JICA helps Nghe An build value chains in agricultural production

Solving problems in agricultural production

Nghe An has potential in terms of land, especially climate and soil, creating diverse agricultural development and has built many specialized commodity growing areas. However, agricultural products are still in a state of high output, "good harvest, low price", raw processing, not exported much and not meeting the demanding market.

Nam Dan farmers produce spinach under the guidance of JICA. Photo: Chau Lan

Accordingly, although manufacturers produce high quality products, the profits are not large, or even non-profitable; while processors, retailers and consumers do not recognize suitable products for themselves. Based on research on agricultural production in Nghe An, through the implementation of the Technical Cooperation project on agricultural development planning in Nghe An province, the Japanese organization JICA has initially proposed a number of solutions to solve the problem.

It is noteworthy that through the establishment of the Nghe An Provincial Agricultural Market Forum, the project has created conditions for exchange and business connection between components in the agricultural product value chain; thereby determining market demand (buyer) to provide technical support and monitor the production process, and at the same time connecting the buyer and the producer on the basis of a production contract and commercial transaction of agricultural products.

With that method and approach, during the 2 years of project implementation, the Japanese organization JICA has supported the connection and implementation in the province of 41 pilot projects according to the value chain, such as oranges, grapefruit, ginger, matcha tea, potatoes, chicken, etc. According to Mr. Truong Minh Chau - Head of Science and Technology Department, Department of Agriculture and Rural Development, up to this point, the project has created 10 effective value chain models for replication. Among them, there are a number of projects that have confirmed results in improving the product value chain.

For example, the pilot model of growing potatoes in Hoang Mai town to supply Koikeya Company of Japan located in Dong Nai province to process crispy potato chips reached a value of 200 million VND/ha, of which the production cost was 70 million VND/ha, the producer achieved a maximum profit of 130 million VND/ha, 13 million VND higher than the control model; the orange preservation model aimed at improving the value chain through the distribution of off-season oranges; the model of planting, caring for, harvesting and processing matcha tea in Anh Son district...

Japan JICA organization guides the processing of orange products in Quy Hop. Photo: Chau Lan

Issues raised

Based on the implementation of the Technical Cooperation project on agricultural development planning in Nghe An province, the development orientation for Nghe An agriculture has been initially proposed. Mr. Tran Quoc Thanh - Director of the Department of Science and Technology said: Orienting agricultural development according to the value chain, linking production, processing, trade - consumption, including input and output of products according to the project that JICA is implementing is a new approach. This is also the direction that the Department of Science and Technology has been implementing through supporting businesses to implement a number of projects according to the value chain. In 2018 alone, the Department is promoting support for the development of orange trees according to the value chain to consolidate a number of disease-free orange varieties in the Thai Hoa area, and at the same time connecting with businesses participating in the preservation stage, thereby improving the value chain of orange products.

Orienting agricultural development according to value chains is a necessary direction. However, in reality in Nghe An, the formation of value chains has only stopped at small-scale models, without a comprehensive and systematic plan. This is also the issue raised at the meeting of the Joint Coordination Committee of the Technical Cooperation Project on Agricultural Development Planning in Nghe An Province held in Vinh City on the afternoon of March 15. Based on the discussion of delegates at the meeting, the master plan idea was outlined with 3 main directions.

That is to establish a system to collect and share market demand information; improve agricultural administrative services and infrastructure to develop food value chains; develop capacity for administrative agencies and personnel related to value chains. In which, emphasizing support policies and administrative systems to form reliable production areas for the market. When the above issues are resolved, it will have an impact on promoting the development of Nghe An's agricultural economy, truly becoming an important economic sector, contributing to improving the lives of 75% of the population who depend on agriculture in the province.

JICA project supports Nghe An to promote agricultural product consumption

(Baonghean.vn) - That was the issue raised at the meeting of the Joint Coordination Committee of the Technical Cooperation Project on Agricultural Development Planning in Nghe An Province held in Vinh City on the afternoon of March 15.

JICA Senior Advisor on the Field at Thanh Chuong Tea Island

(Baonghean.vn)- On January 6, the JICA delegation conducted a field trip at Thanh An Tea Island Tourist Area - Thanh Chuong.