Analyis of the ginger value chain in Cao Bang province and recommendations for improvements
Ginger is one of the important agriculture products in Cao Bang province due to the local suitable natural and climate conditions and its market potential. Thus, the development of ginger value chain is considered to be strategic intervention for local livelihood improvement. Recognising the high potential of ginger for local economic development, the projects Commercial Smallholder Support Project (CSSP), funded by IFAD has designed measures to promote the ginger value chain. In order to gain a deeper understanding about the ginger production, processing and market, an analysis of ginger value chain was to be carried out. CASRAD, a member of VCB-N was assigned to support the CSSP project in conducting the ginger VC analysis. The study was implemented in the period from July to November 2019, using the market system development (MSD) as the main approach.
The study results show that planting ginger did not require much technique but the availability of quality seedlings was a significant issue. It also shows that beside fresh ginger, variety of processed ginger products could be observed in the market. There was an efficient link between farmers’ groups and traders/exporters in form of farming contracts. However, this link was sometimes not tight enough leading to contract breaking. In case that local authority facilitated the links between producers and traders, the contract called “three-party contract” then the link was effective. It was found that this “three-party contract” was an innovative way of ensuring contract compliance and helped meet the emerging market demand from oversea buyers such as organic ginger. Building the capacity of farmer group in production and harvesting was seen as necessary to ensure a stable ginger production. Organic production can be a new trend. Product labeling and branding are highly recommended. Some processing operation could be locally organized to minimize transportation costs and this could be done through investment promotion program.
Download for details: Ginger-Report-casrad.Rev.RD
Keywords: ginger, value chain, farmer organization, contract and policy.