CSSP project contributes to the development of agricultural production chains

Tai Hoan Cooperative, located in Con Minh commune, Na Ri district, is one of ten businesses and cooperatives in Bac Kan province to benefit from the Agribussiness Promotion Investment Fund (APIF). The cooperative received support in the form of one vermicelli production line and one electronic scale. The cooperative was previously capable of producing only several quintals of vermicelli per day; however, with the resources provided by the APIF, production capacity has increased to over 2 tons of vermicelli per day.

At present, Tai Hoan vermicelli is the only product in Bac Kan province to achieve a 5-star OCOP rating. With the aim of maintaining a stable supply of raw materials, the cooperative has partnered with over 600 local canna farming households, with a portion of their production area meeting organic standards. With high-quality raw materials and modern processing equipment, Tai Hoan vermicelli products have been exported to the European market for several years.

Nguyen Thi Hoan, Director of Tai Hoan Cooperative, reported that after receiving the vermicelli processing line from Bac Kan Province’s CSSP project, the cooperative's daily processing capacity increased from 500 kilograms to 2,500 kilograms. The project's support has enabled the cooperative to expand its production scale and create employment opportunities for local workers.

The APIF also funded Hoang Huynh Cooperative in Khang Ninh Commune, Ba Be district, with over 600 million VND to purchase banana saplings, fertilizers, vacuum fryers, and a truck. With these resources, Hoang Huynh Cooperative successfully established a production and processing model for dried bananas. Subsequently, the cooperative's dried banana products have established a market presence, resulting in high economic value. As part of the project, the cooperative has provided regular employment for 2 workers and short-term employment for 92 workers.

Hoang Van Huynh, Director of Hoang Huynh Cooperative, shared that when the cooperative faced numerous challenges when it was first established, including a lack of experience and capital. With support from Bac Kan province's CSSP project, the cooperative invested in procuring equipment, and acquired a truck for transporting its products. The cooperative's raw banana production area is exhibiting exceptional growth, capable of meeting processing demands.

With resources from the APIF, Bac Kan province’s CSSP project has signed three rounds of funding contracts with 10 cooperatives and businesses since April 2020. However, one party terminated the contract early due to non-compliance with commitments. To date, the project has completed the appraisal, acceptance, and handover of 9 sub-projects; and reimbursed the support funds for eligible items in accordance with the signed contracts.

The total disbursed funds for the participants reached over 11 billion VND, with cooperatives and businesses contributing over 23 billion VND, reaching 88% of the plan. Accordingly, participating businesses and cooperatives invested in building production and processing plants; purchasing production equipment and vehicles such as transport trucks, product dryers, warehouses, and new processing lines.

As a result, 2,511 households in Bac Kan province (including 495 impoverished households, 244 poverty-adjacent households, and 2,326 ethnic minority households) have benefited from sub-projects. The total value of products purchased by local residents, groups, and cooperative groups reached 32.4 billion VND.

The support from the CSSP project has enabled businesses and cooperatives to effectively develop and expand their production scale. Moreover, their product quality has improved, increasing their competitiveness in the market. Consequently, the project has successfully established several agricultural production chains, including the canna root production and processing chain; and the production chains for bananas, turmeric, ginger, shallots, rice, corn, pigs, and chickens.

The development of these agricultural production chains yields high profits and promotes a shift in farmers' mindset from small-scale, fragmented agricultural practices to commodity production. Additionally, farmers are able to enhance their knowledge and production skills, thereby increasing their income, especially among ethnic minority households.

After seven years of implementation, the Commercial Smallholder Support Project (CSSP) successfully aided numerous local households in escaping poverty, with multiple infrastructure projects initiated across Bac Kan province.