HCM City is giving priority to developing a collective economic model particularly cooperatives over the current model of farmer households. (Photo baocongthuong.vn) HCM City (VNA) – Ho Chi Minh City is givingpriority to developing a collective economic model particularly cooperativesover the current model of farmer households.
As many as 25,400 farmer households with a total of 72,000people contribute 77 percent to the city’s production of agricultural, forestryand fishery products.
However, farmer households’ productivity is low, with totalannual turnover of 88 million VND (4,000 USD) per capita in comparison with 230million VND (10,000 USD) created by those who work in trade, service, industryand construction sectors.
With the current household-based production model, farmershave no capital to expand production or apply technology to post-harvesting andprocessing. Because of this, farmers’ products have no trademarks and are paidlow prices.
“If farmers have a good harvest, they get a low price; andif they have a bad harvest, they receive higher price,” said Dr Nguyen Van Ngai,head of the HCM City Economics University’s Economics Faculty.
“This demonstrates the failure of the household productionand trading model,” he said.
In regard of input-related difficulties farmers are facing,small farming households are unable to buy high quality materials such aspesticides and fertilisers at a good price.
Because of their lack of capital, farmers often buy firstand pay later at higher prices, or even sell their products at low prices topay off their debts.
For their production obstacles, Ngai said, farmers do notapply technology because they lack knowledge about hi-tech methods and havesmall farms.
Meanwhile, they only sell their products to dealers or attraditional markets at low prices.
“They also cannot build trademarks for their products, orprocess and preserve their products at good conditions after harvesting.Consequently, their production as well as product quality fail to meetinternational market demand,” he added.
Among the available farming models, the cooperative model isconsidered to be the most suitable.
“Many countries have shown that the cooperative model canhelp farmers solve their limitations,” Secretary of the HCM City Party NguyenThien Nhan said at a recent workshop.
With this model, farmers can continue to own their land andthe cooperatives can help them meet market requirements for fixed quantities ofproducts, trademarks and food safety.
“Cooperatives also help farmers apply technology, expandproduction, and look for customers,” Nhan said.
The cooperatives can help process and preserve products, andprovide pesticides and fertilisers at a price 10 percent lower than what farmers normally pay.
Vice Chairman of the municipal People’s Committee LeThanh Liem, said the cooperative model is a must for farming production under amarket economy.
A recent survey found that after joining a cooperative,farmers saw their turnover increase 1.1 times and profit 1.35 times.
HCM City now has 230 groups of households and 10–20 percent ofthem should be upgraded to the cooperatives, Liem said.
Currently, only 5 percent of agricultural production in thecity comes from agriculture cooperatives.-VNA
As many as 25,400 farmer households with a total of 72,000people contribute 77 percent to the city’s production of agricultural, forestryand fishery products.
However, farmer households’ productivity is low, with totalannual turnover of 88 million VND (4,000 USD) per capita in comparison with 230million VND (10,000 USD) created by those who work in trade, service, industryand construction sectors.
With the current household-based production model, farmershave no capital to expand production or apply technology to post-harvesting andprocessing. Because of this, farmers’ products have no trademarks and are paidlow prices.
“If farmers have a good harvest, they get a low price; andif they have a bad harvest, they receive higher price,” said Dr Nguyen Van Ngai,head of the HCM City Economics University’s Economics Faculty.
“This demonstrates the failure of the household productionand trading model,” he said.
In regard of input-related difficulties farmers are facing,small farming households are unable to buy high quality materials such aspesticides and fertilisers at a good price.
Because of their lack of capital, farmers often buy firstand pay later at higher prices, or even sell their products at low prices topay off their debts.
For their production obstacles, Ngai said, farmers do notapply technology because they lack knowledge about hi-tech methods and havesmall farms.
Meanwhile, they only sell their products to dealers or attraditional markets at low prices.
“They also cannot build trademarks for their products, orprocess and preserve their products at good conditions after harvesting.Consequently, their production as well as product quality fail to meetinternational market demand,” he added.
Among the available farming models, the cooperative model isconsidered to be the most suitable.
“Many countries have shown that the cooperative model canhelp farmers solve their limitations,” Secretary of the HCM City Party NguyenThien Nhan said at a recent workshop.
With this model, farmers can continue to own their land andthe cooperatives can help them meet market requirements for fixed quantities ofproducts, trademarks and food safety.
“Cooperatives also help farmers apply technology, expandproduction, and look for customers,” Nhan said.
The cooperatives can help process and preserve products, andprovide pesticides and fertilisers at a price 10 percent lower than what farmers normally pay.
Vice Chairman of the municipal People’s Committee LeThanh Liem, said the cooperative model is a must for farming production under amarket economy.
A recent survey found that after joining a cooperative,farmers saw their turnover increase 1.1 times and profit 1.35 times.
HCM City now has 230 groups of households and 10–20 percent ofthem should be upgraded to the cooperatives, Liem said.
Currently, only 5 percent of agricultural production in thecity comes from agriculture cooperatives.-VNA
VNA
