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Linkage effectiveness

Not only does the linkage between rice seed production and commercial rice production bring higher value to farmers, but unlike many other cooperatives, the Quyet Tien Agricultural Cooperative (Cong Thanh commune, Yen Thanh district) has a complete system of warehouses for storing, drying, processing, packaging, and preserving agricultural products.
Following the failure of the previous cooperative, in 2019, right after its establishment, Mr. Bui Van Ho - Director of the cooperative - pondered over finding a direction and realized: The most important thing is to have stable infrastructure, which will then build trust and attract businesses to form sustainable partnerships.

Through self-effort and the cooperation of partners, a system of three drying ovens with a capacity of 60 tons per day and night, and a storage warehouse with a maximum capacity of 1,000 tons, was invested and built with a total cost of nearly 4 billion VND. “Not only does this help attract businesses to participate in the linkage, but agricultural products can also be preserved longer during periods when they cannot be sold. Currently, some partners have approached us about drying wood and bamboo shoots. During the summer-autumn harvest season, if local people need it, the cooperative can also dry rice for them,” Mr. Bui Van Ho shared.

Linkage between farmers and cooperatives in Lien Thanh commune (Yen Thanh district). Photo: Thai Duong

By participating in the cooperative's production linkage program, Mr. Le Minh Luan from Hamlet 9, Cong Thanh Commune, received support in terms of seeds, fertilizers, and pesticides. In particular, the cooperative purchased a water pump to transfer water from the source to irrigate his rice fields. "My family has 8 sao (approximately 0.8 hectares) of rice paddies. Only 1 sao in another area cannot participate in the linkage program. The remaining 7 sao have guaranteed product sales at a price 20% higher than the market price at the same time, resulting in a profit increase of about 20% compared to before," Mr. Luan happily stated.

With 90 members, the Quyet Tien Agricultural Cooperative not only produces, dries, and packages 100 hectares of rice seeds, but also collaborates with 6 other communes both within and outside the district to produce 7,000-8,000 tons of commercial rice per year for processing and packaging, and establishes a product distribution agreement with Thanh Do Company.

According to Mr. Nguyen Van Duong, Vice Chairman of the District People's Committee: "We have focused all resources and directed the entire political system to support the development of cooperatives. In 2016, we focused on orienting and transforming agricultural cooperatives according to the 2012 Cooperative Law. In subsequent years, we will continue to support agricultural cooperatives in expanding service types, transferring science and technology, attracting agricultural enterprises to invest in joint ventures and linkages along the product chain, and building brands for some advantageous local products such as Yen Thanh rice, Vinh oranges, Trang Ke honey, and Yen Thanh free-range chicken... As a result, many cooperatives have increased in scale, scope, and improved operational efficiency."

Investing in mechanized rice harvesting in Nhan Thanh commune (Yen Thanh district). Photo: Thai Duong

To date, Yen Thanh district has 48 agricultural cooperatives, an increase of 15 cooperatives compared to 2015. All 38/38 communes have agricultural cooperatives; nearly 15,000 members participate, with charter capital exceeding 24 billion VND. Notably, in addition to agricultural services and input supply, the cooperatives have expanded and focused on developing many new, highly effective sectors such as animal feed services, environmental services, market management, clean water supply, and internal credit.

In particular, many cooperatives such as Bao Thanh Agricultural Cooperative and Quyet Tien Agricultural Cooperative have implemented high-tech applications in production, such as growing vegetables in greenhouses; Minh Thanh Agricultural Service & Construction Cooperative uses drip irrigation for fruit trees of its members; some cooperatives apply mechanization to production, such as agricultural product drying ovens; and especially Tho Thanh Agricultural Service Cooperative has provided comprehensive mechanized services from seedling tray planting, land preparation, rice transplanting, care, harvesting to purchasing fresh rice from farmers. "Overall, the number of effectively operating cooperatives has increased, and most are profitable," said Mr. Nguyen Van Duong.

Supporting and resolving difficulties for cooperatives.

However, despite achieving many positive results, cooperatives are still facing numerous difficulties. The majority lack operating capital, offer small-scale and unstable services, and have low competitiveness. Inadequate infrastructure, a small number of members, and modest capital contributions hinder operations, expansion of production and business, and the creation of potential for joint ventures and partnerships.

Meanwhile, many cooperatives have only focused on providing input services and have not yet paid attention to investing in expanding their areas of operation such as land preparation, harvesting, preservation, processing, linking the consumption of agricultural products, and linking the consumption of products for farmers.

Tan Thanh Cooperative develops pineapple products that meet VietGAP standards. Photo: Thai Duong

In the coming years, to further improve the operational efficiency of agricultural cooperatives associated with the transformation of the rural agricultural economy and the construction of new rural areas, Yen Thanh has proposed many solutions with specific objectives.

This includes focusing on promoting awareness among the people about the role of cooperatives; enhancing the role of Party committees and government at all levels in accompanying and supporting cooperatives to operate effectively. At the same time, it involves strengthening state management of the collective economy, providing guidance and creating a legal framework for cooperatives to operate; supporting and assisting cooperatives by using them as a bridge between the state, farmers, and businesses; and improving the capacity of cooperatives.