Card Project Progress Report:" Establish nurseries and training to effectively propagate high quality trees and trial plantation models of Macadamia in 3 provinces of North Vietnam - MS4 " doc

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Ministry of Agriculture & Rural Development

CARD Project Progress Report




037VIE05
Establish nurseries and training to effectively
propagate high quality trees and trial plantation
models of Macadamia in 3 provinces
of North Vietnam



MS4: THE SECOND SIX-MONTHLY REPORT




December 2006


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1. Institute Information
Project Name
Establish nurseries and training to
effectively propagate high quality trees
and trial plantation models of
Macadamia in 3 provinces of North

Vietnam
Vietnamese Institution
Center for Environment, Tourism and
Development (CETD),
Vietnamese Project Team Leader
Prof Hoang Hoe
Australian Organisation
Subtropical Farm Forestry Association
Australian Personnel
Martin Novak, Kim Wilson
Date commenced
10 January 2006
Completion date (original)
10 January 2009
Completion date (revised)

Reporting period
First 6 months

Contact Officer(s)
In Australia: Team Leader
Name:
Martin Novak
Telephone:
61 2 66895027
Position:
President
Fax:
61 2 66895227
Organisation

Subtropical Farm
Forestry Association
Email:


In Australia: Administrative contact
Name:
Valda Mitchell
Telephone:
61 2 66284372
Position:
Administrative Officer
Fax:
61 2 66284386
Organisation
Subtropical Farm Forestry
Association
Email:


In Vietnam
Name:
Hoang Hoe
Telephone:
04 8642670, 04
7560233
Position:
Director
Fax:
04 7560233

Organisation
CETD
Email:



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2. Project Abstract

















This project continues during the second half of 2006 to establish a new Macadamia nursery and enhance
three existing nurseries. Also 3 principal variety trials of Macadamias are being established, of about 1 ha
each involving 14 suitable Macadamias varieties, in 3 provinces of North Vietnam. In addition the project is
involved with 3 organizations undertaking 16 other trials. Training has been conducted in aspects of
propagation, grafting, site design and preparation, planting, maintenance and plantation management at the

nurseries and trial sites. This has included the distribution of CD, DVD and power point presentations as
well as hands on training at 2 formal training sessions as well as training in the field. 540 kg of seed nut
from Australia and China have been provided to the nurseries along with 3000 sticks of Scion wood of the
selected varieties and samples of grafting equipment during 2006.
A study tour to China was undertaken covering all the major nurseries and some key plantations in southern
China. Reports of this tour including photos and a DVD video have been presented to the key stakeholders
in Vietnam and Australia.
A select group of small holder farmers have been chosen to be involved with project activities in the
provinces of Lang Son, B Vi, Hoa Binh provinces. In addition the project continues to involve all known
key government agencies involved with Macadamias in Vietnam including MARD, FSI, RCFTI, RIFA and
RIFV. A number of private sector companies are also involved as is the Macca Club of Vietnam.
Significant progress has been made with regard to the capacity building of extension and technical staff
since the commencement of the project in January 2006.



3. Executive Summary
The project continued over the last 6 months of 2006 and included meetings in
Australia and Vietnam between participants communicating progress and key
information relating to the participating organisations.
The final report of the Macadamia study tour of China was delivered to all the
participants. This was made up of 2 written reports by the Vietnamese team and the
Australian team as, as well as a DVD video and photo CD and accompanying notes.
The Australian team visit took place in October during which over a 1000 pieces of
Australian Scion wood was delivered to the 3 existing nurseries. This included all of
the 10 Australian varieties: 246, 344, 741, 814, 816, 842, 849, A4, A16, and A38
(originally Hawaiian except for A4, A16 and A32) varieties selected for the trial. The
team visited the FSI nursery and the Yen Thuy new nursery and trial site and provided
hands on training and information relating to key aspects of progress. Issues such as
germination problems of Australian seed nut and poor strike rates of some varieties

were addressed. It was decided to import future seed nut from China not Australian.
The strike rate of varieties is very poor and this was re-confirmed to the nurseries. It
was agreed that younger wood from Australia should be used as scion in the future.
Solutions to problems with the new florist grafting tape were demonstrated. Some of
the nurseries have adopted the Australian grafting techniques demonstrated during the
previous training sessions. This along with techniques practiced in Vietnam and China
were demonstrated to all participating technicians once again enabling technicians to
better train grafting staff and fine tune techniques. Those that had not attempted these
techniques were encouraged to do so. Further input was provided by the visiting 3
Chinese collaborators in this training and information delivery process at the Lang son
Training Workshop detailed below.

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Nurseries that had tried Australian formulas for propagation and potting mixes were
commended and encouraged to keep comparative data. Early evidence indicated that
the new mixes were working well.
The focal point for this period was the Lang son Macadamia Training Workshop held
over 2 days and involving 44 participants. (Annex 2) The comprehensive program
included presentations and field visits. The program included presentations by the
Vietnamese and Australian project leaders, Hoang Hoe and Martin Novak, providing
an overview of project progress and key aspects of project development. (Novak
Annex 2e)
Kim Wilson CEO of Gray Plantations and AMS Vice Chairman, made two
presentations including a project update of the 3 principal trial sites and nurseries
(Annex2g) and an overview of Macadamia R&D in Australia and the World including
the latest information presented at the Macadamia Congress in Brasil August 2006.
(Annex2h)
The project partners presented reports on the results of their activities, results and
challenges. Dr Hai of FSI presented a report on his and Dr Kha’s Macadamia research
ranging over 6 years and 6 provinces of Vietnam. (Annex2i&&2i2)

Dang thi thuy Thao of WASI presented a brief report prepared by Tran Vinh of their
trials at the workshop and have continued to work collaboratively with the project
team. (Annex 2j)
The visiting Chinese delegation represented by Dr Chen presented a comprehensive
report on R&D in Quangxi China. (Annex 3) The presentation focused on a trial of 8
varieties examining quality and yield of NIS. This was followed by a pictorial
presentation of nursery practice which stimulated a debate focusing on the variations
between practices in China, Australia and Vietnam. The field sites visit provided an
opportunity for participants to demonstrate and further debate their various practices.
The project is now working with organizations that are undertaking 16 Macadamia
trials. There are the 3 principal Varietal trials at Lang son, Ba vi and Yen Thuy, the 8
FSI trials and the 6 WASI trials. On top of that there is the ThaiBinh Foods planting
about to commence and the 8+ trials in China. (Annex 2f)
4. Introduction & Background
The following are the project objectives:

Objective 1 - Bring all the stakeholders together to work toward a sustainable high
value Macadamia industry for Vietnam.
Follow up meetings to the preliminary meetings held in the first 6 months of the
project were held again in Vietnam and Australia with Collaborators. A project
Training Workshop was held in Lang son involving 44 participants including a 3
member delegation from China, representatives of all the project partners, stakeholder
representatives of government, private companies and NGOs. The Australian team
visited 2 existing nurseries and trial sites at which participatory training sessions were
conducted. The site of the new nursery and trail site was also visited and assessed
while at the same time meeting village heads and involved farmers and workers.

Objective 2 - Strengthen the capacity of 3 existing nurseries.

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Training sessions were delivered at 3 nursery along with additional scion wood,
samples of nursery equipment and demonstration DVD’s and CD’s. (Annex 2c) FSI
nursery was also visited and scion wood and information delivered. Unfortunately Ba
Vi was unable to be visited this time however the director and staff were present at the
Lang son Training workshop and nurseries and participated in the training sessions
there.

Objective 3 - Establish a new model nursery to demonstrate Australian nursery
practice in order to provide opportunity for investment and to ensure adequate supply
of stock.

The new nursery site was visited and accessed. Significant progress had been made
towards implementing the design plans. The nursery has already propagated over
6000 macadamia nut seedlings which have now been potted up and housed in the new
shaded area.

Objective 4 - Trial at least 10 varieties of Macadamia in 3 difference provinces Ba vi,
Hoa Binh and Lang son of Vietnam.

Additional Australian scion wood was delivered to all 3 existing nurseries and FSI
including the following varieties: 246, 344, 741, 814, 816, 842, 849, A4, A16 and
A38. A further 4 Chinese varieties including OC, 695, 788, Guy Yen 1 They are
being grown in the existing nurseries for using in the trials. This is the 4th time that
Scion wood from Australia was delivering to the nurseries. Two lots have been
delivered as a part of the project this year and two lots were delivered as a lead up to
the project in 2004 and 2005. This has ensured enough grafted trees for the 3 principal
trial plots and additional for the other trial plots and for interested farmers.

Objective 5 - Undertake a fact finding study tour of South China. 10-12 key project

participants, including trainers and researchers.

The final reports, one from the Vietnamese team leader and an English version from
the Australian Team leader, on the successful Macadamia Study Tour Of China,
which took place in March/ April of 2006 was delivered to all participants of the Lang
son Training workshop. Copies will be provided with this report. (Annex 3) A Video
DVD and Photo CD were also provided to the participants and further copies are
available from CETD.

Objective 6 - Assess Macadamia developments in Thailand. Project leaders undertake
the assessment.

The visit was scheduled to precede the October Australian team visit to Vietnam;
however the coup in Thailand and an International Horticultural Festival at Chiang
Mai forced the project visit to be deferred to some time in 2007. The Australian team
leader undertook a preliminary visit, while passing through Bangkok, to lay the
ground-work for the rescheduled visit. This resulted in contacts being re-established
and the project team being welcome to make the planned visit.


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Objective 7 - Undertake participatory training for technicians, extension officers,
nursery staff and workers, farmers and farm workers.

The second lot of sessions were completed during the second Australian Team visit in
October as planned. This included the Training Workshop in Lang son and specific
hands on sessions at 2 nurseries at Lang son and Trang Dinh, also the new nursery at
Yen Thuy nurseries. At the Lang son Training Workshop in addition to the 44
participants including key technicians and extension staff, additional farmers and
workers attended the 2 field site training visits.

Objective 8 - Support the formalisation of a Macadamia industry network based on
the successful Australian model (AMS) and other models in Vietnam and elsewhere.

A formal presentation relating to the role of the AMS was made by Kim Wilson (Vice
President AMS) to Stakeholders and members of the Macca Club at the Hanoi
Introductory Training session in March /April this year. Following this it was thought
that the evolution of the network would be based around the Macca Club and those
involved in this project. Most stakeholders support the idea of a Vietnam Macadamia
Society or the like, however a number of stakeholders have expressed concern that the
Macca Club was not representative enough to evolve into a broad based peak industry
body. More consultation will need to take place with all the stakeholders before a
network can be formalised. It has been left to the stakeholders to come up with ideas
to be reviewed at the next Australian team visit in March 2007.

Objective 9 - Assist and share information, experience and data with existing
Macadamia researchers in Vietnam in particular with FSI and Dr Kha.

The FSI Nursery was visited by the Australian Team and Vietnam Team Leader.
Further meetings were held with Dr Kha , Dr Thinh and Dr Hai. The Role of FSI in
sharing data, receiving scion wood, seed and samples of equipment and taking part in
Training sessions is agreed upon in general. Additional specific activities are to be
reviewed by leading FSI participants and project leaders as the project progresses. FSI
has requested scion-wood of varieties which they do not have and other than that
identified for the trials. An attempt to accommodate this request will be made during
the next 2-3 deliveries.

In addition WASI, RIFV, ThaiBinh Foods and others are exchanging information and
experience with the project team and each other.

Objective 10 - Collect data from existing and new trial plots and nurseries and
undertake evaluation and analysis.

At the Lang son Training Workshop presentations provided information by the
existing nursery staff and in particular with FSI, based on collected data, to date, of
propagation and grafting of seed and scion, much of which was delivered by the
Australian team over the past 2 years and during the March /April 06 visit. They also
based on seed and scion wood sourced from China during this time.

Some information has been obtained from existing nurseries and growers on plant
survival, growth and early yield. Some of this information was gathered from China

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also. The preliminary analysis of the selection of the 4 Chinese varieties, (OC, 695,
788, QN 1) for the trials has been commended by the visiting Chinese delegation.

Data limited because of the recent commencement of most of the trials and nursery
activities. Much of the baseline data is now record however some organizations are
yet to finalise their reports. However some attempt at analysis is being made and will
be presented as a first part of the 3
rd
Milestone report to be delivered shortly.

Some Data from the 3 project trial plots should be available towards the end of next
year which will add to this process.

Objective 11 - Inform stakeholders and others and promote the objectives of the
project specifically and the benefits of a Macadamia industry generally.

All known stakeholders (44 representatives) were invited to the Lang son Training

Workshop at which project objectives and benefits of a Macadamia Industry in
Vietnam were further presented and openly debated.

A number of participants expressed their need for further financial support beyond the
scope of the project budget. This included Lang son and Ba vi staff requesting further
funds for their trial plots.

Also the need to provide funds was raised, for smallholders together with agencies in
3 other provinces to undertake pilot plantings and some basic nursery propagation of
Macadamia varieties in these provinces. Some preliminary project visits based on the
original larger Project Proposal had raised interest in these and other provinces adding
to these requests. A number of suggestions have been made that the project needs to
link more closely to commercial interests. The project team agrees however this
would require further support from CARD. (Annex1)

The first Newsletter is being finalised relating to project development to date. It was
decided to delay its release awaiting more detail from project participants. It will be
distributed amongst all the known stakeholders and collaborators in the first half of
2007.

Objective 12 - Strengthen extension capacity by linking it to research and the
practitioners.

Extension and technical staff from all participating agencies and companies attended
the Lang son Training Workshop and took part in the interactive presentations which
included researchers and practitioners from China, Vietnam and Australia.

The project work of this year has provided a good start to strengthening the capacity
of technician and extension personnel of the fledgling Macadamia industry of
Vietnam.

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5. Progress to Date
5.1 Implementation Highlights
The Lang son Training Workshop was the project highlight of the past six months.
The effort and ability of the Vietnamese team leader and the CETD staff in planning
then implementing the activities necessary to ensure a comprehensive program and
presentations and gain good participation by all know stakeholders was outstanding
and is a great asset of the project.

The presentations by all were of a high standard and facilitated broad participation. It
was particularly encouraging to see technicians and extension staffs provide
informative reports and demonstrate their keenness by a high level of involvement in
all sessions both at the workshop and in the field. There was a notable difference in
this regard when compared to the involvement during the Introductory Training
Session held in Hanoi earlier in the year. Considering the limited experience and
exposure to the Macadamia industry it is to their credit that they are responding so
effectively.

The workshop was held in an atmosphere of openness which allowed participants to
raise issues of concern, including the need for increased support for the trials, the need
to undertake more pilot plantings in other provinces, the need to improve the quality
of the seed and scion wood and the desire to involve more smaller farmers as well as
to link more strongly to bigger commercial interests. Ways of addressing these issues
were debated and are being implemented.

Beyond the workshop it was encouraging to see progress in the nurseries and trial
sites. Most of the information and techniques delivered in previous sessions and visits
were being tried, including grafting techniques and equipment, propagation

techniques, potting mixes and fertilizer regimes.

The progress at the new nursery, accords with design plans and exceeds expectation
of the Australian team. It is already demonstrating techniques that the other nurseries
have as yet not taken up. Examples of this include seed germination in well drained
sand, potting mixes using much less soil and more sand and organic matter, larger
potting bags, a lighter shade cloth and the use of plastic and gravel underlay for the
potting bags.

New nursery is using the people from local community, to build the new nursery, land
preparation, 6 workers for propagation, preparation of potting mix, and maintenance.
The Long Phuong Company has also successfully submitted a proposal to the Sweden
Environment Fund (SEF) focusing on “the village environment". The Project
objectives includes helping 20 households, by building, Eco toilets, planting high
quality grass in home-gardens, building 2 water wells to provide clean water and
organized 4 Training Courses on Environment protection to all the local village
people. The project has developed successfully to date and complements the
Macadamia project.

It was encouraging to see the progress of FSI research in Macadamia presented at the
Training workshop. Clearly FSI is the principle Macadamia research body

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underpinning the projects role as well as some of the other private developments.
They are using a comprehensive range of genetic material including from Australia:
Daddow, 246, 294, 344, 816,849, 856, 741 and NG8 and 2 varieties from China I are
OC and A800. Also trees grafted from original trees planted in Ba Vi in 1994
including: MC1, MC2, MC3, MC4, MC5, MC6, MC7, MC8, MC9, MC10, MC11,
ĐC1 (trees planted from Australian seed), ĐC2 (trees planted from seed in Ba Vi) and
ĐC3 (Cutting trees in Ba Vi). (Annex 2i & 2i2)

5.2 Smallholder Benefits
The Long Phuong Co. at Yen Thuy is very active in involving farmers in the new
macadamia nursery, the trial plot and other aspects of development. The district
government is helpful and hopes to see benefits to flow to other villages and will
assist in this and other respects. In addition to the work and training the villages are
receiving 20 new toilets and new stoves have been provided by the company. A new
well has been dug and the children of the village are being encouraged to take an
interest in the project and all these other activities.

It is the aim of the project to see this model repeated in other provinces. A seeding of
this process needs to be undertaken by way of small pilot plantings to introduce
district agency offices and local farmers in other provinces to the potential of
macadamia plantations. (Annex1)

The work of FSI provides a good scientific base to such pilot plantings. FSI has trials
in 7 provinces including Ba Vi (Ha Tay province) with area of 2.0 ha, Uong Bi
(Quang Ninh province) of 1.0 ha, Dong Hoi (Quang Binh province) of 1.0 ha, Krong
Nang (Dak Lak) of 1.0 ha, Mai Son (Son La province) of 1.0 ha, Dai Lai (Vinh Phuc
province) of 1.0 ha and Dak Plao (Dak Nong province) of 1.0 ha.
5.3 Capacity Building
Significant capacity building is being achieved via the project training and
information delivery (based on Vietnamese and Australian experience) as well as the
3 principal project trials being undertaken, mentioned earlier and below in the log
frames. In addition, again the work of FSI as well as that of other Macadamia
initiatives, including that of WASI and Thiabinh Foods, are being incorporated into
the training workshops of the project. This is further complimented by material and
information from China.

The Lang son Training workshop, as well as the other field site training undertaken
during this period, provided an encouraging view of the growing skills and knowledge

bases amongst all of the stakeholders, in particular that of the technicians and
extension staff.

It would be expedient if training workshops were delivered to a larger number of
participants. Delivery could accommodate double that of the present numbers without
becoming less effective. However, for this to be achieved, the present budget would
have to be increased with regard to training and extension. The proposed expansion
towards more commercial activities including small pilot plantings involving new
small farmers to the project as well as stronger links to commercial activities such as
processing and marketing would compliment and assist this proposed expanded

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capacity building. This would require an additional expansion to the existing project
budget. Annex 1 provides more detail in both these regards.

5.4 Publicity
The Lang son Training Workshop was given good TV coverage which included
several interviews relating to the potential of growing macadamias in the region.

Nurseries have promoted their role in growing macadamias through their own
networks, with enquiries increasing.

Many farmers, agency staff, business groups and others have visited the 3 existing
nurseries and the 3 trial sites to learn about Macadamia.

The first Newsletter is to be published in the first half of 2007.

5.5 Project Management
Management activities in Vietnam and Australia have continued along the lines of the
first 6 months This has included oversight of implementation at nurseries and trial

sites, extension work, translation of documents, arrangement of ongoing meetings,
responses to design issues, purchasing of equipment, editing and further provision of
information documents and video. Also further ongoing communication relating to the
preparation of trial sites and nursery development between participants and
collaborators, has been undertaken.

6. Report on Cross-Cutting Issues
6.1 Environment

So far there are no evident negative environmental impacts. As the project develops
participants are expected to monitor and report on any environmental impacts.

FSI has the longest history of research into macadamia in Vietnam. So far they have
not found any significant problems relating to the impact on the environment.

A more comprehensive study into environment issue will be undertaken in the
following year as activities develop across the provinces.
6.2 Gender and Social Issues
As stated in the first report approximately a half of technicians and workers in the
nurseries are women. They play an equal role to that of the men both in terms of work
and capacity building.


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A female staff of CETD was the principal organizer of the Lang son Training
Workshop and she was given high commendation from the participants and project
leaders for her successful work.

A new female translator, Dieu Thuy Dang, has been assigned to undertake English
translations of research and progress reports including that of FSI.

The project leaders continue to encourage participating organizations to utilize the
role of woman, on their staff in the project.


7. Implementation & Sustainability Issues
7.1 Issues and Constraints

In the approval project document, with regard to the budget for the principal trials,
there is support only for the seed, scion wood, sample equipment, training and
information.
All 3 organizations that are responsible for these trials have requested more funds to
help implement their trial plots. These additional funds have not been budgeted for
since the seed and scion wood, equipment, training and information were considered
and agreed upon as adequate support for their involvement. Both these organizations
will gain significant commercial advantage from the projects support. It is the opinion
of the team leaders that if they are to gain further support them will need to
significantly enhance the project by involving more smallholder farmers, poor
workers and female staff to comply with CARD objectives. This could be a part of the
proposed project expansion. (Annex1)

Both these organizations have now received information, seed and scion wood for the
past 3 years as a part of the lead-up to the project and this year as a part of the project
itself. This places them at a competitive advantage within the developing Macadamia
industry in Vietnam and it was thought this would compensate them for any up-front
costs. If CARD supports the proposed expansion of the project then they will be in a
position to gain further support providing they reciprocate as outlined above.

It is difficult to for the project budget to in any way cover this proposed expansion.
Implementing the project is already putting a strain on the budget in a number of areas

because of cost rises in a number of budget categories, including training, travel &
accommodation. Also the Project Leaders are finding it necessary to contribute more
of their time than planned. To date this has been covered by an increase to the
Australian contribution but perhaps additional CARD funds maybe able to contribute
also.

7.2 Options
If further CARD funding is not available then support could be sort from the
participating agencies and private companies. However apart from the fact that this is

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not very likely, this would not enable the incentive to involve more smallholder
farmers and would limit the ability of the project team to select a wider spread of
locations.
7.3 Sustainability
It is the opinion of the project team that the progress made by the project to date
increases the sustainability of the newly developing macadamia industry in Vietnam.
There is a growing confidence amongst the participants both at the government level
as well as the private sector.

The project has also contributed directly towards this confidence by being on hand to
provide training and information and indirectly by bring the participant together
facilitating exchange of skills and experience as well as strengthening the industry
network.

The project has provided training, information, stock and sample equipment which
now acts as a significant contribution to the foundation to the industry.

8. Next Critical Steps
As a result of seed and scion-wood supplied by the project, over the next 6 month

period the existing nurseries should be in a position to gain some cash-flow by way of
sale of grafted Macadamia to farmers and others.

The new nursery should have trained some of the villagers in propagation and grafting
technology.

The trial plots should all be completed and data collection should be underway some
early assessment should be available to all project participants and others.

Extension officers should be in a position to provide information and demonstrate
skills and equipment to interested farmers and others.

More training will be carried out in an interactive way and building on past delivery
and implementation.

The project team will continue to encourage participants to formalise their existing
network into a society or association based on the AMS as a model.

Hopefully CARD will support the proposal to expand the project to further link to
commercial interests and involve more farmers as mentioned earlier and detailed in
Annex 1. If this occurs then the activities will commence to implement this expansion
during this 6 month period.


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9. Conclusion
The first year of the project has been completed successfully with virtually all planned
activities implemented on time.

Generally participants have benefited significantly. The request for an expansion of

the project to provide more assistance for the trials and reach more farmers that is
seen in a positive light, by the project leaders. It is hoped CARD is able to
accommodate this request by providing additional financial support as outlined in the
Annex 1 resulting in a significant increase in the effectiveness of the project. In
addition the unexpected increased costs and time allocation may need to be alleviated
by a further CARD contribution.




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