Improving the economic efficiency of industrial crops.

(Baonghean) - Nghe An province has abundant potential for developing industrial crops, with a diverse range of products such as sugarcane, pineapple, tea, and rubber. Currently, the raw materials for processing, preservation, and consumption are basically met. However, in the long term, as more areas are brought into cultivation, the province and businesses need to prepare, build more, or increase the capacity of existing factories and processing facilities.

Lack of linkages in production and consumption.

Compared to its "golden age," the area planted with pineapples in the province has decreased significantly, from over 3,000 hectares to only 800 hectares. However, despite the reduction, there are still many difficulties and shortcomings in processing, preservation, and consumption. These days, in Tan Thang and Quynh Chau communes (Quynh Luu district), the pineapple harvest is in full swing. Farmers are harvesting both wild and Cayenne pineapples, but mostly green ones for sale. Mr. Nguyen Van Sam (Hamlet 2B - Quynh Chau commune) said: "My family planted 7 sao (approximately 0.7 hectares) of pineapples, with an average yield of 3.5 - 4 tons per sao. However, due to the factory's limited purchase, we had to sell green pineapples at a low price because if we let them ripen and not sell them, they will rot. Since the beginning of the month, there has been a lot of rain in the area, causing a significant amount of pineapple to rot. It is estimated that about 150 - 200 kg of pineapple per sao has rotted, resulting in considerable losses." Not only pineapple growers, but also pineapple traders are facing difficulties. Ms. Tran Thi Minh (Quynh Tam commune) shared: "Recently, I bought about 300 kg of ripe pineapples and set up a roadside stall, but I couldn't sell them all in time, so 50 kg spoiled."

According to pineapple growers, in the past, technical staff from pineapple processing plants regularly instructed farmers on the use of chemicals to prolong the ripening period. Now, farmers are left to figure things out on their own, and are largely unaware of proper preservation methods. The entire Quynh Luu district currently has over 600 hectares of pineapples in the peak harvest season, facing the problem of unsold fruit rotting and spoiling. Therefore, post-harvest preservation measures are necessary. According to pineapple preservation standards, after harvesting, preliminary sorting and selecting intact fruits are carried out in cool storage at a temperature of 10-12°C for green pineapples and 7-8°C for ripening pineapples, with humidity at 85-90%. This allows for preservation for 2-3 weeks. However, due to limited pineapple purchasing by the processing plants in our province, most farmers have to find their own markets and preserve their produce themselves.

Overall, the processing needs for industrial crops in the province, such as coffee, tea, sugarcane, passion fruit, and pineapple, have been largely met. The province has over 5,000 hectares of commercial tea plantations, with products consumed by small processing plants and factories. Currently, over 3,000 hectares of rubber plantations are in operation, mostly belonging to companies such as Song Hieu and Xuan Thanh, which have their own processing facilities and proactively manage their raw material supply. Similarly, products from other crops like pineapple and passion fruit are now being preserved and processed. However, several shortcomings still exist in this area.

Rubber plantations are being built in Thanh Duc commune (Thanh Chuong district).

Except for rubber and some tea plants, most other industrial crops currently have processing facilities that are not fully integrated with the raw material areas. Instead, the raw material areas and processing facilities are separate and owned by different people. The consumption linkages have not been truly effective in the past, leading to instances of competitive buying and selling, price manipulation, and other problems. Sometimes, farmers in the raw material areas refuse to sell to businesses, opting to sell elsewhere for cash or higher prices. Other times, businesses fail to purchase all the produce from farmers during peak harvest season. This has somewhat affected product quality improvement because farmers have not paid sufficient attention to the quality of the raw materials.

Mr. Nguyen Van Tri, Director of Ngoc Lam Tea Enterprise in Thanh Chuong, stated: "The enterprise has over 300 hectares of tea plantations in Thanh An and Thanh Thuy communes. However, despite signed contracts, many farmers do not comply, selling their tea elsewhere at higher prices. Therefore, at times, due to a shortage of raw materials, the enterprise has to accept tea harvested below standard, affecting product quality. 'This over-exploitation, prioritizing short-term production and profit, not only results in some tea plantations dying or failing to develop, but also leads to unsustainable exploitation of tea gardens. More dangerously, in the long run, it will negatively impact the brand of Nghe An tea,' Mr. Tri worried." Furthermore, it is evident that the processing lines for industrial crops in the province still have many shortcomings and outdated technology, resulting in low product quality and low export prices. This is considered a vicious cycle: low product prices force businesses to buy raw materials at low prices, leading to farmers not caring about improving the quality of their raw materials…

Solutions to improve the efficiency of industrial crops.

To improve the efficiency of industrial crops, the first solution is to continue reviewing planning, closely linking raw material planning with processing facilities. This will prevent situations where businesses build processing facilities without their own raw material sources, leading to supply shortages and competition for raw materials, especially for tea. Currently, while factories linked to raw material sources have been established for crops like sugarcane and rubber, the situation remains chaotic for tea. Furthermore, localities and relevant sectors need to strengthen inspections and crack down on small-scale production facilities that do not meet food safety and hygiene standards, produce low-quality products, and engage in disputes over raw material areas.

In particular, according to Mr. Nguyen Van Lap, Deputy Director of the Department of Agriculture and Rural Development, it is crucial to effectively address the linkages in production, processing, and consumption of agricultural products. Businesses that have been designated by the province as having raw material areas for farmers to produce, and possess processing facilities and factories, must implement contract agreements with producers in accordance with the directives in Decision 62 (replacing Decision 80) of the Prime Minister. This is considered the most crucial step in linking raw material areas with processing facilities. During the contract implementation process, businesses and farmers must remain loyal to each other; when prices fluctuate, they must discuss and reach reasonable agreements to ensure mutual benefit, while also remaining committed to the planned crop types, avoiding arbitrary felling when crops are unproductive at certain times.

Businesses must also continue to innovate, upgrade, and apply scientific and technological advancements, moving towards factories that produce and process more refined products, using less raw materials but with higher selling prices and greater returns. Mr. Nguyen Van Tri, Director of Ngoc Lam Tea Enterprise, added: In addition to the CTC black tea production line, the unit recently invested 5 billion VND to import a green tea production line with modern technology, producing products that meet the stringent requirements of the export market. These are encouraging signs and need to be replicated. Along with that, a crucial solution is for raw material production areas to focus on applying scientific and technological advancements in seed selection and intensive farming to improve productivity, quality, and reduce production costs, ensuring profitability for both businesses and farmers, thereby fostering loyalty to the raw material region. Currently, only 5,000 out of 8,000 hectares of tea plantations in the province have been put into production, and 3,000 out of 8,000 hectares of rubber plantations have been put into exploitation. Businesses need to plan for the construction of more processing plants to meet demand when the remaining area is ready for exploitation.

To achieve these goals, state agencies, especially local authorities, need to further strengthen management to ensure the proper implementation of approved plans, direct specialized departments to transfer and guide the application of scientific and technological advancements to farmers. They should help businesses and farmers fulfill contracts, resolve disputes, strengthen inspection and supervision, and strictly penalize units and individuals who violate state regulations on investment in the construction of production and processing facilities for industrial crops. The main raw material areas for processing are located in mountainous regions where people's lives are still difficult. Therefore, the State needs appropriate mechanisms and policies to reassure businesses to invest in building raw material areas, transferring scientific and technological advancements, and selling products for the people.

Phu Huong