Agriculture cooperatives failing to impress

The performance of agricultural cooperatives is still far behind expectations, although they support tens of millions of farming households, heard a workshop in Hanoi on May 21.
The performance of agricultural cooperatives is still far behindexpectations, although they support tens of millions of farminghouseholds, heard a workshop in Hanoi on May 21.

Data collected by the Vietnam Cooperative Alliance shows that by the endof 2014, the country had 142,800 cooperative groups and 18,638cooperatives, attracting 12 million households. Of these, there weremore than 10,000 providing agricultural and aquacultural services.

Attendees said the development of a cooperative economy has failed tolive up to expectations due to an array of lingering weaknesses such assmall-scale operations, low productivity, unqualified products andunstable consuming markets.

They blamed this on theshortage of capital, poor administration capacity, outdated technologyand the neglect of trade promotion.

Hoang XuanTruong, an expert from the Vietnam Science Association of RuralDevelopment, said cooperatives are encountering a number ofdifficulties, especially those based in remote areas and ethnic minoritycommunities where they lack the necessary conditions for development;like infrastructure, funding and skilled personnel.

The activeness of cooperative leaders is critical to the development ofthese organisations, said Nguyen Thi Luyen from the Moc Chau safevegetable cooperative in northern Son La province, adding that farmerswill join cooperatives only when they see economic benefits.

She said her cooperative, generating 500-600 million VND(23,800-28,500 USD) per hectare in revenue for 38 member households,hopes to receive technical assistance from relevant agencies and localauthorities to increase vegetable quality and ensure productpreservation and transportation.

At the workshop,other representatives and economists suggested Government agencies andlocal administrations assist cooperatives and cooperative groups intechnological transfer and application, trade promotion, infrastructurebuilding and personnel training, ultimately helping them develop in anincreasingly fierce competition climate.-VNA

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