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A solution to clean agricultural product consumption

​After over 6 months of construction, on June 28, Dau Giay wholesale market of agricultural products (Dau Giay market), Xuan Thanh commune, Thong Nhat district invested by Thong Nhat real estate company (Tin Nghia Corporation) was officially open to the public. With the largest scale in the province, Dau Giay wholesale market is expected to solve two weaknesses in agricultural production in the province today: output and quality of agricultural products.


​A solution for agricultural products

Speaking at the inauguration ceremony, Vice Chairman of the provincial People’s Committee Vo Van Chanh said that Dong Nai province has many advantages in developing agricultural production. However, the agricultural production of the province is still inefficient and unstable, which results in low value. "Statistics show that the current value of 1ha of agricultural land in the province is only about 110 million, which is obviously not commensurate with the potential," said the Vice Chairman.
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Visitors at a fruit stand in Dau Giay wholesale market.
According to the Vice Chairman of the provincial People's Committee, the cause of this situation is due to the limitation in organizing agricultural production, not only in Dong Nai but also throughout the nation, which is high production costs in the context of uncertain market. According to the Vice Chairman, Dong Nai has struggled to find a way to “rescue” many farm products from bananas, chickens to pigs. To overcome the above-mentioned problems, Dong Nai built Dau Giay wholesale market to create more reliable agricultural product consumption channel. "This is a popular model in developed countries, but it is new in our country." According to the Vice Chairman, in this context, Dau Giay wholesale market will prioritize to connect with farmers in the province to bring agricultural products to the market.

Particularly, with the goal of becoming a wholesale market for clean farm products, the items entering the market will have to meet the "hygiene" requirements and have traceable origin. "In the long run, it must be possibly traceable. By this way, we can ensure clean production. Products available at the market must have clear origin. This will also help to build the brand for the market," said the Vice Chairman of the provincial People's Committee.

Build a supply source of clean products

Ms. Do Thi Minh Thom, Director of Bau Tre Clean Farm Product Cooperative, Binh Son Commune, Long Thanh District, said that farmers have been producing products for a long time but the consumption depends mostly on traders. Therefore, farmers often suffer from price squeeze. Therefore, the inauguration of Dau Giay market for agricultural products will create new consumption channels for farmers. “From then on, I rented a stand in the market where the co-operative has a place to display and sell the product. When the market is put into operation, we will no longer depend on traders, and have better access to market information," she said.

However, in fact, there are not many cooperatives, cooperative groups or farms that have enough financial and human resources conditions to be able to rent and run business in the market like Bau Tre cooperative. This makes the Dau Giay wholesale market less crowded and the items are less diverse than expected though it has been in operation for more than a month.

Mr. Nguyen Hong Long, Director of Proton One-Member Limited Company (Proton Company), said that the company has negotiated many contracts, however, due to the limited product range, the unit cannot sign them yet. Therefore, to support and invite small traders to do business in Dau Giay wholesale market, the Market Management Board will offer free rent to small traders for the first 3 months. Specifically, according to Mr. Long, depending on the area of the stand and the agreement between the two parties, the average rent rate for a stand that the management of the market offers free to small traders is about 20 million, including taxes. There are currently 30 small traders who are eligible for this policy. The market management is still inviting small traders to do business in the market," Mr. Long said.

Additionally, Proton Company is also establishing and developing a sustainable farm model. According to Mr. Long, this is a harmonious combination of technology, machinery, cultivation, harvesting, preservation, processing and distribution through a closed system that tracks and displays results online. "The aim of the company is to build sample farm groups, demonstrate practical farming guidelines for cooperatives, gardeners and farmers in a sustainable new model. Farmers participating in the model only need to contribute farm land and labor, the process of every stage of cultivation will be provided by the company and ultimately the company will guarantee consumption for the products that the farmers make, "said Mr. Long.

The construction of phase 2 starts in 2018

According to the plan, Dau Giay wholesale market will have a size of 55 hectares with a total investment of over 1.400 billion. Phase 1 of the market is 2 hectares with 216 business warehouses with total investment of nearly 50 billion. The market is built in a modern style with 8 rows of stands, each area of which is from 24 - 32m2. Internal roads inside the market are wide enough for container trucks can enter and leave for transportation of goods. Infrastructure of Dau Giay wholesale market is made accessible to National Road 1A and Highway 20. The second phase will be invested for construction in 2018, which will expand the area of 48 hectares, featured with a cold storage system to facilitate trading meat, aqua products and seafood.
 

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