High-tech agricultural production: Lack of capital and difficulty in output

(Baonghean) - Nghe An is a province that has developed high-tech agriculture early. The need to develop this field is very large if policies are stronger.

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Capital difficulties

The investment capital for high-tech agriculture (CNC) is very large, along with that, a large area of ​​land for production is needed. Because on average, one hectare of high-tech vegetables costs from 500 million to 1 billion VND - a very large cost for those who are just starting out.

Taking care of green asparagus plants in Nghi Lien, Vinh city. Photo: Chau Lan

In recent years, Nghe An has directed the development and approval of Projects and Plans for high-tech agricultural development until 2020; Plan for the development of Phu Quy CNC agricultural area; issued Decision No. 23/2015 on preferential policies and support for investment in high-tech projects... However, currently, very few enterprises benefit from support policies.

Mr. Nguyen Ngoc Trung in Chi Khe commune, Con Cuong district - the first person to implement the safe vegetable project with American melons and drip-irrigated eggplants shared: “I received 900 million VND from Con Cuong district to do the project, so I am very determined and responsible. Currently, in addition to the second crop of American melons, I am implementing a project to grow eggplants using drip irrigation technology, investing a total of 370 million VND, of which the district supports 150 million VND and the family spends 120 million VND. The purpose of my model is to let farmers know how to produce clean products, but producing clean products requires a large investment cost, so I hope to receive support from the State.”

Sharing the same view, Mr. Phan Van Dien - Director of Thanh An Agricultural Science and Technology Service Joint Stock Company, a unit implementing high-tech medicinal herb production in Con Cuong, also said: "Currently, I have invested about 4 billion VND in 1 hectare of medicinal herbs with a greenhouse system, sprinkler system, processing and packaging, and the products sold on the market are Solanum procumbens and Gymnema sylvestre. However, the company is mainly borrowing from banks but cannot borrow on credit (but borrow by mortgage), so it is very difficult. I hope that the business will receive support for bank interest rates."

Packaging medicinal products in Con Cuong district. Photo: B. Hau

Mr. Pham Van Tien - Chairman of the Board of Directors, Director of Tam Nguyen Agricultural Investment Joint Stock Company also said that currently, enterprises investing in CNC agriculture are lacking land for long-term, systematic investment in production. Renting land from farmers and localities is only for a period of about 5 years, while investing in this field is costly and capital recovery is not easy. Besides, there is a lack of clear mechanisms for enterprises, especially in the field of vegetables and fruits, and localities such as communes and districts are also passive in coordinating with enterprises to build production areas. Currently, 1 hectare of CNC agricultural production costs about 6 billion VND, which is the average type, or about 600 million VND for 1,000m2. This is a fairly large cost that only enterprises can afford.

Product output problems

Currently, some enterprises investing in CNC-applied agriculture such as TH Group, Vinamilk Joint Stock Company, International Clean Vegetable and Fruit Production and Supply Joint Stock Company; Nghe An Agricultural Materials Joint Stock Corporation or Tam Nguyen Agricultural Development Investment Joint Stock Company... have had a sales network for their products, which are supermarkets, distribution systems, clean agricultural product stores... However, for many other start-up models, product consumption is extremely difficult. Almost all young bosses are having to work and run the output at the same time, taking advantage of all sales channels from selling via Facebook, Zalo or consignment sales, contacting restaurants, hotels...

The location of the store is also a difficult problem because the rent is too expensive to have a store located in a densely populated area that is convenient for product consumption. In addition, it is necessary to have a warehouse to preserve and store goods to ensure freshness. Most business owners want to have a convenient production and business location and there is currently no policy to support this issue.

Ms. Nguyen Thu Hang in Doi Cung ward, Vinh city said: I am now very worried about food safety when going to the market. Vegetables are sprayed with pesticides, pigs are fed growth hormones, eating and drinking is like inviting disease into the body.

Ms. Hang's thoughts are also the concerns of many people and they still want to buy clean products. However, the opposite is that while the demand for clean products in the market is very large, clean agricultural products are struggling to find a market. A bunch of normal vegetables costs 5,000 VND, many people buy, but if a bunch of clean vegetables weighs the same and sells for 10,000 - 15,000 VND, it will be very difficult to find buyers. The price of a kilogram of clean vegetables of TH is currently sold at the farm is 20,000 VND, if sold in the supermarket, it will sell, but if brought to the market, people will pick it up and put it down. Not to mention that people do not have enough confidence in whether the product is really clean or not.

Strawberry plants in the greenhouse.

High production costs mean that prices will be many times higher than for conventional products. However, consumers are currently having difficulty accepting and not treating clean products fairly in terms of price. This is a difficult problem for clean agricultural producers and high-tech applications.

In addition, high-tech agricultural producers require good management, technical skills, agricultural knowledge, and regular knowledge exchange to operate the farm in the best way. According to young owners, accessing clean and safe vegetable standards such as VietGAP, Global Gap, etc. is still difficult and costly. Even with policies, accessing loans and support policies is very difficult for businesses.

Discussing this issue, Mr. Nguyen Van Lap - Deputy Director of the Department of Agriculture and Rural Development said that the Provincial People's Committee will soon have a meeting and propose the Provincial People's Council to resolve a number of support policies for CNC agriculture. We also hope that the province will pay more attention to this issue, including capital and business location support for enterprises.

Chau Lan