Strengthening links to promote consumption of cooperative products

At the 2023 Trade Promotion Conference, connecting production and consumption of cooperative products, organized by the Ha Nam Provincial Cooperative Union on November 19th, experts stated that in order to compete in terms of product quality and market prices, especially in the context of international integration, there is still much work that cooperatives need to do.

In particular, the main channels for consuming and distributing goods for many cooperatives today are still traditional markets and small retail stores. Although traditional markets remain a major consumption channel, the problem is that the methods of managing and controlling the quality of agricultural products entering these markets and small retail stores have not received enough attention. Therefore, even if the cooperatives' agricultural products are produced safely, their quality may not be guaranteed when they reach consumers.

Many agricultural products from the cooperative are facing difficulties due to a lack of markets.

According to experts, participation in trade promotion activities is bringing positive signals regarding market access for cooperatives. Along with this, many cooperatives have also managed to get their products into organic food stores, but the number remains limited. The shelves of these organic food stores still mainly sell products of foreign origin. This has narrowed the market for agricultural products from cooperatives and reduced their competitiveness in the market.

Mr. Nguyen Van Quan, Director of Nguyen Uy Agricultural Service Cooperative (Kim Bang), believes that the agricultural product value chain is still limited due to its lack of sustainability and looseness. The consumption linkages between farmers and cooperatives are still mainly based on a buy-and-sell model, which does not guarantee benefits for farmers and members.

Meanwhile, Mr. Nguyen Xuan Truong, Deputy General Director of Hoa Tin Company (Ha Nam), said that the production and processing capacity of cooperatives and businesses in the area is still limited, especially the capacity for market research and forecasting is not high, thus reducing competitiveness and narrowing the output of cooperatives in the market.

Furthermore, although some goods are now processed and packaged, the majority of goods are still fresh, raw food, resulting in relatively small volumes for distribution. Sometimes, the long distances and shipping times affect the quality of the delivered products.

Linking and building bridges for cooperatives.

To boost the consumption of safe agricultural products through modern distribution channels and ensure favorable outlets, Ms. Do Thi Phuong, Director of Minh Duc Herbal Cooperative (Ly Nhan), believes that during the economic recovery period, diverse consumption methods are a fundamental solution to ensure the circulation of goods, promote the flow of goods, and create regional value chains.

By applying this approach, the cooperative, which started with a 200m2 workshop, has expanded to 500m2. In 2021, the cooperative had a 3-star OCOP product, and its customer base is becoming increasingly stable and expanding. Estimated revenue for 2023 is 3 billion VND.

Production linkages help cooperatives stabilize the output of their products.

" To develop, it is necessary to have connections and exchange information to innovate and develop products that suit consumer needs and tastes. Especially in the current economic recovery phase, diversifying forms of agricultural product consumption and strengthening linkages with localities are fundamental solutions to ensure the circulation of goods for cooperatives and promote the creation of sustainable regional value chains, " said Ms. Do Thi Phuong.

According to Mr. Le Quang Vong, Vice Chairman of the Cooperative Union of Ha Nam province, trade promotion and connecting supply and demand with localities in the Red River Delta region are bringing positive signals to the collective economic sector and cooperatives.

This initiative has contributed to boosting the economy of both the province and neighboring provinces, becoming a bridge for businesses between provinces to connect, exchange information, understand consumer needs, support localities in bringing goods into distribution systems, and expand markets to neighboring provinces such as Hanoi, Nam Dinh, Ninh Binh, etc.

Currently, a significant portion of agricultural products from cooperatives in Ha Nam are primarily consumed in Hanoi, as Hanoi remains a major destination for various goods, especially agricultural specialties from many provinces and cities, through activities connecting consumers and promoting products.

The Sen Vang Cooperative (Binh Luc district) previously faced many difficulties in selling its products such as cordyceps and cordyceps wine. However, since becoming a member of the Ha Nam Cooperative Union, the cooperative has gained many advantages, including participation in trade fairs and conferences.

Therefore, according to Mr. Tran Huu Linh, Director of the Cooperative, the cooperative's sales volume has increased dramatically, especially during participation in trade fairs organized by the Ha Nam Cooperative Union in collaboration with the Vietnam Cooperative Union, where product sales have been very favorable.

As a company currently collaborating with cooperatives, Mr. Nguyen Xuan Truong, Deputy General Director of Hoa Tin Company, stated that agriculture remains the backbone of the economy. Therefore, management agencies need to have policies and mechanisms to support and facilitate cooperatives that need to rent land and access low-interest capital to expand their production and business. Alongside this, it is necessary to continue supporting cooperatives in digital transformation, investing in machinery to ensure the value chain, and attracting partners for product distribution.

SOUTH

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