Business Business

14/05/2018 - 08:12

Link from production to consumption

Linking organic rice production from supplying raw materials to consuming products has been carried out by Que Lam One Member Limited Liability Company (Que Lam for short) in partnership with Phu Luong 1 (Phu Vang) Agricultural Cooperative and 150 organic rice farmers from 2014. This linkage model has brought many benefits for all parties and consumers.

Organic rice is consumed by Que Lam right after harvest

Benefits for all three parties

Although there are many types of agricultural products in the province, there have been no products with centralized production to ensure the quantity and quality to meet the market demand.

Through survey, it was found that organic rice production is a strength which can form a stable linkage chain, ensuring legal status from supplying materials to consuming products. The Department of Industry and Trade has implemented the pilot model Enterprises - Cooperatives - Farmers into a stable channel to supply materials and consume organic rice products for farmers in Phu Luong (Phu Vang). The farming area is up to 67.6 ha, farming northern fragrant rice variety 7.

According to the representative of the Office of Trade Management - Department of Industry and Trade, the model was selected to help pilot construction and development of commodity-based, branded agricultural products, ensuring productivity, quality and efficiency, linking with processing and the market. The model is hoped to improve farmers' income.

This model helps Que Lam ensure a stable and quality supply as agreed with its trading partners by signing a contract with the producers. Farmers feel secure in production and enhancing quality when a stable output is guaranteed. Agricultural materials are advanced at the beginning of the crop season to the cooperatives without the need for reciprocal capital.

What farmers are excited about is that Que Lam does not buy at the fixed “dead” price. This means that although the price is negotiated from the beginning of the crop season, at the harvest, if the market price increases, Que Lam will still buy at market prices. However, if the market price decreases, they still buy at the price in the contract.

“Thanks to such ‘flexible’ pricing, in the last few crop seasons, farmers did not break the contract and Que Lam did not abandon consumption. Farmers no longer needed to find loans to buy the supplies needed for production. The materials are supplied by Que Lam and deducted at the end of the harvest, after the rice products have been consumed at reasonable prices, equal to the market prices," said Mr. Vo Phong, Le Xa Dong village, Phu Luong commune.

The fragrant rice variety 7 farmed under the linkage model always yields higher market value than that of traditional rice cultivation

Raising the quality and value of merchandise

Through surveying the soil conditions and water sources, and finding that they are suitable for cultivation of fragrant rice variety 7, Que Lam has worked directly with farmers, cooperatives and local authorities to build 67.6 ha of organic rice cultivation areas in Le Xa Dong village.

From the beginning of the crop season, Que Lam provided supplies such as: seeds, micro-biological fertilizers, contract farming, NPK, organic pesticides, etc., as well as knowledge and techniques of planting, tending and harvesting for the farmers.

Mr. Nguyen Dinh, Phu Luong 1 Agricultural Cooperative officer said that, unlike traditional rice cultivation which uses inorganic fertilizers, organic rice production mainly uses micro-biological fertilizers provided in the prescribed dosage by Que Lam.

To eliminate the common pests in rice and help the crops grow well, farmers are only able to use the herbal pesticides supplied by Que Lam. Of course, the cost is nearly 20% higher, but the yield, quality and price of rice is higher than that of conventional rice production.

It is expected that the yield of northern fragrant rice variety 7 crop will reach 6.2 tons/ha. Thus, organic rice production is about 400 tons /crop season. The value of the product has increased so farmers have been very excited and have participated in this mode of linked production with great enthusiasm.

According to Mr. Nguyen Dinh, the whole cooperative has 366 ha specialized in producing rice. At present, farmers in Le Xa Trung and Le Xa Tay villages are very eager to join the organic rice cultivation scheme. However, Que Lam is still in the process of seeking markets so production area has not been expanded.

The optimistic sign is that consumers are particularly fond of organic rice products, as this is a clean, tasty and nutritious product. So, it is possible to develop an organic rice growing area with the model linking three parties. Many consumers agree that the cost for their everyday rice is not much, only one tenth of the cost of a meal. Thus, many homemakers are keen to buy clean, fragrant rice.

With this consumption trend, the trilateral linkage between Que Lam - Phu Luong 1 Cooperative - Farmers helps to make organic rice production more directional, ensuring product quality and compliance with the rigorous standards of consumers.

This linkage also helps to avoid the loss of price in good harvest and the rise of price in crop failure, which often occur in agricultural production with farmers being the ones most affected.

Story and photos: Hoai Thuong