Bac Lieu forms a chain of agricultural production links

According to the Bac Lieu Department of Agriculture and Rural Development, in the first 9 months of 2023, the whole province has more than 84,300 ha of rice linked in production, reaching more than 95% of the plan. The total output is nearly 537,000 tons. Enterprises participating in linking rice consumption for farmers include: Gia International Joint Stock Company, Vinh Loc Food Company Limited, Vina Toan Phat Company Limited, Vinh Cuong Cooperative, Thanh Son Cooperative, Green Agriculture Cooperative, Lua Vang Cooperative, Huu Phuoc agent,...

As one of the typical cooperatives linked to consumption, Thanh Son Cooperative (Vinh Binh commune, Hoa Binh district), after receiving a certificate of rice production meeting VietGAP standards, has promoted the signing of rice off-take contracts with businesses or cooperative members and farmers who are associate members of the cooperative.

Mr. Tran Van Ngo, Chairman of the Board of Directors and director of Thanh Son Cooperative said: To date, the cooperative has guaranteed off-take of over 300 ha with an output of 2,200 tons of rice in the winter-spring crop (2022 - 2023) and summer-autumn crop. Particularly for the fall-winter rice crop, the cooperative signed an off-take contract to purchase 300 ha of rice for cooperative members and farmers who are affiliated members of the cooperative. The selling price is VND 200/kg higher than the purchasing price from traders. Thus, in 2023, it is estimated that the cooperative will cover 600 ha with a total output of 4,200 tons of rice.

Not only do they cooperate in rice consumption, but functional agencies and localities also call on businesses and cooperatives to cooperate in providing input materials and purchasing output products for farmers. Consequently, a value chain is gradually formed, ensuring sustainable agricultural development.

In addition, regarding the production and consumption of raw shrimp, up to now, companies such as: Thien Phu Import-Export Seafood Processing Company Limited, Southern Shrimp Seafood Processing Export Company, Nguyen Thang Seafood Company, Trang Khanh Processing and Import-Export Company Limited, Truong Phu Seafood Joint Stock Company and Au Ty shrimp barn... has cooperated with cooperative groups and cooperatives in the province with an output of over 300 tons of shrimp of all kinds.

Reality shows that, although initially effective, the cooperation model and production links along the value chain in the province are still developing slowly, on a small scale, and not sustainable; linking contracts between farmers and businesses is ruined. Therefore, Bac Lieu province has effective solutions to make the linkage model effective and increase the value of agricultural products.

To find outlets for agricultural products, local authorities have invited businesses to purchase agricultural products, with a commitment of consumption for farmers through contracts with agreed prices, helping farmers to avoid pressure from traders, contributing to increasing income and stable and sustainable development. The province also has a policy of building large fields associated with production and consumption. The province also calls on companies, businesses and cooperatives to participate in production and consumption to help farmers ensure output and avoid situations of good harvest but bad price.

To create a highly effective product value chain, the participants in the chain must have equal and close coordination. The association will become sustainable when farmers see the practical benefits of joining the cooperative, avoiding chasing simple profits or breaking links will bring benefits to businesses, cooperatives and farmers, contributing to reducing many intermediaries, reducing costs, lowering prices, and increasing product value.

Accordingly, Mr. Pham Van Thieu, Chairman of Bac Lieu Provincial People's Committee, said: It is necessary to have policies to support farmers and promote the development of cooperative economy and cooperatives; build models of large rice fields and large shrimp fields, apply high technology to agricultural production, replicate effective models, and organize production links associated with product consumption. Strengthen supervision of the signing and implementation of contracts between businesses and cooperatives. At the same time, creating conditions help businesses and cooperatives to implement a closed purchasing chain. Especially developing value chain links towards building the brand of Bac Lieu shrimp and rice grains.​​