Appendixes Pangasius quality standards and smallholders in Vietnam 1

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Pangasius quality standards and smallholders in Vietnam

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Appendix 1: Research report on the fieldwork

On the 18th of May 2007 I arrived at Ho Chin Minh city. After a ride of 5 hours I arrived at Can Tho where I would stay for the next 8 weeks. Here I went to a hotel booked by Khoi across campus nr. 1; where I would be active. In the first days I acclimatized, learned how to count in Vietnames and rented my own motorbike. This document will give an overview of every week of my stay in Vietnam.

On Monday the 21ste of May I participated in a 3 day workshop in Can Tho named: Workshop on the sustainable pangasius aquaculture. I organized participation for his workshop for me and Khoi from the Netherlands. Presentations where given about the current state of the industry in the Mekong Delta. The group consisted out of: experts (fields like: diseases, quality, inport, biology), NAFIQAVED, feed manufactures, WWF, GTZ, etc. The first day presentations were given by the experts. On the second day a fieldtrip was scheduled were we visited: a farm, processing plant, a food factory and a chemical plant. On every location a tour was given with the opportunity to ask detailed questions. The last day a brainstorm session was organized to determined the best direction for the industry. The workshop and Vietnam gave besides all the impressions a huge amount of up to date data.

The next one and a half week I spend writing the new information on paper and making appointments with Binca to investigate their supply chain. I could do this on a very comfortable manner because Khoi organized and the university supplied an air-conditioned room with internet. This together with the workshop gave me a very fast start. In this week I used my newly established network to get in contact with chain members in Vietnam.

In the beginning of the third week the first visit to Long Xuyen was made. Here we (me and Khoi) had an appointment with mr. Antoine Bui. During a three hour interview A. Bui told the ins and outs of the organic farming and the connected quality system. Because I recorded it I could retrieve every detail. We also got a sheet with the farming detail, took a look at the quality assurance documents and got a blueprint of the farm. After a business lunch he gave us a tour around the organic farm where Khoi and I had the opportunity to ask detailed questions. After my trip I switched hotels and went to Spring hote; a hotel with expats. This because the rooms are relatively cheap with good value for money and very friendly people.

The 4th week I participated at the catfish 2007 conference. This is a huge international conference held in Ho Chi Minh city. Together with Khoi we participated in the conference. More then 20 presentations where given about the pangasius sector with subjects from farming, densities and diseases to market excess and by processing by products. This again enabled me to speak to a vast amount of experts e.g. P. Serene (IMO).

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That weekend I went by myself to Chau Doc to visit the cage farms on the river. A boat was rented with a poorly speaking guide to check the cages. This part could only be done by observation due to the poor English of the guide. This was registered by camera. Luckily they were just harvesting so I could see the mixed culture and the sorting process. A wide variety of cages has been seen. Huge houses with huge cages underneath until poor cage farmers with a small house (thus cage) of 2x2 meter surface area.

The 6th week Khoi and I visited AFA in Long Xuyen. Here we discussed the work AFA did, smallholders and the organic possibilities. After this I went alone on a fieldtrip with Nicolas Privet from Ocealis. He works for the feed company and gives the farmers extended services. This consists out of quality advises and disease control. They have a lab to test for bacteria and parasites. He visits farms every day to test and educate. Because of his enormous experience with smallholders I had long interviews with him and participated with during a half a day of work. The day after, I would have visited Binca for the second farm trip. A French student would show me the Binca behind the screens. When the manager got hold of this idea there were suddenly no possibilities to visit the farm. The reason given was they where harvesting and it was to busy to walk around. I know however they had serious problems with paracites and they most likely won’t want an external researcher on the spot.

The last seventh week was the finalization of the fieldwork. Due to the fact that the faculty was closed for exams and the fact we needed permission from the local authorities me and Khoi could not visit a real, poor smallholder. This is off course a bit sad. However, I did observe smaller farms with N. Privet and during my cage fieldtrip in Chau Doc. Finally during my last 2 weeks as a tourist (highlands of Dalat) I saw small farms with many small crops, pangasius was one of the bigger crops on the small farm.

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Appendix 2: Naturland implementation steps

The following steps have to be made for the implementation of the Naturland label, it is a summarized and adapted version (by the author) of the Steps to Organic Aquaculture Certification by Naturland e.V. for the pangasius smallholders.

1. Exchange of information: The first step towards certification is the exchange of information. Naturland provides detailed information about technical and formal aspects of certification. After this a questionnaire has to be filled in. The questionnaire assists in obtaining basic data about the operation, as well as the preconditions and prospects for conversion towards organic aquaculture. 2. Pre-evaluation visit: This is done to get an impression of the situation on site and to discuss the steps towards conversion with all parties involved, setting up the conversion plan. The pre-evaluation is supposed to assist the farm in preparing for the oncoming inspection. This is done by IMO who currently hires P. Serene.

3. Inspection: Naturland will order an inspection of the farm by an independent inspection body (IMO). Before the inspection is scheduled, a cost estimation will be issued by the inspection body. Naturland is cooperating with a qualified inspection body from Thailand.

A thorough inventory of the operation will be carried out, covering all aspects of farm management, input materials, documentation, harvest, processing, and export. According to size and complexity of operation, inspection will take one to several days. The inspector will issue a report to Naturland with recommendations regarding certification.

4. Certification: The inspection report, together with further data and information, is forwarded to the Naturland Certification Committee. The certification committee then decides on the admission and certification of new farms as Naturland members. It also decides on the annual renewal of certification. This is finally communicated to the farm by the certification letter, containing the conditions the certification is subjected to.

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Appendix 3: Farming documentation of Binca (1st pond, 2nd pen)

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Pangasius quality standards and smallholders in Vietnam 8 estimated nr. fish in pond mortality rate (copy)

perc. Fish died (in pond) total feed living fish [kg] lost feed dead fish [kg]

total feed lost dead fish [kg] 182.208 317 0,174% 0 0 0 181.891 1.014 0,557% 0 0 0 180.877 2.300 1,272% 40,0 0,5 0,5 178.577 2.341 1,311% 399,5 5,2 5,7 176.236 2.242 1,272% 734,3 9,3 15,1 173.994 2.702 1,553% 1164,9 18,1 33,2 171.292 3.614 2,110% 1546,8 32,6 65,8 167.678 4.994 2,978% 1514,2 45,1 110,9 162.684 4.648 2,857% 1769,1 50,5 161,5 158.036 3.245 2,053% 2018,5 41,4 202,9 154.791 2.871 1,855% 2297,1 42,6 245,5 151.920 2.652 1,746% 2554,5 44,6 290,1 149.268 2.377 1,592% 2909,9 46,3 336,4 146.891 2.324 1,582% 3363,6 53,2 389,7 144.567 2.175 1,504% 3810,3 57,3 447,0 142.392 2.103 1,477% 4253,0 62,8 509,8 140.289 1.908 1,360% 4790,2 65,1 574,9 138.381 998 0,721% 5225,1 37,7 612,6 137.383 385 0,280% 5787,4 16,2 628,8 136.998 441 0,322% 6371,2 20,5 649,4 136.557 211 0,155% 7050,6 10,9 660,2 136.346 103 0,076% 7739,8 5,8 666,1 136.243 37 0,027% 8433,9 2,3 668,4 136.206 59 0,043% 9131,6 4,0 672,3 136.147 38 0,028% 9827,7 2,7 675,1 136.109 39 0,029% 10524,9 3,0 678,1 136.070 29 0,021% 11321,9 2,4 680,5 136.041 46 0,034% 12119,5 4,1 684,6 135.995 21 0,015% 12815,4 2,0 686,6 135.974 29 0,021% 13413,4 2,9 689,4 135.945 35 0,026% 14210,6 3,7 693,1 135.910 18 0,013% 15046,9 2,0 695,1 135.892 66 0,049% 15838,9 7,7 702,8 135.826 39 0,029% 16646,2 4,8 707,6 135.787 29 0,021% 17233,4 3,7 711,3 135.758 25 0,018% 18042,7 3,3 714,6 135.733 18 0,013% 18729,4 2,5 717,1 135.715 22 0,016% 19613,9 3,2 720,2 135.693 15 0,011% 20501,8 2,3 722,5 135.678 15 0,011% 21316,5 2,4 724,9 135.663 17 0,013% 22208,1 2,8 727,6 135.646 24 0,018% 23198,4 4,1 731,7 135.622 23 0,017% 23994,3 4,1 735,8 135.599 12 0,009% 24624,2 2,2 738,0 135.587 26 0,019% 25517,0 4,9 742,9 135.561 15 0,011% 26209,1 2,9 745,8 135.546 14 0,010% 26804,2 2,8 748,6 135.532 20 0,015% 27494,4 4,1 752,6 135.512 21 0,015% 28086,4 4,4 757,0 135.491 10 0,007% 28875,0 2,1 759,1 135.481 15 0,011% 29567,9 3,3 762,4 135.466 10 0,007% 30358,6 2,2 764,6 135.456 18 0,013% 30993,4 4,1 768,7 135.438 32 0,024% 31647,3 7,5 776,2 135.406 38 0,028% 32379,8 9,1 785,3 135.368 14 0,010% 32970,7 3,4 788,7 135.354 22 0,016% 33527,3 5,4 794,2 135.332 20 0,015% 34119,8 5,0 799,2 135.312 39 0,029% 34754,8 10,0 809,2 135.273 31 0,023% 35264,8 8,1 817,3 135.242 67 0,050% 35676,7 17,7 835,0 135.175 45 0,033% 36439,0 12,1 847,1 135.130 30 0,022% 37386,9 8,3 855,4 135.100 32 0,024% 38118,6 9,0 864,4 135.068 27 0,020% 38909,6 7,8 872,2 135.041 46 0,034% 39701,8 13,5 885,7 134.995 52 0,039% 40588,3 15,6 901,4 134.943 57 0,042% 41412,6 17,5 918,9 134.886 61 0,045% 42235,1 19,1 938,0 134.825 46 0,034% 43156,0 14,7 952,7 134.779 42 0,031% 44041,3 13,7 966,4 134.737 29 0,022% 45027,6 9,7 976,1 134.708 39 0,029% 46117,9 13,4 989,5 134.669 19 0,014% 46984,5 6,6 996,1 134.650 22 0,016% 47877,9 7,8 1003,9 134.628 32 0,024% 48470,1 11,5 1015,4 134.596 20 0,015% 49198,6 7,3 1022,7 134.576 22 0,016% 50191,3 8,2 1030,9 134.554 19 0,014% 51183,1 7,2 1038,2 134.535 18 0,013% 52175,8 7,0 1045,2 134.517 18 0,013% 53208,8 7,1 1052,3 134.499 29 0,022% 54241,7 11,7 1064,0 134.470 27 0,020% 55330,0 11,1 1075,1 134.443 13 0,010% 56258,9 5,4 1080,5 134.430 26 0,019% 57353,5 11,1 1091,6 134.404 15 0,011% 57342,4 6,4 1098,0 134.389 9 0,007% 57836,0 3,9 1101,9 134.380 21 0,016% 58632,1 9,2 1111,0 134.359 15 0,011% 59523,0 6,6 1117,7 134.344 5 0,004% 60716,3 2,3 1119,9 134.339 12 0,009% 62114,1 5,5 1125,5 134.327 16 0,012% 63508,5 7,6 1133,1 134.311 13 0,010% 64900,9 6,3 1139,3 134.298 14 0,010% 66374,7 6,9 1146,3 134.284 8 0,006% 67807,7 4,0 1150,3 134.276 9 0,007% 69303,7 4,6 1154,9 134.267 3 0,002% 70539,1 1,6 1156,5 134.264 4 0,003% 72037,5 2,1 1158,7 134.260 2 0,001% 73575,3 1,1 1159,8 134.258 4 0,003% 75114,2 2,2 1162,0 134.254 5 0,004% 76652,0 2,9 1164,9 134.249 10 0,007% 78249,1 5,8 1170,7 134.239 7 0,005% 79843,3 4,2 1174,9 134.232 9 0,007% 81439,1 5,5 1180,3 134.223 6 0,004% 83033,7 3,7 1184,0 134.217 12 0,009% 84310,0 7,5 1191,6 134.205 6 0,004% 85842,4 3,8 1195,4 134.199 2 0,001% 87058,6 1,3 1196,7 134.197 5 0,004% 88537,3 3,3 1200,0 134.192 4 0,003% 89654,0 2,7 1202,7 134.188 6 0,004% 91191,3 4,1 1206,7 134.182 5 0,004% 92427,3 3,4 1210,2 134.177 6 0,004% 94023,8 4,2 1214,4 134.171 2 0,001% 95619,6 1,4 1215,8 134.169 4 0,003% 95618,2 2,9 1218,7 48.043 26,367% 95618,2 1218,7 Pond Enclusure

total feed fed [kg] 65072,0 total feed fed [kg] 96834,0 growth [kg] 42837,3 growth [kg] 73888,2 percentage feed lost 7,52% percentage feed lost 1,26%

rough FCR 1,519 rough FCR 1,311

Technical FCR 1,405 Technical FCR 1,294

cost organic feed € 1,00 cost organic feed € 1,00 cost of fingerlings € 0,04 cost of fingerlings € 0,04 cost of feed € 4.894,14 pond feed lost *1/3* € 3.075,54 cost of fingerlings € 4.332,48 pond feed lost in enclosure € 6.053,42 total costs € 9.226,62 cost of feed € 1.218,67 cost of fingerlings € 1.921,72 total costs € 9.193,81 TOTAL COSTS/Harv. € 18.420,43 cost of mortaility

Appendix 4: FCR calculation Binca

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Appendix 5: FCR regular ponds and grow cycle

Information about 6 different ponds from Ocealis Catfish 2007 produced by (N. Privet)

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Appendix 6: Processing steps at NTACO

Cleaning processing plant and tools

Raw material receiving

Stop feeding the fish one day before harvesting

Transport to factory by holed boat. Fish is transported by car into a plastic barrel to the material receiving.

Total time between boat and anaesthetic treatment of the fish is 5-6 minutes.

Checking fish quality and only receiving the living fish.

Killing fish

Before killing, fish is put in the cold water 8-10oC from 30-60s to make fish unconscious

Fish killed cutting the cervical artery and navel artery then soaked in clean water at 15oC.

Changing the water every catch

Fillet Filleting into 2 pieces by knife, washing by clean water

Skinning Skinning by machine

Fillet - Trimming Cutting red meat, belly and back fat, bone. _{Trimming the fillet to be smooth}

Fillet preserved in cold water

Checking parasite Parasite checking at light table _{Rejecting the fillets which contain parasite}

Washing Sizing and grading

Weighing

Washing water under 15oC and 30 ppm, washing water changed every 50kg.

Sizing according to client requirements Checking, grading by sense

Weighing by a scale correctly

Putting on the tray Freezing Packaging

Stocking Store temperature around -18

o

C

Organic products have to be separated from conventional finished ones

Packing according to the same size Freezing by IQF machine

Labeling

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Appendix 7: Cost calculations

In this appendix the cost calculation is discussed. I will clarify which details are based the report of Lang (2005) and what my own assumptions are.

The farm size and stocking density are chosen by the author, which results in the amount of fingerlings needed. The FCR and survival rate are selected with appendix 5 in mind. The starting and final weights of the pangasius are numbers mostly heard in the field. With these details the beginning and final weight can be calculated; the mortality is distracted. The cost of the feed, fingerling costs, etc are all retrieved during fieldwork or during interviews (Ocealis). The amount of feed necessary is calculated with the FCR and the weight difference. Three percent of the feeding costs are added due to the loss of feed considering the mortality. Most fish die in the beginning of the cycle, so they have only eaten a small amount of feed. It is an assumption and it could be considerably higher. The farming costs per farming season (e.g. pond preparation) are all rounded numbers from Lang (2005). The labor cost Lang states means that one could pay four workers for 6 months. Only the feed and fingerling costs are generated with own numbers.

There are a few differences between the conventional and organic farming sheet. Firstly the density, FCR and survival rate are lower. This is abstracted from the Binca sheet. Secondly the start and final weight is adapted to suit the organic farming process of Binca. Most of the cost during the farming cycle where assumed the same, a few changed:

• The labor costs increased because of the higher salary and insurance. • The chemical costs are eliminated because they can not be used. • Labeling costs are introduced.

• Fixed depreciation is increased.

In this calculation the costs for labeling is assumed to be a linear per m3. For some costs this will be the case, but for many it won’t. The real labeling costs for one, single farmer are unknown. Considering the fact that one visit of IMO costs 500 dollar I assume organic farming will become impossible. This could have serious implications and make the organic farming less attractive.

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Farming details regular farming

size farm [33 x 30 x 2,5] [m3]

2.558 stocking density/m3

20 amount of fingerlings needed

51.150 FCR

1,55

survival rate

80%

start weight [kg]

0,075

final weight [kg]

1 total beginning weight [kg]

3.836 total end weight - mortality [kg]

40.920 total amount of feed needed+ 3 % [kg] 59.204

Cost (VND)

Cost (Eur)

price of feed per kg

5.500 0,28

price of fingerlings

600 0,03

total price fingerlings

30.690.000 1.534,50

feeding costs

325.623.138 16.281,16

labor costs per head per month

600.000 30,00

Items

Cost (VND)

Cost (Eur) %

Pond preparation

2.400.000 120,00

0,56%

Pond treatment

3.400.000 170,00

0,79%

Fingerlings

30.690.000 1.534,50

7,13%

Feed

325.623.138 16.281,16 75,67%

Chemicals

23.400.000 1.170,00

5,44%

Labor [1 p * 6 mnd]

14.400.000 720,00

3,35%

Fuel

13.100.000 655,00

3,04%

Harvesting

2.800.000 140,00

0,65%

Operating interest

14.500.000 725,00

3,37%

Total variable cost

430.313.138

21.516 Fixed depreciation costs

3.200.000

160 Total costs

433.513.138

21.676 Total production (kg)

40.920

40.920 Production cost per kg of Tra fish

10594

0,53

price sold

12.500 0,63

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