1. AGRICULTURAL MACHINERY IN LOGISTICS AND SUPPLY CHAIN OF RICE PRODUCTION: A CHALLENGE FOR VIETNAM By Pham Van Tan, Vietnam Vietnam Southern Institute of Agricultural Engineering and Post-harvest Technology (SIAEP)

2. CONTENT 1. Background of rice production in Vietnam
2. History and current status of agricultural mechanisation in Vietnam
3. Rice mechanisation in Vietnam
4. Post-harvest losses of rice & consequences
5. Challenges of rice mechanisation in Vietnam
6. Suggestions for development of rice mechanisation in Vietnam
7. National policies on agri. mechanisation
development toward 2020

3. PART I BACKGROUND OF RICE PRODUCTION IN VIETNAM

4. VIETNAM BACKGROUND Total population: 87,375,000 people (2010)
Total land area (hectare): 33 million
Land area for rice production (hectare): 3.9 mil.
Area of rice production (hectare/year): 7.44 mil
Export of agri. products in 2010 (bil.US$): 19.15
* Role of rice production
Staple food for Vietnamese
Jobs for 63% of the total labor force
National food security
Base for industrial development

5. PART II HISTORY AND CURRENT STATUS OF AGRICULTURAL MECHANISATION IN VIETNAM

6. HISTORY OF AGRICULTURAL MECHANISATION
* Started since 1950s.
+ Developed slowly in the subsidized stages of 1970s and 1980s
+ Mechanisation in soil preparation: 27.3% (1980) and only 21.1% (1990) because of closing all district tractor stations in VN.
* Developed rapidly since 1998 after “Doi moi” policy.
+ Farmers invested in farm machinery themselves.
+ In 1999, mechanisation in soil preparation and rice threshing:54% and 60%,
Reached an aver. of 0.5 HP/ hectare:
- Central High land area: 1.5 HP/hectare
- Northern highland & mountain areas: 0.16 HP/hectare,
- Red River Delta: 0.34 HP/hectare, and
- MRD: 0.59 HP/hectare.
+ In 2,000, Vietnam had 146,000 farming tractors (mostly 2-wheel tractors of 6-12 HP & 4-wheel tractors of HP with some 4-wheel tractors of 100 HP from Belarus), 1 millions of farm machinery, 1 millions water pumps, 300,000 rice trippers/threshers, 3,000 rice dryers (mostly flatbed dryer of 4-6 tons/batch), 200,000 rice millers, 111,000 transporting vehicle, 700,000 diesel engines and electrical motors for farming.

7. HISTORY OF AGRICULTURAL MECHANISATION
* In 2007, Vietnam had:
+ 400,000 tractors used in agriculture (98.4%), forestry and fishery.
+ Total power of tractors: 4.5 mil. HP, increased 2.7 times compared with 2001:
- Two-wheel tractors below 12 HP: 67 %
- Tractors of 13 to 35 HP: 27%
- Tractors of more than 35 HP: 6%

8. PART III RICE MECHANISATION IN VIETNAM

9. CURRENT MECHANISATION OF VIETNAM RICE PRODUCTION
(Source: MARD, 2009)
+ Reached 1.16 HP/hectare in rice production:
- Northern mountain areas: 0.39 HP/hectare (the lowest)
- Red River Delta: 0.85 HP/hectare, and
- Mekong River Delta: 1.85 HP/hectare
+ Soil preparation:
- Rice, mostly wet land: 72%
+ Rice seeding and planting in wet soil: 20%
- Seeding: 85-90%
- Planting: 10-15%
+ Water supply: 86%
mil. hectares of rice
+ Agri. transportation: 66%
+ Rice pesticide spraying: 20%
+ Rice harvesting: 95%, mostly using reapers and trippers
- 15% using rice combine harvesters, somewhere in MRD reached 50%.
+ Rice drying for Summer-Autumn crop in MRD: 40%
+ Storage capacity, mostly warehouses: 3 mil. tons
+ Rice milling: > 95 %

10. SOIL PREPARATION
Ploughing
3-pole plough
7-disc plough
Rotary machine

11. LAZER LAND LEVELLING * Model: Trimble-Spectra (USA)
* Working principle: Levelling land
using lazer control
* Differences in heights before and after
levelling (cm): to 3
* Working width of levelling bucket
(cm):
* Levelling capacity (h/ha): 4-20
* Required power: 4-wheel tractor of 50 HP
* Benefits: reductions in use of water (50%),
fertilizer, seed (25%), weeding labor (70%)
& crop lodging and increases in land area (5-7%),
crop yield (25%) & environmental protection
* Applying locations: Provinces of An Giang,
Thua Thien-Hue & Ba Ria-Vung Tau
* Other land leveller: Leica Rugby (Switzerland)

12. DRUM SEEDERS
Steel drum seeder
Plastic drum seeder

13. RICE TRANSPLANTER * Model: 2ZT-9356B
* Type: Row transplanter and self-moving
* Overall dimensions (LxWxH) (cm): 241x214x130
* Dry weight (kg): 685
* Number of rows: 6
* Space between rows (cm): 30
* Distance between groups in row (cm):
12, 14, 14.7, 16, 17 & 20
* Number of rice stems in a group: 2 - 5
* Planting capacity (hectare/h): 0.12 – 0.2
* Required power: Diesel engine of 4.5 HP

14. RICE HARVEST IN THE MEKONG DELTA (April/2011)
* 4,531 rice reapers;
* 6,000 rice threshers (84% mechanized);
* 9,600 rice combine harvesters (50% mechanized) (August 2012)

15. RICE COMBINE HARVESTERS AT ANNUAL CONTESTS
Tu Sang Combine harvester (Vietnam)
An Giang Combine harvester (Vietnam)
Saigon-Kim Hong rice tripper (South Korea)
Minh Phat Combine harvester (China)

16. RICE CONVEYORS
Pneumatic conveyor
Belt conveyor

17. PADDY DRYING IN THE MEKONG DELTA
1. Sun-drying: Most popular - Occupying 61,3%
2. Mechanical drying – Flat-bed type /with reversible air: More popular
3. Mechanical drying-Circulation type / high capacity (30 to 50 tons/batch):

18. PADDY STORAGE IN THE MD 1. At farm households
Temporary storage of paddy at farm level in the MRD

19. MILLED RICE STORAGE IN THE MEKONG DELTA
2. Private food companies
A total capacity of 3.5 mil. tons, mostly simple warehouses/bins for milled rice storage
Bulk milled rice storage bins in simple warehouses:
7 bins x 150 tons/bin
Simple warehouses for storage of milled rice bags

20. RICE MILLING
Mekong delta has about 6,500 rice millers meeting # 100 % of the requirement
A paddy husking line, cap. of 26 * 1.2 tons/h
A polishing and whitening line, cap. of 6 tons/h

21. MECHANISATION IN VARIOUS STAGES OF RICE SUPPLY CHAIN IN THE MEKONG DELTA
Paddy Storage (25%)
Drying (40%)
Harvesting (45 – 50%)
Seeding (85 – 90%)
Rice milling (#100%)
Soil preparation (95 – 100%)
Water pumping (95 – 100%)

22. DEVELOPMENT STAGES OF AGRICULTURAL MECHANISATION IN THE WORLD
(Source: Handaka, 2003)

23. PART IV POST-HARVEST LOSSES OF RICE & CONSEQUENCES

24. PHYSICAL LOSSES OF RICE IN THE MEKONG DELTA (# 14.6%)

25. PHYSICAL POST-HARVEST LOSSES OF RICE IN THE WORLD AND MD (%)
Stages MD
(Vietnam)
SouthEast Asia
Philippines
Japan
Harvest 3
1-3 2
Transporting
0.9
1-7
Cleaning
2-6
Drying
4.2
2-5 5 -
Storage
2.6
0.3
Milling
2-10
6-8
0.6
Total
13.7
Physical post-harvest losses in the MD = 20 mil. tons/year * 13.7% * 5 mil. VND/ton)/21,600 VND/US$ = 635,000,000 US$/YEAR

26. OTHER LOSSES OF BY-PRODUCTS
By-products = waste = 50 % ?

27. EXPORT PRICES OF VIETNAM RICE AND THAILAND RICE (Stage: 1990 - 2007)
US$/ton
(Source: FAO, Rice Market Monitor various issues)

28. COMPARISON IN EXPORT PRICES OF RICE FROM VIETNAM & THAILAND (2005-2010)
US$/ ton
(Source: Samarendu Mohanty, IRRI, the World Rice Conference, Hochiminh City, Oct. 21, 2011)

29. MAJOR MARKETS OF VIET NAM RICE
Asia: %
Africa: %
(1989 – 2005)
(2009, Total: 6,052, 586 tonnes)
LOW PRICE and UN-SUSTAINABLE markets

30. TWO MAJOR MARKETS OF VIETNAM RICE (1994-2011)
(Source: World Bank, June 2011)
UN-SUSTAINABLE & LOW PRICE MARKETS

31. PART V CHALLENGES OF RICE MECHANISATION IN VIETNAM

32. (Source: A Global Rice Science Partnership, June 2010)
PREDICTION OF GLOBAL RICE PRODUCTION TO 2035
(Source: A Global Rice Science Partnership, June 2010)

33. GLOBAL PADDY PRODUCTION & AREA (2001-2010)
Millions hectare
Millions tonnes
(Source: FAO)

34. RICE PRODUCTION IN THE MEKONG DELTA (MD)
Yield (ton/hectare)
Thousand tons / thousand hectare
Area
Output
Yield

35. MIXED RATES OF ACHIEVEMENTS OF ECONOMIC AND SOCIAL OBJECTIVES RELATED TO MRD RICE
(Source: World Bank, June 2011)

36. ADVANTANGES AND CONSTRAINTS IN RICE MECHANISATION OF THE MEKONG DELTA
* Advantages
Rural labours become rarer and more expensive;
Some farmers become richer and can afford to buy farm machinery;
More and more machinery servicing groups established.
* Constraints
Lacks of national strategies of development in agricultural mechanisation;
Weakness of the domestic manufacturing industry of agricultural machinery;
Small scale rice production and low income farmers;
Small size rice fields with soft soil crossed by many rivers and canals;
Lack of researchers for R&D, testing and selection of farm machinery; and technicians for training of machinery users;
Small scale production of farm machinery with no standards causing problems for users;
Weak services after sales;
Low efficient using of machinery by non-professional servicing people;
Little government supports for servicing groups and manufacturers;
Lack of international supports for agricultural mechanisation;
Climate change.

37. PART VI SUGGESTIONS FOR DEVELOPMENT OF RICE MECHANISATION IN VIETNAM

38. RICE TRANSPLANTER AND ROW SEEDERS
Rice row seeder

39. PESTICIDE SPRAYER
Pest control

40. WAYS TO REDUCE POST-HARVEST LOSSES

41. CURRENT RICE TECHNOLOGY & SUPPLY CHAIN IN MD
RICE TECHNOLOGY RICE SUPPLY CHAIN
Harvested paddy at MC of 18-25%
(After 1 to 5 days for drying, transporting and temporary storage, paddy has MCof 18-20%)
Farmers
Middlemen
Paddy husking
(Brown rice MC of 15.5 – 17.5 %)
Rice semi processors or middlemen
Brown rice stored temporarily within 1-5 days in Summer-Autumn and
1-10 days in Winter-Spring seasons at MC of 15.5 – 17.5 %
Whitening, polishing and sorting.
(Rice has MC of 14.5 – 16.5%)
Drying milled rice
(MC of 13.5 – 14%)
Rice processing enterprises
Temporary storage in warehouses
within 1-3 months at MC of %
Re-whitening
(physical loss of 3-4%)
Storage within 1 – 2 months
Mixing rice for required rates of broken rice, weighing
and packaging for export. Rice has MC of 14%
Rice exporters

42. SUGGESTIONS ON A PROPER RICE TECHNOLOGY AND A RICE SUPPLY CHAIN IN THE MEKONG DELTA
APPROPRIATE RICE TECHNOLOGY PROPER RICE SUPPLY CHAIN
Farmers and
After being harvested, paddy at MC of 18-25%
is transported to silos within 12 to 24 hrs
rice middlemen
Paddy is received, sampled for quality evaluation and buying,
then loaded into silos. Paddy MC of 18– 25 %
Paddy is dried until MC of 13-14% and seperated of soil, stones,…
Paddy at MC of 13-14% is loaded into silos after being fumigated.
Because of temperature control, storage time of paddy is up to 12 months
Husking
Rice business/ companies responsible for rice drying, storage and processing
Whitening
Polishing
Sorting
Whole rice
Large broken rice
Small broken rice
Weighing and mixing of rice
Rice sampling for quality control
Weighing and packaging
Loading rice out of the milling plants for export

43. PART VII NATIONAL POLICIES ON AGRICULTURAL MECHANISATION DEVELOPMENT TOWARD 2020

44. NEEDS OF DEVELOPMENT IN AGRICULTURAL MECHANISATION TOWARD 2020
* National objectives of the year 2020: Vietnam becomes an industrial country
Agricultural GDP: 10-13% of the GDP Rural population: 50%
Rural income: increases 2.5 times compared with the current income - Agri. labor force: 30%
Unit
2010
2015
2020
1. Average power supply in agriculture
HP/hectare
1.20
1.50 – 2.00
2.50 – 3.00
- Increase in 2-wheel tractors of below 15HP
1,000 unit/year 4
- Increase in 4-wheel tractors of above 18HP 5
2. Mechanisation in crop production
- Soil preparation % 80 90
>95
- Seeding & Planting 25 30
>50
- Cultivating (spraying, weeding, etc.) 60 70
>80
- Water supply 95
- Harvesting 20 50
- Drying 40
3. Mechanisation in animal husbandry
- Activities in animal houses
- Laughtering and meat processing 14 37
(Source: Vietnam Ministry of Agriculture and Rural Development (MARD), 2010)

45. AGRI. MACHINERY MANUFACTURE RESEARCH & DEVELOPMENT
PROPOSAL ON SETTING UP OF NATIONAL SYSTEM FOR SUPPORTING MANUFACTURE, SELECTION OF FARM MACHINERY & TRAINING MACHINERY USERS
AGRI. MACHINERY MANUFACTURE
RESEARCH & DEVELOPMENT
TESTING & EVALUATION
AGRICULTURAL
EXTENSION
EDUCATION & TRAINING
FARM MACHINERY
POLICY & LEGISLATION
DEALERS
SERVICES ON REPAIR
& MAINTENANCE
CONSULTING &
TECH. TRANSFER
SERVICING GROUPS OF
AGRI. MACHINERY
ASSOCIATIONS
OF FARMERS

46. payment for service fees
PROPOSAL ON SETTING UP A MECHANISM FOR DEVELOPMENT OF SERVICING GROUPS IN AGRICULTURAL MECHANISATION
GOVERNMENT
ORGANISATIONS
Loans
Subsidy
Application/
suggestion
Interest
CREDIT
INSTITUTIONS
Payment for
buying equipment
DISTRIBUTORS OF
FARM MACHINERY
Credit/loans
Payment for repair fee
Delivery of
machinery &
services
Suggestions/
requirements
of agri.machinery
Downpayment &
repayment
Investment &
payment for service fees
AGRI. MACHINERY
SERVICING GROUPS
BENEFICIARY
FARMER GROUPS
Hiring services

47. NATIONAL POLICIES ON AGRICULTURAL MECHANISATION TOWARD 2020 IN VIETNAM
* Action No. 3095/VPCP-KTTH signed by the prime minister on June 18, 2004 about providing financial supports (loan interest) to farmers for buying agri. Machinery;
* Decree No. 26-NQ/TW called ‘Tam Nong Policy’ meaning ‘Agriculture, Rural areas and Farmers’ issued by the Central Steering Board of the Communist Party;
* Decree No. 24/2008/NQ-CP issued by Vietnam Government on 20 Oct to implement the Decree No. 26-NQ/TW;
* Providing supports to investments in manufacturing of diesel engines (>100 HP), tractors (high power), agri. machinery
* Supporting Vietnamese companies to have join-venture companies with foreign partners in manufacture of tractors and agri. machinery in VN;
* Encouraging activities of research and transfer in agricultural mechanisation;
* Establishing strong linkages between farmers + Business + Scientists + Government;
* Building up ‘large size rice field models’ to facilitate applications of agri. Machinery.

48. THANK YOU VERY MUCH FOR YOUR ATTENTION#