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IFC and New Zealand Support Smallholder Farmers to Improve Food Safety in Vietnam

Hanoi, June 22, 2018 —IFC, a member of the World Bank Group, in partnership with New Zealand, will help Vietnamese smallholder farmers improve the safety of their products such as poultry, fruits and vegetables, thus unlocking new market opportunities, increasing income, and contributing to better food security.
The annual food consumption in the domestic market accounts for roughly 15 percent of gross domestic product, with an average annual growth rate of approximately 18 percent. But, inadequate safety standards can inhibit the sector’s growth potential, jeopardizing consumer health and reducing market opportunities for local food producers in the modern food value chain.
Over the next three years, IFC will build awareness for increased food safety standards and deliver customized training programs to about 1,000 smallholder farmers based on the basic level of GLOBAL G.A.P. requirements and other relevant standards.
The project will also provide more intensive package of support to up to 20 smallholder farmers , helping them acquire GLOBALG.A.P. certification — an internationally recognized set of farm standards dedicated to Good Agricultural Practices (GAP) or equivalent standards. It will also identify opportunities to connect the trained farmers with potential retailers and agribusiness lead firms, who are looking for internationally certified products.
“Improving food safety standards in order to access new markets is key to achieving Viet Nam’s $40 billion agri product export target in 2018 and beyond,” said H.E. Wendy Mathews, New Zealand Ambassador to Vietnam. “We are very pleased to support IFC's efforts to connect smallholder farmers with growing domestic and international markets. Promoting better agribusiness practices and food safety standards will benefit Vietnam’s farmers, businesses and consumers.”
This project is a component of IFC’s broader Vietnam Food Safety Program, which was launched in July 2017 in partnership with the Slovak Republic, aiming to address food safety standards and practices in the country. Within just a year, IFC helped 40 poultry houses of two independent downstream poultry farms, which source breeding chickens from Bel Gà JSC – a leading poultry breeding firm – acquire the GLOBALG.A.P. Certification.
By establishing a system for GLOBALG.A.P., which focuses on hygiene and biosecurity, antibiotic reduction, and traceability, among others, these two farms — from Binh Phuoc and Dong Nai provinces — have been able to supply about 3 million GLOBALG.A.P. certified broilers, or 6 million kilograms of chicken meat, to the domestic market and also export them to Japan over the past year.
“Implementing internationally accepted food safety practices and systems is essential for the sustainable growth of Vietnam’s agribusiness sector. This will improve competitiveness and help increase sales for farmers and food producers,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia, and Lao PDR. “IFC’s work in Vietnam builds on our experience in other countries around the world where we helped local players grow and create new and better opportunities.”
IFC has over 15 years’ experience of providing Food Safety Advisory Services to agribusiness and retail clients globally. This work has helped 150 IFC clients from 30 countries attract $290 million in investments and generate over $230 million in new sales. Further, clients benefit from improved efficiencies and cost savings, which contribute to a stronger brand value.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
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