Mushroom value chain development in Ninh Binh In the past few years, mushroom growing sub-sector in Ninh Binh has emerged and developed with a rapid pace due to increasing demand for fresh and processed mushroom from domestic and international markets. Statistics from the province reveals that the sector has involved over 6000 households in 8 districts of the province especially  in Yen Khanh district. 

Ninh Binh Cooperative Alliance has been active in linking actors in the mushroom value chain through provision of support for the formation of farmer groups, mushroom associations in the past 2 years. It has lobbied with local authorities for  supporting mushroom sub sector and other support for processing businesses as well as promotiong of the products. Taking the huge market potential and its suitability with Ninh Binh context, Ninh Binh Cooperative Alliance submits  a value chain development proposal to further develop the mushroom value as a promising sub sector for  poverty reduction.

Being a new sub-sector, the number of the organized actors in the mushroom value chain is small in number and type. Currently, there are 4 cooperatives and 25 farmer groups active in mushroom growing and there is one processing enterprise. A mushroom seedlings production center was established to provide various types of seedlings for farmers. A mushroom association comprised of farmers, cooperatives and enterprises was formed. The roles of actors in the mushroom value chain are et present in a premature stage. 

Major constraints faced by the present chain actors are:
- From production side: mushroom is grown mainly by households whose scales are very small and spreading. Growing and processing techniques are not good leading to low quality of products. Currently, the growers are cultivating common types of mushroom for low values. Most growers sell their fresh products for collectors who then sell to processing enterprise or to local markets. With current collection and distribution system, Ninh Binh fresh mushroom products can’t enter better and bigger markets nearby such as in Hanoi, Vinh. 
- From processing and trading side: The capacity of the enterprise. No quality standard is applied in the whole production and distribution of the products. It is not easy for enterprise to get sufficient supply of good quality fresh products due to loose cooperation between farmers, collectors, processors. 
- From policy side: as it is a new sub sector there are few relevant policy dialogues taking place. The province has not yet developed a policy for supporting the mushroom sub sector for its long term development. 

NBCA proposes two major approaches a intervention strategies:
- Value chain analysis, improvement of local values and processing opportunities, product development and marketing, promotion of effective cooperation and coordination among actors. 
- Enabling environment: promote public private partnership and dialogue, support business association and policy development for a sustainable development of the emerging mushroom value chain. Promotion of business development.

The project will target three groups 
- Mushroom growers in Ninh Binh: they are farmers, members of agrictural cooperatives growing and processing mushroom. Most of them are poor or low income farmers. Some of them also collect fresh mushroom for enterprises
- Mushroom businesses: these are small processing businesses in the province. Few export products. They play a key role in the demand for fresh mushroom supply, its quality and buy product for the growers and processors.   
- Policy makers: include the provincial people’s committee, distict people’s committee, trade and indurstry department who will propose policies for the development of the mushroom in the province. 

Development objective: 
- Enhance the competitiveness of mushroom in Ninh Binh in order to gerate jobs and income for about 5.000 households in the province, of which about 2.500 households are the poor.

Specific objectives:
- Promote cooperation and coordination between actors in the value chain for its sustainable development. 
- Strengthening capacity of mushroom growers’ groups, cooperatives, processing manufacturers in Ninh Binh to improve productivity and quality of the products.
- Promote public private partnership for favorable enabling environment for mushroom development.

NBCA distinguishes 4 action major output areas each with a distinguised action line:
1. Promote effective cooperation and coordination in the value chain (value chain analysis; interprofessional dialogue; establishment of mushroom producer groups and replication of farmer group models).
2. Strengthen the capacity of mushroom grower groups, cooperative, processing and trading businesses (both producers and procesors are involved: business planning; access to markets; training in production, harvesting, packaging; marketing information systems).
3. Quality improvement (demonstration farms; technology in harvesting, storage, processing, packaging).
4. Promote public private partnership for a sustainable mushroom value chain (support the mushroom business association (of farmers, coops, enterprises) in identifying opportunities and constraints in the value chain, promote policies for innovation in the sector). 

Expected impact: 
- Income earning opportunity created for 5,000 persons
- Income of growers increased by 10%
- Income of processor increased by 15%

The total three year budget is € 116,000 (€ 35,000 in 2011; € 42,000 in 2012 and € 39,000 in 2013). These costs are excluding general overhead like salary for supervision. Agriterra is requested to finance the project activities and some overhead costs. 

Ninh Binh Cooperative Alliance will assign 3 staff members for managing & implementing the project. NBCA will contribute office, electricity, water costs and salary for its part time staff assigned for this project.

Outreach: is elaborated in logframe (received on 14 April 2011).

Enhance the competitiveness of mushroom in Ninh Binh in order to gerate jobs and income for about 5,000 households in the province, of which about 2,500 households are the poor