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Farming co-ops may be answer to rural poverty
The economic model of co-operatives is considered a necessary step farmers should take to develop the nation’s economy and eradicate hunger and reduce poverty, a former agricultural official has said.
Dr Mai Van Quyen, former deputy head of the Southern Institute of Agricultural Studies, said that Vietnamese farmers needed to join forces to be able to improve their own economic situation, given most of them are too poor and lack the needed capital, production materials and tools as well as professional knowledge and market information to do it by themselves.
Quyen made the statement as he was speaking at a seminar titled Promoting the Role of Co-operative Economy and Co-ops in the Socio-Economic Development in Disadvantaged Areas, co-hosted yesterday by the Central Party office, the city Alliance of Co-operatives and HCM City Open University.
He said despite the many difficulties, farmers were living in a market economy where they had to integrate themselves into a fiercely competitive environment.
Dr Tran Minh Tam, of the Academy of Politics and Administration No.2, also stressed the importance of co-op models to boost the development of household economies and contribute to the economic restructuring of rural areas, ensuring the sustainable growth of a commodity-based agriculture.
Though collaborative movements in the form of co-ops are on the wane, farming households still prefer the model, said Nguyen Mai Oanh, deputy director of the Institute for Agricultural and Rural Development Strategy’ s southern office.
Oanh’s own research in the south from 2006-2008 shows most farmers in rural disadvantaged areas would accept to the conditions of co-ops for various benefits
Co-op members can help each other overcome difficulties, support each other with funding, co-operate to reduce production costs and product prices, and depend on each other to churn out enough quality goods in time for orders, according to the study.
An important role most co-ops will take is finding an outlet for such products, protect members’ rights, and increase the bargaining ability in transactions and bidding wars on the market.
"Farmers have better access to "sci-tech" advancements when being part of a co-op," Oanh said.
Nguyen Xuan Hien, vice chairperson of the Viet Nam Alliance of Co-operatives, agreed with Oanh, saying that establishing more co-ops would create more jobs and income for the poor, enhance production and organisational capacity, and ensure social welfare and gender equality for the poor.
Dr Quyen considered the 6,379 agricultural co-ops in the country a precious resource, but noted further improvements in management and operation was needed to boost co-ops’ efficiency.
He said the growth rate of co-operatives as well as performance and collaboration among members, remained low.
Moreover, co-ordination within the co-op network at both national and regional scales was poor, said Dr Nguyen Minh Tu, adding that there was no consistent legal framework for co-ops, and heavy reliance on State subsidies remained common among co-op members.
VNS
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