Organic Farming and Post Harvest Practices

1. Organic Farming and Post Harvest Practices Laos PDR to Thailand

2. Background

3. Supply Chain Market & Farm Processing Consumer

4. Supply Chains in Developing Countries Most of them are inefficient multi tiers chains. Products from farm change hand many times before they finally reach end users. Poor logistics and handling couple with lack of proper post harvest practices in the chains createhuge wastage and compromise quality and food safety. In some countries, logistics constraints limit levels of market developments and only very small, localized markets exist.

5. PREVAILING SUPPLY CHAIN farms District/provincial wholesales market Major wholesalers markets in cities District/provincial wholesales market Pack house/food factory/exporter Pack house/food factory/exporter Pack house/food factory/exporter Retailer Retailer Retailer Importer / wholesaler Importer / wholesaler Consumer Importer / wholesaler Consumer Consumer Retailer Retailer Retailer Consumer Consumer Consumer

8. Value Losses Wastages are given at 10%,20%,30% and 40% million Baht

9. Organic Farming in Laos PDR

10. Organic Farming • Organic farming is a production system that sustains the health of soils, ecology system and people (IFOAM). • It combines tradition, innovation and science to benefit the shared environment and promote fair relationship and a good quality of life for all involved (IFOAM). • It relies on production techniques such as, crop rotation, green manure, compost, and biological pest control (IFOAM). • Manufactured fertilizer, agro-chemical and GMO are not allowed.

12. Project in Laos • An organic farming development programme in Attapeu, basing on Swift’s model, has been carried out in a PPPi agreement between GIZ and Swift. • Training programs from organic farming guideline, practices and techniques to group management skill have been provided by Swift with partial funding support from GIZ. • The company will invest in a packing house and in development of training on processing line that meet international sanitary standard. • Produce from small farms will be linked to markets by Swift.

13. Contract Farming Model The model has been designed to remove constraints facing by small-farm holders. Growers are organized into groups after risk assessment of farm plots. All trainings are provided free of any charge. Farm production planning are laid out by the groups and the company. Collection stations are set up at each groups. All operation is above board. Payments on time. Relationship is basing on partnership approach.

14. Fair Pricing and Financial Support Floor price is guaranteed before planting. A fair pricing under long enough term contract. It is basing on farming cost, retail price in the targeted markets,Swift’s operating cost and a given rate of return to growers. Any cost saving in farming is automatically passed to growers. Interest free long term loans are provided to the group, a collective responsibility approach.

15. Farming Methods • Soil management Providing N,P,K,micronutrients without using synthetic ones. • Weed management Promoting weed suppression instead of weed elimination. • Controlling other organisms Biological pest control, IPM, crop rotation, provision of habitat for beneficial organisms, row cover and etc. • Compost/Organic fertilizer Manure must be subjected to proper thermophilic composting.

16. Farm Inputs • All inputs must be verified and complied with organic farming guidelines and approved lists. • Inputs, such as organic fertilizer, fermentation organism, peat, must be carefully selected to enhance soil and plant health. • In protecting plant from disease and pest, only biological pest control is allowed. • Naturally-occurring pesticides and naturally-derived insecticide such as BT (Bacillus Thuringiensis), and plant extracts are allowed. • Local inputs are encouraged.

17. Farm Auditing Swift’s agronomists conduct regular internal auditing of members’ farms. They are trained and certified on HACCP system and Global GAP and organic farm auditing. They will works closely with the farmers in any farming problem solving. Yearly certification on Global GAP and organic farming practices will be carried out by licensed CB.

18. COLLECTION AND GRADING • Collection stations of the company are set right in the growing areas. • Weighing and grading are transparently carried out at the stations. • Labeling of plot-codes and growers’ names is part of the company’s traceability system. • Post harvest control can be carried out right after harvesting from farms and delivering to the packing house.

19. SWIFT ‘S SUPPLY CHAIN PACK HOUSE 1 PACK HOUSE 2 IMPORTERS RETAILERS CONSUMERS. GROWERS • DIRECT SUPPLY FROM FARMS TO PACK HOUSES. • MINIMIZING WASTE, LIMIT APPROCHING ZERO

20. Post Harvest Practices in the Chain

21. Post Harvest Practices Goals • Maintaining the best farm-fresh quality and in achieving highest international standard of food safety. • Extending shelf-life of fresh produce. • Minimizing waste in the supply chain and in the processing line.

22. Asparagus from Farms to Pack-House • Right after harvest, asparagus will be delivered to the collection stations and transported to the packing house on daily basis. • Clean baskets will be used in farms, in the stations and in transporting asparagus. • Refrigerated truck will be used where and when it is possible. • Weighing and grading will be carried out at the stations.

24. Pack-House • The packing house has been designed to meet GMP standard. • Clean water, potable level, will be used in hydro- cooling and in cleaning. • The processing line will be in temperature and contamination controlled room. • Supply of fresh asparagus from farms will be kept in a cold room at 4°C. • Finished products will be in a separated cold storage room.

25. Processing • Processing will be under HACCP and BRC systems. • Workers will be trained from scratch from personnel hygiene to the sanitary processing standards as required by the systems. • Waste from the processing line will be sold as by products to Swift in Thailand or will be used as part of organic fertilizer production. • Processed asparagus will be properly packed for shipment to markets in Thailand.

27. Shipment to Market • Refrigerated truck will be used in shipment of the asparagus to markets in Thailand. • Relative humidity in the containers will be kept at around 92–95% • In a longer run, processed asparagus will be shipped to Japan and other markets. • It is anticipated that logistics cost from farms and from Attapeu to markets in Thailand and beyond will be relatively very high and Swift will suffer significant losses in the first few years.

29. Logistic Management • Logistics is a major cost item, especially in fresh produce line. • To be competitive in any market, the logistic in the chain must be extremely efficient. Critical mass must be achieved to minimize logistics cost per unit. • Freshness, quality and food safety of farm products can be maintained through the proper application of post harvest system which have to be incorporated in the logistic chain. • Modes of transport have to be taken into consideration in logistic management.

30. Conclusion • Organic production chain starts from farm to end-users with no weak link. • Production management can be subdivided into 4 parts: farm production; processing, marketing and logistics. • Appropriated post harvest practices are key success factors in maintaining quality and in meeting food safety standard. The longer shelf-life make it possible to ship fresh produce to far away markets. • Farm production, processing, marketing, and logistics must be extremely efficient, to achieve lowest possible cost of product per unit.

31. THANK YOUSwift Co., Ltd.exotic@thaifreshproduce.comwww.thaifreshproduce.com