The cooperative attracts farmers to engage in a new model of economic development

Recently, the activities of agricultural cooperatives in Tien Giang province have seen significant positive changes. The network of agricultural cooperatives has grown rapidly, helping to attract farmers, create employment opportunities for rural laborers, strengthen value chain linkages, resolve output markets for agricultural products and increase income for cooperative member households.

Many strong and successful cooperatives

According to the Department of Rural Development in Tien Giang province, the region is home to 275 cooperatives, including 196 agricultural cooperatives with over 46.000 members, 2 cooperative branches and 270 cooperative groups with around 56.000 members. The cooperatives mainly operate in sectors such as crop cultivation (36%) and mixed agriculture (55.3%).

With the support of various sectors and local authorities, many cooperatives have worked hard to become successful models of efficient operation. Of the 182 agricultural cooperatives that were assessed and classified, 6.1% were rated as "excellent", 62.6% as "good", 14.3% as "average" and 6.6% as "poor". The remaining cooperatives were either inactive or newly established and not included in the evaluation. According to Mr. Vo Van Lap, Director of the Rural Development Department of Tien Giang province, the number of agricultural cooperatives rated as "good" has significantly increased compared to 2020, rising from 24% to 62.6%, while the number of cooperatives rated as "average" has decreased.

In rice farming, an exemplary model is the collaboration between the My Quoi Agricultural Service Cooperative (one of the five key cooperatives in Tien Giang province under Decision 167 of the Prime Minister) and Phuoc Loc Thien Ho Company in Hau My Bac B commune, Cai Be district. This partnership spans 200-300 hectares annually and focuses on rice varieties such as Dai Thom and OM18. Another notable example is the collaboration between the Tang Hoa Agricultural Service Cooperative and companies like Quy Nguyen, Hoang Long and My Chau, working with rice varieties ST25 and Nang Hoa 9, covering an area of 400-500 hectares.

For durian, the model of Hiep Duc Agricultural Service Cooperative in collaboration with Thien Tam Agricultural Products Trading Co., Ltd. and Minh Thien Agricultural Products Co., Ltd. has achieved an annual output of around 1.000 tons. For dragon fruit, Hung Thinh Phat Clean Agriculture Cooperative has partnered with Smart Eco Farm Joint Stock Company and Thabico Tien Giang Food Industry Joint Stock Company, with an annual output of approximately 3.000 tons.

The estimated revenue of agricultural cooperatives in Tien Giang for 2024 is approximately 18.3 million USD, averaging 97.000 USD per cooperative. The profit is expected to reach around 500.000 USD, with an average of 2.600 USD per cooperative, marking a 5% increase compared to the same period last year.

For vegetable crops, there are several exemplary cooperatives, such as Go Cong Safe Vegetable Cooperative, Tan Dong Safe Vegetable Cooperative and Thanh Hung Safe Vegetable Cooperative, which have signed long-term and stable consumption contracts, supplying 5-7 tons per day per cooperative to major retailers like Saigon Co.op, Bach Hoa Xanh, BigC, wholesale markets in Ho Chi Minh City, as well as restaurants and canteens.

Mr. Nguyen Van Nhan, Director of Tang Hoa Cooperative (Tang Hoa commune, Go Cong Dong district), shared that in 2024, the cooperative’s revenue is expected to reach about 83.300 USD (2 billion VND), with a profit of over 4.200 USD (100 million VND). He also shared insights on building and stabilizing the cooperative.

“Our main goal is to make it beneficial for the people and they will follow us. The cooperative actively seeks partners to sign production-linked contracts, guides farmers in cultivating clean rice, and applies advanced technology to save costs, while purchasing rice at prices 8-12 cents per kilogram higher than the market. For supplying materials, the cooperative sells on credit until the end of the season, deducting payments only after the rice is harvested. The farmers are very excited and confident in their production, so many households continue to register to become members of the cooperative. Currently, the cooperative has 110 members and we expect to increase by 10-15% next year", Mr. Nhan said.

Similarly, Mr. Phan Van Ngoc, Deputy Director of My Quoi Agricultural Service Cooperative, shared: "The cooperative takes advantage of connecting with various projects to support members in enhancing their production techniques, reducing input costs, and achieving higher selling prices - ranging from 4-13 cents per kilogram - compared to outside traders. For this winter-spring season, the cooperative is also implementing 50 hectares of rice under the 1 Million Hectares of High-Quality Rice Scheme. Members are provided with organic fertilizers to help reduce input costs".

Continued support for cooperative development

According to Mr. Vo Van Lap, Director of the Department of Rural Development in Tien Giang province, to help agricultural cooperatives operate stably and efficiently, Tien Giang is focusing on implementing policies to support them.

In the coming period, the agricultural sector will continue to focus on carrying out the Cooperative Support Program for the 2021-2025 period, according to Decision 1804 dated November 13, 2020, by the Prime Minister (specifically outlined in Decision 2848 dated October 11, 2022, by the People's Committee of Tien Giang province).

The agricultural sector is set to further enhance its support for cooperatives by prioritizing investments in infrastructure to strengthen their processing, preservation and logistics capabilities, ensuring a fully integrated logistical framework across production regions. At the same time, the sector will continue to implement policies aimed at attracting young professionals to work within cooperatives, with a focus on providing training, updating industry knowledge and offering relevant market information. These efforts are designed to boost the cooperatives' business capacities and management skills.

One of the most significant strategies to strengthen the cooperative sector is the creation of new, innovative cooperative models as outlined in Decision 167 by the Prime Minister. In this context, Tien Giang province has approved five cooperatives under Decision 3802, issued on December 30, 2021, by the provincial People's Committee, which highlights the government’s commitment to promoting cooperative development.

In the coming years, the agricultural sector will focus on encouraging the development of large-scale cooperative models that operate across multiple communes and districts, centered around local key products. This approach aims to expand the scale of production and membership, addressing the fragmentation and limited scope of many current cooperatives. In addition, there will be an emphasis on fostering partnerships with businesses to facilitate the consumption and marketing of agricultural products. These collaborative efforts will help link farmers more directly with businesses and provide a foundation for developing products into official OCOP.