The Mekong Delta has been through more than ten years of practically experiencing the process of linking production in agriculture. Many farmers in cooperatives and businesses working together soon realize the need to improve the quality and value of Vietnamese agro-products in the market. Reality shows that it is essential to remove obstacles for the main actors participating in the linkage for long-term joint development.
Mr. Pham Thai Binh, General Director of Trung An Hi-tech Farming JSC: “Big paddy” has proven to be effective
Over the past ten years Trung An JSC has persistently linked production with farmers, cooperatives, cooperation groups, formed and expanded many large fields with more than 10,000 ha in Kien Giang, Hau Giang provinces and Can Tho City.
I believe production linkage is an indispensable way to improve the quality and value of Vietnamese rice. Especially in the trend of building rice brands and increasing competitiveness in the market, it is essential that we do well right from the cultivation stage.
Farmers participating in the linkage receive support from enterprises in terms of input materials and technology to follow production procedures. They can have peace of mind in the consumption stage when meeting the requirements of enterprises placing purchase orders.
Through the path of production linkage, farmers can see a constant improvement in the rice produced in “big paddy”. Through psychological surveys, many farmers outside want to enter cooperatives to grow and sell rice at a better price.
I have received news that production linkages in a few localities have recently been struck with several problems due to the temporary instability of the market. Enterprises want to invest in drying kilns, rice storage silos, and pay for rice purchases all at the same time for farmers, but there is a lack of capital, forcing them to find more capital loan sources. Still, it is necessary to note that production linkage is the need of enterprises and cooperatives. Both sides need each other to jointly build “big paddy”. We firmly believe that now and in the future “big paddy” will continue to expand. This is a sustainable production direction.
Dr. Nguyen Ngoc De, Senior Lecturer of the Faculty of Rural Development, Can Tho University: Selling shares to farmers is actually a good idea
In the past time, the biggest problem in “big paddy” production linkage is the situation of “every man for himself”. Perhaps the volatile market prices of agricultural products have created doubts between businesses and cooperatives, shaking the foundation of the cooperation relationship.
The new link will be sustainable with the idea of a linkage directly associated with the interests and benefits of the two parties. They will practically “be on the same boat”, sharing wins and losses together. To do so, it is necessary to have a business that is not only capable but also has a heart. I think it is possible to realize the idea of enterprises selling shares to participating farmers. It's a way to strengthen the bond, opening up a new direction in cooperation.
Dr. Nguyen Phu Son, Senior Lecturer at Faculty of Economics, Can Tho University: The “knots” remain untied
Up to the present date, the number of successful links is still at a very modest figure and there is almost no true effective and sustainable link. The reason stems from the issue of pricing for rice purchase and the price of supplying inputs. This is a problem that has not been solved for many years.
At the local level, the management agencies should coordinate to study and determine the pricing mechanism for input and output products in the rice production and consumption linkage for a period of 2 - 3 years. In my opinion, the results of this study will have both practical and scientific significance. I hope we can apply the results to the entire Mekong Delta.
Authors: Huu Duc - Minh Dam
Translated by Samuel Pham
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