185
from transportation of RSM by the collectors and local wholesalers. However,
fresh mushrooms are transported from production sites to the end users (located
100–300 km away) using simple preservation techniques, if any. As a result, fresh
mushrooms degrade very fast (and should be consumed within a day). For processed
RSM, processors are the actors who contribute and capture the largest share (75%)
of the total value-added.
Although mushroom farmers generate high value-added in fresh-RSM value
chains, they are often exposed to high levels of risk due to unstable yields and selling prices of fresh mushroom. Between 15% and 45% of RSM growers in Can Tho,
Dong Thap and Hau Giang provinces in the MRD experience losses (Truc et al.
2017). The main risks in RSM production are unfavorable weather (for outdoor
RSM growing), spawn contamination, and straw and water quality (see more details
in Chap. 6).
The same case applies to processors, who contribute and capture the highest
share of the value-added in processed-RSM value chains. They are also the only
actors directly exposed to various risks associated with exporting RSM. The main
challenge in their business is to ensure quality and traceability of processed RSM to
comply with exporters’ requirements. However, as processors procure fresh and
preprocessed mushroom in open markets from collectors and preprocessors, they
are often unable to trace inputs and mushroom sources, which are among the most
important factors in quality control. In addition, they face changing consumers’
preferences as well as changes in technical requirements of exporters.
Wholesalers generate the lowest share of value-added (11%) in the fresh-RSM
channel. However, wholesalers earn daily profits of around US$ 1000–2000, while
RSM growers make less than US$ 100 (which amounts to approximately US$ 6000
for each two-month cycle of mushroom growing); some even experience financial losses.
The significant profit gap between wholesalers and growers is caused by (1) the
high perishability of fresh RSM (putting the growers under the pressure of having
to sell the product as quickly as possible, even at lower prices); (2) the economies of
scale for wholesalers who trade in bulk, as opposed to individual growers who sell
mushrooms in small quantities; and (3) the larger markets that wholesalers can
access (e.g., big cities), as opposed to farmers with limited market access.
11.3.3 Stakeholder Analysis
Stakeholder analysis reveals the linkages, relationships, roles, and influence of
RSM stakeholders in the subsector. To conduct stakeholder analysis, key agents
from RSM value chains were first identified (maximum ten agents). Second, they
were ranked in terms of their importance and influence (1 = least importance or
influence and 10 = highest importance or influence). “Importance” relates to the
priorities given to satisfying needs and interests of each stakeholder. It is also their
position or importance in relation to other actors/stakeholders based on their power,
11 Rice Straw Value Chains and Case Study on Straw Mushroom in Vietnam’s…
from transportation of RSM by the collectors and local wholesalers. However,
fresh mushrooms are transported from production sites to the end users (located
100–300 km away) using simple preservation techniques, if any. As a result, fresh
mushrooms degrade very fast (and should be consumed within a day). For processed
RSM, processors are the actors who contribute and capture the largest share (75%)
of the total value-added.
Although mushroom farmers generate high value-added in fresh-RSM value
chains, they are often exposed to high levels of risk due to unstable yields and selling prices of fresh mushroom. Between 15% and 45% of RSM growers in Can Tho,
Dong Thap and Hau Giang provinces in the MRD experience losses (Truc et al.
2017). The main risks in RSM production are unfavorable weather (for outdoor
RSM growing), spawn contamination, and straw and water quality (see more details
in Chap. 6).
The same case applies to processors, who contribute and capture the highest
share of the value-added in processed-RSM value chains. They are also the only
actors directly exposed to various risks associated with exporting RSM. The main
challenge in their business is to ensure quality and traceability of processed RSM to
comply with exporters’ requirements. However, as processors procure fresh and
preprocessed mushroom in open markets from collectors and preprocessors, they
are often unable to trace inputs and mushroom sources, which are among the most
important factors in quality control. In addition, they face changing consumers’
preferences as well as changes in technical requirements of exporters.
Wholesalers generate the lowest share of value-added (11%) in the fresh-RSM
channel. However, wholesalers earn daily profits of around US$ 1000–2000, while
RSM growers make less than US$ 100 (which amounts to approximately US$ 6000
for each two-month cycle of mushroom growing); some even experience financial losses.
The significant profit gap between wholesalers and growers is caused by (1) the
high perishability of fresh RSM (putting the growers under the pressure of having
to sell the product as quickly as possible, even at lower prices); (2) the economies of
scale for wholesalers who trade in bulk, as opposed to individual growers who sell
mushrooms in small quantities; and (3) the larger markets that wholesalers can
access (e.g., big cities), as opposed to farmers with limited market access.
11.3.3 Stakeholder Analysis
Stakeholder analysis reveals the linkages, relationships, roles, and influence of
RSM stakeholders in the subsector. To conduct stakeholder analysis, key agents
from RSM value chains were first identified (maximum ten agents). Second, they
were ranked in terms of their importance and influence (1 = least importance or
influence and 10 = highest importance or influence). “Importance” relates to the
priorities given to satisfying needs and interests of each stakeholder. It is also their
position or importance in relation to other actors/stakeholders based on their power,
11 Rice Straw Value Chains and Case Study on Straw Mushroom in Vietnam’s…