Delta rice farmers reap big benefits

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Aggregation of land and the formation of co-operatives is providing economies of scale in Mekong Delta paddies, resulting in greater efficiency and improved production. Ngoc Le reports

Viet Nam is among the top three rice exporters in the world, and the country’s "rice basket", the Mekong Delta, accounts for as much as 90 per cent of its export turnover.

However, it is also a fact that rice cultivation in the delta, which produces more than half of the country’s rice output, is largely based on fragmented, small paddy fields.

The fragmentation has long been identified as a factor that hampers application of advanced technologies on the one hand, and on the other, perpetuates production inefficiencies.

These shortcomings have been addressed effectively in recent years by pilot projects that have brought many small farmers together in order to reorganise production and achieve economies of scale, project managers say.

In An Giang Province’s Vinh Binh Commune, located on the banks of the two main tributaries of Mekong River, farmers have been organised into cultivating rice on big fields in a pilot project implemented by the An Giang Plant Protection Company (AGPP), a major rice processor and exporter.

The project, which began last October on an area of 1,200ha, aims to ensure sufficient supply for the company’s rice mill, said Le Minh Phuong, deputy director of the factory.

The project brought together more than 650 farmers to form an area focused on cultivating rice for export, he said.

"Even though rice production can yield profits of more than 30 per cent, most farmers still lead difficult lives because their fields are too small and they are exposed to losses caused by bad weather and pests" said Nguyen Tien Dung, assistant to AGPPgeneral director.

He said that AGPP was carrying out the project at the request of the Ministry of Agriculture and Rural Development in order to help farmers reduce losses, get more value for their rice and learn advanced way of production.

This would also help develop a brand value for Vietnamese rice in the world market, he said.

"Rice farmers need loans, technical assistance, machines, post-harvest facilities and stable outlets for their produce," he said.

"So we need to organise specialised rice growing areas without changing ownership," he said.

Under the contract that AGPP has signed with the farmers participating in the project, the company would provide the latter with certified seed varieties, pesticides and fertilisers on credit until 30 days after the harvest.

AGPP would also dispatch its team of more than 400 ‘Farmers’ Friends’ (FF), agricultural experts who would work with farmers directly in the fields to make sure that their production techniques conform to standards, transfer technology, and sort out problems if any.

"We will take care of the whole harvesting and transporting processes for farmers, and they can still choose to sell their rice to us or not," Dung said, adding that the factory posted prices every day according to market developments.

If the farmers chose to sell their harvest to the factory, it will subtract all the expenses it had covered during the production process, he said.

"In case they want to wait for good prices, they can store their rice in our facility free for up to 30 days," he added.

"In this way, farmers are linked directly with the company in a close circle from the start to the end of production, eliminating middlemen who take away much of the profit from farmers," he said.

Although farmers can freely sell their yield to outside traders, they rarely do so, he noted.

"The factory’s prices are always close to market prices," said Vo Thanh Phuong, who grows rice on two hectares. In fact, he has never seen factory prices fall below market prices, Phuong said.

"If we choose to sell to outside collectors, we have to pay off all the debt to the factory within three days," he said.

Other farmers participating in the project also said they have much to gain compared to farming on their own.

"My favourite part is the transfer of technology," said Nguyen Van Can, who owns a rice field of 3ha. "I used to keep up with new technologies via TV or radio channels, but I could understand very little.

"Now we’ve got rice of better quality thanks to the certified seeds we’re given," he said, adding that seeds that the farmers prepared by themselves were not of uniform quality.

Another advantage of using the new model of cultivation is that the farmers can save a lot on chemicals that they previously used in large quantities.

"We used pesticides even when there were no pests as a precautionary measure and we usually used more than the amount needed just to get a feeling of security. But now we are told to use chemicals only when needed," Can said.

Farmers are required to strictly adhere to the "One Must, Five Reductions" formula. They must use certified seeds, and reduce the use of water, fertilisers, chemicals, seeds and post-harvest losses.

They also learn to keep logs of daily expenses so that they can calculate accurately how much profit they earn at the end of a crop.

Nguyen Anh Tu, 28, who graduated from An Giang University and now works as an FF, said his routine includes discussing with farmers what to do at the beginning and what experiences they have drawn at the end of a few days.

"On an average, we visit farmers once to three times a week," he said, adding that each FF is in charge of around 50ha.

The biggest difficulty that FFs face, Tu said, is that there are some farmers who prefer to rely on the knowledge and experience passed on by their forefathers.

"They say that we’re too young to tell them what to do, because they’ve grown rice for decades," he said.

Phuong, deputy director of AGPP’s rice mill, said that the company plans to expand the project from the current 1,600ha to 5,000ha next year.

The factory’s designed capacity can take in the output of 15,000ha of paddy fields a year, he said.

In fact, the big field model in An Giang Province’s Vinh Binh Commune coincides with what agro scientists have advocated for years.

It’s also not one of its kind in the Mekong Delta. Many similar projects have already been operational elsewhere in the delta.

In Soc Trang, Hoa Loi Co-operative, which is composed of local rice farmers, is working with Can Tho-based Thot Not General Commerce Company, or Gentraco, to develop aromatic rice according to Global GAP (Good Agricultural Practice).

Gentraco also got engaged in cooperation with Hoa Tien Co-operative in Kien Giang Province’s Go Quao District to create a close circle of rice production.

"Widespread application of contract farming between groups of farmers and agro-businesses should be encouraged," remarked Dr Nguyen Phu Son from Mekong Delta Development Research Institute in a workshop on rice production in the middle of last month in Can Tho City.

"We need to create motivation for farmers so that they continue to grow rice," he said, adding that farmers’ profit is not at all on a par with their labour.

So the rice value chain that links together all players in the rice production process, like the big field model in Vinh Binh Commune, is what the Delta really needs at the moment.

Son also suggested developing high-quality varieties of rice to meet growing demands of high-income people who wants more value for their diets. — VNS

http://vietnamnews.vnagency.com.vn/Sunday/Features/213690/Delta-rice-farmers-reap-big-benefits.html


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