Linking consumption, thousands of farmers no longer have to run around

Rice is guaranteed to be consumed when it is ready for harvest.

For the past 10 years, every harvest season, all of Mr. Lam Van Hung's 1 hectare of rice in Dai Tam commune (My Xuyen district, Soc Trang province) has been purchased by a local enterprise at a stable price. Mr. Hung said: In the past, rice cultivation was very difficult because he had to worry about finding buyers to sell. In years when the rice price was high, it was easy to sell, but when the price dropped, the traders were "fickle" and haggled over the price bit by bit. Selling at a low price meant no profit, and at a high price, no one bought.

“Since we partnered with the company, even though prices fluctuate, they still buy, and farmers are not afraid of not being able to sell their rice. At the beginning of the season, the company gives us seeds to plant, and when it’s time to harvest, we are also supported with the cost of transporting the rice to the warehouse. This year, the rice price is high, so the company also buys more than the original commitment. But that’s great,” Mr. Hung said excitedly.

Members of Dai An Agricultural Cooperative, Dai Tam Commune (My Xuyen District, Soc Trang Province) are assured of rice production when a business guarantees rice consumption. Photo: Phuong Anh — Members of the Dai An Agricultural Cooperative Group in Dai Tam Commune (My Xuyen District, Soc Trang Province) are confident in producing rice as they have a business to purchase their crop. Photo: Phuong Anh

Mr. Nguyen Van Dam - Director of Tin Phat Agricultural Cooperative (Ke Thanh Commune, Ke Sach District, Soc Trang Province) - informed that to ensure effective operations, the Cooperative proactively signed long-term contracts with enterprises to provide materials, equipment, machinery, fertilizers, and safe, quality pesticides for members, at prices 5-7% lower than market prices. In addition, it also cooperates with enterprises to purchase rice, so all members can feel secure in production. Mr. Bui Cong Minh - member of Tin Phat Agricultural Cooperative - happily said: "Now farmers are no longer alone in the fields, no longer have to struggle to find buyers for rice."

In recent years, the agricultural sector of Soc Trang province has actively implemented the connection between enterprises and cooperatives, cooperative groups and farmers, so the consumption of agricultural products through linkage contracts in the province is increasing. The formation of concentrated commodity production areas associated with linkage consumption is increasingly focused on, the area of linkage consumption on rice is increasing.

From 2020 to 2022, rice consumption in the province has attracted more than 100 companies, businesses and traders inside and outside the province to join in purchasing, with an average area of more than 50,650 hectares/year. The average profit that people earn in the year is from 8.6 - 26.3 million VND/ha.

Put "trust" first

In some places, the connection between farmers and businesses often has conflicts when market prices fluctuate. For example, in the case of rice prices falling, the company does not buy rice from the people, cancels the deposit to buy rice, the people fall into misery. Or when the price of rice goes up, farmers "break" the contract to sell to outsiders for profit. However, in Soc Trang, this connection is considered quite strong. Because farmers - cooperatives - businesses sympathize with each other.

Thanks to keeping their word with businesses, rice consumption of farmers in Soc Trang is very favorable. Photo: Phuong Anh — Thanks to keeping the trust with businesses, the consumption of rice by farmers in Soc Trang is very favorable. Photo: Phuong Anh

Mr. Hua Thanh Nghia - Head of Dai An Agricultural Cooperative (My Xuyen District, Soc Trang Province) - said: The cooperative is associated with Ho Quang Enterprise in My Xuyen Town, Soc Trang Province - a famous place for producing ST25 rice with an area of over 100 hectares. For more than 10 years, the situation of members "breaking the deal" because of price has never happened.

“Typically, in the 2023 Summer-Autumn rice crop, when rice prices were at a “feverish” level, higher than the price of the contracting enterprise, we all agreed to sell to the unit that had signed the contract. At that time, the enterprise also increased the price by 200 VND/kg of rice. We thought about long-term business, not about immediate profits,” Mr. Nghia added.

Mr. Nguyen Van Dam - Director of Tin Phat Agricultural Cooperative - said: Currently, the cooperative has 500 hectares of rice, with an output of about 2,000 tons/crop. When the harvest is near, the cooperative will proactively find purchasing businesses for its members, usually at a price 200 VND/kg higher than the market price. "Each crop season, the Board of Directors of the cooperative thoroughly educates its members that "trust" must be put first. When the rice price is high, the purchasing unit will partially support, and when the price is low, the cooperative must also accompany and share difficulties with businesses. Only then can we have long-term cooperation," said Mr. Dam.

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