Step by step innovation, improving the operational efficiency of cooperatives along the value chain

Internal efforts of cooperatives

Nghia Dan Medicinal Herbs Cooperative has currently planted 10 hectares of medicinal herbs, including: An xoa hoa tim, ca gai leo hoa tim, xa den, khoi nhung tim... By November 2023, Nghia Dan Medicinal Herbs Cooperative had 22 products processed entirely from natural medicinal herbs, participating in the consumption chain in supermarkets and large clean food stores in and outside the province... In November 2023, this cooperative participated in a cooperation memorandum connection with Go Vinh supermarket with the goal of bringing Nghia Dan medicinal herbs products to the shelves of Go supermarket chain nationwide.

The above results are remarkable for a cooperative that has been newly established and operating for more than a year. Mr. Ngo Quang Canh - Director of Nghia Dan Medicinal Plants Cooperative, shared: “The advantage is that many farming households with land funds and determination to convert crops have joined the cooperative as members. Up to now, the cooperative has 102 members. The medicinal plants have initially shown to be suitable for the climate and soil of Nghia Dan, growing and developing very well. 1 hectare of Solanum procumbens can yield 30-35 tons/ha/year, harvested 3-4 times/year; perennial medicinal plants such as xạ đen, khôi nhung, etc., the longer the planting time, the higher the medicinal properties in the plants. The cooperative will organize an assessment of the quality, productivity, and specific economic efficiency of each medicinal plant to serve as a basis for replicating the model for members”.

The development of Nghia Dan Medicinal Plants Cooperative is a result of internal efforts when core members have mobilized over 2 billion VND to build a factory with a modern medicinal plant extraction and concentration line. Up to now, the total value of this cooperative has reached over 5 billion VND. As planned, the cooperative will develop a medicinal plant area of ​​over 100 hectares by mobilizing households with forest land and annual crop land to convert to growing medicinal plants to participate in the value chain.

The assessment of the People's Committee of Nghia Dan district shows that of the 36 cooperatives in the district, 30 units operate with average and high efficiency. The cooperatives in the district have 2,898 members and about 900 regular employees. The total charter capital of the cooperatives is over 152 billion VND. The above capital is mainly mobilized from the contributions of cooperative members. Some cooperatives have initially boldly borrowed capital to invest and expand production and business.

Innovation in production along the value chain

In Nghia Dan district, there are a number of cooperatives that have boldly strengthened their linkages, such as: Nghia Thinh Commune Agricultural Service Cooperative has linked up to grow biomass corn with an area of ​​about 102 hectares per crop, yielding 35 tons/ha; Nghia Mai and Nghia Phu raw sugarcane production and consumption cooperatives have linked up to produce raw sugarcane with nearly 100 hectares, with an average yield of 60 tons/ha, and a linked output of 6,000 tons; Hau Nguyen High-Tech Agricultural Cooperative has linked up to produce and consume melons with an area of ​​nearly 5 hectares, yielding 35 tons/ha/crop (2 crops/year), with an output of 350 tons/year; Nghia Dan Medicinal Herbs Cooperative has linked up to grow and process medicinal herbs...

In fact, the majority of cooperatives in Nghia Dan are operating in the agricultural service sector (32/36 cooperatives in the district). Due to many reasons, the process of converting operations has made it difficult to promote their role and mobilize resources to expand production. Many cooperatives are still confused about converting to new production methods associated with value chains and applying high technology. Most cooperatives are borrowing land from the Commune People's Committee to build offices or using the houses of members' families as offices. Only 2 cooperatives have been granted land for offices and warehouses.

Faced with that reality, Nghia Dan district is increasing support for cooperatives to develop effectively. In addition to the incentive mechanisms of the Central Government and the province, the district has built mechanisms to support cooperatives in transforming production, business, and promoting products. At the same time, it supports training to improve the capacity and qualifications of cooperative managers and cooperative members, along with visiting and studying typical models for cooperative staff. The district also replicates the pilot project of sending college and university-level staff to work at cooperatives according to Circular No. 340/2016/TT-BTC dated December 29, 2016 and Plan No. 2308/QD-UBND dated June 8, 2018 of Nghe An Provincial People's Committee.

Nghia Dan District also coordinates with all levels and sectors to provide training on Good Agricultural Practices (GAP) for members who are farmers directly involved in agricultural production through agricultural extension programs; programs, projects and through training and fostering programs of socio-political organizations and unions. At the same time, the district attaches the responsibility of training to affiliated enterprises to meet the requirements of product quality standards.

In addition to promoting the internal strength of cooperative members, Nghia Dan district also proposed solutions to mobilize resources from social organizations; loans from Cooperative Development Support Funds, Farmers Support Funds, credit institutions; capital from enterprises to expand the scale of operations, innovate and improve the efficiency of cooperatives. At the same time, promptly mobilize resources for the development of cooperatives from the State's support funds to support cooperative development, integrate from national target programs and projects, programs to promote cooperative development. On that basis, continue to promote the role of the collective economy in rural areas, with cooperatives as the core.