Production and consumption linkage under contract

In January 2019, Hiep Hoa Organic Agriculture Cooperative Alliance (HOACA) was established with 7 cooperatives and production groups which cultivate several vegetables, fruits and roots for processing in 60 hectares; glutinous rice in 60 hectares and mushroom in over 5,000 square meters.

The cucumbers for processing produced by Hung Thinh Cooperative in Dong Lo commune (a member of HOACA) are consumed by G.O.C.

Nguyen Van Nghiep, Chairman of the Executive Board said: “Before the crop, each member gathers together to discuss and finalize the production plan with details of varieties, seedlings and scale for implementation. The participants have invested in the facilities to meet the hi-tech cultivation. The plant and breed in the alliance are cared by safe method. The products are consumed under the contract with G.O.C Export Food Processing Joint Stock Company (G.O.C) in Lang Giang district and several supermarkets of Hapro Mart, Fivimart in Hanoi”.

The new method proved the effectiveness for HOACA in the first crop. The qualified products of veggies, fruits, roots and mushrooms were sold out with higher selling price than the market one (2,000 VND per kilogram on average). The linkage helps recover the shortcoming in product consumption.

Similarly, Quang Trung Agriculture Trading and Production Cooperative in Lan Gioi commune (Tan Yen district) is one of the unit to pilot the concentrated model of commodity agriculture production with close connection between the enterprise and farmer in implementing the chain of production, processing and consumption for farm produce supported by the provincial Cooperative Alliance (PCA).

From 7 members in the first day, now there are 15 participants in the cooperative who cultivate all types of cucumbers, baby tomato and vegetable for processing in nearly 30 hectares.

In 2015, after joining the production chain, the cooperative was supported to concrete the road and canal as well as use the mechanical tool in soil making. In the recent spring crop, the cooperative developed about 10 hectares of cucumbers and earned the profit of over 4 million VND (172 USD) per sao (old measuring unit equal to 360 square meters).

Not only in Tan Yen district, the PCA has supported Yen The Green Agriculture Cooperative, Hung Thinh Agriculture Cooperatives in Hiep Hoa district to join the trial chains for 4 years.

Continuous expansion

Since 2015, the PCA has supported 3 cooperatives to pilot the production under linkage chain while the Department of Industry and Trade has helped 12 cooperatives specializing in producing noodle, edible mushroom, safe vegetable and clean pork.

Besides, the participants are facilitated a part of expense to build the infrastructure, equipment, deliver the science and technology, promote the trademark and link with the consumption enterprises.

According to the PCA Vice Chairwoman Nguyen Thi Thuy Dung, the PCA annually holds the communication campaign, training courses, exchange visit to other provinces and working trips to consuming and processing enterprises to develop the production model under the chain in the collective economy.

Additionally, several districts have their own way of implementation. For instance, the People’s Committee in Viet Yen district has instructed the cooperatives with the same field of production to establish the cooperative alliance. The district authority will have the capital policy to support the investment in the production.

Meanwhile, Viet Yen district tends to setup the Agriculture Cooperative Alliance specializing at VietGAP vegetable producing and fishery and pig breeding.

Other districts of Yen Dung, Lang Giang, Tan Yen and Hiep Hoa have prioritized the newly established cooperatives with hi-tech application under the production linkage chain. The capital will be supported after the decision of establishment.

Developing the production under linkage chain brings several benefit to the farmers and consumers via reducing the intermediate expenses, increasing the goods value and developing the economy.

For the upcoming time, the PCA will provide further facilitation to widespread the effective models. Each district and city strive to setup at least one agriculture alliance under the chain consumption. Apart from the support policy from the government, the cooperative should be proactive in linking to the enterprise to promote the product consumption.

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Hoang Phuong