COOPERATION BETWEEN BUSINESSES WITH CO-OPERATIVES,
FORMING AN AGRICULTURAL PRODUCTION-CONSUMPTION CHAIN IN VIETNAM
CURRENT SITUATION
Regarding the current situation of cooperative organization in agriculture, at the Forum of Farmers for cooperation and association in agricultural production and business held on April 7, 2022, Mr. Le Duc Thinh, Director of the Department of Economic Co-operation and Rural Development (MARD) acknowledged that:
By the end of 2021, Vietnam has 34,871 agricultural cooperative groups and more than 18,000 agricultural cooperatives, accounting for nearly 70% of the total number of cooperatives in the country with about 3.2 million members. Not only has the number of cooperatives grown rapidly, but the quality and efficiency of their operations have also increased. The percentage of strong and excellent agricultural cooperatives is increasing, exceeding 60%. Previously, weak cooperatives accounted for 30%, now only about 8.5%.
Mr. Le Duc Thinh at the Forum
However, economists say most co-operatives still produce spontaneously, deciding which crops to grow and which children to raise without knowing in advance who will buy at what price and in what quantity. Co-operatives have not created many chains of production links with businesses, even loose, forms, movements, slogans have not been put into practice. In addition, banks are afraid to lend to cooperatives because co-operatives have many members, all of whom are owners. When applying for a loan, the approval and appraisal procedures are cumbersome. If an individual wants an unsecured loan, banks are very willing to lend because it is easy to appraise, but are very reluctant to lend to co-operatives. In addition, the legal status of a co-operative is not as clear as a corporation or joint stock company.
To change the above situation, according to Mr. Thinh, the inclusion of cooperatives in the production chain of enterprises is important not only for farmers and cooperatives but also for agriculture in general. When implementing the association, companies solve the problem of land to create raw material land to meet the land needs of processing plants, and farmers solve technical, technological, and regulatory issues. production and output markets.
Therefore, it is necessary to raise the level of association between cooperatives and enterprises even higher, for corporations, when deciding to appoint people to participate in operating the activities of agricultural cooperatives, the determination of ownership of the corporation is necessary. The appointment of engineers to guide and supervise the cooperative’s production process not only helps the cooperative to operate better, but also creates a closer link between the company and the cooperative, promoting the strengths of both.
KOTINOCHI – CO-OPERATIVES COOPERATION IN RECENT YEARS
KOTINOCHI is the pioneer in organizing chains of association with agricultural cooperatives, forming planting areas in Phu Yen, Gia Lai, Kon Tum, Phu Tho provinces since 2018.
Head-to-head seminar in Ia Pa on July 22, 2020
On July 22, 2020, the People’s Committee of Ia Pa district held an on-site workshop in Ia Kdam town (Ia Pa district, Gia Lai province) to evaluate the results of the cooperation model in the production and consumption of biomass corn. The workshop had the participation of about 60 households from 4 communes Ia Kdam, Ia Tul, Ia Broai and Chu Mo. The cooperative has built a model of linking production and consumption of biomass corn. 76 households with a total area of 34 ha participated in the model (Ia Broai 2 ha, Chu Mo 15 ha, Ia Kdam 17 ha).
Participating households will be supported with pre-harvest loans, deducting 100% of seeds, fertilizers, and pesticides from the cost of purchasing products. In addition, farmers are also trained in production techniques and pest control. By July, 17 hectares of biomass maize in Ia Kdam commune had been harvested with an average yield of 55-60 tons/ha and was purchased in the field by affiliated companies at the price of 620 VND/kg. Therefore, households participating in the network model will have an average profit of 20-25 million VND/ha after deducting investment costs.
KOTINOCHI – CO-OPERATIVES COOPERATION IN THE FUTURE
In the late 2022 period, KOTINOCHI is seeking for partners who are agricultural co-operatives across the country to cooperate and develop biomass maize growing areas for export.
Specifically, KOTINOCHI JSC (the Company) cooperated with the Provincial Agricultural Extension Center to guide farmers on planting, care and pest control techniques for maize. The company also provides seeds, fertilizers and pesticides at a price equal to the price of a level 1 agent in the market at the time of supply, farmers who are unable to pay at the beginning of the crop will loans, until the harvest is deducted from the purchase of products. At the same time, KOTINOCHI will commit to product consumption, when it is time to plant and harvest, the Company will send technical staff to support to make products with the best quality and output. After deducting through the sale of products, the remaining amount will be paid by KOTINOCHI in cash and within 10 days from the time of purchase… At the time of harvest, KOTINOCHI will send people to the fields to harvest and transfer directly to production facilities to conduct production of corn silage. The purchase price will vary from time to time, the Company commits to a stable purchasing price of 800-900 VND/kg in the field, ensuring income for farmers.
In order to select a suitable locality to deploy the model, KOTINOCHI will evaluate based on the criteria of fertile soil, large amount of alluvial soil every year, and a large and flat land bank adjacent to each other. In order to encourage people to implement the association model, the Company also provides a part of fertilizer with the company’s fertilizer source for participating households. At the same time, direct the propaganda to households with suitable land fund to register and apply science and technology to production to improve crop productivity.
Contact us:
KOTINOCHI JSC
Address: No. B5.24, Floor 5, Block B, Nhat Hoa Apartment Compex, 33 Nguyen Huu Tho Street, Tan Hung Ward, District 7, HCMC
Manufacturing Address: Phuoc Loc Hamlet, Phuoc Hoa Ward, Phu My Town, Ba Ria – Vung Tau Province, VN
Contact: +84 702 839 704
Email: info@kotinochi.com
