The 3-side linkage model for macadamia development in Dien Bien

In November 2021, the People's Committee of Tuan Giao District, Dien Bien Province has issued a pilot plan on developing macadamia cooperatives for the period 2021-2022.

Macadamia cooperatives will participate in the value chain of production – processing-consumption under a three-side model of "Farmer Households - Cooperatives - Investors". In particular, the district will advocate developing the cultivation of new macadamia trees through economic contracts between cooperatives and investors. The central role of the linkage chain belongs to investors, while cooperatives are the focal point representing the households’ participation.

In document No. 202/KH-UBND issued on November 2, Tuan Giao District clearly defined farmer households and individuals participating in macadamia cooperatives as the beneficiaries of the macadamia growing project with the investor having been granted an investment certificate by a competent authority.

They will benefit from the support of costs for breeds and essential facilities with a maximum amount of not more than VND50 million/household. The form of support will be through the Investor.

Macadamia is a multi-purpose tree, initially showing its adaptability and high economic value to be grown in many highland districts of Dien Bien such as Tuan Giao, Muong Ang, Muong Nhe, Dien Bien Dong... Dien Bien Province has determined a development motto for the tree by taking the most advantages of bare lands and hills, and in converting households' inefficient annual crops.

For Tuan Giao District alone, the People's Committee and the District Agriculture Office have recommended households plant at a density of no more than 280 trees/ha. Growers enjoy the full value of macadamia nut products after harvest and must commit to selling all to investors.

Currently, Tuan Giao District is implementing a concentrated macadamia plantation project with a scale of 2,000ha in communes of Quai Nua, Quai Cang, Quai To, Na Say, and Chieng Sinh. According to the District People's Committee, the project has initially had positive effects since it helps create jobs and increase incomes for households. With good quality macadamia nuts sold at high prices, the tree promises many potentials to become a key for the district’s agriculture development.

Besides such achievements, the District People's Committee admitted that the project implementation progress was still slow. Procedures that the investor needs to complete after being approved for the investment have not yet been completed. The guidance, assistance, inspection, supervision, and companionship with investors of relevant agencies and the communal People's Committees are still limited, especially in the process of implementing procedures related to land use.

To timely support and accompany investors in speeding up the implementation of the macadamia project in the district, Tuan Giao People's Committee issued a pilot development plan to establish macadamia co-operatives in the period 2021-2022. In addition to the 3-side linkage, the Committee will survey, select and pilot the establishment of two macadamia cooperatives in two communes of Quai Cang and Quai Nua, which will link together in growing, processing, and consuming products according to the value chain.

Ms. Pham Thi Tuyen, Vice Chairwoman of Tuan Giao District People's Committee, said the core task was to raise locals’ awareness about macadamia cooperatives in particular and agricultural cooperatives in general. Thereby, farmer households will have a better understanding of the Law on Cooperatives 2012, the meaning of the new cooperative model, as well as the values ​​and 7 principles of cooperatives in agricultural development in general, and macadamia in particular.

Tuyen has assigned People's Committees of the two communes of Quai Cang and Quai Nua to make a list of households wishing to join macadamia cooperatives and those having registered to grow the tree, then send it to the district’s People's Committee.

Identifying macadamia as a tree with high economic efficiency, but Ms. Tuyen acknowledged some difficulties in promoting and popularizing this tree as follows: there is no development plan in the area; the progress of granting certificates of land use for households to grow macadamia is still slow... She suggested the Ministry of Agriculture and Rural Development, the Provincial People's Committee, the provincial Department of Agriculture and Rural Development have more supportive policies for the district.