Why can't the project of large fields of cocoa and cashew nuts be developed?

​In 2017, the Provincial People's Committee approved the project of Large field linking cocoa production and consumption intercropping with cashew trees in An Vien commune (Trang Bom district) with the target of about 1 thousand hectares by 2023. However, up to the present time, the project of cocoa intercropping cocoa union is only about 46ha.

Harvesting cocoa at the large field project

Why can't a project that enjoys many supportive policies and guaranteed output fail to develop?
Only reached more than 40ha
The 7 year period has expired according to the Decision No. 493/QD-UBND dated February 20, 2017 of the Provincial People's Committee, but the goals are: creating a sustainable raw material area for production association activities and cocoa consumption on a large scale; investment in processing plants in the raw material area and especially in the project of cocoa mass production with mixed cashew nuts has not been achieved.
Chairman of An Vien Commune People's Committee Le Van Thuan shared, when the project was approved, 55 households registered to participate with an area of more than 110 hectares, but when planting, many households changed their minds not to participate. Currently, this project has reached about 46 hectares, equal to nearly 5% of the target area, of which about 41 hectares are being harvested.
"In 2021 and 2022, the commune makes a list and then each household mobilizes to plant cocoa in the existing cashew orchard, but it only adds 5 hectares," said Mr.
The project of cocoa mixed with cashew nuts was approved in 2017, the goal is to reach about 1,000 hectares by 2023. Currently, the project has only reached about 46 hectares, the total funding for the project area is nearly 473 million VND.
Not only did it not reach the target, but the initial registration area was also not achieved, the trade union was shrunk.
Vice Chairman of An Vien Commune Farmers' Association Nguyen Danh Uy pointed out three reasons leading to the above situation. Firstly, in recent years, the crop has failed, the price is low, and there is no profit, so farmers tend to switch to growing melaleuca and fruit trees. Second, land "fever" price, farmers have sold and transferred agricultural land, so it is difficult to maintain and develop more area. Third, many farmers have turned to work as workers and trade services.

Because it did not reach the desired area, the investor and also the product contract unit, Bamboo Agriculture Co., Ltd. (headquartered in Ho Chi Minh City) did not invest in a processing plant as originally planned, but only as a temporary cocoa processing facility.

Mr. Nguyen Van Bon (living in Hamlet 4, An Vien Commune) shared that his family has 0.8ha of cashews but did not participate in the Large field project because the cashews were old.

“I plan to switch to growing melaleuca, but not anymore. Cashew trees depend a lot on the weather, in the face of frost, sometimes there is a loss of money, when favorable the profit is 30-40 million VND/ha/year" - Mr. Bon said.

Cocoa processing area in the project area of the investor's large cocoa field with cashew nut

Is it possible to implement another project?
According to the Economic Department of Trang Bom district, when the project was approved, the commune, district and the company held training courses on science and technology transfer; implementing cost support, seeds and economical irrigation system for farmers. Along with that, the locality invests in traffic routes and electricity grids to facilitate production and transportation of agricultural products. But for the reasons mentioned above, maintaining and developing large fields of cocoa with cashew trees facing difficulties.
Director of An Vien Agricultural Service Cooperative Duong Minh Giang assessed that the problem is not that the project is not economically viable. In fact, the households that have planted cocoa with cashews make 2-3 times more profit than they only grow cashews exclusively. At present, many households have switched to services and are no longer "satisfied" with agriculture; the land has been sold to other people, only taking advantage of the remaining agricultural products on the land, not investing in production.
“Cocoa intercropping with cashews can make a profit of more than 100 million VND/ha, 3 times higher than before, but with the condition that they have to be taken care of and collected regularly. Intercropping cocoa without regular care will be very low, "- Mr. Giang shared.
According to Deputy Head of the Department of Economics of Trang Bom district Nguyen Thi Thu Giang, the project of cocoa union with cashew nuts under the decision of the province has expired. At the end of 2022, Vietnam High-tech Agriculture Co., Ltd (formerly Bamboo Agriculture Co., Ltd.) sent a document to the Provincial People's Committee, Department of Agriculture and Rural Development and Trang Bom district People's Committee to propose a joint project. cocoa production and consumption in the communes: Song Trau, Dong Hoa, Trung Hoa, Hung Thinh and Binh Minh. The project has a scale of 58ha, implementation period from 2022-2032 (10 years). The project has not been approved, so the district has not propagated cocoa farmers and implemented support policies.
Currently, Trang Bom is still a locality with a large area of cashew, but this area is decreasing due to old age, farmers switch to banana, grapefruit and other fruit trees. In addition, many communes are planned to develop industrial - commercial - service areas with the goal of going to wards. The planning and development of the project of linking crops according to the large field model needs to be calculated to avoid the situation that it has been approved but cannot be implemented.