'Secret' to building and transforming new-style cooperatives in Yen Thanh

(Baonghean) - One of the key tasks that the Party Committee and the government of Yen Thanh district focused on implementing during the 2015-2020 term is converting cooperatives to operate under the 2012 Law on Cooperatives. Up to this point, all cooperatives in Yen Thanh have been converted and have initially brought about effectiveness.

Initial change

By the end of 2016, 100% of cooperatives in Yen Thanh district had been converted according to the 2012 Cooperative Law and operated with a new, more dynamic, proactive and effective mindset. Minh Thanh Agricultural Service and Electricity Cooperative is an example.

This is the first cooperative in the district to undergo transformation, so it is inevitable that there will be certain difficulties, from selecting people to participate in the new apparatus to mobilizing and creating consensus among cadres and people to participate in supporting capital contribution and becoming members of the cooperative...

However, thanks to the early conversion, after the conversion, the cooperative had time to implement and organize many activities, bringing about clear changes. Along with the implementation of traditional agricultural services before (such as seeds, fertilizers, pesticides, irrigation water, etc.), the cooperative also provides additional services such as casting sewer pipes, concrete columns, and woven panels to cover ditches; nursery services and providing seeds of fruit trees, especially orange trees; internal credit services, etc.

Commercial orange products in Yen Thanh district. Photo by Mai Hoa

Mr. Nguyen Cong Hien - Director, Chairman of the Board of Directors of the Cooperative, shared: "The operation of the Cooperative has initially stabilized, with an average revenue of 4 - 5 billion VND/year. Up to now, the unit has also completed the repayment of 425 million VND of the old Cooperative.

In particular, through the implementation of nursery services and the provision of fruit tree varieties (an average of 2,000 - 3,000 fruit trees/year), it has contributed to the improvement of mixed gardens, the expansion of local orange growing areas, and the establishment of a commodity production area according to a chain of links in the future...”.

Similarly, at the Son Thanh Commune Agricultural Cooperative, although it is a newly transformed unit, it has also struggled to create changes, avoiding “new bottles, old wine”. In particular, with the role of “midwife” for farmers, the agricultural service section is focused on ensuring quality, and price suitability, often lower than the market.

Since then, the number of farmers seeking supply from the cooperative has increased from 30-40% to 70%. Along with that, the cooperative has also participated in organizing the crop structure, plant and animal structure to create higher efficiency in the fields for farmers.

Along with Minh Thanh Agricultural Service Cooperative and Son Thanh Agricultural Cooperative, currently, the entire Yen Thanh district has newly established and successfully converted 44/44 cooperatives of 38 communes.

Based on Resolution No. 03/NQ-HU, dated February 22, 2016 of Yen Thanh District Party Committee on continuing to direct the conversion of cooperatives according to the 2012 Cooperative Law, the District People's Committee has developed a project, established a steering committee from the district to the grassroots level, determined the roadmap, assigned specific responsibilities to each department, branch, and district-level organization, especially the role of the grassroots Party Committee.

Comrade Nguyen Tri Hoa - Secretary of the Party Committee of Son Thanh commune, shared: Clearly defining the conversion of cooperatives as the responsibility of the Party Committee and the commune government, the Party Committee and the People's Committee of the commune sat down together to "search" for the "founder" of the cooperative, how to meet the requirements: Having prestige, capacity and ability to organize and perform the functions and tasks of the new type of cooperative.

At the same time, it is necessary to do a good job of propaganda and mobilization of people to participate in cooperatives, in which promoting the pioneering role of cadres and party members, associated with actively contributing capital to cooperatives from 3 to 20 million VND or more (for people from 500,000 to 1 million VND). According to comrade Nguyen Vuong Ngoc - Vice Chairman of Yen Thanh District People's Committee, in parallel with directing and assigning responsibilities to the grassroots to take drastic action, including the criteria for emulation in establishing new cooperatives and converting cooperatives into the criteria for year-end emulation assessment with the final deadline being December 30, 2016, the district and grassroots levels pay special attention to orienting the activities of cooperatives to avoid ineffective operations after conversion or "stillborn death".

Comrade Nguyen Vuong Ngoc also affirmed: After the transformation, cooperatives have been adapting to the new management and operation style, meeting the demand for services for agricultural production, playing an important role in supporting economic development, promoting economic restructuring, crop and livestock structure at each facility.

Issues raised

It can be affirmed that cooperatives operating under the old model have fulfilled their “mission” in a rather long historical period. However, in the face of new development requirements, the role of cooperatives in the past no longer meets the needs of the people.

To regain the trust of the people when converting to a new model, many issues need to be addressed. Therefore, the direction of the cooperative model in Yen Thanh is determined to be: multi-sector activities, with the viewpoint that the Party leads the policies and guidelines; the government is the management and operating agency; and the cooperative manages and develops the economy in the area.

That means the role of cooperatives operating under the new model in Yen Thanh today will focus on participating in all economic activities in the locality; while directing agricultural production, cooperatives also perform agricultural services (including seeds, fertilizers, pesticides, irrigation water, etc.);

Carry out the function of constructing works in the area (from contracting, project establishment, budgeting, construction, supervision...); Organize production teams such as mechanization teams, livestock and crop teams and public services with revenue sources such as environmental protection services, tree planting, clean water;

Implement internal credit under 5 billion VND. This requires cooperatives to strive to rise up, boldly innovate in operating and management thinking to create changes in all activities.

Mushroom production brings high economic efficiency. Photo by Mai Hoa

According to comrade Tran Khanh Tung - Deputy Secretary of the Party Committee, Chairman of the People's Committee of Minh Thanh commune: On the basis of the existing apparatus of the cooperative, it is necessary to continue to improve and recruit more shareholders to take advantage of intelligence, economic thinking, dynamism and creativity in the activities of the cooperative; at the same time, supplement more resources for the cooperative's operations.

Many other opinions also expressed concerns about how to make new-style cooperatives operate like a business in building and creating a chain of goods, from production orientation, supplying seeds, fertilizers, technical equipment to purchasing and consuming products for farmers.

However, the biggest problem today is that land is still too fragmented, requiring authorities at all levels to take more drastic action in planning production areas, providing mechanisms, creating a legal basis for cooperatives to boldly implement, and at the same time gaining consensus from farmers with land.

Along with that, creating conditions for cooperatives to access capital sources, currently the legal capital according to the charter of some cooperatives is only about 1 billion VND. And the most important lever for cooperatives to operate effectively is the attention and close and regular direction of the Party committees and authorities at the grassroots level, especially in developing plans and production and service strategies suitable to local realities.

Plum Blossom