rice produced by FGs. HHs in FGs

cultivate fragrant rice and high quality rice as requested by the company. Therefore,

16

100% HHs in PPP model of Hau Giang plant fragrant rice variety. It also explains

90% HHs in the models in Kien Giang and Hau Giang use certificated seed rice for

cultivation.

In Dong Thap, less than 45% HH uses high quality variety because the HHs in

this model are freely producing rice and selling their paddy. They have not had

linkage with company and they also are not in the region where LSRF model of

province is implementing. Majority of HHs cultivate normal quality rice IR50404

(over 70%). Many HHs plant IR50404 variety because it has been cultivating for a

longtime in Mekong delta due to its high disease resistance, short duration variety,

easy-care and high yield. In contrast, fragrant varieties are easier disease susceptible

and require more care than IR50404 variety.

Table 9: Rice production size of HHs

Crop Indicator Unit Dong

Thap

Kien

Giang

Hau

Giang

Autumn

- Winter

Total planting area 1,000 m2

14,2 0,7 3,9

Area of high quality rice % 36,6 0,0 100,0

Area using certificated seed

varieties % 52,8 0,0 92,3

Production of dried paddy2 1000 kg 7,9 0,0 2,0

Winter -

Spring

Total planting area 1000 m2

14,2 34,5 13



varieties % 52,1 81,7 91,5

Production of dried paddy 1000 kg 11,7 27,8 10,0

Summer

-

Autumn

Total planting area 1000 m2

14,3 34,5 13



varieties % 49,7 89,9 91,5

Production of dried paddy 1000 kg 9,8 22,5 7,1


2 Paddy with humidity ≤14%, meet standard for storage.

17

All of 3 provinces, planting area in Winter – Spring crop is larger than two other

crops because Winter – Spring crop has favorable condition for rice development,

lower probability to be contracted a disease, higher productivity and higher economic

effectiveness than 2 other crops. Consequently, the HHs try to produce rice with

maximum possible area in the Winter – Spring crop.

4.5. Supply source of seeds, inputs for rice production of HHs

The HHs use seed rice from different sources as self-produced, from their coops,

from company having linkage to HHs, and from input agencies. In which, majority of

HHs buy seed rice from input agencies.

In Dong Thap, the percentage of HHs buying the seed rice from input agencies

and supplied by company is low, so the percentage of HHs in this model using

fragrant and certificated seed rice is lower than HHs in PPP models in Kien Giang and

Hau Giang.

Table 10: Supplying source of inputs for rice production of HHs

Kind of

Input Province

HH self-

produced

From

coops

From

company

From

input

agencies

Seed rice

Dong Thap 63.0 0.0 3.0 39.0

Kien Giang 12.0 0.0 7.0 95.0

Hau Giang 14.0 4.0 48.0 36.0

Total 29.7 1.33 19.3 56.7

Fertiliser

Dong Thap 0.0 0.0 0.0 100.0

Kien Giang 0.0 0.0 0.0 100.0

Hau Giang 0.0 0.0 0.0 100.0

Total 0.0 0.0 0.0 100.0

Crop

protection

agents

Dong Thap 0.0 0.0 0.0 100.0

Kien Giang 0.0 0.0 0.0 100.0

Hau Giang 0.0 0.0 0.0 100.0

Total 0.0 0.0 0.0 100.0

Other inputs

Dong Thap 0.0 0.0 0.0 29.0

Kien Giang 0.0 0.0 0.0 59.0

Hau Giang 1.0 0.0 0.0 1.0

Total 0.3 0.0 0.0 29.7


100% of HHs buy fertilizers and crop protection agents from input agencies.

None of HHs are supplied fertilizers and crop protection agents from their coops/FGs

18

or from companies. Other inputs are also supplied by input agencies. Over 95% of

HHs satisfy with the quality of inputs materials (seed rice, fertilizers, crop protection

agents) supplied by input agencies. It is possible to say that input agencies play an

important role in supplying seed rice, fertilizers and chemical agents for rice

production of HHs and HHs can buy all necessary input from input agencies.

Table 11: Percentage of HHs satisfying to quality of seed rice, inputs supplied by

agencies

# Kind of input Dong Thap Kien Giang Hau Giang Total

1 Seed rice 97.6 94.7 97.4 95.6

2 Fertilisers 98.0 93.0 99.0 96.7

3 Chemical agents 97.9 92.9 100.0 96.9


The HHs can pay for input agencies by 3 ways: i) HH pays immidiately when

buying and receiving the inputs; ii) HH buys in credit the input and pays at the harvest

time; iii) HH pays immediately a part when receiving input and pays remain at the

harvest time. In Dong Thap and Hau Giang, 75% of HHs buy in credit the entire input

and pay at harvest time. This percentage in Kien Giang is 26%. 27% of HHs in Kien

Giang pay immediately when receiving input, this percentage is 2 time higher than

Dong Thap and Hau Giang. The HHs that buy in credit have to pay higher price than

HHs that pay immediately. The price gap is dependent on price policy of each input

agency and the kind of input. Normaly, the price gap between paying immediately and

buy in credit is between 5% - 10%.

Table 12: Form of payment for buying input from agencies

Unit: % HHs

# Form of payment Dong Thap Kien Giang Hau Giang Chung

1 Payment immediately

when receiving input 13 27 12 17

2 Total payment in later 75 26 75 59

3 Use both forms

(immediate and late) 12 47 13 24

Total 100 100 100 100


19

V. Current situation of rice production practices of HHS involved in PPP

models

5.1. Area of rice plot enregistered in LSRF based PPP model

On average, a HH the participates into PPP model with rice area of 1.1 ha in

Dong Thap, 1.3 ha in Hau Giang and 2.2 ha in Kien Giang. The medium and rich HHs

(in Hau Giang and Kien Giang) have plot’s area larger than poor and near poor HHs.

Table 13: Area (ha) of HH’s rice plot registered in PPP model

Province Poor HH

Near poor

HH Other HHs Total

Dong Thap - - 1.1 1.1

Kien Giang - 1.5 2.3 2.2

Hau Giang 0.9 0.7 1.3 1.3

Total 0.9 0.8 1.6 1.6


5.2. Application of sustainable rice production process

About 40% HHs in 3 provinces, who registered to participate in PPP models,

have been applying SRP process as 1M5R, 3R3I. Some HHS have applied VietGAP

process in rice production. However, the percentage is less than 20% of HHs.

Table 14: Percentage of HHs applying SRP process

# SRP process

Winter – Spring crop

2015

Summer – Autumn crop

2015

1 1M5R 35.0 40.7

2 3R3I 41.7 42.3

3 VietGAP 9.0 17.0

4 Others 8.3 9.3


20

5.3. Technology and technique applied in rice production

5.3.1. Seed rice

The varieties used in 3 PPP models are totally different. In Winter – Spring crop

2015, HHs participated in PPP model in Dong Thap cultivated major IR50404 variety

(78% of HHs), the HHs in PPP model in Kien Giang planted mainly high quality rice

variety as OM4900 (86.9% of HHs), while OM5451 was most variety cultivated in the

PPP model in Hau Giang (86.0%). In Summer – Autumn crop 2015, HHs have been

also cultivated the same varieties like in the Winter – Spring crop.

Table 15: Percentage of rice varieties planted in Winter – Spring crop 2015

Unit: % of HHs

# Varieties Dong Thap Kien Giang Hau Giang

1 IR50404 78,0 1,0 0,0

2 Jasmine85 6,0 8,1 0,0

3 LH8 1,0 0,0 0,0

4 OM4128 1,0 0,0 0,0

5 OM4900 0,0 86,9 14,0

6 OM5451 0,0 1,0 86,0

7 OM6976 14,0 1,0 0,0

8 OM9577 0,0 2,0 0,0


There is big difference between 3 PPP models in 3 provinces. In Kien Giang and

Hau Giang, while nearly 100% of HHS cultivate high quality rice varieties, in PPP

model in Dong Thap there is only 22% of HHs plant high quality rice varieties. The

reason is that the HHs in Dong Thap PPP model stay in location of less favorable for

cultivating high quality rice and there is also not company that engage to buy paddy

from HHs.

There is relatively strong correlation between HHs who plant high quality rice

variety and source of varieties where HHs buy seeds from. HHs who cultivate high

quality varieties use certificated seeds buying from seed producers who have official

21

certificate for seeds rice. . The HHs who plant high quality rice and certificated seed

rice also use quantity of seed lower than HHS using normal quality rice varieties or

seed rice produced by HH himself. For example, the HHs in Dong Thap’s PPP model

use 170 kg seed rice/ha while in Kien Giang and Hau Giang, the HHs use less than

150 kg/ha.

Table 16: Use of seed rice of HHs in PPP models

Indicator Crop Dong

Thap

Kien

Giang

Hau

Giang Total

% HHs use high

quality rice

varieties

Winter - Spring 22.0 99.0 100.0 73.6

Summer - Autumn 16.0 100.0 100.0 72.0

% HHs use

certificated seed

rice

Winter - Spring 47.0 77.8 89.5 71.1

Summer - Autumn 36.0 93.0 87.4 71.9

% HH buy seed

rice

Winter - Spring 54.0 85.9 92.0 77.3

Summer - Autumn 48.0 96.0 88.0 77.3

Quantity of seed

rice (kg) used for 1

ha

Winter - Spring 170.8 137.6 145.7 151.4

Summer - Autumn 169.7 133.8 147.6 150.4


5.3.2. Technical practices in rice production

a) Sowing seed practice

In the PPP model in three provinces, nearly 100% of HHs apply sowing

technique in rice production. Sowing seeds can be done by hands or by machines

(seeding machines, drum seeder). About 51% of HHs sow seeds manually. Using

seeding machines help to lower quantity of seed rice per hectare. In Dong Thap and

Hau Giang, the application of seeding machine saves more 20kg seed rice per hectare

than seeding by hands.

To improve seed germination rate, about 70% of HHs have used the chemical

agents for soaking seed rice in order to increase germination rate and vigour of rice

before sowing.

22

Figure 3: Quantity of seed rice uses for sowing by hand and by machines


b) Land preparation

Presently, nearly 100% of HHs use machine for land tillage. The land

preparation is done manually only in some works that are impossible to apply machine

such as field border reparation, land cleaning, etc.

c) Caring for rice

Nowadays, almost 100% of HHs use water pump to supply water from canals to

their field. Similarly, 100% of HHs apply herbicide to eliminate grass in rice field. In

case of application herbicides cannot eliminate grass completely, HHs remove grass

by hands. Herbicide is applied in all of 3 crops. The HHs mainly spread fertilizer by

hand and eliminate wild weed manually.

In rice production, HHs have to control exotic species in rice field. 66% of HHs

had to weed out exotic species and they did it manually. This work is impossible to

apply machine. To reduce time of eliminating exotic species, it needs to use quality

seed rice and plant same rice variety in all of crops.

Harvest was applied harvesting machine completely. Majority of HHs sell wet

paddy in the field just after harvesting. Thus, they do not have to transport their paddy

from field to their home and they also no need to dry paddy. Only 15% of HHs

transport their paddy from field to home.

192

145

149

169

127

106

- 50 100 150 200 250

DONG THAP

KIEN GIANG

HAU GIANG

kg/ha

Sowing by machine Sowing by hand

23

Table 17: Application of machines in rice production and harvest

Unit: % HH

#

Technique

Winter – Spring crop Summer – Autumn crop

%

HHs

do it

Do

manually

Using

machine

% HHs

do it

Do

manually

Using

machine

1

Use of germination

stimulant for soaking

seed

69.3 - - 70.3 - -

2 Tillage 99.0 12.3 99.0 98.7 11.3 98.7

3 Sowing seed rice 99.7 51.7 46.3 100.0 51.0 47.7

4 Irrigation 99.7 2.3 98.3 99.7 3.0 98.0

5 Eliminate grass 99.3 99.3 2.3 99.3 26.0 3.0

6 Spreading fertilizers 99.7 97.3 2.3 100.0 98.0 2.3

7 Spraying plant

protection agents 99.7 47.0 53.0 100.0 46.7 52.7

8 Eliminating exotic

species 66.3 65.7 0.0 65.7 65.0 0.0

9 Harvesting 99.7 0.7 99.3 100.0 1.0 99.3

10 Transporting paddy 14.7 2.3 14.3 14.7 2.7 14.0

11 Drying paddy by

sunlight 0.0 - - 0.0 - -

12 Drying paddy by drying

machine 0.0 - - 0.0 - -


5.3.3. Using fertilizers and chemicals

On average, the HHs use over 400kg of different kind of fertilizers. The HHs in

Dong Thap model use the highest quantity of fertilizers (513 kg/ha), then those in

Kien Giang (428 kg/ha) and the lowest in Hau Giang (343 kg/ha). Organic fertilizers

is almost unused in rice production. The main kinds of chemical fertilizers, which are

applied by HHs in all of 3 PPP models, are nitrogen (N), DAP, potassium (K) and

24

NPK. On average, HHs use 139 kg of urea, 118 kg of DAP, 62 kg of potassium

fertilizer and 89 kg of NPK.

Table 18: Quantity of fertilizers used in rice production in Winter - Spring crop 2015

# Kind of fertilizers Unit Dong

Thap

Kien

Giang

Hau

Giang Total

I Total quantity of

all fertilizers Kg/ha 513 428 343 429

1 Organic fertilizers Kg/ha 1 2 - 1

2 Urea (N) Kg/ha 160 155 101 139

3 Phosphate (P) Kg/ha 11 13 32 19

4 DAP Kg/ha 151 141 63 118

5 Potassium (K) Kg/ha 76 81 30 62

6 NPK Kg/ha 113 36 117 89

7 Other fertilizers Kg/ha 2 1 1 1


In Winter – Spring crop 2015, on average, HHs had to invest VND 4.4 million

for all kind of fertilizers and VND 3.9 million for plant protection chemicals

(pesticide, insecticides, fungicide, etc), herbicide, stimulating agents. The total cost of

fertilizer and the chemicals is about VND 8.3 million/ha, equivalent to USD 380/ha.

25

Table 19: Cost of fertilizers, chemicals in rice production in Winter - Spring crop

2015

Unit: 1.000 VND/ha

# Kind of inputs Dong

Thap

Kien

Giang

Hau

Giang Chung

I Fertilizers 4986 4354 3919 4420

1 Organic fertilizers 9 24 - 11

2 Urea (N) 1369 1293 937 1199

3 Phosphate (P) 57 51 125 78

4 DAP 1879 1736 955 1523

5 Potassium (K) 690 798 354 613

6 NPK 951 429 1540 975

7 Other fertilizers 31 23 8 21

II Plant protection chemicals 3690 4671 3435 3930

8 Pesticides, insecticides 2102 3112 2623 2611

9 Herbicide 363 570 466 466

10 Stimulating agents 897 728 188 604

11 Other chemicals (lime

powder,..) 328 261 158 249

Total 8676 9025 7354 8350


3.3.4. use of family labor in rice production

Majority of rice producers use the chemicals, machines and production services

in the stages of rice production. Thus, on average a HH only spent 13 family working

days/ha, from land preparation to harvest. The HHs in Hau Giang PPP model have the

highest number of family working days per ha (18 working days/1ha) while in Kien

Giang model, the number of family working days for 1 ha is the lowest (8 working

days/1 ha).

26

The stages of additional rice plant transplantation, spraying plant protection

chemicals and herbicide, eliminating exotic species represent the highest number of

working days, about 5 working days/ 1ha. In Hau Giang, irrigation and water drainage

are operated by coops, consequently none of family working days is used for this

practice.

Table 20: Number of family working days per hectare of cultivating rice

# Stage of production Dong

Thap

Kien

Giang

Hau

Giang Total

1 Tillage 2.6 0.5 3.3 2.4

2 Land cleaning 2.8 1.6 3.6 2.7

3 Irrigation and drainage 2.9 3.0 0.0 3.0

4 Seeding 1.1 1.0 1.3 1.2

5 Transplanting/gap filling 5.5 3.0 5.8 5.0

6 Spreading Fertilizers 2.6 2.0 2.5 2.4

7 Spraying plant protection

chemicals 4.9 3.6 5.8 5.0

8 Weeding, eliminating exotic

species 4.9 3.6 5.8 5.0

Total (days/ha) 14.3 8.1 18.3 13.6


In value, 68% of service cost of HH’s rice production is external service’s cost

(HHs hire services). The services that HHs hire the most are tillage, harvest, irrigation,

transport of paddy, seeding.

27

Table 21: Using hiring services of HHs for rice production

Stage


Total

cost of

service

(1000

vnd)

Cost

of

hiring

service

(%)

Total

cost of

service

(1000

vnd)

Cost

of

hiring

service

(%)

Total

cost of

service

(1000

vnd)

Cost

of

hiring

service

(%)

Total

cost of

service

(1000

vnd)

Cost

of

hiring

service

(%)

Tillage 1647.8 97.5 1337.2 92.9 748.8 85.2 1242.6 92

Repairing

field 416 13 256.2 28.3 584.7 15.5 419.4 19

Irrigation and

drainage 580.9 89.9 985.2 16.2 694.7 99 751.6 68.3

Seeding 295.6 78 281.2 77.8 249 19.7 275.1 58.4

Transplanting/

gap filling 675.8 38.6 461.9 55.1 943.1 29.1 694.2 40.8

Spreading

Fertilizers 411 10 319.7 33.7 371.5 6.8 367.3 16.7

Spraying

chemicals 827.6 34.7 995.4 69.1 1050.1 36 952.6 46.5

Weeding,

eliminating

exotic species

402.9 17.1 145 45.8 443.2 8.7 331.0 20.5

Crop

protection

service

21.5 100 5.9 0 92.4 50 40.1 29.4

Harvest 2161.7 99 1758.5 99 2187.4 95.7 2034.9 97.9

Transport of

paddy 0 100 0 100 38.8 62.5 13.0 62.5

Total 7440.8 71.4 6546.2 71.7 7403.7 61.3 7098 68.2


28

Figure 4: Percentage of services that HHs hire in the stages of rice production


VI. Economic efficiency of rice production of HHs

6.1. Productivity

The average rice productivity in Winter - Spring crop reaches over 8 tons/ha in

all of 3 PPP models. The HHs in Dong Thap model have the highest rice productivity

(8.8 tons/ha) and the lowest in Hau Giang model (8.2 tons/ha).

In the Summer – Autumn crop 2015, rice productivity in 3 models is around

6.5 tons/ha lower 2 tons/ha compared to Winter – Spring crop. The productivity in

Hau Giang model is 19% lower than those in Kien Giang model.

The productivity in Winter - Spring crop is higher than Summer - Autumn crop

because the weather condition in Winter - Spring crop is more favorable for

development of rice than Summer – Autumn crop. In addition, the contracting a

disease in Winter – Spring crop is also less Summer – Autumn crop, and consequently

the rice productivity is less affected.

92

19

68.3 58.4

40.8

16.7

46.5

20.5 29.4

97.9

62.5

8

81

31.7 41.6

59.2

83.3

53.5

79.5 70.6

2.1

37.5

0

20

40

60

80

100

120

Self doing Hiring

29

Figure 5: Rice productivity (wet paddy) of Winter - Spring crop 2015 and Summer -

Autumn crop 2015


6.2. Rice production cost

The rice production cost consists of inputs, production services and other

expenses. Inputs cost include seed rice, fertilizer (urea, potassium, phosphate, DAP,

NPK, etc), the chemicals (plant protection chemicals, stimulating agent, herbicide,

chemicals for soaking seed rice, etc.). The production service cost is the cost the HHs

must pay for services used for rice production such as: tillage, hand weeding,

eliminating exotic species, fertilizing, spraying plant protection chemicals, harvest,

etc. Cost of family labor is taken into account equivalent to cost of hired labour in

local region. Other cost are packing, interest if HH must get a loan for rice production

and some other expenses.

a) Rice production cost in the Winter – Spring 2015.

In the Winter – Spring crop, rice production cost is about VND 17.5 million/ha,

in which the cost of inputs materials (seed rice, fertilizer, chemicals) are around VNd

9.8 million/ha and the cost of production service is raround VND 7.1 millions/ha. The

rice production cost is the highest (VND 17.8 millions/ha) in Dong Thap PPP model

and the lowest in Hau Giang model ( VND 17.0 millions/ha). However, there is not

significant difference of rice production cost between 3 PPP models.

8,8

25

8,6

12

8,2

78

8,5

71

6,9

01

7,0

74

5,7

48

6,5

75

DONG THAP KIEN GIANG HAU GIANG TOTAL

Winter - Spring Crop Summer - Autumn Crop

30

Table 22: Rice production cost in Winter – Spring crop

Unit: 1.000 VND/ha

# Item Dong Thap Kien Giang Hau Giang Total

Total cost 17,831 17,611 17,045 17,496

1 Input materials cost 10,094 10,431 8,967 9,829

- Seed rice 1,419 1,407 1,615 1,481

- Fertilizers 4,985 4,353 3,918 4,419

- Chemicals 3,690 4,671 3,434 3,929

2 Cost of production

services 7,441 6,546 7,389 7,127

3 Other cost 296 633 689 539


Input cost (seed rice, fertilizer, chemicals) occupy over 50% of total production

cost. This proportion is the highest in Kien Giang model (59.2%), followed by in

Dong Thap model (56.6%) and the lowest in Hau Giang model (52.6%).

Production services represent relatively high proportion in rice production cost at

around 40% and this proportion in all of three models is relatively similar. The

production cost is due to main practices in rice production such as tillage, harvest are

mechanized and almost 100% of HHs hire service for these practices.

Seed rice represents less than 10% of rice production cost, and this percentage is

relatively similar in all of three models. Cost of plant protection chemicals in 2 models

in Dong Thap and Hau Giang is similar (about 20%) but less than those in Kien Giang

model (about 26%).

31

Figure 6: Structure of rice production cost in the Winter - Spring crop 2015

Source: Field survey, Oct 2015

b) Rice production cost in Summer – Autumn crop.

The mean of rice production cost in Summer – Autumn crop is VND 17.3

millions/ha,of which input materials is around VND 9.7 million/ha and production

services is about VND 7 million/ha. The cost of input materials in two models in

Dong Thap and Kien Giang is 17% higher than those in Hau Giang model because the

HHs in models of Dong Thap and Kien Giang use much more quantity of input

materials and the chemicals than HHs in Hau Giang.

Table 23: Rice production cost in Winter – Spring crop

Unit: 1,000 VND/ha

# Item Dong Thap Kien Giang Hau Giang Total

Total cost 17,676 17,430 16,668 17,258

1 Input cost 10,358 10,235 8,700 9,764

- Seed rice 1,362 1,454 1,550 1,455

- Fertilizer 5,237 4,375 3,937 4,516

- Chemicals 3,759 4,406 3,213 3,793

2 Cost of production

services 7,026 6,594 7,382 7,001

3 Other cost 292 602 586 493


8.0%

8.0%

9.5%

8.5%

28.0%

24.7%

23.0%

25.3%

20.7%

26.5%

20.1%

22.5%

41.7%

37.2%

43.3%

40.7%

1.7%

3.6%

4.0%

3.1%

D O N G TH AP

K I E N GI AN G

H AU GI AN G

TO TAL

Seeds cost Fertilizers cost Pesticides cost Services cost Other cost

32

Input materials (seed rice, fertilizers, chemicals) represents 56% of total rice

production cost. This proportion in the models in Kien Giang and Dong Thap is

similar and about 58.1%, higher than those in Hau Giang model (cost of input is

51.1% of total production cost).

Production services occupy about 40% of rice production cost. This proportion is

the highest in Hau Giang model (43.3%) and is the lowest in Kien Giang model

(37.4%).

Seed rice represents less than 10% of rice production cost. This proportion is

higher in the models in Kien Giang and Hau Giang because the HHs in these models

cultivate fragrant rice variety and use certificated seed rice.

Figure 7: Structure of rice production cost in the Summer - Autumn crop 2015


Production cost of 1 kg paddy in Winter – Spring crop in all of 3 provinces is

relatively similar, around VND 2,079 /kg. However, in Summer - Autumn

crop,production cost of 1 kg paddy is quite different between provinces. in Hau Giang

model, it is 18.3% higher than those in Kien Giang model. The reason is that the rice

productivity in Hau Giang model is lower than ones in the models in Kien Giang and

Dong Thap provinces.

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Dong Thap Kien giang Hau Giang Total

7.6% 8.3% 9.1% 8.3%

29.4% 24.8% 23.1% 25.8%

21.1% 25.0% 18.9%

21.7%

39.4% 37.4% 43.3%

40.0%

1.6% 3.4% 3.4% 2.8%

Seeds cost Fertilizers cost Pesticides cost Services cost Other cost

33

The production cost of paddy in Winter - Spring crop lowers about VND 700/kg

compared to those in Summer – Autumn crop. It is due to much lower of rice

productivity in Summer - Autumn crop than Winter - Spring crop in all of 3 models.

Figure 8: Cost price of 1 kg dried paddy in Winter-Spring and Summer–Autumn crops


6.3. Profit of rice production

a) Profit of rice production in Winter – Spring crop

In Winter – spring crop 2014-2015, Rice productivity is 7.9 tons of paddy/ha,

which is equivalent to the turnover of VND 39.5 millions/ha. The profit in this crop is

nearly VND 22 million/ha. The turnover and profit of rice producers in Kien Giang

province are higher VND 2 millions/ha than producers in the models in Dong Thap

and Hau Giang provinces due to the highest of rice selling price in Kien Giang model.

The HHs get the average profit of VND 2522 per one kilogram of paddy. The

HHs in Kien Giang model have the highest profit (2700 VND/kg paddy), it is 17%

higher than in Dong Thap model. The reason is that the HHs in Dong Thap model use

mainly varieties with lower rice quality. Indeed, the HHs using fragrant rice varieties

can get profit higher than the HHs using normal quality rice varieties. In all of 3 PPP

models, the profit represents more 50% of the turnover.

2053 2085 2099 2079

2638 2520

2982 2713

0

1,000

2,000

3,000

4,000

5,000

6,000

DONG T HAP KIEN GIANG HAU GIANG T OT AL

VN

D/k

g


34

Table 24: Profit of rice production in theWinter – Spring crop 2015

# Indicator Unit Dong

Thap

Kien

Giang

Hau

Giang Total

1 Total cost 1000

VND/ha 17831 17611 17060 17501

2 Productivity Tons/ha 8.2 8.0 7.4 7.9

3 Turnover 1000

VND/ha 38431 41226 38717 39452

4 Profit 1000

VND/ha 20599 23615 21657 21952

5 Production cost of

1 kg paddy VND/kg 2053 2085 2099 2079

6 Profit/1 kg paddy VND/kg 2307 2700 2562 2522

7 Profit/turnover

(%) % 52 56 53 53


b) Profit of rice production in Summer – Autumn crop

The average turnover in Summer - Autumn crop reached above VND 30

million/ha,of which the profit is about VND 13 million/ha. The HHs in Kien Giang

model have the highest turnover and profit per ha among 3 PPP models. The turnover

in Kien Giang model is VND 35 millions/ha while the turnover in two other models is

less than VND 30 million/ha.HHs’profit in Kien Giang model is higher 85% than

those in Hau Giang model and higher 51% than those in Dong Thap model. It’s due to

much higher productivity and paddy selling price in Kien Giang model than two

models in Dong Thap and Hau Giang provinces.

The profit per kg paddy in two models in Dong Thap and Hau Giang are about

VND 1600/kglowered VND 800/kg compared to those in Kien Giang model.

The average rice production cost in all of 2 crops of Winter - Spring and

Summer - Autumn is about VND 17 million/ha, but the profit in Winter - Spring crop

is much higher than Summer - Autumn crop becauseproductivity in Winter - Spring

crop is relatively higher than Summer - Autumn crop.

35

Table 25: Profit of rice production in the crop of Summer - Autumn 2015

# Indicator Unit Dong

Thap

Kien

Giang

Hau

Giang Total

1 Total cost 1000

VND/ha 17676 17430 16668 17258

2 Productivity in

dried paddy Tons/ha 6.3 6.4 5.0 6.0

3 Turnover 1000

VND/ha 29418 35228 26289 30312

4 Profit 1000

VND/ha 11742 17797 9622 13054

5 Production cost of

1 kg paddy VND/kg 2638 2520 2982 2713

6 Profit/1 kg paddy VND/kg 1625 2462 1602 1897

7 Profit/turnover (%) % 40 51 37 43


VII. Linkage in rice production and rice commercialization

The paddy produced by HHs is commercialized through channels : i) selling to

free traders; ii) selling to company; iii) selling throughout coops or FGs; iv) selling to

input agencies that supplied input materials to HHs. Selling paddy to the company or

throughout coops are two types of production – consumption connection in rice

production which is usually shaped by a contract between two sides FGs/coops and

company. The free selling of paddy withou contract occur when the HHs sell their

paddy to free traders or input agentcies.

Almost HHs in the models in Kien Giang and Hau Giang provinces are not

linked to trading company. In the crop of Summer - Autumn 2015, the percentage of

HHs linking to trading company in 2 models in Dong Thap and Kien Giang provinces

is less than 10% and 97% of paddy produced by HHs is sold to free traders.

Meanwhile, 88% of HHs in the model in Hau Giang province have the linkage to rice

trading company, so 72% of HHs sold their paddy to the company. In all of 3 PPP

models, the coops and FGs have not supported their members to sell the paddy.

About 50% of HHs in Dong Thap and Hau Giang provinces are satisfied with

current ways of sale of their paddy while only two third of HHs in the model in Kien

Giang province are not satisfied with current ways of selling their paddy.

36

Table 26: Linkage and rice selling in the crop of Summer - Autumn 2015

# Criteria Dong

Thap

Kien

Giang

Hau

Giang Total

1 % HHs have linkage with rice

trading company 3.0 10.0 88.0 6.3

2 % HHs are satisfied with ways of

selling their paddy 47.0 36.0 54.0 45.7

3 Buyers of paddy

- % HHs sell paddy to rice trading

company 2.0 4.0 72.0 26.0

- % HHs sell paddy to agencies 0.0 0.0 0.0 0.0

- % HHs sell paddy to free traders 98.0 97.0 26.0 73.7

- % HHs sell paddy through

coops/FGs 0.0 0.0 2.0 0.7

- % HHs sell paddy to individuals 0.0 0.0 2.0 0.7


The percentage of HHs that sell their paddy with agreement/contract is

significant different among 3 models. In the models in Kien Giang and Dong Thap

provinces, there is only 4% of HHs having agreement/contract in selling their paddy

while this percentage in Hau Giang model is very high of 84%. The high percentage in

Hau Giang model is due to these HHs have cooperated with Cong Binh company in

the production and consumption of paddy.

37

Figure 9: Percentage of HHs have contract for selling their paddy


The selling price of wet paddy is about VND 4600/kg in both crops Winter -

Spring and Summer - Autumn. The selling prices in Kien Giang and Hau Giang

models is higher than those in Dong Thap model. In Winter - Spring crop, the paddy

price in Kien Giang is higher 10% than Dong Thap, while in Summer - Autumn crop,

paddy selling price is higher 17%. Paddy selling prices in Kien Giang and Hau Giang

are higher than Dong Thap because in 2 these provinces, the HHs cultivated high

quality rice varieties (OM4900, OM5451, Jasmine85) while in Dong Thap model, the

HHs planted mainly the nomarl quality rice variety(IR50404).

Figure 10: Selling prices of wet paddy in Winter - Spring and Summer - Autumn

crops


0%

20%

40%

60%

80%

100%


97 96

16

69.7

3 4

84

30.3

Without agreement Have agreement

43

60

47

85

46

62

46

01

42

64

49

82

45

84

46

10

D O N G TH AP K I E N GI AN G H AU GI AN G TO TAL

Vnd

/kg


38

Selling paddy at farm gate is very popular in all 3 models. HHs sell their paddy

just after harvesting at their field or at the focal point near their field.

In Kien Giang, low selling price and long waiting time for selling paddy are two

main reasons which make HHs unsatisfied with the current way of selling paddy.

Concretly, among reasons making HHs are unsatisfied with selling paddy, 70% of

HHs complain about low selling price and 54% state that is long waiting time to sell

paddy. In Dong Thap model, a half of HHs are unpleased due to low paddy price.

Table 27: Reasons HHs are not pleased to present paddy marketing

Unit: % of HHs

# Criteria Dong

Thap

Kien

Giang

Hau

Giang Total

1 Many expenses occurred in selling

paddy 0.0 15.4 1.1 2.8

2 Low paddy price 50.0 76.9 27.3 34.9

3 Buyers require high quality of

paddy. 0.0 0.0 2.3 1.8

4 Payment procedure is complicated 0.0 0.0 27.3 22.0

5 Long waiting time for selling paddy 0.0 53.8 21.6 23.9

6 Trading companies buy only paddy

at their warehouses 0.0 0.0 0.0 0.0

7 Unclear method of classifying

paddy quality 0.0 7.7 2.3 2.8

8 Other reasons 25.0 7.7 10.2 11.0


13% of HHs stated that they didn’t receive anything when involving into

linkage. In Hau Giang model, above 75% of HHs having linkage are received

certificated seed rice or advanced money to buy input. But, only about 10% of HH

received technical assistance. In Kien Giang model, above 75% of HHs are guided

about rice production because these HHs have been participating in piloted model on

LSRF implemented by Kien Giang province.

39

Table 28: Kinds of supports that HHs receive from linkage partner in rice production

Unit: % HH

# Criteria Dong

Thap

Kien

Giang

Hau

Giang Total

1 Technical training 12.5 38.5 26.1 26.6

2 Supervision and guide of

technical application 37.5 76.9 10.2 20.2

3 Supplying certificated seed rice 25.0 46.2 76.1 68.8

4 Money advance for buying input 0.0 7.7 86.4 70.6

5 Supplying input (fertilizer, plant

protection chemicals) 12.5 15.4 1.1 3.7

6 Transporting paddy from field to

warehouse 12.5 15.4 25 22.9

7 Do not support anything 25.0 15.4 11.4 12.8


Above 70% of HHs in models in Kien Giang and Hau Giang are supported by

public extention service in last 3 years. As for Kien Giang, nearly 90% of HH

received apart of cost of certificated seed rice and fertilizer because these HHs have

involved in LSRF model piloted by Kien Giang Agriculture Extension Service.

Table 29: Kind of support for HHs from trading company having linkage with HHs

Unit: % HHs receive support

# Indicator Dong

Thap

Kien

Giang

Hau

Giang Total

1 Agricultural extension 47.0 77.0 88.0 70.7

2 Advance of seed rice (or by cash

cash for = buying seed) 1.0 88.0 67.0 52

3 Advance of input materials 0.0 88.0 2.0 30

4 Receive VND 500,000/ha from the

State for rice planting 88.0 95.0 99.0 94.0

5 Other supports 1.0 1.0 2.0 1.3

6 Support nothing 0.0 1.0 1.0 0.7


40

VIII. Practices in rice production and environmental protection

75% of surveyed HHs are guided to follow the regulations on environmental

protection in rice production. HHs obtained the guidance from different sources such

as public service bodies, companies, input agencies, coops and mass media. The main

channel to give this guidance come from public service agencies as extension service,

plant protection service. 61% of HH received the guide from 2 these public bodies. In

addition, newspapers, radio, television channels are also important means to propagate

the knowledge on environmental protection to HHs. Two third of HHs in Hau Giang

and one third of HH in Dong Thap told that they received the information on

environmental protection from the mass media.

Table 30 : Channels provide guiding on environmental protecion to HHs

Unit: % HHs

# Indicator Dong

Thap

Kien

Giang

Hau

Giang Total

I % HH are guided 70.0 77.0 79.0 75.3

II Channels of providing guidance

1 Public agricultural service bodies 52.0 71.0 60.0 61.0

2 Linking companies 2.0 1.0 6.0 3.0

3 Input agencies 3.0 14.0 3.0 6.7

4 Coops/FGs 7.0 2.0 18.0 9.0

5 Mass media (radio, newspapers, tele) 35.0 15.0 70.0 40.0


Above 80% of rice producers are comprehensive understanding of the

application of plant protection chemicals such as properly use kind of the chemicals,

dosage and timely. In Hau Giang, over 90% of HHs understand completely about

regulations of application plant protection chemicals. However, there is still 15% of

HHs that understand incompletely about regulation of application plant protection

chemicals, especially in the model in Kien Giang province, the proportion is 25%.

41

Table 31: Percentage of HHs understand completely about regulation of application

plant protection chemicals.

Unit: % HHs

# Indicator Dong

Thap

Kien

Giang

Hau

Giang Total

1 Apply properly kind of chemicals 81.0 84.0 95.0 86.7

2 Proper dosage 85.0 75.0 94.0 84.7

3 Proper timely 76.0 73.0 93.0 80.7


In practice, 75% of HHs wear personal protective equipment when spaying plant

protection chemicals. However, there is still about 37% of HHs in Kien Giang are

unused it during spaying plant protection chemicals.

Figure 11: Percentage of HHs wear personal protevtive equipment when spraying

plant protection chemicals


In all of 3 PPP models, more 93% of HHs collected the package of plant

protection chemicals, then resell these package as garbage or burn it or bury it in the

0

10

20

30

40

50

60

70

80

90

100


83

63 79 75

17

37 21 25

Unused personal protective equipment

Use personal protective equipment

42

ground. However, there is still less than 3% of HHs that throw the package, cans, and

box in the water sources as canal, pond, lake, river, and stream.

Figure 12: Methods of treatment package of plant protection chemicals of HHs

Unit: % HHs


More 70% of HHs washed the sprayers (spray-gun, spraying machine) at field.

Less than 15% of HHs wash their sprayers in the canals, ponds, lakes, streams and

rivers. En average, 11% of HHs did not wash their sprayers after using them. The

highest percentage is in Dong Thap model with 18% of HHs not to wash their

sprayers after using them

Table 32 : Methods of treatment package of plant protection chemicals of HHs

Unit: % HHs

# Criteria Dong

Thap

Kien

Giang

Hau

Giang Total

1 Leave on border of field 7.0 13.0 4.0 8.0

2 Throw it in canal, pond, lake, river,

and stream. - 3.0 1.0 1.3

3 Bury in the ground at the field 3.0 8.0 - 3.7

4 Collect it and put in dumping ground 93.0 90.0 96.0 93.0


7.0

0.0

3.0

93.0

45.0

13.0

3.0

8.0

90.0

8.0

4.0

1.0

0.0

96.0

75.0

8.0

1.3

3.7

93.0

42.7

0.0 20.0 40.0 60.0 80.0 100.0 120.0

Left packages in the field, field border

Throw packages on canal, pond, lake, river

Bury packages in the field

Collect and put packages into waste bins

Bring packages to home for next times of

using

Total Hau Giang Kien Giang Dong Thap

43

Table 33: Percentage of HHs wash sprayers after sprying at different place

# Criteria Dong

Thap

Kien

Giang

Hau

Giang Total

1 Wash at rice field 58.0 78.0 84.0 73.3

2 Wash at canals 14.0 17.0 7.0 12.7

3 Wash at pond, lacks, rivers 8.0 11.0 - 6.3

4 Not wash 18.0 6.0 10.0 11.3


IX. Difficulties and supporting needs for rice producer households

The HHs have still several difficulties in rice production. The most difficulty of

HHs is to sell their paddy. 77% of HHs think that it is instability of paddy price, 50%

of HHs worry that there isn’t stable buyer of their paddy. The second difficulty is

about high price of fertilizers and plant protection chemicals. In recent years, the

complicated changes of weather are third difficulty of HHs. there is 32% of HHs

worry about unpredictable changes of weather that can negatively impact on rice

productivity. Finally, the quality of seed rice, fertilizers and plant protection chemicals

is also concern of HHs, but less than 205 of HHs worry about this problem.

Table 34: Percentage of HHs have difficulty in rice production

Unit: % HHs

# Indicator Dong

Thap

Kien

Giang

Hau

Giang Total

1 Quality of seed rice is not guarantee 8.0 4.0 24.0 12.0

2 Quality of fertilizer, PPC is not

guarantee 7.0 13.0 37.0 19.0

3 Rise of fertilizers price 28.0 30.0 88.0 48.7

4 Rise of price of PPC 29.0 35.0 85.0 49.7

5 Unstable paddy price 69.0 65.0 98.0 77.3

6 Lack of trading company engaged in

stably buying paddy 48.0 45.0 57.0 50.0

7 Changes of weather 23.0 20.0 52.0 31.7


44

From above-mentioned difficulties, the rice producers want firstly to be stably

bought their paddy (90% of HHs), then to be trained the rice production techniques

(76% of HHs). HHs also needs to receive investment, advanced cash, seed rice,

fertilizer and plant protection chemical, but at lower percentage (50% of HHs).

Table 35: Supporting need of rice producer households (% HHs)

# Indicator Dong

Thap

Kien

Giang

Hau

Giang Total

1 Technique training and guidance 74.0 60.0 94.0 76.0

2 Investment, advance cash to HHs to

buy fertilizer, and PPC 18.0 7.0 86.0 37.0

3 Supplying directly to HHs the

fertilizer, and PPC 32.0 18.0 37.0 29.0

4 Supplying high quality seed rice

(certificated seed rice) 39.0 15.0 82.0 45.3

5 Engaged in buying stably paddy 89.0 83.0 98.0 90.0

6 Buy paddy at rice field 19.0 4.0 78.0 33.7

7 Transport paddy 14.0 - 41.0 18.3

8 Access to loan 16.0 7.0 29.0 17.3


X. Conclusion

The baseline survey covers 300 rice producer households, who registered the to

participate in the LSRF based PPP models, show that HHs have much experience in

rice production; majority of HHs are trained on technical practices, therefore, They are

comprehansive understanding about basic technique of rice production. Several HHs

also are trained and applied sustainable rice production process. These elements are

favourable conditions for transfering and introducing new techniques, new technical

processes in rice production.

The increase in mechanisation, the use of chemical substances and hire external

production services reduces sigificantly use of family labor in rice production. The

cost of seed rice, fertilizers, plant protection chemicals and production services is

45

about VND 17 millions/ha. It’s relatively big investment to the affordability of HHs.

However, majority of this investment HHs can buy in credit from input agencies.

The productivity of high quality rice varieties is not lower than normal quality

rice varieties and the paddy selling price is higher, thus the economic performance

gained from high quality rice production is higher. This is an advantage to introduce

and enlarge the use of high quality rice varieties with high productivity.

However, rice production has remained some shortcomings. HHs cultivate

many different varieties in a field, apply different production process. Therefore, it is

impossible to produce rice with homogenous quality; The lack of companies that are

willing to cooperative with HHs in rice production and consumption paddy; the coops

or famer groups performance is very weak , which have not provided necessary

production services to the rice producers. Coops and FGs are the bridge between the

HHs and companies. It’s necessary to reinforce the performance of coops/FGs in order

to promote the linkage in LSRF and can apply sustainable rice production process

with quality certificated rice for their members. Supports may help improve effective

of Coops/FGs inculudes: i) training and guiding Coops/FGs skills on managing,

operating, organizing when participating in linkage; ii) training on financial

management skill; iii) training on negotiating contract; iv) support elaborate operative

regulation, financial regulation to improve transparency activities of Coops/FGs. v)

Support Coops/FGs on providing some production services such as spraying PPC,

sowing, drum seeding…

46

References

1. DARD Dong Thap, 2015, report on agricultural production – rural development of

first 9 months of the year and the direction in implementating the works of last 3

months of the year 2015 (Báo cáo kết quả sản xuất nông nghiệp – Phát triển nông

thôn 9 tháng đầu năm and phương hướng thực hiện nhiệm vụ 3 tháng cuối năm

2015).

2. DARD Dong Thap, 2015, Report on the implementation of linkage field related to

production and marketing in 2015, plan of 2016 (Báo cáo kết quả thực hiện cánh

đồng liên kết, gắn với sản xuất and tiêu thụ năm 2015, Kế hoạch thực hiện 2016).

3. DARD Dong Thap, 2015, Preliminary report on the implementation of linkage

field of the crop Winter – Spring 2014-2015 (Báo cáo sơ kết thực hiện cánh đồng

liên kết vụ Dong Xuan 2014 – 2015).

4. DARD Kien Giang, 2015, Preliminary report of the crops of Summer - Autumn

and Autumn - Winter 2015, plan of crop Winter - Spring and Summer 2015-2016

(Báo cáo sơ kết vụ Hè Thu và Thu Đông 2015, triển khai kế hoạch vụ Đông Xuân

và Mùa 2015-2016).

5. DARD Kien Giang, 2015, Preliminary report of the crops of Summer and Winter -

Spring 2014-2015, plan of the crops of Summer - Autumn and Autumn - Winter

2015 (Báo cáo sơ kết vụ Mùa và Đông Xuân 2014-2015, kế hoạch sản xuất vụ lúa

Hè Thu và Thu Đông 2015).

6. Extension Center of Kien Giang provinces, 2015, report on the imlementation of

project “LSRF” rice production in direction of VietGAP in crop of Summer -

Autumn 2015 (Trung tâm Khuyến nông tỉnh Kiên Giang, 2015, Báo cáo kết quả

thực hiện dự án “Cánh đồng mẫu lớn” sản xuất lúa theo hướng VietGAP vụ Hè

Thu 2015).

47

Annex: Tables of data analysis

Table 36: Application of machine in rice production and harvest in Dong Thap

province

UNIT: % HHs

#

Technique


% HHs

do it

Do

manually

Application

of machine

% HHs

do it

Do

manually

Application

of machine

1

Use of stimulant

germination for soak

seeds

76.0 - - 79.0 - -

2 Land preparation 100.0 5.0 100.0 100.0 5.0 100.0

3 Sowing seed rice 100.0 3.0 94.0 100.0 4.0 94.0

4 Irrigation 100.0 7.0 96.0 99.0 7.0 96.0

5 Eliminate grass 100.0 32.0 0.0 98.0 31.0 0.0

6 Fertilizers spreading 100.0 99.0 2.0 100.0 99.0 2.0

7 Spraying chemicals 100.0 37.0 65.0 100.0 37.0 64.0


species 86 86.0 0.0 85.0 85.0 0.0

9 Harvesting 100.0 0.0 100.0 100.0 0.0 100.0


11 Drying paddy by

sunlight 0.0 0.0 0.0 0.0 0.0 0.0

12 Drying paddy by

drying machine 0.0 0.0 0.0 0.0 0.0 0.0


48

Table 37: Appication of machine in rice production and harvest in Kien Giang

province

UNIT: % HH

#

Technique


% HHs

do it

Do

manually

Application

of machine

% HHs

do it

Do

manually

Application

of machine

1

Use of stimulant


seeds

75.8

75.8


3 Sowing seed rice 99.0 60.0 39.0 100.0 56.0 44.0

4 Irrigation 99.0 0.0 99.0 100.0 0.0 100.0

5 Eliminate grass 99.0 8.0 6.0 100.0 8.0 8.0




species 27.0 26.0 0.0 27.0 25.0 0.0

9 Harvesting 99.0 0.0 99.0 100.0 1.0 99.0


11 Drying paddy by

sunlight 0.0 0.0 0.0 0.0 0.0 0.0

12 Drying paddy by

drying machines 0.0 0.0 0.0 0.0 0.0 0.0


49

Table 38: Use of machine in rice production and harvest

UNIT: % HH

#

Technique


% HHs

do it

Do

manually

Application

of machine

% HHs

do it

Do

manually

Application

of machine

1

Use of stimulant


seeds

59.4 59.4


3 Sowing seed rice 100.0 92.0 6.0 100.0 93.0 5.0

4 Irrigation 100.0 0.0 100.0 100.0 2.0 98.0

5 Eliminating grass 100.0 39.0 1.0 100.0 39.0 1.0




species 86.0 85.0 0.0 85.0 85.0 0.0

9 Harvesting 100.0 1.0 100.0 100.0 2.0 99.0


11 Drying paddy by

sunlight 0.0

0.0 0.0 0.0 0.0 0.0

12 Drying paddy by

drying machines

0.0 0.0 0.0 0.0 0.0 0.0


50

Table 39: Percentage of rice varieties Cutivatted in the Summer - Autumn crop 2015

UNIT: % HH

# Varieties Dong Thap Kien Giang Hau Giang

1 IR50404 85.0 0.0 0.0

2 IR556 1.0 0.0 0.0

3 Jasmine85 1.0 1.1 0.0

4 LH8 1.0 0.0 0.0

5 OM4128 1.0 0.0 0.0

6 OM4900 1.0 97.9 1.1

7 OM5451 0.0 0.0 96.8

8 OM6218 1.0 0.0 0.0

9 OM6976 9.0 1.1 0.0

10 RVT 0.0 0.0 2.2

Total 100.0 100.0 100.0


51

Table 40: Economic efficiency of 2 main rice varieties in Kien Giang model

# Item UNIT

OM4900 Jasmine

Winter -

Spring

Summer -

Autumn

Winter -

Spring

I Total cost 1000 VND/ha 17,480 17,395 19,360

1 Cost of input materials 1000 VND/ha 10,403 10,201 11,371

- Seed rice 1000 VND/ha 1,412 1,451 1,496

- Fertilizer 1000 VND/ha 4,370 4,437 4,379

- Plant protection

chemicals

1000 VND/ha 4,621 4,313 5,495

2 Cost of services 1000 VND/ha 6,479 6,611 6,982

3 Other cost 1000 VND/ha 598 583 1,007

II Gross output (GO) 1000 VND/ha 41,074 35,101 43,427

Profit 1000 VND/ha 23,595 17,706 24,067

Production cost of1 kg

paddy VND/kg 2,079 2,524 2,270

Profit/1 kg paddy VND/kg 2,697 2,446 2,788

Profit/GO (%) % 56 49 55


52

Table 41: Economic efficiency of main rice varieties in Dong Thap model

# Items UNIT

IR50404 Jasmine85 OM6976

Winter

- Spring

Summer -

Autumn

Winter -

Spring

Summer -

Autumn

I Total cost 1000 VND/ha 17,831 17,680 16,786 17,945

1 Cost of input

materials

1000 VND/ha 10,055 10,341 9,628 10,595

- Seed rice 1000 VND/ha 1,453 1,391 996 1,366

- Fertilizer 1000 VND/ha 4,998 5,215 4,547 5,435

- Plant protection

chemicals

1000 VND/ha 3,604 3,735 4,084 3,794

2 Cost of services 1000 VND/ha 7,469 7,038 6,772 7,194

3 Other cost 1000 VND/ha 308 302 387 156

II Gross output (GO) 1000 VND/ha 37,375 29,435 44,854 29,453

Profit 1000 VND/ha 19,544 11,755 28,068 11,508

Production cost of 1

kg paddy VND/kg 2,071 2,615 1,835 2,841

Profit/1 kg paddy VND/kg 2,216 1,601 3,035 1,708

Profit/GO (%) % 50 38 62 37


53

Table 42: Economic efficiency of 2 main rice varieties in Hau Giang model

# Item UNIT

OM4900 OM5451

Winter -

Spring

Summer -

Autumn

Winter -

Spring

Summer -

Autumn

I Total cost 1000 VND/ha 17.575 16.892 17.074 16.753

1 Cost of input

materials

1000 VND/ha 9.687 8.882 8.920 8.715

- Seed rice 1000 VND/ha 1.938 1.617 1.569 1.549

- Fertilizer 1000 VND/ha 3.655 3.900 3.997 3.978

- Plant protection

chemicals

1000 VND/ha 4.095 3.365 3.354 3.188

2 Cost of services 1000 VND/ha 7.364 7.620 7.465 7.446

3 Other cost 1000 VND/ha 523 390 690 591

II Gross output (GO) 1000 VND/ha 40.947 24.555 38.386 26.680

Profit 1000 VND/ha 23.373 7.664 21.312 9.928

Production cost of 1

kg paddy VND/kg 2.144 3.195 2.101 2.971

Profit/1 kg paddy VND/kg 2.748 1.376 2.519 1.632

Profit/GO (%) % 56 30 52 35


54

Table 43: Quantitty of seed rice for sowing of some main varieties cultivated in

Winter – Spring crop

UNIT: kg/ha

# Variety Dong Thap Kien Giang Hau Giang Total

1 IR50404 176 -- - 176

2 Jasmine85 153 134 - 142

5 OM4900 - 137 156 140

6 OM5451 - - 144 144

7 OM6976 152 - - 150


Table 44: Quantity of seed rice for sowing of some main varieties cultivated in

Summer – Autumn crop

UNIT: kg/ha

# Variety Dong Thap Kien Giang Hau Giang Total

1 IR50404 174 - - 174

2 OM4900 - 133 141 134

3 OM5451 - - 149 149

4 OM6976 149 231 - 157


55

Table 45: Cost of input materials in crop Summer - Autumn 2015

UNIT: 1.000 VND/ha

# Kind of input Dong Thap Hau Giang Kien

Giang Total

I Fertilizer 4986 4354 3919 4420

1 Bio - fertilizers 9 24 - 11

2 Urea (N) 1369 1293 937 1199

3 Phosphate (P) 57 51 125 78

4 DAP 1879 1736 955 1523

5 Potassium (K) 690 798 354 613

6 NPK 951 429 1540 975

7 Other fertilisers 31 23 8 21

II Plant protection

chemicals 3690 4671 3435 3930

8 Pesticides,

insecticides 2102 3112 2623 2611

9 Herbicide 363 570 466 466

10 Stimulating agents 897 728 188 604

11 Other chemicals

(powdered lime,..) 328 261 158 249

Total 8676 9025 7354 8350


56

Table 46: Annual income of HH

UNIT: 1,000 VND

# Source of income Dong Thap Kien Giang Hau Giang Total

1 Rice crop of Autumn -

Winter 2014 - 17,651 - 5,738 7,796

2 Rice crop of Winter -

Spring 2014-2015 28,025 84,287 31,075 47,796

3 Rice crop of Summer -

Autumn 2015 17,424 64,136 15,810 32,456

4 Other agricultural plants - 820 829 550

5 Animal husbandry 6,055 1,627 5,024 4,235

6 Aquaculture 1,175

773 546

7 Hired labor 4,318 3,809 6,471 4,866

8 Business, service, and

handicraft 4,401 13,461 8,093 8,652

9 Wage and social pension 5,986 14,475 7,345 9,269

10 Others 150 688 360 399

Total 85,184 182,992 81,518 116,565


57

Table 47: Percentage of HHs apply the sustainable rice production in Winter - Spring

crop 2015

UNIT: % HHs

# Process Dong Thap Kien Giang Hau Giang Total

1 1M5R 34.0 60.0 11.0 35.0

2 3R3I 46.0 34.0 45.0 41.7

3 VietGAP 1.0 26.0 0.0 9.0


Table 48: Percentage of HHs apply the sustainable rice production in Summer -

Autumn crop 2015

UNIT: % HHs

# Process Dong Thap Kien Giang Hau Giang Total

1 1M5R 32.0 79.0 11.0 40.7

2 3R3I 45.0 43.0 39.0 42.3

3 VietGAP 2.0 49.0 0.0 17.0


58

Hình 13 : Percentage of hiring external production service of HHs in Dong Thap

model


Hình 14: Percentage of hiring external production service of HHs in Kien Giang

model


2.5

87

10.1 22

61.4

90

65.3 82.9

0 1 0

97.5

13

89.9 78

38.6

10

34.7 17.1

100 99 100

%

Self doing Hiring

7.1

71.7 83.8

22.2

44.9

66.3

30.9

54.2

100

1 0

92.9

28.3 16.2

77.8

55.1

33.7

69.1

45.8

0

99 100

%

Self doing Hiring

59

Hình 15: Percentage of hiring external production service of HHs in Hau Giang model


14.8

84.5

1

80.3 70.9

93.2

64

91.3

50

4.3

37.5

85.2

15.5

99

19.7 29.1

6.8

36

8.7

50

95.7

62.5

%

Self doing Hiring

60

Table 49: Percentage of HHs apply machines in rice production

UNIT: % HHs

Production

stage Applied technique

Dong

Thap

Kien

Giang

Hau

Giang

Total

Tillage By machine 100 100 100 100

Irrigation and

drainage Machine 96 99 100 98

Sowing Manual 94 39 6 46

Weeding

Apply herbicides 100 100 100 100

By hands 32 8 39 26

Both 32 8 39 26

Spraying

chemicals By machine 100% 63 96 0 53

By hands 100% 35 4 100 46

Both 2 0 0 1

Fertilizers

spreading By hands 99 93 100

97

Harvest By machine 100 100 100 100


61

Hình 16: Selling price of paddy of some main varieties in 3 provinces


Hình 17: Production cost of 1 kg paddy of some main varieties in 3 provinces


4,2

86

4,5

40

4,7

70

5,0

59

4,6

34

4,8

29

4,2

19

4,5

21

4,9

84

4,5

57

IR 5 0 4 0 4 O M 6 9 7 6 O M 4 9 0 0 J A S M IN E 8 5 O M 5 4 5 1 O M 4 9 0 0

D O N G T H A P K IE N G IA N G H A U G IA N G

vnd/k

g


2,0

71

2,0

03

2,0

80

2,2

70

2,0

90

2,1

55

2,5

87

2,7

40

2,5

16

3,0

07

I R 5 0 4 0 4 O M 6 9 7 6 O M 4 9 0 0 J A S M I N E 8 5 O M 5 4 5 1 O M 4 9 0 0

D O N G T H A P K I E N G I A N G H A U G I A N G

vnd

/kg


62

Figure 18: Rice productivity of some main varieties cultivated in 3 models


87

55

85

21

82

88

69

70

68

43

58

26

IR50404 OM4900 OM5451

kg/h

a

VARIETY


report · production in 3 provinces dong thap, kien giang, and hau giang implemented by: hoàng vũ...

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