Production partnerships for mutual development

A win-win partnership

Across potato fields spanning dozens of hectares in Hong Chau Commune, the sight of machinery simultaneously preparing the land, planting, and harvesting has become a familiar scene. This is the result of a production partnership between Vang Agricultural Development JSC and local farming households.

Nguyen Quang Tuan, a resident of Hamlet 2 in Hong Chau Commune, said: "Working in partnership with Vang Agricultural Development JSC gives us peace of mind because the company purchases all of our produce, so we no longer worry about bumper crops leading to falling prices. The company provides seeds, farming inputs, and technical guidance, while machinery is used during harvest, greatly reducing labor. The economic returns are higher and the market is stable, so farmers are eager to continue participating in the model."

The benefits have been significant. Farmers have substantially reduced labor costs and earn profits of VND 5 – 6 million per sao after deducting production expenses. Hai Phong currently has 12 potato production partnership models linked to product purchasing, covering more than 250 hectares in various localities including Hong Chau, Binh Giang, Nguyen Giap, and Thai Tan.

In each model, businesses participate from the beginning of the crop season by supplying production inputs, providing technical guidance, applying mechanization throughout the production process, and signing purchase agreements. This approach not only reduces production costs for farmers but also helps establish concentrated farming areas, gradually shifting agricultural production from small-scale cultivation to commodity production.

Expanding agricultural value chains

In Tran Lieu Ward, kudzu starch production once frequently suffered from the familiar problem of abundant harvests but low prices. However, since joining a partnership with Thanh Nhan Clean Agricultural Products Cooperative, many growers have confidently expanded production.

The cooperative purchases products from more than 100 farming households cultivating over 10 hectares of kudzu in Tran Lieu Ward and neighboring areas.

According to Luong Thi Kiem, Deputy Director of the Hai Phong Department of Agriculture and Environment, production partnerships linked with product purchasing have proven to be an appropriate approach to restructuring the agricultural sector. Such partnerships significantly reduce labor requirements through the application of mechanization and advanced farming techniques.

Field observations show that many partnership models generate 30 – 50% higher economic returns than conventional production methods. More importantly, farmers no longer worry about finding markets because participating businesses have signed contracts with processing plants or export companies while developing stable raw material areas.

The partnership model connecting farmers, cooperatives, and businesses is regarded as the key to developing large-scale raw material zones that meet processing and export requirements. These successful models have shaped the long-term development of Hai Phong's agriculture, where added value is created through integrated production chains built on shared benefits and mutual development.

THIEN DI