Market system analysis to develop a plan for improving peanut value chain in Tra Vinh province-Vietnam
Peanut is considered as one of the advantageous products of Tra Vinh-Vietnam, as the province has the largest sandy area in the Mekong Delta with about 17 thousand hectares. This type of land is relatively suitable for peanut cultivation and expansion. The area for growing peanut is mostly concentrated in four districts including Cau Ngang, Duyen Hai, Chau Thanh and Tra Cu. Moreover, in such land conditions, it is very appropriate for the province to implement the policy on restructuring the agricultural sector towards the effective practice of land resource which focuses on conversion to the proper crops, and thus contributing to better revenue for farmers, especially the poor whose livelihoods are vulnerable to climate change. The main production of peanut in Tra Vinh takes place during the Winter-Spring season, starting from November or December and ending around March or April of the next year, with up to 80% of the peanut planted area. Yet, in recent years, the quality of raw and processed peanuts have shown signs of decline due to farmers inter-cropping different varieties on the same field as well as lack of farmer awareness about improving land fertility over the years of cultivation, which have led various plant diseases, especially nematode. As farmers merely focus on planting peanut in the dry season, the quantity of seeds in other seasons is not sufficient for the main season. Currently, only about 20% of the seeds is self-saved by households from the previous seasons for planting or bought from other farmers who have accessible seeds produced in the wet season. 80% of the remaining seeds must be purchased from Daklak, Tay Ninh and the Southeast provinces with high prices, but lacks quality control. Consequently, according to the provincial statistics for the period from 2012 to 2016, the planted area shows signs of a slight decrease (an average decrease of 1.3% per year) and the yield has almost remained the same (average increase of 0,7% per year). In the stage of processing and consumption, while there are many advantages in production, the benefits from making value-added products from raw materials, as well as processed peanuts are relatively modest. In addition, peanut products are mostly purchased through collectors within the province. Household Producers and Cooperative Groups have not yet built up their horizontal operational linkages with input suppliers and with buyers. Hence, the producers still face many difficulties in selling their products.
The overall objective of this research is to develop an intervention plan to support and promote the development of PVC, especially the seeding stage, both in terms of quality and quantity, to supply to the peanut farmers in Tra Vinh province and other large peanut area planted locations in the Mekong Delta. At the end, the research shall contribute to better revenue of the actors involved in the PVC, especially the HPs and thus increasing the turnover of the entire PVC in Tra Vinh province.