Improving agricultural value chains in cooperatives

Tay Ninh province currently has more than 370 cooperatives operating in the agricultural sector, in which cooperative models are regularly consolidated and rectified, bringing economic efficiency. Many good models and creative methods have been replicated, many local strengths have been developed through cooperatives in the direction of commodities, promoting the formation of links between cooperatives and businesses and consumers.

From single production to chain linkage

In recent years, cooperatives operating in the agricultural sector in the province have increasingly focused on expanding services and improving service quality. From only caring for and harvesting agricultural products, some cooperatives have increased services such as: providing livestock and plant breeds; providing materials, fertilizers, food and pesticides; product consumption services;...

Linking production chains helps Tay Ninh agricultural products gradually improve their quality.

In particular, not only promoting the application of advanced techniques, many cooperatives operating in the agricultural sector in the province are also proactively innovating their organizational models and methods of operation, shifting from "self-production and self-consumption" to production and business according to the linked value chain, production associated with processing and consumption of agricultural products and food.

One of the models that is operating effectively in this direction is Bau Don Fruit Cooperative in Truong Mit commune. Since its establishment, Bau Don Fruit Cooperative has built an investment chain, provided technical guidance on durian cultivation, organized purchasing, product consumption, built a brand, and found a sustainable market for Bau Don durian products. In particular, the Cooperative has successfully developed durian products into 4-star OCOP products and implemented product traceability, issued growing area codes for official export to the Chinese market.

Particularly in the recent harvest, while many durian growing areas in provinces and cities across the country were struggling with the inspection of Cadmium and Yellow O on durian before exporting to the Chinese market, durian products of Bau Don Fruit Cooperative still stood firm in the market.

Durian of Bau Don Fruit Cooperative (Truong Mit commune) is produced according to VietGAP standards and strictly adheres to the production process to ensure hygiene and food safety.

“To achieve OCOP certification, we produce according to VietGAP procedures and strictly comply with food safety and hygiene procedures, and the quarantine period for pesticides as prescribed. The cooperative's wish is to continue to produce in a better direction to improve its products and expand the demanding market,” said Mr. Phan Hoai Thinh, Director of Bau Don Fruit Cooperative.

As for the Phuc Loi Agricultural Trade and Service Cooperative, in Binh Minh ward, there are currently more than 3 hectares of melons. In particular, the Cooperative has signed a product consumption contract with the Ho Chi Minh City Trade Cooperative Union ( Saigon Co.op ) for about 300 tons of fruit per year. According to Mr. Pham Ngoc Hai - Director of the Phuc Loi Agricultural Trade and Service Cooperative, the fact that the Cooperative signed a consumption contract with Saigon Co.op has helped the Cooperative members feel secure in production, without worrying about prices. Currently, the income value per 1,000m2 ^reaches more than 100 million VND.

Mr. Le Truong Son - Deputy General Director of Saigon Co.op, said: “Regional linkage, especially bringing goods produced in Tay Ninh province into the Saigon Co.op system, is one of the important goals of Saigon Co.op. Recently, we have also had working programs with the Provincial People's Committee, Department of Industry and Trade, Department of Agriculture and Environment to build a local regional development plan, focusing on Tay Ninh agricultural products to improve product quality, bringing more products into the Saigon Co.op system. The second step is to improve quality, achieve international standards, and bring them into the domestic consumption system, which is part of the long-term orientation, but the long-term orientation is to achieve standards to bring them to the international market. That is not only the goal of Saigon Co.op but also part of a cooperation program between Saigon Co.op and Tay Ninh province".

The inevitable direction in the integration period

In the context of Vietnam's increasingly deep and wide integration, the requirements for quality, traceability and transparency in agricultural production are increasingly high. Therefore, in order for Tay Ninh agricultural products to reach further and improve the value chain, applying science and technology to production is the necessary path.

According to statistics from the Provincial Cooperative Union, currently, more than 70% of cooperatives in the agricultural sector in the province are operating effectively. Many cooperatives in the province have actively innovated, proactively promoted the application of science and technology in production, creating positive changes in management thinking, improving productivity, product quality and competitiveness. With a strong spirit of innovation, cooperatives in the province are striving to become a pioneering force in restructuring the agricultural sector, playing a core role in the agricultural and rural innovation ecosystem in the digital age.

Products meeting VietGAP standards of Phuc Loi Agricultural Service and Trade Cooperative (Binh Minh ward) have been put into sale at the Co.op Mart system.

Mr. La Huu Nghi - Chairman of the Provincial Cooperative Union, said: "Currently, cooperatives operating in the agricultural sector not only attract individual members but also legal entities have begun to join the cooperative. Thereby, supporting linkages and providing solutions from production according to standards to linking product consumption to increase farmers' income, thereby attracting more and more people to voluntarily join the cooperative."

“Cooperatives have applied science and technology to production, applied digital transformation in management and operation activities, and more and more agricultural cooperatives operate in the field of applying science and high technology, reducing costs and increasing productivity. The products made by cooperatives meet food safety standards in quality, sell at higher prices, bringing many benefits to members participating in the collective economic model,” Mr. La Huu Nghi affirmed.

By the end of 2024, the average revenue of cooperatives operating in the agricultural sector in the province will reach 950 million VND/year; the average profit will reach 350 million VND/cooperative/year; the average income of regular workers in agricultural cooperatives will be about 60-70 million VND/year. The rise of agricultural cooperatives has contributed to the province's agricultural sector completing its goals and plans, and is an important link in the province's agricultural economic development.

However, to improve the efficiency of agricultural product consumption and contribute to rural economic development, the relevant authorities need to strengthen trade promotion and market expansion, while encouraging production and consumption linkages between farmers, cooperatives and processing and distribution enterprises to help reduce overproduction and shortage of goods and ensure stable output for agricultural products; promote the application of technology in the production and consumption of agricultural products;…/.

In the context of Vietnam's increasingly deep and wide integration, the requirements for quality, traceability and transparency in agricultural production are increasingly high. Therefore, in order for Tay Ninh agricultural products to reach further and improve the value chain, applying science and technology in production is the necessary path to take.

Vu Nguyet

Source: https://baolongan.vn/nang-cao-chuoi-gia-tri-nong-san-trong-cac-hop-tac-xa-a202346.html