Final article: Enhancing the responsibility and capabilities of each "stakeholder"
(Baonghean)Perhaps the most evident effect of implementing the "four-party linkage" model under Decision 80/TTCP of 2002 in Nghe An is that farmers have gained access to professional production methods and large-scale product consumption through contracts. Therefore, it is fundamentally possible to continue to promote the role of these "parties" in the future. A key requirement is to resolve issues related to pricing, procurement, and supply chain management in the relationship between farmers and factories.
>>Article 2: The "Weakening" Role of Scientists
Recently, forest growers in many districts such as Con Cuong, Tuong Duong, Anh Son, Quy Chau, etc., have been worried about the bottleneck in the market for their timber, making it difficult to sell.
When the massive and impressive Tan Hong pulp mill was built, factory officials went door-to-door to persuade the people of Mon Son and Mau Duc - Con Cuong to cut down all their bamboo trees - the most productive crop in the area - to switch to planting acacia trees for the mill. But now that the mill has closed, thousands of hectares of acacia trees in Mon Son, Chi Khe, Don Phuc... are left unsold and withered. Mr. Nguyen Vinh from Hop Thanh village - Don Phuc expressed his frustration: "My family has more than 3 hectares of acacia trees that are over 2 years old, but we've only managed to sell 1 hectare at a price as cheap as firewood. The average price is just over 10,000 VND per hybrid acacia tree." In addition, Mau Duc commune has over 400 hectares of unharvested raw material trees.
Tea cultivation is a sustainable poverty reduction crop for farmers due to its long business cycle; however, the area of tea plantations remains difficult to expand annually. The reason is that investment from businesses has not attracted farmers. Tea growers in Thanh Chuong added: During the tea cultivation process, the enterprise often provides interest rate subsidies for farmers to buy fertilizers, but the support is delayed, affecting the development and growth of the tea plants. Tea prices are also a concern for growers. The price that Ngoc Lam Tea Enterprise pays is lower than the price paid by private traders. Specifically, the current price of tea buds bought by private traders is over 3000 VND/kg, while the enterprise's price is 2850 VND/kg. In addition, many enterprises that buy tea are slow to pay farmers (Con Cuong Tea Enterprise), paying only once a month, while tea processing factories outside pay immediately. Therefore, many households are reluctant to sell tea to the enterprise.
During the peak season for purchasing raw materials, tea and sugarcane growing areas still experience instances of factories and traders forcing down prices and unfairly distributing tea to farmers. There are many small tea processing factories in Thanh Chuong, but these factories often lack food safety standards and investment, leading to unfair price competition. Many factories don't invest at all, focusing solely on purchasing. Regarding cassava, there are times when rising prices encourage farmers to expand their planted areas, disrupting the existing supply chain, resulting in periods of raw material surplus for cassava processing plants in Yen Thanh and Thanh Chuong. For peanuts, only the peanut consumption alliance model in Dien Thinh, funded by the Agricultural Competitiveness Project, exists; in many other areas, farmers still have to find their own markets.
Another reality is that within the same area, the price of the same crop varies from place to place. This is the case with sugarcane. Some places buy sugarcane at 900,000 VND/ton, others at 870,000 VND/ton, and still others at 850,000 VND/ton, causing frustration among farmers. In terms of mutual benefit, although "agreement" is the highest principle of a contract, it is currently mainly based on the will of the businesses and factories. Contracts signed with farmers contain many clauses that are unfavorable to farmers. For example, the deadline for purchasing sugarcane is April 30th each year. This means farmers wait endlessly, the sugarcane flowers bloom, and summer arrives. By the time the sugarcane is harvested, it is very difficult for farmers to plant other crops because the planting season is over.
Mr. Tu Duc Ha, residing in Hamlet 5, Nghia Hanh (Tan Ky), has approximately 30 tons of unharvested sugarcane, even though it is already April 10, 2013. He stated that the contract stipulated a sugarcane purchase deadline of April 30, but he wished the factory would purchase it earlier because this is a flood-prone area, and young sugarcane is susceptible to flooding and cannot develop properly. The contract also contains stringent clauses for farmers, such as dividing sugarcane and tea into different grades. As a result, farmers rarely sell their products at the price of grade 1 sugarcane. Risk-sharing measures between the two parties are also rarely implemented in practice. When sugar prices are high, the factory makes a large profit, but farmers still only sell at the agreed-upon price. Many businesses lacking the financial capacity have not signed stable, long-term contracts with farmers, thus failing to attract them to invest in intensive farming. In the contracts, companies and factories are increasingly focusing on their own interests.
On the other hand, it must be acknowledged that farmers have limitations when participating in the "four-party" linkage. These include: The failure to strictly adhere to contracts signed between factories and farmers, and the lack of sanctions in case of disputes. Specifically, many farmers sign contracts, receive investment capital and technology from enterprises, but then sell their products elsewhere, delaying repayment and misappropriating the enterprises' capital. Many households do not adhere to investment and intensive farming procedures, and product specifications are not met, making it difficult to ensure agricultural products meet technical standards, especially for export. Disputes and conflicts still exist in production and business.
According to Mr. Ho Ngoc Sy, Standing Committee member of the Provincial Party Committee and Director of the Department of Agriculture and Rural Development of Nghe An province, the reasons for this situation are the difficulties encountered in the production and processing of agricultural products: Agricultural product prices are constantly fluctuating, the consumption market is unstable, while the price of input materials is continuously increasing, making it difficult for both producers and businesses to fulfill contracts. Due to seasonality, the harvest period is short and concentrated, while the capacity of some factories cannot meet the demand. Subjectively: Some factories, due to limited financial capacity, have not proactively signed long-term and stable contracts for the consumption of agricultural products with farmers. The level of understanding of economic contracts among a segment of farmers is still limited, and many households do not like the binding responsibilities.
In the future, to strengthen the "four-party" linkage, the key remains the State and businesses. Businesses need policies to invest in the sustainable development of high-quality raw material areas, and to invest in science and technology in these areas. Reasonable purchase prices are necessary, benefiting producers in comparison to other crops. The State needs to strengthen communication efforts to ensure that people and businesses understand their responsibilities in fulfilling signed contracts. Businesses and individuals should be encouraged to sign production and consumption contracts, which must be mutually binding in terms of rights and obligations, and involve the active participation of local authorities (the State) as stipulated in Decision No. 80/QD-TTg of the Prime Minister.
The Provincial People's Committee also needs to direct relevant agencies to take measures to limit the situation where businesses from other provinces purchase raw materials at predatory prices, harming businesses and raw material producers.
Chau Lan - Van Truong