Tan Ky: 60% of cooperatives are... gasping for breath!

(Baonghean.vn) - With 24 cooperatives, Tan Ky is one of the localities with the highest number of cooperatives among the mountainous districts of Nghe An. However, nearly 60% of cooperatives are operating at a low level.

The Giai Xuan Agricultural - Service Cooperative (Gia Xuan Commune) in the first days of the new year was very quiet. On the stalls of the dilapidated row of level 4 houses that the Cooperative used as a transaction point, dusty bags of fertilizer lay in the corner of the room. From 1,000 members in 2007, the Cooperative now has only a few dozen members operating at a low level and ineffectively.

The booth of Giai Xuan Commune Agricultural - Service Cooperative is in a desolate state, many booths are no longer operating.

Ms. Phan Thi Van, the cooperative’s accountant and a fertilizer seller here, shared that she will look for another job in the near future because the current income from the cooperative is only 300,000 - 400,000 VND/month. Most of the remaining members have almost no money.

Mr. Nguyen Huu Trien - Vice Chairman of Giai Xuan People's Committee said: "The economic structure of the commune is more than 80% agricultural, therefore, Giai Xuan Agricultural - Service Cooperative was established with the purpose of providing services on seeds, fertilizers and pesticides for the people. However, the cooperative only operated effectively for a short time, until now, due to weak competitiveness and lack of capital, the operation has stagnated. Even the warehouse system is not available, it has to be borrowed from the commune".

A stall containing seeds and fertilizers of the cooperative is covered in dust because there have been no buyers or sellers for a long time.

In Tan Xuan commune, the situation is even worse when Tan Xuan Agricultural - Service Cooperative has had to stop operating for 6 years due to ineffective business. The reason is that the members owe the Cooperative money, and the Cooperative owes customers money that it cannot pay. Meanwhile, according to the Law on Cooperatives, if the Cooperative wants to convert, it must have all the necessary procedures according to regulations, or if it wants to dissolve, it must recover its debts. The Cooperative has not been able to do both of these things.

The situation in Giai Xuan and Tan Xuan communes is also a common difficulty of agricultural cooperatives in Tan Ky district. We can list some weak agricultural cooperatives such as: Tan Xuan agricultural cooperative, Nghia Dung agricultural cooperative, Phu Son agricultural cooperative, Dong Van agricultural cooperative, Nghia Thai livestock cooperative... all are in a situation of "it is a pity to abandon, but it is a sin to keep".

Tan Ky district currently has 24 cooperatives; of which 20 are agricultural-service cooperatives, 4 are forestry and livestock cooperatives. Up to 33.4% of cooperatives are operating at a moderate level; 23.8% are operating weakly. Two agricultural cooperatives have been dissolved recently. According to the 2012 Law on Cooperatives, by June 30, 2016, cooperatives are required to reorganize or dissolve. However, up to now, most of Tan Ky's cooperatives have not been able to complete this work.

Nghia Hop Commune Dairy Cooperative currently has 12 members.

Mr. Nguyen Nhu Ky - Deputy Head of the Department of Agriculture of Tan Ky district said: Many local cooperatives are increasingly declining in efficiency because their production and business plans do not have clear goals and do not link production with the market. The number of members and cooperative members participating is still too small compared to the labor force in the area, the quality of members is not high, most of them have not attended vocational training courses. Cooperatives are facing many difficulties in capital, while many members have long-term debts.

According to Mr. Nguyen Nhu Ky, to overcome this situation, in the coming time, the district will review all cooperatives in the area. Gradually dissolve weak units. In addition, organize vocational training and transfer science and technology to people to build profitable economic models, thereby creating leverage for the development of cooperatives in the area.

Thanh Quynh