Organic Farming and Post
Harvest Practices
Laos PDR to Thailand
Background
Supply Chain
Farm
Processing
Market &
Consumer
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 create
huge wastage and compromise quality and food
safety.
• In some countries, logistics constraints limit levels
of market developments and only very small,
localized markets exist.
PREVAILING SUPPLY CHAIN
farms
District/provincial
wholesales market
Retailer
Consumer
Pack house/food
factory/exporter
Importer /
wholesaler
Major wholesalers
markets in cities
Retailer Pack house/food
factory/exporter
Consumer
Importer /
wholesaler
Retailer
Retailer
Consumer
Consumer
District/provincial
wholesales market
Retailer
Consumer
Pack house/food
factory/exporter
Importer /
wholesaler
Retailer
Consumer
Value Losses
Wastages are given at 10%,20%,30% and 40%
million Baht
Agricultural GDP
year
Losses 10% Losses 20% Losses 30% Losses 40%
value
2007 , 911,745
91,175
182,349
273,524
364,698
2008 , 1,032,808
103,281
206,562
309,842
413,123
2009 , 1,036,586
103,659
207,317
310,976
414,634
Organic Farming in Laos PDR
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.
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.
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.
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.
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.
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 naturallyderived insecticide such as BT (Bacillus
Thuringiensis), and plant extracts are allowed.
• Local inputs are encouraged.
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.
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.
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
Post Harvest Practices
in
the Chain
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.
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.
Pack-House
• The packing house has been designed to meet GMP
standard.
• Clean water, potable level, will be used in hydrocooling 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.
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.
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.
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.
Conclusion
• Organic production chain starts from farm to endusers 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.
THANK YOU
Swift Co., Ltd.
[email protected]
www.thaifreshproduce.com