Tóm tắt Luận án Enhanced value added solutions for pineapple product contributing to increase income for poor households in Tien Giang province

is calculated based on the following formula: Volume sales of the i th stakeholder % distribution of stakeholder A to output the i th stakeholder = x 100% Total volume inputs of stakeholder A ** The corresponding proportion of the value chain is the rate (%) of the pineapple flow that is consumed through the stakeholders which is calculated based on the total proportion of pineapple input from previous stakeholders (except households) which has a weight is a percentage of each product sold stakeholders. For example: % pineapple flow of traders sold to pineapple granary = 4.2.2. The key channels in the value chain of pineapple products Overall, the pineapple value chain in Tien Giang is operated through many market channels. However, there are 5 major market channels transporting the volume of products which generated high value added for the whole chain. The remaining channels were mainly intermediate channels or there was product flow passing very little. In the fifth primary market channel, channel 1, channel 2 and channel 3 had an important role, consumed large quantities of fresh pineapple production in the domestic market. While, channel 4 and channel 5 created products as processed pineapples and exports. Channel 1 (households => long-distance traders => wholesalers in level 2 => retailers => domestic customers). Channel 1 consumed the most pineapple products of whole chain. Most households sold pineapples to long – distance traders (accounting for 71.44%). Then long - distance traders shipped pineapples to the wholesale market in Ho Chi Minh City (Hoc Mon and Binh Dien market ...). There, pineapples were distributed for wholesalers in level 2 who came from the districts of HCMC or from the south eastern provinces by long distance traders (representing 0.28% Quyet Thang (winning decision) cooperation Extension system Department of rural development Department of science and technology Research institute of southern fruit Credit institutions (Bank for social policies, Bank for agriculture and rural development Investment and trade promotion center Source: Survey data, 2014 Figure 4.1: Diagram of the pineapple value chain in Tien Giang Input Collector Consuming Processing Trading Labor market (renting labor) Agricultural supplies dealer Seeding production base Househo ld 10.95% 0.11% 71.44% 17.22% 0 .0 7 % 0 .0 3 % Long-distance trader Loacal trader Pineapple granary 0.01% 13.14% 11.49% 46.88% Business 10.87% 0.11% Wholesa ler in level 1 9.02% 28.71% 1.85% 65.62% 5.67% 50.23% Dosmestic consumer Retailer Wholes aler in level 2 European, Korean, Japanese consumers 100 11.027.27 x Production 13 46.88%). Wholesalers in level 2 continued to distribute products to retailers at the “satellite markets” around. Channel 2 (households => long-distance traders => retailers => domestic consumers). After harvesting, the pineapple volume of households was sold to long – distance traders (accounting for 71.44%). Long distance traders not only sold to wholesalers in level 2, they but also sold directly to retailers (mainly retailers in Ho Chi Minh City). The amount of long distance traders sold directly to retailers accounted for 13.14% of the total of chain. The retailers would then distribute pineapples to consumers (at the market, street vendors, and trolleys). Channel 3 (households => pineapple granary => wholesalers in level 1 => wholesalers in level 2 => retailers => domestic customers). Through surveying, approximately 10.95% of the pineapple output was sold to the pineapple granary. These pineapple granary focused on some communes of Tan Phuoc district (Hung Thanh, My Phuoc and Tan Lap 2). The pineapple granary could buy pineapples at the farm or farmers could also take the pineapple to pineapple granary. The pineapple granary was built near river or roads to facilitate for big means of transportation (trucks, boats). Then pineapples were distributed to wholesalers in level 1 (representing 10.87%) to get price fluctuation. Wholesalers in level 1 had transports with large capacity to buy pineapple pineapple granary. Then they sold pineapples to wholesalers in level 2 (accounting for 9.02%) at their business place, wholesalers in level 2 continued to distribute to retailers. Channel 4 (households => long-distance traders => businesses => exports). Similar to channel 1 and channel 2, traders bought pineapples with high volumes from farmers. However; there was a difference of product rank from channel 4. It meant that after collecting the pineapple from farmers, traders classified pineapples into many different kinds. If most of pineapples were type 1, traders would transport to wholesale markets in Ho Chi Minh City, the products were type 2 and type 3 were moved to the processing businesses for consumption (accounting for 11.49%). Sometimes, if pineapple was low quality (small, ugly shape), long-distance traders would make a bulk purchase pineapple without classifying. Channel 5 (households => businesses => exports). Households not only sold pineapple to pineapple granary and traders; they but also sold directly to processing enterprises. Volume of pineapples were sold by households to processing enterprises accounted for 17.22% the total output of the whole chain. When selling pineapples for processing enterprises, farmers could sell the pineapple with many different levels (due to businesses were not fussy fruit size). After the collecting, the enterprises would process pineapple products (canned, frozen, solid) exported to different markets such as the EU, South Korea, Japan and so on. 4.2.3. The value added and net value added of stakeholders in the key channels of the value chain In the primary channels of pineapple product, each stakeholder would like to generate VAT and regain different net VAT. Table 4.5 indicated the VAT and net VAT of stakeholders in the major market channels of the pineapple value chain. 14 Table 4.5: The value added and net value added of stakeholders in the major of the pineapple value chain Unit: VND/kg Items Households Pineapple granary Traders Wholesalers in level 1 Wholesalers in level 2 Businesses Retailers Channel 1: households => long - distance traders => wholesalers in level 2 => retailers => domestic customers Selling price (1) 5,130.93 6,952.62 9,589.33 11,632.28 Intermediate cost (2) 630.97 5,130.93 6,952.62 9,589.33 Value added (3) 4,499.96 1,821.69 2,636.71 2,042.95 Additional cost (4) 1,419.25 548.36 585.07 325.74 Net value added (5) 3,080.71 1,273.33 2,051.64 1,717.21 % net value added (6) 37.93 15.68 25.26 21.14 Channel 2: households => long-distance traders => retailers => domestic customers Selling price (1) 5,130.93 6,677.70 9,238.80 Intermediate cost (2) 630.97 5,130.93 6,677.70 Value added (3) 4,499.96 1,546.77 2,561.10 Additional cost (4) 1,419.25 548.36 665.74 Net value added (5) 3,080.71 998.41 1,895.36 % net value added (6) 51.56 16.71 31.72 Channels 3: households => pineapple granary => wholesalers in level 1 => wholesalers in level 2 => retailers => domestic customers Selling price (1) 5,306.87 6,040.17 6,945.76 9,589.33 11,632.28 Intermediate cost (2) 630.97 5,306.87 6,040.17 6,945.76 9,589.33 Value added (3) 4,675.90 733.30 905.59 2,643.57 2,042.95 Additional cost (4) 1,419.25 359.56 464.14 685.07 325.74 Net value added (5) 3,256.65 373.74 441.45 1,958.50 1,717.21 % net value added (6) 42.03 4.82 5.70 25.28 22.16 Channel 4: households => long-distance traders => businesses => exports (customers) (*) Selling price (1) 5,130.93 5,530.00 9,344.25 Intermediate cost (2) 630.97 5,130.93 7,676.69(**) Value added (3) 4,499.96 399.07 1,667.56 Additional cost (4) 1,419.25 267.02 1,325.83 Net value added (5) 3,080.71 132.05 341.73 % net value added (6) 86.67 3.72 9.61 Channel 5: households => businesses => exports (customers) (*) Selling price (1) 5,050.00 9,344.25 Intermediate cost (2) 630.97 7,196.69(**) Value added (3) 4,419.03 2,147.56 Additional cost (4) 1,419.25 1,625.83 Net value added (5) 2,999.78 521.73 % net value added (6) 85.18 14.82 Source: Survey data, 2014 Note: (3) = (1) – (2); (5) = (3) – (4); (6) = (5)/𝛴𝑛𝑒𝑡𝑉𝐴𝑇 (*)Channel of low rank consumption was higher than others. (**)IIncluding material cost (buying pricef) and additives to processed pineapple products Households: Households were an actor playing production role which created the first value added for the pineapple in the value chain. VAT due to households produced in the market channel was quite high, ranging from 4,419.03 to 4,675.90 VND/kg. Channel 3 (sold to pineapple pineapple granary) was a channel which created the highest VAT. This was the reason that farmers received the highest net VAT as 3,256.65 VND/kg. At channel 4 and channel 5, farmers created VAT and regained lower net VAT than channels 1, 2, 3 because the pineapples of two channels which mostly brought the low level were suitable for processing enterprises. When considering the percentage of net VAT distribution in market channels, farmers were always the stakeholder received the highest net VAT distribution, ranging from 34.35% to 86.67%. 15 Pineapple granary: was one of the intermediate stakeholders transporting the quite volume of whole chain. In channel 3, this actor created value added as 733.3 VND/kg and received 373.74 VND/kg net VAT, while the distribution of net VAT of pineapple granary was 4.82%. The reasons that net VAT and the percentage of net VAT distribution of pineapple granary were quite low due to specific activities of the pineapple pineapple granary which only especially transported the product to get price fluctuation at the time of business. Long-distance traders: this was a stakeholder which presented at most of channels of value chain. Long-distance traders brought pineapples to many markets and distributed them to next actors in the value chain. The range of VAT which traders created in the channel as from 399.07 to 1821.69 VND/kg; corresponding to net VA, traders regained from 132.05 to 1273.33 VND/ kg pineapples. If calculated per unit of product, channel 1 was a channel that long distance traders created the highest value added and got the most net VAT. Channel 4 was a channel which consumed the pineapple kinds of low rank, so this also created the lowest value-added channel for long-distance traders. The rate of net VAT distribution at channel 1 and channel 2 of long-distance traders was about 16.0%. While at Channel 4, long-distance traders only got net VAT distribution as 3.72%. Wholesalers in level 1: A commercial actor played an important role in the channel 3, wholesaler in level 1 collected pineapple from pineapple granary and distributed them to the wholesalers in level 2. In this channel, wholesalers in level 1 generated VAT as 905.59VND/ kg and received about net VAT as 441.46 VND/ kg. Correspondingly, the proportion of net VAt distribution of wholesalers in level 1 received at the channel as 5.7%. Wholesalers in level 2: as agent’s next long-distance traders and wholesalers in level 1 and wholesalers in level 2 were also a significant role in distribution activities towards pineapples to the domestic markets. At channel 1 and channel 3, wholesalers in level 2 generated VAT respectively 2,636.71 VND/kg and 2,643.57VND/kg and regained net VAT as 2,051.64VND/kg and 1,958.50 VND/kg. When considering the percentage of net VAT distribution in market channels, wholesalers in level 2 was an actor which received high net VAT distribution (after farmers producing pineapples), equivalent to 25.0%. Processing enterprises: At channel 4 and channel 5, the enterprises were actors contributing to increase the additional value for the pineapples through processing operations and exports. At Channel 4, the value added created by businesses calculated per unit’s products as 1,667.56 VND/kg and received net VAT as 341.73 VND/ kg, the percentage of net VAT distribution of business in this channel was 9.61%. While at channel 5, businesses generated VAT as 2,147.56 / kg and received about net VAT as 521.73 VND/kg and the proportion of net VAT distribution of business received 14.82%. Thus, collecting pineapples from farmers helped businesses create the value added and get the net VAT better. Retailers: In the domestic market, retailers were actors that could bring fresh pineapples to consumers. In the market channels, VAT created ranges from 2,042.95 to 2,561.10 VND/kg and received net VAT respectively from 1,717.21 to 1,895.36 VND/kg pineapples. In particular, channel 2 was a channel that retailers generated the 16 highest added value and get the most net VAT. Correspondingly, the proportion of net VAT distribution also was the highest with a value of 31.72%. This suggested that, if reduced commercial intermediaries, retailers would increase profitability and improve the rate of profit distribution. 4.2.4. The net value added and allocation of the net value added of the poor and non-poor in the key channels In each market channel of the pineapple value chain, the poor and non-poor households received net VAT and the percentage of net VAT distribution were very different. The difference of net VAT and the rate of allocation between 2 groups were shown in Table 4.6 below. Table 4.6: Net value added and Net value added distribution of the poor and non-poor in the pineapple value chain Unit: VND/kg The key market channels Poor households Non-poor households VAT (VND) Net VAT(VND) The proportion of distribution (%) VAT (VND) Net VAT(VND) The proportion of distribution (%) Channel 1 4,233.75 2,582.36 32.04 4,732.49 3,490.96 40.87 Channel 2 4,233.75 2,582.36 29.70 4,732.49 3,490.96 38.04 Channel 3 4,170.89 2,519.50 32.37 4,832.29 3,590.76 43.34 Channel 4 4,300.40 2,649.01 80.73 4,689.88 3,448.35 84.05 Channel 5 4,219.38 2,567.99 79.06 4,609.03 3,367.50 89.26 Source: Survey data, 2014 In channel 1 and channel 2, the poor received 2,582.36 VND/ kg when they sold pineapples for long-distance traders. Although net VAT of poor households received as the same as for selling long-distance traders in channel 1 and channel 2 , the percentage of net VAT distribution that poor households received was different from the market channel 1 (32.04%) market and channel 2 (29.7%). Net VAT of poor households in the channel 3 when sold to pineapple granary as 2,519.5 VND/ kg, this value was lower than the channel 1 and channel 2, but the percentage of net VAT distribution of the channel was higher than both channel 1 and channel 2, the ratio was 32.37%. In market channels 4 and 5 (channel of export market), poor households received VAT equivalent to channel 1, 2 and 3, however, the percentage of net VAT distribution was received which was highest (from 79.06 % to 80.73%). Thus, the the Net VAT of channel export market improved, the poor would receive as much net VAT distribution. Compared net VAT and he rate of net VAT distribution between the non-was always higher than than the poor. The difference of net VAT between non-poor was higher than the poor around 1,000 VND/ kg and net VAT distribution rate equivalent to 10% in almost all market channels. The main reason to make up the difference in VAT and net VAT in pineapple production activities between the poor and non-poor households due to: (i) Input: Due to limited financial human conditions so the poor selected the poor quality inputs as well as farming followed the habitual which didn’t focus on the scientific mode of production. It led to cause waste of inputs and lead to low productivity. (ii) Outputs: Conditions for farming position were less favorable compared to non-poor households, the ability to negotiate lower decision, so the poor have sold products without high price. The cause has made the poor create added value and get net VAT always regained lower than the non-poor. 17 4.2.5. The value added and the value added allocation of actors in the pineapple product value chain Table 4.7 showed that farmer was the actor that created the highest value added with 4,515.67 VND/kg, corresponding to 30.78% of the whole chain. Thanks to the activities of classification, wholesalers in level 2 is the second actor which is the highest value added generated in the value chain, with 2,641.70 VND/kg, corresponding to 18.01% of the total value added of the chain. Local traders created the lowest VAT which was 503.90 VND/kg accounting for only 3.43% of the value added of the chain. With the intermediate costs in the whole chain was higher VAT generated by actors showed that collection, trading and processing of the chain was not really effective, these agents can not raise VAT by measures expanding between input costs and output prices, especially in processing. Table 4.7: The value added and distribution of the value added of actors in the pineapple value chain Unit: VND/kg Items Households Local traders Pineapple granary Long- distance traders Businesses Wholesalers in level 1 Wholsalers in level 2 Retailers Selling price (1) 5,146.64 5,653.90 6,040.17 6,548.82 9,344.25 6,945.76 9,589.33 11,032.28 Intermediate cost (2) 630.97 5,150.00 5,306.45 5,085.27 7,388.69 6,040.17 6,947.63 9,082.24 Value added (3) 4,515.67 503.90 733.72 1,463.54 1,955.56 905.59 2,641.70 1,950.04 % value added (4) 30.78 3.43 5.00 9.98 13.33 6.1 18.01 13.29 Prepaid cost (5) 1,419.25 343.74 359.56 548.36 1,475.83 464.14 635.07 365.74 % prepare cost (6) 25.29 6.13 6.41 9.77 26.30 8.27 11.32 6.52 Net value added (7) 3,096.42 160.16 374.16 915.18 479.73 441.45 2,006.63 1,584.30 % net value added (8) 34.18 1.77 4.13 10.10 5.30 4.87 22.15 17.49 Total costs (9) 2,050.22 5,493.74 5,666.01 5,633.63 8,864.52 6,504.31 7,582.70 9,447.98 Profits/costs (10) 1.51 0.03 0.07 0.16 0.05 0.07 0.26 0.17 Source: Survey data, 2014 Note: (3) = (1) – (2); (4) = (3)/𝛴𝐺𝑇𝐺𝑇; (6) =(5)/𝛴𝐶𝑃𝑇𝑇; (7) = (3) – (5); (8) =(7)/𝛴𝐺𝑇𝐺𝑇𝑇; (9) = (2) + (5); (10) = (7)/(9) In other aspects, the net VAT was generated in the whole chain and net VAT of each actor gained corresponding with production efficiency/business of each actor. Farmers and wholesalers in level 2 were actors got net VAT and there were high production efficiency/business in the chain. Total net VAT of chain was 9,058.03 VND/kg, which the net VAT of households contributing as 3,096.42 VND, accounting for 34.18%. Overall, net VAT of actors got positive. The research results also showed that the actor had high net VAT; output of production/business was low. Therefore; when assessing investment performance, we need to consider two criteria was: capital cycle and actual volume of pineapple. This issue will be discussed at the contents 4.2.6. 4.2.6. Compare investment performance among the actors who involved in the value chain The results of the analysis (the 4.8) showed that, farmers are actors which had profit margin/highest costs, including non-poor households had profit margin/higher cost nearly 2 times the poor. With 1 VND investment costs, poor households generated 1.12 VND profit, while non-poor households generated 1.9 VND. In commercial actors, wholesaler in level 2 was an actor which had profit margin/highest cost. However, in order to assess the exact the efficiency of investment in business/production of each actor, it needed to consider yielding / year and pineapple production volume / transaction in the year of each agent. According to 18 the calculation results (Table 4.8), although farmers were actors that created profit margins / highest cost but recorded only once in the first year of capital. While other actors have some capital cycle times greater than households. Moreover, with the huge volume of transactions, the commercial actors were subjected to effective operation than farmers many times. Table 4.8: investment efficiency of actors involved in the pineapple value chain Objects Profit margin Number of capital cycle/year (1) Volume (ton/year) Rate of return/year (2) Poor households 1.12 1 12.18 1.12 Non-poor households 1.90 1 30.39 1.90 Long-distance traders 0.16 60 2,177.55 9.60 Local traders 0.03 75 1,404.12 2.25 Pineapple granary 0.07 92 2,606.99 6.44 Businesses 0.05 4 17,807.16 0.20 Wholesalers in level 1 0.07 84 2,180.42 5.88 Wholesalers in level 2 0.26 60 113.67 15.60 Retailers 0.17 60 43.56 10.20 Source: Survey data, 2014 (1) number of capital cycle/year = number of operating days in he year /number of days capital cycle (2) rate of return/year = profit margin * number of capital cycle/year 4.2.7. Compare the pineapple value added of the poor and non – poor in the value chain The testing results on the VAT difference between the poor and non-poor households showed that the difference had statistical significance of VAT and net VAT. The VAT of Pineapple product was created larger other by non-poor about 500 VND/kg and net VAT of non-poor households received which was higher than poor households about 1,000 VND/kg. Indeed, a production resource of poor households was limited. Lack of financial advantages makes the poor lose negotiating power when buying inputs. Buying agricultural materials with paying at different times making use of price inputs rise. Lower selling prices with higher production costs, it was the cause to the added value created on the low product and net VAT rregained to be lower. Table 4.9: Compare the pineapple value added of poor households and non-poor households Indicators Unit Poor households Non-poor households The level of significance testing Levene * The level of significance testing t * Selling price VND/kg 4,894.97 5,339.32 0.001 0.000 Intermediate cost VND /kg 672.12 599.47 0.251 0.068 Value added VND /kg 4,222.85 4,739.85 0.040 0.000 Prepaid cost VND /kg 1,651.39 1,241.53 0.365 0.000 Net value added VND /kg 2,571.46 3,498.32 0.073 0.000 Source: Survey data, 2014 *Note: The test results with confidence level 95%, corresponding to the level of significance α=5% 19 4.3. IMPACTS OF THE VALUE ADDDED AND THE VALUE ADDED ALLOCATION OF PINEAPPLE PRODUCT TO HOUSEHOLD’S INCOME In order to understand the extent of the impact of VAT and net VAT of the pineapple product of 2 groups of poor and non-poor households, the results of the sensitivity analysis showed that VAT and net VAT, while increasing the VAT or net VAT by 1%, 5%, 10% or 20%, their income/1000m2 and income/non-poor households were higher the poor. However, there is no discernible effect of the rise in VAT and net VAT that it would make farmers greatly improved. For poor households, the numbers are more increase significantly to more difficult life, more needy. Therefore, solutions to enhance VAT product of pineapples was very important for improving the income of poor households. Table 4:11: The impact of the value added, net value added of pineapple product to income of poor and non-poor households Unit: VND Poor households Value added/kg Go up 1% Go up 5% Go up 10% Go up 15% Go up 20% Income /1000m 2 72,531 362,652 725,304 1,087,955 1,450,607 Income /household 658,842 3,294,211 6,588,421 9,882,632 13,176,842 Net value added/kg Go up 1% Go up 5% Go up 10% Go up 15% Go up 20% Income /1000m 2 44,167 220,833 441,666 662,499 883,332 Income /household 401,195 2,005,974 4,011,948 6,017,922 8,023,897 Non- poor households Value added/kg Go up 1% Go up 5% Go up 10% Go up 15% Go up 20% Income /1000m 2 94,590 472,948 945,897 1,418,845 1,891,793 Income /household 1,895,577 9,477,884 18,955,768 28.433,651 37,911,535 Net value added/kg Go up 1% Go up 5% Go up 10% Go up 15% Go up 20% Income /1000m 2 69,813 349,067 698,133 1,047,199 1,396,266 Income /household 1,399,058 6,995,292 13,990,584 20,985,877 27,981,169 Source: Survey data, 2014 Table 4:12: The impact of the distribution of value added and net value added towards pineapple products to income of poor and non-poor households Unit: VND Poor households %value added Go up 1% Go up 5% Go up 10% Go up 15% Go up 20% Income /1000m 2 112,884 564,418 1,128,837 1,693,255 2,257,674 Income /household 1,059,363 5,296,813 10,593,626 15,890,439 21,187,252 % net value added Go up 1% Go up 5% Go up 10% Go up 15% Go up 20% Income /1000m 2 126,379 631,893 1,263,785 1,895,678 2,527,570 Income /household 1,186,006 5,930,028 11,860,056 17,790.084 23,720,111 Non-poor households %value added Go up 1% Go up 5% Go up 10% Go up 15% Go up 20% Income /1000m 2 161,568 807,842 1,615,684 2,423,526 3,231,368 Income /household 3,242,450 16,212,252 32,424,504 48,636,757 64,849,009 % net value added Go up 1% Go up 5% Go up 10% Go up 15% Go up 20% Income /1000m 2 159,577 797,885 1,595,770 2,393,655 3,191,540 Income /household 3,202,486 16,012,431 32,024,863 48,037,294 64,049,725 Source: Survey data, 2014 In each market channel in the pineapple value chain, farmers would like to receive a different the rate of VAT and the net VAT distributions. The influence of VAT and net VAT distributions to household income, particularly for poor households was very important. According to research results, poor households were getting higher VAT and net VAT by pineapple yield. Besides, selling price of non-poor household was higher than the poor. Therefore, when income increased when the proportion of VAT and net VAT distributions improved of non-poor households were large difference compared to the poor. However, the issue of concern was that if the poor were distributed VAT and net VAT which were higher, 20 it would be significantly increased. From there, the ability to escape poverty will exist more. 4.4. SOLUTIONS FOR ENHANCING THE PINEAPPLE VALUE ADDED IN CONTRIBUTING TO IMPROVE INCOME FOR THE POOR HOUSEHOLD 4.4.1. Solutions for advancing the pineapple value added in contributing to improve income for the poor household Solutions to enhance the value added contributing to improve income for poor households in Tien Giang who have been planting pineapples were proposed based on the scientific basis which was collected from result of situation analysis and PRA session, the solutions are as follows: Table 4:13: Base solution proposals and solutions to enhance the value added products contributed to improve income for poor households N0 Scientific basis Proposed solution 1 The quality of pineapple seeds is significant concern because of unknown origin, affecting the yield and fruit quality Improving the pineapple seed, improving the seed quality, ensuring the same of quality as well as size of goods 2 The waste in the use of inputs, thus reducing the value added, reducing the profitability of pineapple growing households Changing the appropriate of farming practices, adjusting the input element to enhance the added value of products 3 Access to market information is limited, affecting the market efficiency of poor pineapple plantation. Improving the access to market information, access to support programs developed pineapple industry 4 There is limitation in access to technique progress approach, level of approach affects to the production efficiency of the poor Improving the access to technical advances, changing the thinking of production, using of advanced production model 5 The positive impact of equity capital (financial human capabilities) of the poor to productive efficiency, affecting th added value and net value added of the poor. Establishing the credit cooperation, enhancing its financial support for poor households growing pineapples 6 The link between the actors in the value chain remains limited; the output market of the poor is unstable, affecting the development of pineapple industry. Building and implementing the model of links 4 to stabilize the output market for households growing pineapples. Source: Proposed by author Solutions to enhance the pinapple value addded to improve household income for poor households were interpreted in detail as follows: First, improving the pineapple seed, improving the seed quality, ensuring the same of quality as well as size of goods: Quality of seeds has a directly influence on the productivity and quality of pineapple. If there was no provider quality seed, poor households should actively improve pineapple seed following activities: First, the poor should not cultivate pineapple with life cycle too long, time saving stem pineapple should not last more than 3 years. Second, poor households should actively reach out to the grassroots agricultural extension to gain information and assistance 21 process of the projects supported by the the local. Third, the poor need to actively create quality seed under the right guidance and technical processes like incubators. Second, changing the appropriate of farming practices, adjusting the input elements to enhance the added value of products: In short term, when the production resources has not been improved, immediate solution for thouseholds who grow pineapple to save costs and increased profits as reduction of input quantity. The adjustment parameter was presented in the table below: Table 4:14: Proposed Adjusted input factors of the poor Import of inputs Actual using Waste Adjustable inputs (%) Seeds (tree/1000 m 2 ) 2,847.56 83.60 -2.94 fertilizers (kg/1000 m 2 ) 87.80 14.00 -15.95 pesticides (litre/1000 m 2 ) 78.43 32.64 -41.62 Stone gase (kg/1000 m 2 ) 0.57 0.14 -24.56 Fuel (litre/1000 m 2 ) 2.65 0.68 -25.66 Reting labor (day/1000 m 2 ) 2.00 0.18 -9.00 Family labor (day/1000 m 2 ) 12.32 1.71 -13.88 Source: DEA result analysis from survey datat, 2014. Besides, the poor need focus on the quality of the raw material inputs such as fertilizers, pesticides and so on. That was a decrease quantity, but it had to choose the quality of agricultural materials and conduct a distribution to be reasonable which it can ensure the quality of pineapple. Third, enhancing the access to market information, access to support programs developed pineapple commodity: Accessing to market directly affects the market efficiency of pineapple growing households, the poor need to conduct the following contents to improve access to markets: First, organizing of joint production under crosslinking. If enhanced cross-linking in the form of cooperative groups, the poor will be to share experiences, information and market support policies. Second, poor households should actively participate in mass organizations to collect information, the local policy. Third, actively participate in the training program, to actively capture market information through seminars. Four, improving the access to technical advances, changing the thinking of production, using of advanced production model: In the long term, in order to improve production efficiency, the poor should focus on improving farming techniques pineapple. Research results showed that households accessed to the technical progress that made the difference in productivity and better profitability pineapple plantation. Local extension systems often organized technical training courses on growing pineapples, however due to the poorer households must spend time to earn extra income wage so they had few opportunities to participate. On the other hand, poor households often focused on the immediate benefits, just join the training courses which were encouraged to participate by materials. Therefore, at the individual level, the poor should take the time to accumulate more knowledge production and learn from the experiences of farmer’s good application of the technical process. To the local government, in the organization of training should focus on the elements of time, simultaneously assigning staff with enthusiasm, dedicated to helping the poor. Moreover, the training should be deployed directly in the field of poor households, so that they can receive an active and easier to implement. 22 Fifth, establishing the credit cooperation, enhancing financial support for poor households growing pineapples: To help poor households improve financial advantages as well as its position in the process of buying the inputs in production, particularly agricultural supplies, “credit cooperatives” was the solution that it should be considered and encouraged by local government. Capital should be combined from two sources: support from the state budget through programs of poverty reduction or non- governmental organizations and funds raised from individuals with idle capital. Credit cooperative groups would like to give poor farmers to borrow money to buy inputs at lower interest rates. Credit cooperative groups should be organized, transparented and prior supported for poor households to plant pineapple. Sixth, Building and implementing the model of links 4 to stabilize the output market for households growing pineapples: In model 4 houses, local authorities kept acting as coordinator, hold operations support, devised appropriate policy and resolved to the disputes arising in the implementation process as a leadership, while enabling other members to join a model in the most effective manner. The role of scientists is researching new varieties of high yield, fewer pests, and good growth. Transferring production process which was high quality of pineapples products for poor farmers as well as regularly trained how to organize management of the field, manage cooperative groups. Processing enterprises kept an important role in enhancing the value of products through processing and exporting. Besides, the processing enterprises performed contract-guaranteed outlet for poor households. Poor households growing pineapple was the most important factor in the production model. For the production of poor households were well run, the elements of capital, technology, market must be guaranteed. In this model, special attention to the role of “conductor” of cooperatives in connection 4 houses, cooperatives should demonstrate bridging role between households and markets through the promotion of trade, bridging between scientists and farmers through seminars of technique transfers, a bridge between the state and households in financial assistance, seeding supports and deployed technique progress to pineapple production, the bridge between farmers and enterprises to promote the activities of buying the products. Source: Proposed of author Figure 4.2: Model 4 links unsuring the output market The state Processing enterprises RESEARCHER PINEAPPLE GROWERS  Lacked of capital, information, seeding and science-technology, Cooperatives and group of cooperatives  Managed and arbitrated  Planned material zones  Encouraged to perform good contract by some policies  Opened services  Gave the market information  Had support policies  Provided funding  Gave research projects Technology transfer (New varieties, production processes, organizational management, inforation)  Provided credit and agricultural materials  Supported experts and management  Businessed products  Information  Sponsor 23 4.4.2. Strategics for upgrading the pineapple value chain contributing to enhance the pineapple value added From research results combined with recognition from the PRA session, the bottleneck of the product value chain from production to consuming synthesized following criteria: Source: Synthesized the research results by author, 2014 Figure 4.3: The bottleneck in the pineapple value chain The bottlenecks of the pineapple value chain in Tien Giang were evident that they were apparently showed in analysis of the weaknesses and challenges of the value chain. In addition, the strengths and opportunities were also analyzed, evaluated to establish the basis for the formation of strategic upgrading the value chain which brought practical characteristics. Through SWOT analysis matrix, the strategies to upgrade the value chain contributed to increase VAT for pineapples for was recommended as follows: First, strategics to increase productivity and improve quality Pineapple growers in Tien Giang mainly used substandard varieties which were unknown origin and used many cycle lives. Therefore, there were uneven fruit quality and substandard. To improve quality, increase productivity, farmers should use quality varieties with acknowledgment of source. To do this, the research units: Tien Giang Fruit Research Institute, Center of Agricultural Research in Tien Giang province that strongly need to “take part” in improving more quality seed pineapple. After acquiring quality varieties, the authorities should facilitate the farmers who can have access to seedlings easily and quickly, ensuring that farmers have been wishing, they would like to pineapple quality. Besides, the need for technical guidance to farmers clearly, so they would like to know the appropriate farming techniques and the correct procedure. Particularly for households are going to provide seedlings really which they want to stick with pineapples, they can ask the relevant authorities to certificate or accreditate for seedlings. Doing this can help farmers access quality seedlings and effective in terms of both productivity and quality pineapples. Second, strategics for capacity management, organizing cooperative activities Currently, at the raw material pineapples, there is only Quyet Thang cooperative which is provider that provides the agricultural service, the cooperative do not consumed output products for the households, the management and operation of cooperatives is not effective. Therefore, need to restructure, reorganize cooperatives and enhance cooperative role for pineapple growers. This issue is given to requirements for local authorities to choose leader which is capable professionals, strategic thinking and confidentials for cooperatives and dedication to community interests. Cooperative board of directors should actively improve Input Production Processing Trading Consuming - The poor quality of varieties, be degraded; - The high labor cost; - The impoverished land - The poor farming techniques; - Restriction on the resources; - Restricted access to market information; - The high loss proportion - The backward processing technology; - Less diversified products; - The unstable market - The high loss ratio; - The heterogeneous classification of grade; - The bad link level 24 leadership capacity and market access through the training classes, short-term training, actively enlist assistance from the agricultural sector and effectively mobilize resources from public. Its greatest wish of households is to have stable output markets. Thus, cooperatives are looking for stable output by signing long- term contracts with wholesale markets or supermarkets and processing companies. Simultaneously, Quyet Thang cooperative was equipped processing house, packing which cooperatives should take advantage of the capacity of processing house to raise the VAT for the pineapple. Farmers look for the effect is brought from the cooperative will actively participate in the activities of the cooperatives more, make more dynamic cooperatives. Third, strategics for restructuring of distribution systems, market expansion To the effective distribution system, a restructuring should be conducted. Rearranging the activities of actors as well as reduce some intermediate actors was ineffective. Also, to expand the market, the actors in the value chain need to focus on discovering Southeastern and Central markets. For export market, regardless of the market in Japan, Korea, Taiwan, Russia, EU with processed pineapple products and fruit pineapple with Japan, South Korea, Taiwan. Investment Trade-Tourism Promotion Center - Trade in Tien Giang province and Tien Giang JSC Vegetables are keeping the central role in market expansion strategies. Besides strategic export products traditionally processed pineapple, they need to research way to the preservation of fresh pineapple technology ensure standards for difficult demanding markets like Japan and South Korea. In addition, it should promote the distribution system of fruit pineapple and processed pineapple in modern retailer channels, especially supermarkets and fresh fruit shop. Currently, processed pineapples have not been known by many domestic consumers, so it lead to need to have a strategic distribution extensively processed products to contribute to improve the pineapple Tan Lap brand at in the domestic market. Fourth, strategics for diversification of products made from pineapples There were no many products that made from pineapple in the domestic market. The value added of processed products brings high value, so it should be more focused. Therefore need a strategy for the development of processed products or diversification products from pineapple. First, the processing enterprises should study measures to ensure the supply of raw material to the enterprise in the form of consumption, followed diversifying the products made from pineapple, such like candy pineapple, pineapple cakes, pineapple wine and so on. In parallel, the design of packaging and protect just related to the environment and leave good impression to customers while ensuring low cost is issues that need to be focused on business leaders. Besides, processing enterprises should collaborate with research institutions to improve the quality of processed products, lower product costs, take advantage of by-products to improve investment efficiency. Fifth, strategics for exploiting and enhancing productive resources for farmers With strengths in the production of pineapple growers: the pioneering farmers and confidential with pineapple production processes achieve GAP standards, models packed pineapple processing house gain standards VietGAP in the materials, Strategies need to take advantage of this advantage to face the challenges of the market, especially the fierce competition of the countries in the region. Raise the level of production, the application of advanced manufacturing processes to produce 25 suitable quality products for export to penetrate difficult markets is a very important job at the present. To do that, this strategy must focus on exploiting the available resources of the household, such as proper use of family labor force, combining efficiency between manufacturing experience and advanced production techniques progress (GAPstandards), using performance packed pineapple processing house. Sixth, strategics for upgrading rural infrastructure In order to facilitate for collecting activities towards pineapples are well happened and reduce “transit fees” to people, help farmers to access the market easily, this lead to upgrade rural infrastructure which is very necessary. For the infrastructure has deteriorated which need to upgrade, maintenance such as repairing to roads, bridges and dredging canal. Regularly check water transportation system to promptly detect possible damage and repair plans. Local authorities should encourage public-private partnership schemes (PPP) in the development program of rural infrastructure is crucial in order to enlist the resources of all the actors involved in the value chain as well as the uplifting test, monitor, protect rural infrastructure for the people. Seventh, strategics for improving the market forecasting systems and diseases Aiming to support farmers catch quick information to plan in order to produce timely, it should enhance market forecasts activity. Currently, the market research has not been adequate attention, enhance the market research will help farmers to avoid market risks. Besides, farmers are clearly not aware of the situation of pest insects, so the need to guide farmers to identify pests, pest and how to avoid them. Tien Giang is the largest raw materials in the country, therefore the agricultural sector should coordinate with concerned agencies to implement programs in the mass media market of fruits, particularly pineapples, or the Statistical research on the evolution of market prices in the country, as well as the situation of a pest to farmers who could cope with the risks in the best way. CHAPTER 5: CONCLUSIONS Through the research results, the dissertation has solved these objectives, the key conclusions according to each specific objectives as follows: - The waste of poor households in using of input materials was huge from that leading to resource allocation efficiency and cost efficiency of poor households was quite low. However, the ability to increase the efficiency of scale of poor households who have been growing pineapples was still high. - There are 5 market channels in the pineapple value chain in Tien Giang. The pineapples were primarily sold for long-distance traders by households in these channels. Products pineapple fruit from the households through actors and to consumers accounted for 71.29% of total pineapple productivity that were harvested by households. Most of the actors involved in the value chain were positive in investment efficiency. - Households are actors that generated the highest value added in the pineapple value chain, followed by wholesalers in level 2 and business/enterprises. Depending on market channels that there was difference among actors in the distribution of net value added. However, in most of the major market channels, households planted pineapples 26 who were received the distribution of high net value added in chain, then wholesalers in level 2 and retailers respectively. - In all the criteria of price, value added, net VAT, the rate of VAT and net VAT distributions in the chain and non-poor households are not shown better efficiency so than poorer households. - Value added and net value added were generated from the pineapple that strongly impacted to the income change of households who have been planting pineapples. The proportion of value-added and net value-added distributions positively impacted to income of households growing pineapples in Tien Giang Province. In particular, the influence of the proportion of value-added and net value added distributions to the non- poor households were more the poor. - There are seven strategies to upgrade the pineapple value chain contributed to improve the VAT for pineapples which were proposed as follows: (i) Strategic for increasing productivity and improving the product quality; (ii) Strategic for capacity management, organizing cooperative activities; (iii) Strategic for restructuring of distribution systems, market expansion; (iv) Strategic for diversification of products made from pineapples; (v) Strategic for exploiting and enhancing productive resources for farmers; (vi) Strategic for upgrading rural infrastructure; (vii) Strategic for improving the market forecasting systems and diseases. - There are six measures which were proposed to enhance VAT of pineapple products that contributed to improve the income of poor farmers as follows: (i) Improving the pineapple varieties, improving the seed quality and ensuring the same of quality as well as size of goods; (ii) Changing the appropriate of farming practices, adjusting the input element to enhance the added value of products; (iii) Improving the access to market information, access to support programs developed pineapple industry; (iv) Improving the access to technical advances, changing the thinking of production, using of advanced production model; (v) Establishing the credit cooperation, enhancing its financial support for poor households growing pineapples; (vi) Building and implementing the model of links 4 to stabilize the output market for households growing pineapples. LIST OF PAPERS RELATED TO THESIS 1. Nguyen Quoc Nghi & Mai Van Nam, 2014. Market accessibility of pineapple growing households in Tan Phuoc district, Tien Giang province. Journal of Science, Can Tho University, No 35d, page 24-33. 2. Nguyen Quoc Nghi & Mai Van Nam, 2015. Productive efficiency of pineapple growing households in Tan Phuoc district, Tien Giang province. Journal of Science, Can Tho University, No 36d, page 1-9. 3. Nguyen Quoc Nghi, 2015. Evaluate to economic efficiency of poor household in pineapple cultivation in Tan Phuoc district, Tien Giang province: Approach to profit function estimation of stochastic friontier analysis. Journal of Agriculture and Rural Development, No 6 (2015), page 16-22.