Cooperatives Change Farmers’ Production Mindset

Guiding farmers toward clean production

The Ham Minh 30 Dragon Fruit Production and Service Cooperative, located in Ham Thuan Nam commune, serves as a prime example. Originally consisting of a production group of 27 households engaged in VietGAP dragon fruit farming across 55 hectares, the cooperative has now expanded to 24 members who contribute capital and are linked through production, encompassing a total cultivation area of around 100 hectares.

Le Phuong Chi, director of the Ham Minh 30 Dragon Fruit Production and Service Cooperative, explained that the cooperative aims not only for economic efficiency but also to produce clean, high-quality products for consumers while transforming the production mindset of farmers.

In reality, producing organic and eco-friendly dragon fruit comes with considerable challenges. The costs of investment are higher, and managing pests becomes more complex due to the restrictions on chemical use. Nevertheless, the cooperative remains committed to this approach because it aligns with the inevitable trends in contemporary agriculture.

As of now, all 100 hectares of the cooperative's dragon fruit have received VietGAP certification. The cooperative is also in the process of developing 2.5 hectares according to GlobalGAP standards and intends to replicate this model across its entire production area in the future.

The shift in production mindset has brought clear results. Instead of frequently facing the “bumper harvest, low price” situation, cooperative members now enjoy stable output through contracts with enterprises. GlobalGAP products are sold under stable contracts, with prices maintained at 18,000–20,000 VND/kg throughout the year, significantly higher than market prices at certain times.

Linking production and enhancing agricultural value

In response to stringent market demands, numerous dragon fruit cooperatives such as Thuan Tien, Hoa Le, and Phu Hoi have also enlarged their production areas in accordance with GlobalGAP and organic standards, while enhancing partnerships with purchasing companies.

The proactive transition towards sustainable production and increased involvement in agricultural value chains demonstrates that the collective economic sector is slowly adapting to contemporary agricultural trends.

Rather than solely offering input support or product marketing as in the past, many cooperatives have evolved into production linkage centers, guiding farmers in the application of science and technology, adhering to quality standards, and organizing production based on market needs.

Phan Dinh Khiem, Vice Chairman of the Provincial Cooperative Alliance, states that the agricultural cooperative sector holds considerable potential for development and is crucial for socio-economic progress, particularly in enhancing production value and aiding the province in achieving its economic growth objectives.

The Department of Agriculture and Environment reports that numerous agricultural cooperatives have taken the initiative to implement scientific and technological innovations, embraced digital transformation in their management practices, developed OCOP products, and followed VietGAP and organic production standards while establishing value chains that span from production to consumption. This approach is vital for boosting the competitiveness of regional agricultural goods.

To further improve the effectiveness of the collective economic sector, the provincial agriculture sector is implementing several support measures, including training to improve the management capacity for cooperative leaders, transferring scientific and technical knowledge, building value-chain linkage models, supporting branding, traceability systems, and promoting agricultural trade.

Currently, the province has 8 agricultural cooperative unions with 45 member cooperatives and 834 agricultural cooperatives. The average revenue is about 2.5 billion VND per cooperative per year, while the average income of regular workers ranges from 75–78 million VND per person per year.