Supporting the development of value chains in agricultural production: A positive change

– In the last two years, the support to build value chains in agricultural production in the province has initially achieved positive results, contributing to improving the value of agricultural products in the area.

Value chain is total activities related to the production and consumption of products. The value chain creates close links between the stages (input, production, processing, consumption…) to increase competitiveness and improve product value. In the province, the number of value chains is still limited, the proportion of the value of agricultural and forestry products produced in the form of cooperation and links has only reached from 4.04 to 5.07%… Because of such limitations, the support for the development of value chains is focused by relevant levels and sectors.

Mr. Nguyen Phuc Dat, Deputy Director of the Department of Agriculture and Rural Development (DARD) said: “To support the development of agricultural production value chains in the province, the DARD has actively developed plans, coordinated with relevant agencies to survey and select the chain of production links for key products of the province to support their development. Accordingly, from 2020 up to now, the competent authority has selected 10 chains of the production links to support their development into value chains.”

Chicken care at Thanh Loc Cooperative, Loc Binh district

Learning from the difficulties and limitations in production and product consumption links of selected establishments, the DARD supports to improve product quality through supporting materials and equipment; supporting product branding through supporting packaging, labels; supporting promotional activities, connecting product consumption, thereby gradually improving the efficiency of production links associated with the product value chain (production – processing – consumption of agricultural products) for agricultural products in the area.

With the support of specialized agencies, the development of value chains in the province has achieved positive results. The development of a product value chain in Le Hong Phong aquatic product cooperative, Bac Son district is an example.

Mr. Duong Huu Chuc, director of the cooperative said: “The main activity of the cooperative is growing fish in cages. In 2020, the cooperative is supported by the State to build an aquatic product value chain. Specifically, members of the cooperative are trained in contents related to value chain building. Besides, the cooperative is also supported with 18,000 labels for 5 types of fish and granted a certificate of food safety; it is also supported with materials in the preliminary processing area such as pressure sprayer, oxygen blower, fish cage…”

With the support of the State and its own resources, the cooperative has increased by 5 fish cages (increasing the total number of fish cages of the cooperative to 42); Fish yield and quality are increased. In particular, the consumption stage has witnessed a most dramatic change. Previously, the cooperative only harvested fish and sold it at the market, from 2020 onwards, the cooperative has performed additional stages of preliminary processing, preservation, and processing into 3 types of fish cakes… Consequently, the product can be under long preservation, the consumption market becomes wider and the product value is significantly increased. In 2020, the cooperative’s revenue from fish is 1.8 billion VND, its profit is 700 million VND, up 20% compared to 2019 and much higher than in previous years.

Vegetable harvesting at Huu Lung Agricultural Cooperative

Similar to Le Hong Phong Aquatic Product Cooperative, with the support of the State, in 2021, Thanh Loc Cooperative, Loc Binh district is building a poultry product value chain. Mr. Ly Minh Hieu, Director of Thanh Loc Cooperative said: “The cooperative was established in 2020 with main activities in the field of husbandry and cultivation, in which the key product is 6-toed chicken. In 2021, the cooperative has been supported to build product brands, stamps, equipment for preliminary processing and product preservation and to apply digital economy into product consumption. Although we are new, from July 2021 up to now, the cooperative has sold over 10,000 breeding chickens, supplying broiler chickens to the markets inside and outside the province.

Together with the above 2 units, from 2020 to now, the province has supported 8 agricultural production value chains with a total budget of 1.6 billion VND. Through the support, these value chains have gradually formed and developed with product value increasing from 5 to 20% compared to before.

Although certain results have been achieved, the number of value chains in agricultural production in the province is still small compared to the available potential and advantages. Therefore, in addition to the support of the State, businesses and cooperatives need to continue to be proactive in investing resources, closely linking in production, processing and consumption, etc., thereby maintaining as well as developing new value chains in the province in the coming time.