Improving agricultural value chains in cooperatives

Tay Ninh currently has more than 370 cooperatives operating in the agricultural sector, in which cooperative models are regularly consolidated, bringing high economic efficiency. Many good models and creative approaches have been replicated, and many local strengths have been developed through cooperatives, connecting cooperatives, businesses and consumers.

From individual production to chain linkage

In recent years, cooperatives operating in the agricultural sector in the province have increasingly focused on expanding services and improving service quality. From only growing and harvesting agricultural products, some cooperatives have also provided livestock and crop breeds, materials, fertilizers, feed and pesticides; connected product consumption.

In particular, along with promoting the application of advanced techniques, many cooperatives operating in the agricultural sector in the province are also proactively innovating their organizational models and operation methods, shifting from "self-production, self-consumption" to production according to the linked value chain, production associated with processing and consumption of agricultural products.

One of the models that is operating effectively in this direction is Bau Don Fruit Cooperative in Truong Mit commune. Since its establishment, the cooperative has built an investment chain, provided technical guidance on durian cultivation, organized purchasing and product consumption, built a brand, and found a sustainable market for durian products. In particular, the cooperative has successfully developed durians into 4-star OCOP products and implemented product traceability, issued growing area codes for official export to the Chinese market.

Particularly in the recent harvest, while many durian-growing areas in provinces and cities across the country were struggling with the inspection of Cadmium and Yellow O on durian before exporting to the Chinese market, durian products of Bau Don Fruit Cooperative still stood firm in the market.

“To achieve OCOP certification, we produce according to VietGAP standards and strictly adhere to food hygiene and safety procedures, and the quarantine period for pesticides is within the permitted regulations. The cooperative's desire is to continue to produce in a better direction to improve our products and expand the market,” said Mr. Phan Hoai Thinh, Director of Bau Don Fruit Cooperative.

Phuc Loi Agricultural Service and Trading Cooperative, in Binh Minh Ward, currently has more than 3 hectares of cantaloupes. Of which, the cooperative has signed a product consumption contract with the Ho Chi Minh City Union of Trading Cooperatives (Saigon Co.op) for about 300 tons of fruit per year. According to Mr. Pham Ngoc Hai - Director of Phuc Loi Agricultural Service and Trade Cooperative, the signing has helped cooperative members feel secure in production. Currently, the income value per 1,000 m² is over 100 million VND.

Mr. Le Truong Son - Deputy General Director of Saigon Co.op, said: “Regional linkage, especially bringing goods produced in Tay Ninh province into the Saigon Co.op system, is one of our most important goals. Recently, we have also had working programs with the Provincial People's Committee, the Department of Industry and Trade, the Department of Agriculture and Environment to build a regional development plan in the locality, focusing on Tay Ninh agricultural products to improve product quality and bring more products into the Saigon Co.op system. The second step is to improve quality, achieve international standards, and bring them into the domestic consumption system, but the long-term orientation is to achieve standards to export to the international market. That is not only the goal of Saigon Co.op but also a cooperation program with Tay Ninh province.

The inevitable direction in the integration period

In the context of Vietnam's increasingly deep and wide integration, the requirements for quality, traceability and transparency in agricultural production are increasingly high. Therefore, in order for Tay Ninh agricultural products to reach further and improve the value chain, applying science and technology to production is a must.

According to statistics from the Provincial Cooperative Union, currently, more than 70% of cooperatives in the agricultural sector are operating effectively. Many cooperatives have actively innovated, proactively promoted the application of science and technology to production, creating positive changes in management mindset, improving productivity, product quality and competitiveness. With a strong spirit of innovation, cooperatives in Tay Ninh are striving to become a pioneer in restructuring the agricultural sector, playing a core role in the agricultural - rural innovation ecosystem in the digital age.

Mr. La Huu Nghi - Chairman of the Provincial Cooperative Union, said: “Currently, cooperatives operating in the agricultural sector not only attract individual members but also legal entities. Thereby, supporting linkages and providing solutions from production according to standards to linking product consumption to increase farmers' income, attracting more and more people to voluntarily join cooperatives. “More and more cooperatives have applied science and technology to production, applied digital transformation in management and operation activities, reducing costs and increasing productivity. The products produced by cooperatives meet food safety standards in terms of quality, are sold at higher prices, and bring many benefits to members participating in the collective economic model," Mr. La Huu Nghi affirmed.

By the end of 2024, the average revenue of cooperatives operating in the agricultural sector in the province reached 950 million VND/year; the average profit reached 350 million VND/cooperative/year; the average income of regular workers in agricultural cooperatives was about 60-70 million VND/year. The rise of agricultural cooperatives has contributed to the province's agricultural sector completing its goals and has become an important link in the province's agricultural economic development.

However, to improve the efficiency of agricultural product consumption and contribute to the development of the rural economy, the relevant agencies need to strengthen trade promotion and market expansion, while encouraging production and consumption linkages between farmers, cooperatives and processing and distribution enterprises to help reduce overproduction, shortage of goods and ensure stable output for agricultural products; promote the application of technology in the production and consumption of agricultural products./.

By Vu Nguyet - Translated by Q. Thien