Thanh Hoa: New approach on old fields

No more fear of good harvests but falling prices

Mr. Hoang Van Toan, Director of Phu Loc Agricultural Cooperative in Hoa Loc Commune, Thanh Hoa Province, said the cooperative currently has more than 950 members and over 400 hectares of cultivated land. Of this area, around 200 hectares are dedicated to vegetables and commercial crops, including chili, baby cucumber, melon, sweet corn, potatoes, spinach, green onions, and other vegetables, while the remaining area is used for rice cultivation.

Previously, like many other localities, agricultural production here was mainly based on experience, fragmented practices, and individual production, with market outlets dependent on traders. As a result, agricultural products often faced bumper harvests but low prices.

The turning point came when the cooperative proactively acted as a bridge, actively seeking, negotiating, and establishing linkages with enterprises to purchase and contract products. Instead of spontaneous production, farming households were reorganized under unified, strict procedures that spanned land preparation, seed selection, cultivation and care, and harvesting. As a result, enterprises contracted products at stable prices, ensuring farmers always made a profit and no longer worried about falling prices during good harvests as before.

“Linking with enterprises is not easy, especially when changing from spontaneous production habits to complying with strict procedures. But that process helped farmers learn how to do business professionally, from selecting varieties, applying techniques, recording production diaries to ensuring consistent product quality. More importantly, farmers gradually changed their mindset, shifting from production to economic thinking, learning how to calculate efficiency and proactively connect with the market,” Mr. Toan said.

To illustrate his point, Mr. Toan showed us the production diary of one cooperative member. Though small, the notebook carefully recorded every stage, from sowing dates and fertilization to pesticide spraying and irrigation. Everything was clearly and transparently documented, serving as “living proof” of the production process and as a mandatory condition for products to be accepted by enterprises.

Before each production season, the cooperative organizes meetings for all members, publicly announcing the contents of contracts signed with enterprises while also agreeing on cultivation plans. Once production begins, technical staff from enterprises coordinate with the cooperative to collect soil and water samples for analysis, thereby providing suitable production guidance for each area.

Before harvest, products continue to undergo random inspections. If pesticide residues are detected, the shipment will be rejected. These strict technical barriers, though seemingly demanding, have become the “passport” helping Phu Loc’s agricultural products affirm their quality and maintain their position in the market.

Choosing an environmentally friendly agricultural direction

Facing increasingly stringent requirements from enterprises and the market, Phu Loc Cooperative has identified safe, environmentally friendly agricultural production as its long-term direction. To improve soil quality, 100% of the cultivated area uses composted manure combined with microbial products. This method not only improves soil porosity and nutrient levels but also significantly reduces reliance on chemical fertilizers.

During the crop care stage, nitrogen fertilizer use is very limited, with mainly balanced NPK applications. Notably, around 30% of plant protection chemicals have been replaced with biological products. Although this figure is not yet large, it represents a clear improvement compared to the past.

The cooperative also encourages members to utilize agricultural by-products to produce organic fertilizers. Plant stems, vegetable leaves after harvest, and spoiled vegetables and fruits are composted with microbial products to create fertilizer. This recycled fertilizer is reused in production to improve soil quality and fertility. It is estimated that about 20% of fertilizer use has been replaced by these recycled sources, significantly helping households reduce production costs.

Thanks to this strong and methodical transformation, Phu Loc Cooperative has established an 80-hectare VietGAP-certified production area. In 2023, the cooperative’s spinach product was recognized as a 3-star OCOP product. In particular, the cooperative has established linkage chains with five agricultural purchasing enterprises, including a long-term close partnership with Dong Giao Foodstuff Export Joint Stock Company. As a result, the cooperative’s annual agricultural output of more than 5,000 tons is fully consumed. When market prices dropped sharply, enterprises still purchased products at the agreed contract prices, as long as product quality was ensured.

The difference between contract sales and sales through traders has become increasingly clear. Previously, prices were unstable and farmers were easily pressured on price, but now farmers are more proactive in production and no longer face situations where agricultural products pile up in the fields without buyers.

The success of Phu Loc Cooperative is reflected not only in its output or annual revenue of more than VND 20 billion, but more importantly in the fundamental change in farmers’ thinking. From producing based on experience, they now record production diaries, comply with pesticide withdrawal periods, understand the harmful effects of chemicals on health and the environment, and shift from an individualistic mindset to a sense of shared responsibility within the linkage chain.

Phu Loc Agricultural Cooperative aims to continue expanding safe agricultural production, strengthening consumption linkages, and promoting the application of high technology. To ensure product quality, the cooperative is moving toward production under the “6 No’s” standard: no chemical fertilizers, no chemical pesticides, no herbicides, no genetically modified seeds, no growth stimulants, and no preservatives.

$1 = VND 26,367 (Source: Vietcombank).