VietNamNet Bridge – Avram E Guroff, senior vice president of Agricultural Co-operative Development International and Volunteers in Overseas Co-operative Assistance (ACDI/VOCA) spoke to Viet Nam News about cocoa.

What is your assessment of the Vietnamese and global cocoa markets?

I think it’s very hopeful in Vietnam. It looks like production will be going up substantially in the next couple of years. With this kind of workshop and partnership with the Government and industries, some of these problems of post-harvest quality and post-harvest loss will be overcome.

In terms of the overall cocoa market worldwide, we think the demand will continue to be strong and so we are not concerned about that. We would like to see Vietnam’s production increase substantially. At the same time, we’re interested in diversifying the production of small landholders so they’re not totally dependent on cocoa over the long period because we know what can happen to the coffee industry when prices go way down and growers have nowhere to turn.

So we’re working with cocoa small land-holders to increase their production and improve their quality. At the same time we are encouraging them to diversify in their other crops.

How do you compare Vietnam’s cocoa market with others?

I think Vietnam is quite an attractive market in terms of the trade regime here and the ability of the private sector to work with cacao producers and wholesalers. There’s a great deal of confidence, so I think it’s a very strong market for cocoa export.

The organisation is helping Vietnam to become one of the top cocoa producers worldwide. However, the country is still very far from it. How does the country reach the top position?

We normally use the value chain as an approach to evaluate the cocoa industry. We identify exactly where the weaknesses are and work on those, starting with production and agricultural practices, or producing. For example, what is the quality of the seeds and what is the quality of the harvest.

We look at the way the marketing system works, and we will look at the Government standards that are consistent with international standards and trade regimes.

This is not only one thing. We are interested in working at those points of the value chain that can be strengthened. We can get growers to do a better job on that. We know that’s what the market wants. We know that 25% of the production is lost at harvest. We are trying through the farmer field schools and our training programmes to teach farmers to reduce the amount of post-harvest loss.

Working with the industry, we look at their needs, what kinds of products, what kind of product quality. We try to link them up with the producers, link them more directly with the markets.

We also want to build up the cocoa clubs that come out of the farmer field schools and empower them to provide services to their members, working directly with buyers from cocoa and chocolate manufacturers. Those are the things that will over time improve Vietnam’s market position.

At present, only a limited group of farmers can access the training programme that provides skills and techniques in growing, harvesting and processing cocoa. Will the programme expand?

The programme’s activities are based mainly on donors from different sources. So we have to look for funds within industries to conduct our range of training. We are now working under the help of USAID, and in the future, we hope to get further funds to be able to expand training and help more farmers.

Primarily, training is limited. However, we do see the secondary effect of this training. People who haven’t gone through training will help you to see what’s going on. That is normally called the demonstration effect of those who are trained, and this will multiply over time.

What are the criteria to be eligible for the programme?

First, the condition of the cocoa farm as well as local government support. Farmers who participate in the programme should have one available area, a minimum of 0.5 ha, for cocoa and available labour for it. The people committed to the commune can also help verify who is suitable.

Beyond that, we basically provide the technical know-how, including planning materials available in Vietnam and market linkages with export providers. These things are basic principles. But with all those aspects together we think that the market is going to drive it. The process will go from one farm to another and it will all depend largely on the market. It will be market-driven. If they have good policies, strategies… if they can grow from the neighbourhood. That’s the main growth strategy for now.

What do you suggest the Government should do to support the industry?

In general, farmers have good conditions to grow cocoa, but it would be better if they can get more financing. The Government can create advantages for farmers through the Agriculture and Rural Development Bank and the local development bank so that farmers can grow and expand their farms. That would be a very supportive policy.

(Source: Viet Nam News)