Improve the operations and management of agricultural cooperatives

Over the years, agricultural cooperatives have been an important link connecting farmers, scientists, the state, and businesses. Thereby, farmers have gradually changed their perception from agricultural production mindset to agricultural economics, built large raw material areas, and increasingly consistent product quality, contributing to affirming the brand of Vietnamese agricultural products, aiming to build a green, modern, and sustainable agriculture.

Typical agricultural cooperatives

Based on practical needs, in 2022, Minh Trung Agricultural Service Cooperative in Tan Phu commune, Tay Ninh province was established, with 30 members and a charter capital of 500 million VND. The purpose of establishing the cooperative is to link farmers to build large raw material areas, create stable output for agricultural products, and help cooperative members buy fertilizers and pesticides at lower prices than outside.

After a period of implementation, the Board of Directors of Minh Trung Agricultural Service Cooperative found farmers were not keen on participating in meetings, did not contribute opinions, and had no need to share profits. Therefore, the Board boldly transferred the official members to associate members, keeping only 7 official members who are enterprises and increasing the charter capital to 2 billion VND. Although the number of official members has decreased, the number of associate members has continuously increased, with more than 120 members. In particular, the cooperative's operating motto remains unchanged, always putting the interests of farmers first.

Chairman of the Board of Directors of Minh Trung Agricultural Service Cooperative Le Minh Trung shared, “The cooperative specializes in purchasing durian, squash, corn, of which custard apple is the strength. Currently, the Cooperative has signed a joint purchasing contract for 250 hectares and also supports the purchase of more than 400 hectares of custard apple in neighboring localities. The cooperative does not choose to purchase custard apple at a fixed price, but the price fluctuates from the market and adds 3,000-5,000 VND/kg for associated members.

Recently, the Cooperative has also established the Tay Ninh Custard Apple Association to share experiences and transfer science and technology, connecting farmers with enterprises and the State. Thereby, the functional sectors will grasp the difficulties and problems of farmers and enterprises to have timely solutions.”

In recent years, Tan Phu has developed strongly in fruit trees, of which custard apple is considered a golden tree for many farmers. Currently, the whole commune has 2,100 hectares of custard apple; each year farmers harvest 2 crops, and on average 1 hectare produces about 10 tons. The selling price is from 30,000 to 35,000 VND/kg, after deducting costs, farmers earn a profit of 300-350 million VND/year. Therefore, the stable development of Minh Trung Agricultural Service Cooperative helps farmers feel secure in production.

In addition to Minh Trung Agricultural Service Cooperative, Phuoc Hoa Safe Vegetable Cooperative, Long Cang commune has always been a companion of farmers in the journey of producing and consuming agricultural products. The cooperative is currently purchasing output for 11 hectares of vegetables, with an average output of more than 600 tons/year. The customers are restaurant chains, supermarkets, and companies, with selling prices 3,000-5,000 VND/kg higher than the market (depending on the type).

Mr. Vo Van Toan, a member of the Board of Directors of Phuoc Hoa Safe Vegetable Cooperative, shared, “Clean and organic production is an inevitable direction of modern agriculture. This requires the cooperative to change its production mindset according to market demand, especially to build an agricultural product brand. And when it has quality and reputation, Phuoc Hoa safe vegetable products can have a solid position in the market. Achieving this result, the Cooperative has received attention and support from all levels, sectors and local authorities in transferring science and technology, participating in trade promotion fairs, etc.

The application of high technology helps the agricultural output of localities increase dramatically on the same cultivated area. In 2025, rice output reached 4 million tons, an increase of 14% compared to 2020, with an average yield of more than 63 quintals/ha, of which high-quality rice accounts for nearly 75%, ensuring food security and affirming Tay Ninh's position in the production of high-quality commercial rice. The lime growing area is more than 12,400 hectares, an increase of 9%, and the output increased by 49% compared to 2020. Dragon fruit reach 216,000 tons; vegetables of all kinds reach 578,700 tons; brackish water shrimp reach 15,600 tons, cassava reach 2.1 million tons/year, rubber reach 189,000 tons/year, etc.

Many difficulties remained

According to statistics, the whole province currently has 387 agricultural cooperatives, of which 326 are operating, 61 are inactive; 5 cooperative unions. However, only 49% of them are operating effectively; the rest are operating at a low level, not bringing practical results to cooperative members and farmers.

Former Vice Chairman in charge of the Long An Province Cooperative Union (before the merger) Tran Hoai Bao, said, “The reason why agricultural cooperatives are not operating effectively is because the management and operation capacity of the members of the Board of Directors and the Board of Directors of the cooperative is still limited; there is no clear and specific business plan; and especially they are still waiting and relying on preferential policies of the Party and the State for the collective economy. Besides, many cooperative members are not active, attached to the cooperative, have not fulfilled their obligations to the cooperative, and have not joined hands to contribute capital and effort to develop the cooperative”.

According to Director of Hoang Phuong Agricultural Service Cooperative, Tan Hung Commune Nguyen Hoang Phuong, some ineffective cooperatives have affected the reputation of other cooperatives. The relevant authorities need to boldly dissolve ineffective cooperatives while focusing on key investments in effective cooperatives. In addition, the relevant authorities need to strictly manage the business situation of poor-quality fertilizers and pesticides to protect the interests of farmers and cooperatives. Knowing that clean production according to VietGAP standards will reduce production costs, but the selling price of agricultural products is not higher than outside, so cooperative members are not interested in clean and organic production.

“Agricultural cooperatives play an important role in restructuring the agricultural sector towards a green, modern and sustainable direction. Faced with the difficulties and challenges that agricultural cooperatives are facing, in the coming time, the agricultural sector will focus on implementing many solutions such as promoting the implementation and comprehensive concretization of Resolution No. 20, dated June 16, 2022 on continuing to innovate, develop and improve the efficiency of collective economy in the new period; encouraging the development of agricultural cooperatives in fields and occupations in accordance with the development planning and economic structure of each locality, associated with the development of key products, according to the advantages of each region; replicating effective collective economy models, creating conditions for the development of household economies, developing agricultural cooperatives to produce high-quality, branded products, serving export purposes through the development of agricultural cooperatives applying technology high, with modern management skills to maximize the advantages of international integration and the advantages of the 4.0 Industrial Revolution."- Deputy Director of the Department of Agriculture and Environment Truong Tan Dat emphasized./.

By Le Ngoc - Translated by Q. Thien