Report Feasibility study organic bitter tea Cao Bang - Helvetas

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ANNEX 2 - NOTES FROM DANIEL V.'s FIELD VISIT Feasibility Study Organic Bitter Tea in Cao Bang: 2007 Meeting with Bitter Tea Company, in Cao Bang on 14.3.07 • The meeting, attended by the director of the company accompanied by some staff was an occasion to review the main findings of the RMA which assessed many difficulties for the bitter tea (BT) from Cao Bang • The BT Company, which is underway to become a joint stock company (Vinatea or Vinatobacco ?) counts on the Helvetas support to: diversify the product, introduce GAP or organic standards, and support for marketing • Mr Nien, one of the pioneers of the Bitter Tea promotion in Cao Bang also attended the meeting • China exported bitter tea some years ago from Cao Bang and started huge export oriented plantations • Bitter Tea became famous abroad via the Chinese marketing and received also an award in New York • The Vietnam Government wanted also to start the promotion of BT and opened a factory in Cao Bang (the BT company under DOST) and with a bitter tea plantation project program (under DOST) • The assessment is that the marketing is a problem and also the production is not well established (too much leave production and not enough buds) • The action plan of the company contains following: Plantation campaign with a density of at least 10,000 tree/ha (now 3000/ha) Higher density, higher bud production (closer plantation and cuttings of the trees) Research on planting material/varieties and launch info campaign among farmers Scientific and commercial promotion of BT on VTV Collaboration with Institutes and Medicine Departments to prove that BT has no negative effect on health and to repeat that BT has very good effects Reduction of bitterness with mixture with another herbal medicinal plant (to be identified and tested) Need more capital (equitisation is underway) Re-organisation of the distribution channel (see RMA report) Develop marketing (design, size, form, etc.) Collaboration with elderly people organisation Knowledge on how to grow organically bitter tea Developing clear technical guidelines for farmer Research and development on bitter tea growing, especially in regard to the use of Effective Micro-organism (EM) • Prices at farm gate: 15,000 VND/kg (buds) and 7,000 VND/kg (leaves) • Support for contracting farmers (95%): 65% of the price for seedlings and 50% for the chemical fertilizer prices • Cost for seedlings is 2362 VND/seedling (normal density is 3000/ha but now recommended should be 10,000 = 2362 x 10,000 = 23.6 millions/ha as initial investment ! • Yield 3-4t/ha (?) • Production accessible for ethnic minorities? Yes (?) How? - 27 -
Feasibility Study Organic Bitter Tea in Cao Bang: 2007 Meeting and visit to Mr. Toan household in Na Giang village, Hoa An districton 15.5.07 • She is harvesting buds in this 3 years old plantation with BT trees at an average high of 150-170 cm. She can harvest during all the year but the production is reduced during the summer (rainy season) because of the attacks of the aphids on the apical leaves • 40-60 kg/week in spring (50 x 10,000 = 500,000 x 4 = 2 millions per month x 10 = 20 millions/year on 4000 m2). Per ha: 2.5 x 20=50 millions/ha (rice in Cao Bang is only 10-12 million/ha) • Harvested leaves must be in the BT Company 24 hours after harvesting (transport!) • Sometimes she brings the leaves to the company sometimes the company picks up the leaves • She is the only in the village who tried BT because the other have not enough land • Before she made tobacco and rice • Capital 19 millions for seedlings (5 million own and rest from company) • No insecticide spraying • NPK (subsidy from BT Company during the first 3 years) plus compost • Income with BT is higher than before • Company pays cash: she made a 5 year contract 2004-2009 • Plantation is for ever. The only labour is to cut the trees and to collect the buds. Wants to keep the contract when is finished and if company still pays • Irrigation 2-3 month a year • For marketing 100% dependent from company. There are no other market issues • Processing is complicated • Does not believe that BT can grow in the forest and on sloping land because it needs irrigation • Harvest during the first 3 year is very low • Replace chemical fertilizer by organic fertilizer is very difficult. She has compost but it’s not enough Visit of bitter tea nursery on 16.5.07 • The nursery is owned by the BT company and is located in Cao Bang town • Production is around 1 million seedlings per year (10’000seddlings /ha =100ha) • The objective of the BT company is to increase the acreage of BT in Cao Bang by 1000ha (need 5 years) • The farmer can grow BT via the participation in the project • Planting material: 35-40 cm 7-8 leaves Planting time is during rainy season (beginning is better) No need for irrigation (???) Nursery uses 2 chemical fertilizer, 1 hormone and 2 pesticide (Fugaran and Trebon) Transplantation rate is high (around 90%) Price is 2362 VND/seedling May is best planting season Farmer pays only 35% (800), not cash but can pay later • The production is concentrated in 4 districts: Nguyen Binh, Hoa An, Thach An & Tra Linh. Comparison between the Cao Bang and China BT origins: the VN grows faster, has red buds (China green), has higher saponin content - 28 -
Page 1: Helvetas Vietnam Swiss Association
Page 4 and 5: Feasibility Study Organic Bitter Te
Page 6 and 7: SUMMARY Feasibility Study Organic B
Page 8 and 9: 1. INTRODUCTION Feasibility Study O
Page 22 and 23: storing organic product must be cle
Page 30 and 31: 7.4. Conclusions Feasibility Study
Page 32: ANNEX 1 - LIST OF PEOPLE INTERVIEWE

Report Feasibility study organic bitter tea Cao Bang - Helvetas

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