Enterprises support investment capital for farmers suffering losses from growing papaya in Thai Hoa
(Baonghean.vn) - On the morning of August 18, representatives of Tay Hieu Commune Agricultural Cooperative, cooperative members and representatives of Nafoods Passion Fruit Joint Stock Company had a meeting at Tay Hieu Commune People's Committee to resolve the issue of people having to cut down products that had been signed to grow and consume with the Company.
After Nghe An Newspaper published an article about 13.6 hectares of papaya trees of Tay Hieu Commune Agricultural Cooperative entering the harvest season, the output of nearly 2,000 tons of fruit was not purchased according to the committed contract, making people restless, at risk of losing over 7 billion VND, on the morning of August 18, representatives of Nafoods Passion Fruit Joint Stock Company had a meeting with the Cooperative and its members, under the witness of local authorities.
At the meeting, Mr. Pham Duy Thai - Director of Nafoods Passion Fruit Joint Stock Company affirmed that he will continue to implement the contract according to the signed terms, continue to purchase products until the contract expires on December 31, 2024.
Mr. Thai also said that KingFoods Joint Stock Company is the enterprise that implements the purchasing contract and is a major partner of Nafoods Passion Fruit exporting agricultural products to the Russian market. However, due to the Russia-Ukraine war, the export of products to the Russian market was affected, leading to no source of consumption, so the company temporarily stopped purchasing as committed.
When bringing papaya to Thai Hoa, the company hoped to introduce a new crop variety to improve economic efficiency in the area and the incident was unexpected. In the spirit of openness, the company representative hoped that the two sides would reach an agreement to compensate the people for the damaged fruit. "The company will support 50% of the discarded fruit, and the remaining fruit will continue to be purchased at the committed price" - Mr. Thai proposed at the meeting.
Mr. Nguyen Quang Trung - representative of Tay Hieu Commune Agricultural Cooperative said: Since the company announced to stop purchasing products, members of the cooperative have not taken care of them, the ripe fruits on the trees have quickly spoiled, become diseased, and the remaining fruit output has also decreased in quantity and quality. We request that the company have a suitable plan to support people in the spirit of minimizing damage to both parties.
Mr. Ho Huu Hung - the person who directly works in the garden said, we have done exactly as the contract signed by the company. This year the weather is extreme, the heat is severe, we had to spend hundreds of millions of dong to invest in irrigation systems, fertilizers, the effort was too great. But after the company announced the termination of the contract, the people stopped taking care of it. The people's mentality is depressed, not taking care of it causes pests, the plants degenerate, even the green fruits are infected.
Mr. Duong Hoang Duc - a member who planted 1ha of the most beautiful and high-quality fruit said: The company's announcement to terminate the contract shocked us. We invested 180 - 200 million VND in 1ha, not including the care. "I hope the company will support the investment cost of 250 million VND/ha" - Mr. Duc suggested.
According to both local people and business representatives, this was an unexpected event. Mr. Duong Hoang Duc said that after nearly a year of caring for, cultivating, and investing hundreds of millions in the fields, suddenly there was an announcement that the land would not be purchased, so his family's life was turned upside down, the family was in turmoil, and he could not eat or sleep well.
Mr. Nguyen Hong Linh, a member of the cooperative, also confided that when receiving the contract to grow papaya, we were very bold when we first planted this type of tree. And in fact, the tree has a very high yield. To get to the situation like today, it is first of all the company's fault, so first of all, we request the company to compensate according to the signed contract. Currently, most of the fruit gardens that people grow have been infected with diseases, and are almost unable to meet the quality requirements of the contract. "Therefore, we do not agree with the plan to continue purchasing but must liquidate the contract and compensate for the damage" - Mr. Linh said.
After listening to the opinions exchanged between the parties, Ms. Nguyen Thi Trang - Director of Kingfoods Joint Stock Company, the unit that signed the contract with Nafoods Passion Fruit Company to purchase and process dried papaya products for export to the Russian market, said that the development of the raw material area is only in the initial stage. Ms. Trang agreed on the plan to liquidate the contract; at the same time, she hoped that the two parties would continue to accompany each other in the coming time when the market improves.
At the end of the meeting, the two sides agreed on a plan to liquidate the contract and compensate 225 million VND/ha; by August 21, 2023 at the latest, the contract liquidation procedures will be completed and the money will be transferred to the people. In addition, the company also agreed to support the people with 50% of the amount of money for buying seedlings that the people still owe the company (specifically 8 million VND/ha).
The Director of Nafoods Passion Fruit Joint Stock Company also said that the remaining trees and fruits can be consumed by the people as they wish, and the company will work with them to find outlets. Currently, many small traders in Vinh City's markets and some supermarkets have connected and want to buy...
