Need support to link processing and consumption of agricultural products

​Having strengths in the development and processing of agricultural products, Dong Nai has long been known as a key locality in this field of Vietnam, but in reality, there are many barriers to linking for consumption and processing from enterprises, cooperatives and local people.

Cooperation, creating a stable source of raw materials for deep processing is an inevitable direction of the agricultural product processing industry. Photo of product processing at Thuan Huong Trading and Production Co., Ltd

The precariousness, dependence on export markets of key commodities shows that investment in deep processing is a necessary solution for sustainable development, but it is only the beginning. Enterprises and cooperatives in the field of agriculture wish to create a favorable mechanism and bridge to cooperate and link closely with each other.

The chain is just the beginning

According to the Department of Agriculture and Rural Development, Dong Nai currently has 60 cooperatives and 24 groups involved in linking production and consumption of products with enterprises. Typically, Long Thanh Phat high-tech agricultural cooperative associated with De-Heus Company to provide food; An Vien Agriculture Service Cooperative cooperates with Bamboo Agriculture Co., Ltd. to grow and consume cocoa with a scale of 600 ha; Suoi Cat Cocoa Agricultural Service Cooperative, Trung Hoa Commune Cocoa Cooperative Group linked cocoa production and consumption with Trong Duc Cocoa Company Limited with an area of 150 hectares; Thanh Binh cooperative cooperates with banana farmers on a scale of over 300 hectares for export... The above association and cooperation has contributed to a more stable development of the agricultural product market, creating a source of raw materials for processing, but it's only at the beginning. In fact, businesses, cooperatives and people still have to mobilize themselves to consume the products they make.

Director of Xuan Dinh Agricultural Trading Service Cooperative (H. Xuan Loc) Dang Thi Thuy Nga said that the cooperative wants to have a long-term connection with supermarket systems, but it is not easy even though many supermarkets also encourage it. The reason is that the connection of consumption still has problems, binding on technical standards, product offtake contracts... In order to increase consumption, Ms. Nga had to be very active in participating. trade promotion programs, especially agricultural booths and fairs supplying to the HCM city market.

For processing enterprises, according to Mr. Dang Tran Hoang Thuy, Director of Thien Trieu An Trading Production Co., Ltd (Bien Hoa City) specializing in processing drinks from natural fruits, in the long run, cooperation to create stable source of raw materials for processing is very important. Currently, enterprises are continuing to improve the quality and output of products to the market, so the demand will continue to increase. The problem is that when cooperating, people and raw material suppliers must ensure a stable quantity

Agricultural enterprises and cooperatives need a forum to sit down and cooperate

Mr. Luu Tac Sang, Director of Thuan Huong Production Trading Co., Ltd (Dinh Quan district) specializing in the processing of agricultural products and dried fruits said that there is a fact that the association and cooperation in consuming products of people from enterprises are not high. In the province, there are many good quality products and fruits, which are used as raw materials for processing and export, leading to many businesses not only in Dong Nai but also in other places to buy, this also has the opposite side. Its advantage when strong, everyone does it, competing with each other in all aspects from purchasing price and purchasing method. Similarly, according to Mr. Ly Minh Hung, Director of Thanh Binh Cooperative (Trang Bom), there is a current problem that the cooperative in particular and other enterprises in general are facing is the lack of links, cross-consumption of mutual products of the units.

“For example, our banana product, the Korean market is buying a lot to serve the processing of animal feed products, drying it into powder for seafood, chicken, pig... but we only sell raw. Why do businesses operating in the country not use each other's products for deeper processing? We also went to meet a number of businesses in the area, but the price set by the partner was very low, making it difficult to cooperate", Mr. Hung added.

In addition, one of the current limitations in the procurement, preservation and processing of agricultural products is the lack of cold storage facilities. Not only Mr. Hung, but other businesses and cooperatives want Government to pay attention to invest in high-tech pre-processing and preservation zones to preserve agricultural products and fresh fruits when congestion occurs because most of their products Vietnam is seasonal. Attracting investment in a large-scale cold storage system and leasing it to agribusiness units is also a good solution because it is difficult for each individual unit to invest in a synchronous storage area because it is very expensive.