Opportunities and Challenges of Household Nurseries in Son La Province and Northern Mountainous

Opportunities and challenges of household nurseries in Son La province and Northern mountainous region of Vietnam

Vu Van Thuan * 1, Doan Duc Lan1, Nguyen Thi Hoa2, Dumas - Johansen, Marc Kristof 2, Hoang Ming Ha2, Roshetko James M 2
1Tay Bac University ; 2The World Agroforestry Research (ICRAF)

Abstract

Smallholder nurseries are known to increase farmers’ accessibility to quality tree seedlings, improve their involvement in forest plantation establishment and improve their income. A study was conducted during 2010-2011 in Son La province to assess the status of private smallholders’ nurseries in the northern mountainous areas of Vietnam and to define measures to improve those nurseries. The research methods used included a review of international and national literature, field surveys, semi-structure interviews, a consultation workshop, and analyses of that quantitative and qualitative data. Analyses of nine smallholder nurseries located in 3 districts namely Moc Chau, Mai Son and Thuan Chau (all in Son La province) showed that smallholder nurseries are of small-scale, with a maximum size of 2,500 m2 and maximum income per year of 500 million VN Dong. This small size and income are explained by limited investment, resulting in the use of simple technologies and equipment, thus prohibiting the adoption of new propagation methods. Additionally, smallholder nurseries lack market access resulting in restricted sales prospects. Despites the opportunities for developing smallholder nurseries made possible through existing policies and forestry development programs, obtaining nursery certification remains difficult and is considered the main obstacle preventing the development of this type of nursery. Recommendations to support the development of smallholder nurseries including policy, extension, networking development, certification and market access are discussed.

1. Rationale
   Nurseries provide a regular supply of seeds for reforestation and can be small, family businesses or large (Roshetko et al. 2010). In Vietnam, nurseries are private-, community- or state-run and private nurseries include those run by companies and households (Pham et al. 2002). Research in Cameroon has shown the importance of community nurseries, in which farmers advance their operations through improved varieties of trees and domesticated species (Degrande, 2006). Morris and Hieu (2006), after studying community nurseries in mountainous northern Vietnam, indicate that people not familiar with nursery operations cannot successfully run community nurseries unless highly-skilled workers from household nurseries or the state step in to guide them and improve operations. Private nurseries have an advantage in terms of management and diversity of seedlings and seed storage in compared to collective nurseries (for example, in the Philippines, Garcia, 2002),

and flexibility in responding to market needs (for example in Kenya, Russell & Franzel, 2004). However, collective nurseries have advantages with purchasing seeds and machinery (Garcia, 2002). There are no studies that dig into household nursery in Vietnam. The questions are whether there is opportunity for household nurseries (VUNH) and, if so, what factors influence that? The forestry program in Vietnam creates a good market for seedlings and justifies the development of the nursery system.

Reforestation is vital for arresting environmental damage such as soil erosion, landslides, and land degradation caused by deforestation (GoV, 2005). Vietnam’s natural forests are being lost at alarming rates to sustain the 25 million people who log in or live near forests and depend on forest resources (GoV, 2005); urbanization and industrialization increase the demand for timber and non-timber forest products; and a high population growth rate increases the demand for arable land—Vietnam's population is expected to reach 100 million people by 2020 (De Jong et al. 2006).

The forestry program—661 million hectares of forest—creates a huge demand for seedlings from nurseries, both state-owned and private. However, existing nurseries are inefficient and both quantity and quality of seedlings produced are low. Moreover, low-priced and low quality seeds do not guarantee the development of high quality nurseries (Pham et al., 2002). This paper introduces the results of a study in the 2010–2011 period, with the aim of assessing the status of household nursery systems and proposing solutions to develop household nurseries in northern Vietnam's in general, and Son La province in particular.

1. Research Methodology:
   

1. Areas of research: Field research was conducted in three districts, representing three different ecological zones of Son La province (at the elevation >1000m, 800-1000m, and 600-800m), including Moc Chau, Thuan Chau and Mai Son. The site is located in Northwest Vietnam at 20◦ 39'–22◦02 ' North and 103◦11 '–105◦02 ' East. Son La features tropical monsoon climate, with an average climate of 21oC, and receives 1200–1600 mm of annual rainfall and frost in highlands. Approximately 90% of annual rainfall is received from April to September. These soils are mainly Feralit, thicker than 50cm, easily washed away, acidic but well-structured by a high clay content (Hoang & Degrande, 2011).

The total area of the province is 1,417,400 ha, of which 247,700 ha is agricultural land, and 572,900 ha is forestry land, accounting for over one third of the natural area of the province (Provincial Statistics, 2009). Although the forest plays an important role in protecting the landscape and reducing poverty in the province, it has been cleared for corn mono-cultivation and exploitation of non-timber forest products, even in natural protection forests located in the highlands. Some forest-land has been allocated for community and household management. The dominant trees in low areas are fruit trees, teak and fast-growing acacia varieties. Native species and non-timber forest trees are more common in the highlands. The total population of the province is 1.083 million people, and the main ethnic groups are Thai, Kinh, H'mong, Muong and Dao (Data from GSO, 2009). Son La is one of the poorest provinces of Vietnam with a poverty rate nearly three times of the national average (37% in Son La compared to the average 15% of Vietnam, the Ministry of Labor, War Invalids and Social Affairs, 2007). Therefore, the national afforestation program 'Five million hectares of forests / 661', which greens barren hills, protects forests and reduces poverty is very important for the province.

Figure 1. Map of Son La Province with survey locations marked by the red circle.
2. Research Methodology:

2.1. Literature review: Documents related to research problems in the country as well as internationally, especially the impact of afforestation programs such as 661 Program during the 1998-2010 period, 147 Program during 2007-2015 for development of production forest and other programs on household nursery development.

2.2. Semi-structured interviews and questionnaire survey: semi-structured interviews were conducted using a rapid rural assessment tool: diagrams, problem tree, seasonal Venn diagram, seasonal calendar and time chart (Chambers, 1994).
The main points for interviews focused were structured to learn about farmers’ purpose to start nurseries; production targets (output, sales volume, number of uses, and interest income), seed quality (roots, seeds and methods of propagation, constraints); technical ability (level of nursery owners and workers trained in nursery management, experience, obstacles and solutions); business capabilities (network with customer, location of nurseries, business plan, training in marketing strategies, and networking with other nurseries).

The interviews were conducted with representatives from all levels:
- Provincial level: 12 management staff, technical representatives from the Department of Forestry, Provincial Extension Center, Provincial Seed Center, Northwest Center of Forestry Science and Production, Thuan Quynh Management Board of Special Use Forest and Moc Chau Governmental Forestry Enterprise.

- District level: 15 technical staffs at 9 nurseries, including three state nurseries (VUQD) and 6 household nurseries, distributed in the 3 districts studied were interviewed using both semi-structured and interviews and questionnaire survey.
- National level: semi-structured interviews were conducted with experts from the Department of Forestry on the following issues: (i) The nursery system in Vietnam, (ii) National-level policies for nurseries (iii) the national afforestation programs and its impact on the demand for seedlings, (iv) the main factors affecting the participation of households in the nursery system, (v) the need for households participating in afforestation programs, and (vi) potential policy solutions.

2.3. Expert consultation: Two workshops were held, including: (i) the study design workshop, held in February 2010 in Hanoi with the participation of research groups and (ii) the national Conference, held in Dien Bien province in February 2011, to report results and discuss opinions about the findings. A two-day workshop was held for 30 participants who has experiences on nursery system in Vietnam and Son La.

After the preliminary results were presented, group discussions were facilitated on the following topics: (i) policy support, (ii) market access of seedlings, (iii) access to quality seeds, and (iv) technical assistance. Each group analyzed the weaknesses, strengths, opportunities and challenges of VUNH as a basis for discussing solutions.

2.4. Data analysis: Qualitative data collected through in-depth interviews are used to find the main points for as well as to explain the problems found from the analysis of quantitative data. Quantitative data is processed in Microsoft Excel to answer the research questions. The results of the national consultation were compared with the data of analysis of 9 nurseries in Son La to draw conclusions and recommendations not only for Son La, but also other mountainous provinces in Northern Vietnam.

III. Results and Discussion

1. Status of household nurseries in Son La province

1.1. Size, land ownership and management: The survey results showed that the size of household nurseries is only one tenth of governmental nurseries. The size of household nurseries ranges from 500–2500m2 while governmental nurseries are from 5,000 m2 to 1.5 ha. In general, household nurseries have been established from 3-7 years, shorter than governmental ones. All owners of household nurseries are male, 16.5 % age less than 30, 67% age 30-40 and 16.5% older than 40 years old. The nursery owners who were trained at the intermediate level and above account for 50%. The number of experienced employees accounted for 72.37 %, while the number of workers trained accounts a very small proportion of the total labor (1.31 %, Figure 01). Meanwhile, 66.7% of governmental nursery managers were male, 33.3 % were female and all were trained through university and at age 40. About 83% of household nurseries held a land use certificate for their nursery area. Governmental nurseries were generally located in the center and well-accessed, therefore it facilitates the production and transport of seedlings.

1.2. Seedling species and propagation methods:

The number of seedling species produced by household nurseries is less than governmental ones. The survey results from 6 household nurseries indicated that there are 9 seedlings species produced: 5 indigenous species and 4 exotic species (Acacia, Eucalyptus, Pine and Bamboo). While 3 governmental nurseries are able to produce 14 seedlings species, in which include 4 fruit tree species (longan, litchi, mango and plum). This can be explained by the fact that production of fruit tree seedlings requires high technology (such as grafting), therefore household nurseries are not capable of. Both household and governmental nurseries only meet 25–30% of native tree species and 66.67% of exotic species recommended by the provincial planning.

Numbers of the species produced in household nurseries are very different, ranging from 1 to 9 species each because it depends on marketing skill of nurseries’ owners and the number of contracts which they are able to signed. The size of the nursery is considered an important factor deciding the contract (see III.1.3–4 below). Docynia Indica, Chukrasia tabularis, Pinus massoniana, Eucalyptus sp and Acacia sp are common species in 2–5 household nurseries, whereas only 1 in 6 households studied produces Citharaxylon quadranguare, Canarium album, Dracontomelum duperreanum and Dendrocalamuls latiflorus seedlings. Most programs and projects in the province use some common species—those in high demand—which explains the similarities in common seedling species produced by household and governmental nurseries. While less common seedling species are produced for individual customers.

Table 01: Technical capacity of household nuseries

Nurseries / Number of labor (persons) / Training level and experience of laborers
Total / Full time / Seasonal / Education level of nursery owners / Number of officially trained staffs / Number of laborers at secondary and high school education levels
1 / 3 / 1 / 2 / Secondary school / 0 / 2
2 / 3 / 1 / 2 / Primary school / 0 / 2
3 / 1 / 1 / 0 / Secondary school / 0 / 1
4 / 37 / 4 / 33 / University / 1 / 23
5 / 24 / 4 / 20 / Vocational training / 0 / 21
6 / 8 / 2 / 6 / Vocational training / 0 / 6
Total / 76 / 13 / 63 / 1 / 55

Methods of propagation: All the species in surveyed household nurseries are propagated from seed. There is 73% of seedling species in governmental nurseries produced from seed, while 17% is from vegetative propagation methods such as cuttings, grafting or tissue culture. This is explained by the limited technical capacity and infrastructure of household nurseries, therefore they are unable to carry out vegetative methods. Seeds of indigenous species for seedling product in household nurseries are collected from natural forest, while seeds of exotic species are bought from certified centres. This is also similar to governmental nurseries.

1.3. Production efficiency: Survey results have shown that benefit-cost ratio of household nurseries is 1.8:2.89, compared to 0.6:1 for governmental nurseries; which indicates more economical efficient among household nurseries. Seedling production and labor required in household nurseries are based on seedling markets which they are able to access (Nursery case 4 and 5, Figure 01–03). Profits fluctuate greatly between household nurseries, from 400–500 million VND (Nursery 4 and 5), down only 10–40 million VND (Nurseries 1, 2, 3, Figure 2). Higher benefits from Nurseries 4 and 5 are resulted from a larger production scale, higher number of laborers and better technical skills (Figure 1). In addition, these nurseries are also able to sell seedlings to individual customers, in addition to governmental reforestation programs (Table 2).

Figure 2: Cost-benefit of household nurseries

Nurseries / Cost-benefit / Seedling markets (%)
Cost / Revenue / Benefit / For individuals / Governmental reforestation programs
1 / 19.7 / 54 / 34.3 / 0 / 100
2 / 8.75 / 34 / 25.25 / 0 / 100
3 / 5.6 / 17 / 11.4 / 0 / 100
4 / 234.85 / 665.6 / 430.75 / 30 / 70
5 / 272.050 / 787.240 / 515.190 / 1 / 99
6 / 46.780 / 131.200 / 84.420 / 0 / 100

Most of the cost in household nurseries is for labor, while 28% for buying materials, 13% for seeds, 4% for land, and 8% for other costs. In governmental nurseries, costs for marketing, advertising, technology acquisition, training and utilities account for 40% of the total. 14 % of the total cost is labor, while materials account 20%, seeds with 21% and land with 5%. It indicates that governmental nurseries more focus on searching for seedling markets and technology, in compared to household nurseries. Four out of 6 surveyed household nurseries have only 1-8 laborers, and only 2 nurseries out of 6 have 24-37 laborers. Contract workers on a seasonal basis from 2–3 months /year dominate the workforce (83%) compared to the small number of permanent employees (17%, Figure 01).
1.4. Seedling market:

Main seedling markets for household nurseries are governmental reforestation projects such as 661 and 147 programs (Table 2). Only 2 out of 6 surveyed household nurseries are able to sell seedlings to individual customers. Results of in-depth interviews indicate that these nurseries capture the market, locate in an area with high demand for seedlings, have better technical and financial capacity. Three out of 6 household nurseries (Nurseries 1, 2 and 3) have reported difficulty in selling plants and accessing capital for investment. The owners of this nursery produce seedlings mainly for reforestation activities under the project in the area, and for their own. Therefore, they face difficulties in finding new markets for seedlings at the end of the projects. In addition, limited technical and financial capacity does not meet seedling requirement of major reforestation programs.

1.5. Influence of national and local policies

The National Forestry Development Strategy 2006–2020, supports the development of germplasm forests and gardens in Vietnam. The implementation of governmental reforestation programs (Program 661: 1998-2010, and Program 147: 2007-2015) has increased the demand for seedlings. Program 147 also supports the expansion and development of nursery networks such as funds for germplasm forests and gardens. In addition, the Ministry of Agriculture and Rural Development has issued some specific technical guidelines and standards of nursery systems. Application of such standards can increase seedling quality through certification process for germplasm sources and nurseries. However, these standards are limitations to household nurseries who has low technical capacity to quality the certification process. The survey results indicate that all six surveyed household nurseries were not able to obtain nursery certification.

Seedling species produced in household nurseries provincial decisions. Decision 16/2005/QD-BNN issued a list of tree species for afforestation mainly produced in 9 ecoregions. In the Northwest region, including Son La the has 13 species prescribed for production forest. The provincial decision 2188/QD-UBND (2008) by Son La Provincial People’s Committee recommends 20 indigenous and 6 exotic species for forest plantation in the province. This indicates for technology transfer for household nurseries so that they can produce seedlings recommended by the government for each region.

2. Recommendations for household nursery development

The strengths, weaknesses, opportunities and challenges for household nurseries in Son La and Northern mountainous provinces were indicated in Figured 3, serve as a basis for proposing recommendations.

Policy: Develop policies to support the establishment, operation and market assessment of household nurseries, including technical, financial supports and extension activities.

Extension activities: Develop communication strategies to enhance farmers’ knowledge on household nurseries. Use communication tools such as manuals, brochures, field visits, radio, TV, seminars, etc. to promote household nurseries, as well as to improve technical skills for nurseries’ owners, staffs and farmers, and to share seedling market information. Extension activities should also provide trainings on establishment and management of nurseries such as site selection, land preparation, propagation methods, production and storage of seedlings, selection of suitable seedling species and market access.