Que Lam's value chain - a successful organic agriculture model

Economic Efficiency, Environmental Benefits, and Social Responsibility

The Vietnam Circular Agriculture Association and Que Lam Group held a conference on the morning of March 11 in Ha Tinh Province to review their activities in 2024 and outline tasks for 2025.

According to a report presented at the conference, in 2024, the Vietnam Circular Agriculture Association closely collaborated with Que Lam Group and various organizations and local governments to gradually establish economic linkages that support organic and circular agriculture within the Que Lam value chain. Notably, the network spans across multiple provinces and cities nationwide.

With the principle of utilizing successful models to enhance awareness, build trust, and promote widespread adoption, the Vietnam Circular Agriculture Association has focused on developing value chain linkages within cooperatives, cooperative groups, and economic households engaged in organic and circular agriculture under the Que Lam value chain throughout the country.

Farmers participating in the linkage program were carefully selected by the Vietnam Circular Agriculture Association in coordination with Que Lam Group. They received extensive training, guidance, and hands-on instruction, along with opportunities to visit and learn from successful models. The program provided organic microbial fertilizers, biological products, herbal disease prevention tablets, as well as seeds, animal feed, and ensured product off-take at stable prices higher than the market rate.

As a result, in 2024, the program successfully established 23 cooperatives with the participation of 1,338 households, 129 members from eight household groups, and six businesses and 100 households directly collaborating with Que Lam Group. This initiative brought the total number of households engaged in organic and circular agriculture within the Que Lam value chain to 1,570 across the country.

The total area of organic and circular crop production reached over 15,000 hectares, supporting rice, vegetables, high-value fruit trees, and forestry crops. Organic and circular livestock production reported a total population of 484 breeding sows, 7,385 market pigs, 600 wild ducks, and several thousands of free-range chickens. Additionally, the program established a cattle farming model featuring indigenous yellow cows.

The agricultural value chain linking the Vietnam Circular Agriculture Association and Que Lam Group has produced highly effective results. As a result of their combined efforts, local soil has become more fertile and rich with nutrients, while agricultural products are cleaner and boast higher quality. On the other hand, environmental conditions have improved, benefiting both producers and consumers' health, and farmers have the opportunity to raise their income levels. These achievements are part of the shared vision of the Vietnam Circular Agriculture Association and Que Lam Group, reflecting the aspirations of both producers and consumers, as well as the government's policy development toward sustainable, eco-friendly agriculture.

Presenting his report at the conference, Pham Hai Thang, Director of Than Nong Agricultural Cooperative in Bui La Nhan Commune, Duc Tho District, Ha Tinh Province, stated that from an initial 5-hectare organic rice cultivation area for the summer-autumn crop of 2024, the cooperative rapidly expanded to 65 hectares through farmer partnerships.

Organic rice production has produced yields equal to or even higher than traditional farming practices in addition to significantly restoring the ecological balance of rice fields. The cooperative combines farming rice with clam worm (a type of sandworm) and fiddler crab (a small crab), thereby successfully establishing the Duc Tho clam worm rice brand, which has earned a three-star OCOP certification. Additionally, utilizing microbial agents to process post-harvest rice straw has allowed farmers to create organic fertilizer on-site, reduce investment costs and improve soil quality. On the other hand, organic rice production prevents farmers from burning straw—a practice that harms the environment and depletes soil fertility.

Organic Livestock Production: A Profitable Circular Model

Nguyen Hai Teo, an ethnic Pa Ko farmer from Quang Nham Commune, A Luoi District, Hue City, has practiced organic and circular agriculture since 2020. He currently rears 10 breeding sows and sells between 150 and 200 market pigs annually, earning a net profit of 120–150 million VND after expenses.

“Rearing pigs under the Que Lam’s circular value chain can generate a profit of 1.7–2 million VND per pig,” Teo shared. “Moreover, by utilizing livestock manure as fertilizer, my family has been able to cultivate vegetables, green-skinned pomelos, and bananas. This initiative provides fresh produce for both humans and livestock in addition to generating additional income.”

Outside of economic gains, organic pig farmers participating in the Que Lam value chain also benefit from advanced, sustainable farming practices. The bio-secure, organic pig farming model eliminates odor, removes the need for water in waste disposal, produces no harmful emissions, and prevents disease outbreaks. Furthermore, organic livestock housing features modern modular technology that maintains low temperatures in the summer and warmth in the winter.

Despite the inherent risks of small-scale livestock production, farmers participating in Que Lam’s organic and circular livestock network enjoy stability, as the company guarantees input supply and product off-take at steady prices. Farmers also receive nutritionally balanced feed, specialized barn treatments, herbal-based disinfectants for both pigs and humans, as well as professional training on breeding sows and piglets.

Furthermore, in compliance with the philosophy of responsible agriculture, farmers and cooperatives within the value chain contribute to supplying clean food for communities, protecting public health, and preserving the environment.

Lessons from Vinh Phuc and Ha Tinh

Nguyen Hoang Duong, Director of the Vinh Phuc Provincial Agricultural Extension Center, highlighted that between 2022 and 2024, the province processed rice straw on over 15,000 hectares of cultivation area using more than 420 tons of biological agents.

The application of biological agents to treat rice straw on-site has significantly improved soil quality by enriching it with beneficial microorganisms, essential nutrients, and organic matter. This approach enhances soil sustainability in addition to protecting the agricultural environment. The treatment also reduces pest populations between crop cycles, strengthens rice plants’ resistance, and minimizes infestations, thereby decreasing the need for chemical pesticides and benefiting the overall agricultural ecosystem.

Additionally, utilizing biological agents for rice straw treatment has raised farmers' awareness, discouraging the practice of burning straw after harvest. Consequently, this practice prevents air pollution, eliminates harmful smoke emissions, and protects soil fertility.

The rapid decomposition of rice straw limits the accumulation of toxic organic gases in the soil, preventing root toxicity and leaf yellowing in newly transplanted rice. Subsequently, this process promotes early plant growth and development, thereby laying the foundation for higher yields and improved quality. Naturally decomposed straw acts as an on-site organic fertilizer in the fields, reducing the need for chemical fertilizers by approximately 20%. Reportedly, rice productivity in treated fields increased by nearly 20 kilograms per sao (or 5.54 quintals per hectare) compared to the average, contributing to a 9.14% rise in farmers' income.

Between 2022 and 2024, Vinh Phuc Province also implemented an environmental pollution reduction program in livestock production by employing the use of biological agents on a large scale. This initiative covered 16.3 million chickens, 270,000 pigs, 1,400 beef cattle, and 4,150 dairy cows across nine districts and cities. Furthermore, nearly 7,000 hectares of vegetable and fruit crops benefited from the use of over 9,400 tons of organic microbial fertilizers, enhancing economic efficiency in addition to protecting the health of crops, livestock, and the community.

Le Ngoc Huan, General Director of the Ha Tinh Province's Department of Agriculture and Environment, reported that under the province’s organic agriculture development plan, Ha Tinh has established more than 370 hectares of organic crops and raised over 4,000 organic pigs. The province has also implemented circular economy models across nearly all of its districts, towns, and cities.

The success of these models has confirmed that organic agriculture and circular economy practices are a necessary and irreversible trend, which formed a core strategy for Ha Tinh’s agricultural sector. With the goal of further expanding these practices, Huan emphasized the need to strengthen the role of government agencies, businesses, and cooperatives while placing farmers at the center of development and fostering greater community responsibility.

"We should view organic agricultural products as premium goods that require additional incentives and protection for organic farmers to prevent counterfeit products from undermining genuine organic goods," Huan stated.

A Vision for a New Era

During the conference, former Minister of Agriculture and Rural Development Nguyen Xuan Cuong affirmed that Vietnam has set ambitious targets for double-digit economic growth. This rapid development presents a major challenge—reducing emissions. At COP 26, the Prime Minister pledged that Vietnam will achieve net-zero emissions by 2050. In response, the government has introduced a series of green growth and sustainable development strategies, requiring a concerted effort from the political system, government agencies, businesses, and farmers.

Vietnam's agricultural sector is a key pillar and economic backbone of the country. It also plays a direct role in emission reduction efforts.

"Agriculture is a major source of emissions, but it is also a significant carbon sink, making it a cornerstone of the green growth strategy. To consolidate Vietnam’s green development goals, the role of associations, business communities, and farmers—such as the parties involved in Que Lam’s value chain—is crucial. From its initial foundation, this linkage model has expanded and gained traction, reaching farmers, cooperatives, and small businesses. This is a highly strategic approach, addressing both practical needs as well as the Party and State’s policy of leaving no one behind," former Minister of Agriculture and Rural Development Nguyen Xuan Cuong emphasized.

The Three Pillars of Que Lam’s Agricultural Linkage

Commenting on the development of Que Lam’s agricultural value chain, Nguyen Xuan Cuong highlighted three key factors.

Firstly, Que Lam Group has made the right strategic decision by prioritizing microbial technology as its core value. The adoption of microbial technology is compatible with the path toward sustainable agriculture.

Secondly, the company has demonstrated perseverance and commitment by working alongside farmers, cooperatives, and local governments to coordinate production efforts and encourage changes in mindsets. These changes are critical to the success of every production model.

Thirdly, Que Lam has established well-defined processes in addition to actively guiding, training, and transferring knowledge to local farmers. The combination of these three elements has enabled the widespread adoption of organic agriculture and circular economy practices across Vietnam through Que Lam’s value chain.

In agreement with former Minister Nguyen Xuan Cuong, Nguyen Hong Lam, Chairman of the Vietnam Circular Agriculture Association and Chairman of Que Lam Group, noted that organic agriculture and the circular economy have become key policies of the Party and the State. Additionally, they play a crucial role in consolidating major national goals in the new era—an era of national resurgence.

With the mission of supporting farmers and local governments in building agricultural linkages and using model farms as central hubs, the Vietnam Circular Agriculture Association and Que Lam Group have identified a fundamental principle: fully understanding farmers' customs, traditions, and circumstances is necessary to providing effective guidance. Farmers must clearly see the tangible benefits and practical effectiveness of new agricultural practices before adopting them.

"There is no alternative but to establish practical models rooted in scientific reality. Training must follow a hands-on approach—working directly with farmers, living and learning alongside them. This is our only way to success," Chairman Nguyen Hong Lam stated.

Utilizing the Knowledge and Dedication of Intellectuals and Scientists

At the conference, the Vietnam Union of Science and Technology Associations, the Vietnam Circular Agriculture Association, and Que Lam Group signed a cooperation agreement aimed at utilizing the intellectual and technological expertise of scientists in research, technology transfer, policy consultation, and public advocacy. The agreement focuses on promoting scientific and technological knowledge in agriculture, forestry, and circular agriculture.

The partnership also emphasizes media initiatives to enhance awareness among officials and association members regarding policies, objectives, and the significance of green agriculture and the circular economy. It supports the development of organic inputs based on biotechnology, thereby fostering sustainable, environmentally friendly, and climate-adaptive agricultural practices.

Furthermore, the partnership aims to establish and expand sustainable, circular production models, promote circular economic chains to address critical environmental issues, enhance resource efficiency, and develop recycled and renewable materials. It will also facilitate the formation of economic linkages in organic and circular agriculture, ensuring value chain integration and long-term sustainability.