Hoa Binh develops cooperatives in association with agricultural value chains

Building new-style agricultural cooperatives as part of value chains is significant to ensure stable sales for local farm produce.

Photo: The safe food cooperative in Yen Phu commune (Lac Son district) provides clean chickens for the market, which win the approval of many consumers.

Lac Thuy is one of the leading localities in Hoa Binh province in developing new-style cooperatives in association with value chains. Last year, the district carried out three projects on value chains with total investment of 1.5 billion VND, with one project on chili pepper and pumpkin production in Yen Bong district and neighbouring region, another on safe vegetable cultivation in Lac Long and Dong Tam communes, and the third one on ri chicken farming in Dong Tam and Phu Thanh communes. 

The value chains linked farmers and businesses via cooperatives and cooperative groups. Firms are responsible for providing farmers with varieties and guidance in farming techniques, and buying all products. Chili peppers, pumpkins and vegetables were purchased by the Northern Green Agriculture JSC, Vietnam Chili Pepper Co., Ltd and the safe farm produce cooperative in Lac Thuy district. Farmers earn around 180 million VND per hectare, triple the profits from traditional cultivation of rice and maize. 

In 2018, Lac Thuy district develops three value chains in safe vegetable production, cultivation of Bac Huong 9 rice, and goat breeding.

According to the provincial cooperative alliance, most local cooperatives ’ operation still exposes limitations due to weak capacity, loose links among cooperatives and between cooperatives and businesses, and slow application of advanced technologies into production. This results in low productivity as well as shortage of popular brands and sufficient products for the market.

Under the new model that integrates cooperatives in value chains, farmers will gradually join in all the three phases in the value chain, from production to consumption, thus raising the value of their products in a sustainable manner. This is also an inevitable trend for new-style cooperatives in agriculture./.