In
a talk with the press on the sideline of a recent meeting which was
held to summarize the results of a pilot model of selling agricultural
products and supplying agricultural materials, Vietnam Farmers' Union
President Nguyen Quoc Cuong said the model was built basically based on
the three-side link between businesses, cooperatives/households and
farmers, which exists through economic contracts. For any form of
cooperation to be successful, there must be an actor to play the
regulatory role to direct all joint efforts towards common goals,
otherwise, cooperation cannot be successful and sustainable because of
the tendency towards 'everybody's business is nobody's business' ways
of thinking.
A
pilot model of selling agricultural products and supplying agricultural
materials has been developed in 12 provinces and cities nationwide,
including An Giang, Bac Giang, Thai Binh, Hai Duong, Tien Giang, Lao
Cai, Nam Dinh, Dong Thap, Thanh Hoa, Lam Dong, Son La and Binh Thuan.
According to the Ministry of Industry and Trade, except Binh Thuan,
other localities have completely developed the model and achieved
satisfactory results. In the time to come, the model will continue to
be popularized.
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In
this three-side link, Nguyen Quoc Cuong said, businesses should play
the regulatory role because they not only supply farmers with necessary
materials including seeds and livestock breeds but also buy farmers'
products. When they play the regulatory role, businesses will be able
to take the initiative in ensuring the quality of products as well as
yields.
There
has been concern that if businesses play the regulatory role,
inequality will possibly occur in the process of profit sharing due to
their self-interests. This concern is understandable. The rice selling
pilot model in Dong Thap Province is an example. In the process of
developing the model, some businesses did not buy all the products
farmers grew based on their commitments, so farmers had to sell their
products to other companies, meaning that the relationship between the
participants in the project were changed. So what is the solution to
ensure equality and to compel project participants to respect their
commitments?
To
resolve this problem, Nguyen Quoc Cuong said the contracts signed
between the three sides must contain clear stipulations related to
price, interests and responsibilities of participants. Cooperation
between the three sides must be controlled by relevant State
authorities to ensure equality and serious implementation of the
contracts.
Vietnam
Cooperative Alliance President Dao Xuan Can said to maintain the
three-side link, participants must discuss and define the profit of
each side based on the common interests of all participants so that the
interests of the three sides can be harmonized.
"The
implementation of a contract related to agricultural products depends
on many factors such as natural conditions, price and product quality.
Therefore all the sides engaged in the contract must create favorable
conditions for each other to implement it and everything must be
transparent," Dao Xuan Can emphasized.
For
businesses to play the regulatory role in this cooperation model, the
Government as well as relevant ministries and sectors must provide them
with more assistance. Agricultural businesses in rural areas are mostly
small to medium in size. Some of them are even super small businesses.
So their financial capacity and human resources are very limited.
Meanwhile, participation in the cooperation model requires them to
supply materials and buy farm products according to market prices.
Therefore, they can hardly participate in the model in the long term if
they do not receive any State support.
The
Government and relevant State authorities can directly provide these
businesses with loans or through policies which allow them to seek
loans from the Vietnam Bank for Social Policies or offer them tax, land
rent preferences. Trade promotion activities and propaganda will be
intensified to encourage businesses to take part in the cooperation
model. In the long term, State authorities must keep a close watch on
the whole process from the creation of agricultural products, from
planning, land accumulation, application of farming techniques to
processing and other work stages in order to improve the value, quality
and competitiveness of the products, Dao Xuan Can said./.
Source: VEN