Cooperatives survive through association

Stay strong due to quick adaptation

In recent years, Bac Giang province has had many policies to support enterprises, cooperatives, and construction production households; expand the areas of agricultural production for specialized farming, and concentrate on large scales to create stable raw material areas for the processing industry.

Therefore, many effective linkage models were born. Thanks to the models of agriculture linking production and consumption, the cooperatives have survived difficulties in 2021.

Mrs. Tran Thi Thu Trang, Deputy Director of Yen Dung Clean Vegetable Cooperative (Tien Dung Commune, Yen Dung District, Bac Giang Province) shared, the cooperative was established in 2016 with 6 members. After a period of operation, the cooperative realized that there is no better way than to promote linkages with farm households, to improve its reputation, increase profits, apply for scientific and technical advances, and mechanize production.

The cooperative leased back the fields of the households that were abandoned or inefficiently productive. In addition to paying the agreed-upon land rental costs, the field owner can become the cooperative's worker with an income of VND 5.5-12 million/person per month.

The cooperative's orders are mainly consumed in supermarkets such as Big C, Vinmart, Co.opmart... Therefore, the cooperative must always ensure a constant supply and quality. The cooperative has selected large farming households, signed an association contract, in the form of each household producing a different crop, according to the process and standards set forth by the cooperative.

Thanks to that, the supply is always guaranteed and evenly distributed. All output produced by the people is consumed. On average, the cooperative sells 10-12 tonnes of vegetables every day.

In addition, the cooperative negotiate monthly and weekly prices with farmers. Therefore, when the market price fluctuates, the cooperative will adjust the purchase price of the product for the people. As a result, farmers feel secure to associate with cooperatives.

Despite the complicated developments of the Covid-19 epidemic, many production areas were unable to consume products. However, thanks to maintaining a strong connection, the cooperative still maintains a stable operation, consuming an average of 7-10 tonnes of vegetables per day.

Danh Thang (Hiep Hoa district) is an agricultural commune that has been developing with many production linkage models. For example, the association between people and Orion Vietnam Company produces potatoes on an area of 80 hectares; associate rice seed production with the Central Seed Joint Stock Company (80 hectares); production link of groundnut seeds with Thai Binh Seed Corporation on an area of 90 hectares.

Especially with the production of winter potatoes, this year, thanks to the connection with Orion Vietnam Company, the cooperative is still able to secure the consumption stage and maintain stability, even though the market is forecasted to face many difficulties and risks when the Covid-19 epidemic is still unpredictable.

Farmers participating in the linkage chains are supported by enterprises with initial production costs (seeds, fertilizers, etc.), advanced production techniques guidance, and all products.

As a result, productivity, product selling prices, and economic efficiency always increase, maintaining a stable and sustainable production area, etc. On the business side, it also ensures the stability of the raw material area, facilitating the development of plans, increasing partners.

Changing farming thinking for farmers

Mr. Tran Van Tu, Deputy Director of the Plant Protection and Cultivation Sub-Department of Bac Giang province, said that from 2002 up to now, Bac Giang has done very well in developing the production chains of vegetables and fruit as raw materials for processing and export.

However, in the implementation process, there are still many problems to be solved. Small-scale production accounts for a large proportion. Enterprises and cooperatives face many difficulties when they want to expand their raw material areas because people are afraid of losing their land when participating in joint ventures and associations.

In addition, the implementation of commitments of people and businesses is still loose, the balance of interests of the participants in the link chain is not appropriate, there are still conflicts of interests between the stakeholders.

People's understanding of legal regulations and economic agreements is still limited, so they of not want to participate in the linkage chain have chosen to produce and trade freely.

Mr. Tu said that it is necessary to have active and synchronous participation of management agencies, especially local authorities in choosing reputable businesses to introduce links to accompany the people.

According to the Department of Agriculture and Rural Development of Bac Giang province, to develop raw material areas serving the processing industry for agricultural and forestry products from 2021 to 2030, Bac Giang province will focus on developing raw material areas with strengths such as vegetables, lychees, oranges, pomelos, timber, pork products, chickens... Accordingly, by 2030, the province will build 77 concentrated vegetable production areas, covering an area of more than 7,700 hectares, including 18 vegetable production areas belonging to high-tech agricultural areas.

Mr. Dang Van Hung, Director of Hung Thinh Agricultural Cooperative, Dong Lo Commune (Hiep Hoa district, Bac Giang province) shared: Currently, the cooperative has 11 official members and 60 associate members. On average, each year the cooperative sells to the market 60-70 tonnes of medicinal herbs, 500-550 tonnes of vegetables of all kinds.

According to Mr. Hung, the biggest difficulty now is the production area of small and fragmented households. Cooperatives who want to expand their scale have to associate with many households, while each household has a different mindset and farming habits, so they face many difficulties and complications.