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Building the ecosystem for large-scale production

Breaking the planning to build large fields, many unsustainable linkages pose the problem that investment in linkages in the next period must come from actual production, from market demand, not from movement model from top to bottom as before.


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Cocoa bean processing area of ​​Bamboo Capital Joint Stock Company (HCMC) in An Vien Commune, Trang Bom District. Photo: Phan Anh

In order to solve the difficult problem in building the large fields, it is necessary to change the mindset to build the chain of all participants such as enterprises, farmers, managers, etc. Besides, it is necessary to have the "support" in terms of support policies of the State.

Expand the vision of the value chain

As reflected by the localities, agricultural growth tends to slow down, farmers' incomes decrease because of inflation, which causes input materials to escalate due to dependence on the import market; The processing industry develops slowly, post-harvest losses are still high, production linkages along the value chain are limited, and the consumption market is precarious.

Contributing to the investment in building the large fields and link chains, Mr. Nguyen Van Lam, representative of Nedspice Spices Processing Company Limited (Netherlands-invested enterprise, headquartered located in Binh Duong Province) which joined the chain of buying the organic black pepper of Dong Nai farmers said that the provinces and cities bordering Ho Chi Minh City are in the process of strong industrialization and urbanization such as Dong Nai, Vung Tau, land prices are increasing remarkably. In fact, because not many farmers in some rural areas, where the land price has increased a lot, paying attention to farming anymore, the cooperative projects of large fields and linkage chains have been broken and narrowed down.

According to Mr. Lam, with the current high land price level, Dong Nai does not have the advantage to replicate the top-down model model. Should have a new perspective, focus on building effective and sustainable linkage chains for uniform production in terms of quality and transparency of origin. Localities in the province, even many provinces and cities need to link regions to still ensure the production of goods on a large scale, meeting both output and quality requirements for export markets.

This is also one of the contents mentioned by the Minister Le Minh Hoan of Agriculture and Rural Development many times, that the large fields is not simply a combination of small fields, not just the limit of the small plots that are gradually expanded. In the direction of mechanics to add circumference and area, it is still a production mindset associated with the goal of increasing output. Although more and more output from the large fields is due to irrigation, mechanization, electrification, improved seed productivity, improved farming processes, and improved labor productivity, the added value of agricultural products has not yet ungraded to a higher level in the value chain.

In addition, the research, forecasting and provision of market information in the agricultural sector of our country still have many limitations, leading to a lack of information or not timely information for producers. Not only that, most farmers are not guided, advised and recommended by the competent authorities in the production process. Agricultural exporters themselves must actively seek information of each specific market to lead farmers to produce, because how they buy, farmers produce like that. Minister Le Minh Hoan of Agriculture and Rural Development emphasized: “The role of commodity associations is extremely important in the market economy. The State cannot regulate what farmers produce. This is the role of associations and industries. Associations and industries, through their members, lead the process of restructuring the agriculture industry and restructuring the market.

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Processing dried fruits at Thuan Huong Trading and Production Co., Ltd., Dinh Quan District. Photo: Phan Anh

Support policy is necessary

In the new period, many mechanisms, policies, as well as programs and projects have been implemented to develop large commodity production along the chain from production to consumption and processing. However, the above policies have not been synchronized, and the implementation in practice is still different.

Enterprises, cooperatives and farmers want the State to build a strong enough ecosystem to "raise" trade unions, chain links with the synchronization of incentive policies on capital sources, tax incentives, land, and technological solutions.

 Mr. Nguyen Ngoc Luan, Director of Lam San Cooperative, Lam San Commune, Cam My District said that the cooperative has many partners ordering export pepper with large output. The biggest difficulty of the cooperative today is that although the organic pepper production union project has been implemented for many years, it has access to very little capital in the support program; Support conditions, documentation procedures are cumbersome and complicated, etc. In addition, the cooperative also hopes to receive timely support in many aspects such as: land area to invest in factories for purchasing, preserving and processing right at the raw material area; soon deploying infrastructure investment for production regions, etc.

Especially difficult to access preferential capital is one of the barriers for the linkage chains to grow. Mr. Ly Minh Hung, Director of Thanh Binh Cooperative linking production and consumption of organic agricultural products located in Thanh Binh Commune, Trang Bom District, the province's pioneer cooperative in implementing circular economy in the agricultural sector with the model invest in deep processing of banana products. In particular, banana fiber and banana fiber products from dried banana peels are raw materials for making many environmentally friendly handicrafts that are being exported well by the cooperative to Europe and Japan. Mr. Hung shared: “Difficulty of the cooperative is the lack of large capital to invest in expanding the scale and upgrading the technology and machinery for the processing workshop. Specifically, the cooperative currently needs from VND8-9 billion to invest in a packer, a freezing system, an organic waste processing line from waste products in production, etc. right in the production area. “The cooperative looks forward to untying procedures and documents for medium and long-term loan packages. Banks should consider which projects are feasible and need to be more flexible in lending procedures and immediately resolve capital sources for the cooperative to promptly seize opportunities for development," Hung expressed his expectation.

In addition, barriers on land procedures and planning also need to be removed. In order to develop agriculture worthy of the airport city in the future, Long Thanh District has developed a plan to develop high-tech agriculture and organic agriculture associated with the processing industry and the consumer market. Mr. Pham Ngoc Vinh, Deputy Head of Economic Department of Long Thanh District said that the locality has attracted a number of enterprises to invest in hi-tech agricultural projects. The district also develops a plan to support a synchronous infrastructure system to meet the necessary requirements of electricity, water, roads, etc. creating favorable conditions for businesses to make investments.

 However, according to Mr. Vinh: "The current difficulty is that high-tech agricultural investment requires the huge capital. In particular, the biggest problem today is that to invest in this production model, investors have to build essential infrastructure for production and business such as preliminary processing area, warehouse, and drying oven, camps, housing for workers, etc. However, the implementation of the above constructions is currently entangled with a lot of procedures regarding land, construction, introduction of investment locations ... ".

The province is investing in 2 agricultural product processing industrial clusters, including: Long Giao agricultural product processing Industry Cluster (Cam My district), Phu Tuc Industrial Cluster (Dinh Quan District). In addition, Dau Giay Wholesale Market of Agricultural Products and Food (Thong Nhat District) with an area of ​​​​about 7 hectares is selling well agricultural products, especially fresh fruits and vegetables in the province. It is expected that the Dau Giay Wholesale Market of Agricultural Products and Food will continue to be invested in expanding not only a variety of products but also a synchronous planning in logistics area, cool storage, cold storage, wholesale support center. This is the basis for connecting localities, production areas inside and outside the province in order to form large-scale commodity chains from production, processing to consumption and export of products. agriculture.

Commenting on mechanisms and policies for collective economic development and cooperatives in the new period, Mr. Ho Thanh Son, Standing Deputy Secretary of the Provincial Party Committee suggested that in the new period, it is necessary to strengthen more policies and guidelines. policies and strong solutions to promote the development of agriculture, farmers and rural areas. As for policies to support household economy, collective economy, cooperative development, in the immediate future, it is advisable to focus on enterprise development. Because with the role of leading the household economy, the collective economy and the cooperative to develop together, businesses have more favorable conditions in terms of capital, technology, management, market...

Phan Anh

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