Underwriting helps stabilize output
In recent years, Nam Thanh Agricultural Production and Service Cooperative (Nam Thanh Cooperative), Nam Dong commune, Ninh Binh province has become a solid support for people thanks to its chain-linked rice consumption model.
Cooperative member Doan Tai Luc shared: “We don’t have to hire outsiders at high prices anymore. The cooperative takes care of farming, so people can just focus on taking care of their fields.” Photo: Mai Dan.
According to Mr. Do Khac Dung, Chairman of the Board of Directors of Nam Thanh Agricultural Production and Service Cooperative, the Cooperative is the first unit in Ninh Binh province to sign a stable contract with Toan Xuan Company Limited. The contract has been maintained continuously for more than 10 years, helping farmers feel secure in production even when the market fluctuates strongly.
Mr. Dung said: “There was a time when the outside market only bought ST25 rice at 7,600 VND/kg, but the associated enterprise still kept the price at 7,800 VND/kg for the cooperative members, because the ST25 rice of the people was cultivated entirely with organic fertilizer. Thanks to that, farmers do not worry about being forced to lower the price and are always assured about the output.”
Even in the 2025 rice crop, the enterprise will still maintain the purchase price at 6,500 VND/kg of ST25 paddy, while outside traders only pay 5,800 VND/kg. This difference helps members feel secure in production, without worrying about being forced to lower prices every time the market fluctuates.
Each crop, the cooperative coordinates to consume 700-800 tons of rice, all of which are weighed directly in the field right after harvest. Cooperative member Doan Tai Luc shared: “No need to dry, no need to worry about wind and rain. As soon as the harvest is done, the truck will weigh it. Much more secure than selling to traders.”
Essential services and agreements to drastically reduce the cost per acre
A bright spot in the Nam Thanh Cooperative model is the reorganization of all agricultural services in the direction of collective management - members benefit. Mr. Co Van Nghien, Vice Chairman of the Board of Directors of Nam Thanh Agricultural Production and Service Cooperative, said that the Cooperative currently operates 3 essential services and 5 negotiated services, all under a contract mechanism, transparent and with prices lower than the market.
Three essential services include: Irrigation (water regulation, flood prevention - drought prevention), canal cleaning (periodic dredging, clearing the flow) and field construction (repairing embankments, culverts, dams). Thanks to regular dredging, the cooperative ensures that water flows smoothly. Mr. Nghien said: "If the canal is blocked, water cannot enter, and people cannot regulate the crop. Therefore, the cooperative must do it first so that people can do it later."
The five agreed services of the cooperative include land preparation, rat extermination, agricultural material supply, product consumption and harvester service. It is noteworthy that all these services are centrally managed by the cooperative, thanks to which the price of the field is significantly reduced compared to outsourcing.
Mr. Co Van Nghien said that while the current market price for land preparation is around 150,000 VND per sao (360m²), the cooperative only charges 100,000 VND per sao. Similarly, outside harvester services usually cost 120,000-130,000 VND per sao, but members only have to pay 90,000-100,000 VND per sao when using the cooperative's services. Thanks to the lower price of 20,000-50,000 VND per sao, farmers cultivating 6-10 sao can save from 600,000 VND to more than 1.5 million VND.
According to Mr. Do Khac Dung, Chairman of the Board of Directors of Nam Thanh Agricultural Production and Service Cooperative, the Cooperative is the first unit in Ninh Binh province to sign a stable consumption contract with Toan Xuan Company Limited. Photo: Mai Dan.
Mr. Nghien further analyzed: “Reducing costs is a direct reduction for members. Cheaper services, more convenient production, income increases by about 10% per crop.”
Not only reducing prices, the cooperative also coordinates harvesters by region, harvesting in bulk so that businesses can weigh the harvest right at the field, thereby saving drying costs and avoiding weather risks. Cooperative member Doan Tai Luc shared: "We no longer have to hire outside at high prices. The cooperative takes care of the farming, people just focus on taking care of the fields."
Minister awarded certificate of merit
With efforts to optimize services, reduce costs, and increase income for farmers, in 2018, Nam Thanh Cooperative was awarded a certificate of merit by the Minister of Agriculture and Rural Development (now the Ministry of Agriculture and Environment ) for its outstanding achievements in 5 years of implementing the Agricultural Restructuring Project for the period 2013-2018.
Mr. Dung recalled: “At that time, the Ministry's working group came down to inspect very carefully. Therefore, the certificate of merit is not only an encouragement but also a recognition for the efforts to innovate from the old model to a new, transparent and substantial cooperative model.”
According to him, Nam Thanh's greatest success is building a synchronous "service chain - production chain - consumption chain", in which the cooperative plays a key role, and the benefits are returned to the people.
In 2018, Nam Thanh Cooperative was awarded a Certificate of Merit by the Minister of Agriculture and Rural Development (now the Ministry of Agriculture and Environment) for its outstanding achievements in 5 years of implementing the Agricultural Restructuring Project for the period 2013-2018. Photo: Mai Dan .
Both Mr. Nghien and Mr. Dung affirmed that the current model is just the beginning. The cooperative is continuing to expand the scale of its links with businesses; optimize services to further reduce costs; apply mechanization and high-quality rice varieties; digitize management, make costs and services transparent, and increase service capacity through training and propaganda.
Thanks to that, Nam Thanh Cooperative is becoming a prominent model of Ninh Binh province: effective service - collective management - members benefit, contributing to increasing income and sustainable rural development.
Source: https://nongnghiepmoitruong.vn/toi-uu-dich-vu-noi-dong-nang-thu-nhap-cho-nguoi-nong-dan-d786342.html
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