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Businesses should play a regulatory role (10/1)

10/01/2013 - 11 Lượt xem

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.
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