Thứ Bảy, 23 tháng 6, 2018

Dong Thap seminar explores ways to help farmers shift to agribusiness

Son Nguyen

A view of a seminar held in Dong Thap Proviince on June 9 to explore ways to help farmers shift to doing agribusiness - PHOTO: THUY TRIEU

HCMC – A seminar taking place today, June 9, in the Mekong Delta province of Dong Thap dug deep into solutions to help farmers shift to agribusiness for sustainable agricultural development, with several speakers highlighting the urgent need to take the market-based approach, apply science and technology, and promote farmer-business connectivity.

In his opening remarks at the seminar jointly organized by Saigon Times Group and Dong Thap Province, Nguyen Van Duong, chairman of the province, asserted the leadership’s strong determination to switch to new agricultural models to maximize benefits for farmers.

Reviewing the province’s initial restructuring in agriculture, Duong said farmers in Dong Thap have gradually relinquished their age-old habit of household agricultural production to brace for cooperation and connection, creating concentrated production zones for certain groups of farm produce. The province has also implemented on a trial basis new policies on land concentration to establish large-scale farming regarding rice and fruit among others.

Such highlighted points in the chairman’s presentation were doubled down by other speakers at the seminar.

Agricultural value chain

Pham Phu Ngoc Trai, chairman of consulting firm GIBC, drew the attention of the audience to the agricultural value chain, saying connectivity between farmers and businesses should ultimately lead to strengthening the chain to help ensure sustainable development and raise incomes of farmers. However, the agricultural value chain largely remains weak as seen in numerous farm produce crises lately.

Trai observed that almost all links in Vietnam’s agricultural value chain – from production and collection to processing and selling, from supplies of inputs to supporting services like financials and logistics – have been awash with flaws.
For the inputs for example, expenses are still high with fluctuating prices of materials, let alone fertilizers and pesticides being overly used, Trai said. In production as the next link in the value chain, technology is not properly deployed, resulting in uneven quality of farm produce and higher costs.

“Vietnam’s farm produce price is some 10% higher than the average in other countries due to higher production costs,” Trai said, citing examples of beef, chicken and sugar whose prices are much higher than elsewhere in the world.

The GIBC chairman also pointed out numerous other problems in the value chain, from high post-harvest losses and low added value in processing under obsolete technology to high logistics costs.

Nguyen Hong Quang, board chairman of EcoFarm as another speaker, also echoed Trai’s point on the value chain, saying many issues remain to be addressed.

Quang noted that raising output is no longer a major problem for farmers, but consumption of the products. He recalled the vicious circle of high output versus depressed prices and the numerous rescue programs, saying all evolving key issues of product quality, post-harvest preservation and processing, logistics and consumption, which are primary factors in the value chain.

Responding to market demand

Speaking at the seminar, Le Minh Hoan, secretary of the province’s Party Committee, stressed that “shifting from agricultural production to agribusiness is a very tough question but it is imperative if we wish to have high-quality and sustainable agriculture.”

The farmer’s mindset of producing what he or she wills has persisted for years and handed down from generation to generation, without caring how the produce will be consumed, Hoan said. He therefore called for radical change, from output-oriented production to market-based development, meaning a strong connection between producers and consumers, and in such relationship, the role of enterprises is of paramount importance.

“Efficiency must be emphasized; output and productivity can be reduced, but products must have high quality and high prices, ensuring higher profits for farmers,” he said, stressing the connection between farmers and enterprises must be placed on a stronger foundation.

The leader said the province would pursue more efficient cooperation with enterprises to develop smart agriculture models and organic agriculture alongside the development of particular value chains for different types of farm produce. He added that processing and supporting industries must be developed in close association with agribusiness.

Also regarding consumption, Vu Kim Hanh, director of the Business Studies and Assistance Center (BSA), related how she found Thailand enterprises faring during her recent trips to the neighboring country. Those enterprises have managed to set up good distribution centers, apply high tech, respond to market demand, and secure safety and quality of products.

She therefore suggested Dong Thap Province quickly set up two taskforces, with one charged with studying market trends and the other with promoting trade at home and abroad.

Commenting on the role of enterprises in agriculture, Pham Phu Ngoc Trai of GIBC noted that the corporate participation in agriculture is still modest, so authorities need to bring out new policies and incentives to call for their involvement.

The State should work with the business community to map out consumption strategies for agricultural products in each stage to minimize the imbalance between supply and demand, Trai said. Another aspect in connectivity is that it should not be limited to a single locality, as “the Mekong Delta is still lacking regionwide connectivity, which is not only a pathway for restructuring but also for sustainable development.”

Nguyen Thanh My, chairman of Rynan Technologies Vietnam, stressed the need to have the participation of strong corporations in promoting the value chain.

The rice value chain will not see radical changes by relying on farmers alone, as “such changes should be led by business groups and enterprises which have strong economic capacities and which know how to apply high-tech solutions… on the basis of the fourth industrial revolution,” he said.

Economic diversity

Another topic that captured strong attention at the seminar was how to foster economic diversity.

Nguyen Hong Quang of EcoFarm suggested that Dong Thap set up different zones based on their strengths for the development of ecotourism, organic agriculture, or flower farming.

He said Dong Thap’s Sadec City has been known widely for its flower villages, but more efforts should be taken to turn it into a tropical flower city with a strong brand name to attract visitors all year round that can be compared to Dalat City in Lam Dong. Similar models can also apply to promote Tay Island for organic products, and Tan Thuan Dong Islet for high-tech agriculture and ecotourism, he said.

Quang projected that if the three zones could be developed as envisioned, such areas will benefit not only farmers, but also give rise to other sectors like tourism, trade, and education. To do so, collaborative and concerted efforts are required from all stakeholders, including authorities, enterprises, farmers, banks, and trade associations.
Stressing tourism as a high-potential sector, Trai of GIBC said a good tourism strategy for the Mekong Delta region against the context of climate change will substantially enhance the efficiency of the agricultural value chain. “Restructuring agriculture combined with a tourism development strategy will bring about good benefits for farmers of small-scale production,” he said.

The seminar this morning also saw the participation of representatives of successful cooperatives in the province. They spoke about how co-op members shared information, connected with enterprises, and developed tourism among others.

Tran Minh Hung, editor-in-chief of the Saigon Times Group as co-organizer of the seminar, said one of the goals pursued by the news media group is how to foster closer links between farmers, enterprises and policy makers. “With regards to the Mekong Delta, we are always willing to accompany the region in the process of its development, with specific activities to include a series of seminars on business startups in Can Tho City recently, the seminar in Dong Thap on agribusiness today, and another on the real estate sector in Kien Giang Province in the coming time.” 

* Đã đăng Saigon Times Daily 9-6-2018:

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