The cooperative which boasts 200 hectares of internationally certified organic pepper

Hoang Nguyen's pepper products have received 3-star OCOP certification and meet European organic standards. They have been appraised and certified by the Netherlands-based Control Union in Vietnam, and also meet the organic standards of the USDA (U.S.) and JAS (Japan).

Choosing the right path from the start

Established in 2018 with just 35 members, the Hoang Nguyen Cooperative has grown to more than 200 members over seven years. Its total pepper cultivation area now spans 986 hectares, with nearly 200 hectares holding organic certification.

Thanks to its high, stable quality and proactive partnerships with processing and exporting companies, the cooperative's pepper products enjoy a consistent market and sell at prices significantly higher than traditionally farmed products. This success has led to a steady increase in membership.

“Dak Nong and other Central Highlands provinces have a great advantage in soil and weather, which are highly suitable for growing pepper. This has led to a very large cultivated area," said Tran Thi Thu, Director of the Hoang Nguyen Cooperative. “The large supply creates a competitive environment. To achieve sustainable development and high-value products, there is no other way than to produce high-quality, certified goods."

“Therefore, from the very beginning, the cooperative focused on investing in knowledge for farmers to encourage scientific and methodical cultivation, thereby increasing the value of their products," she added.

The cooperative set its sights on demanding markets in Europe, the US, and Japan, which require strict quality control and adherence to food safety standards. "When our products enter these markets, it’s a confirmation of their quality and helps bring the Dak Nong pepper brand to the world," Thu said.

Before founding the cooperative, Thu had many years of experience with her own organic pepper production model. Her products were purchased by export businesses at high prices. This success attracted many people seeking to learn from her, which created a solid foundation for the establishment of the cooperative.

Initially, the cooperative's 35 members were all passionate and knowledgeable about organic peppercultivation, allowing operations to run smoothly. Within just two years, their pepper products achieved high quality, even before receiving official certification. After a few years of consistent organic farming, the pepper from many members' farms was officially certified and sold at a premium. This success spurred other farmers to join the cooperative.

“To spread organic farming models, we mobilized households in the surrounding area and invited them to visit the certified farms”, Thu explained. “When they saw the practical benefits for themselves, they got excited. However, as our membership grew, many new households lacked basic knowledge of organic farming, so we had to work harder, regularly organizing training sessions and providing materials. The experienced members also guided the newcomers."

The cooperative also established a technical guidance and environmental control department to ensure members followed the correct procedures, using only eco-friendly biological products and completely avoiding chemical fertilizers and pesticides.

Multiple benefits from natural farming

Le Dinh Hung, a member of the cooperative from Truong Xuan commune, has a three-hectare pepper farm that has been consistently certified organic by Control Union Vietnam in the Netherlands for several years.

Hung noted that to meet European organic standards, farmers must also manage unwanted external factors. “Even if my farm follows the organic process, a neighboring farm using traditional methods could cause cross-contamination,” he said. "For example, if they spray or fertilize with chemicals, those substances could drift onto my farm with the wind or seep into the groundwater, potentially causing my organic standards to fail. So, we have to understand this risk and prevent it."

To prevent cross-contamination, Hung creates protective buffer zones using perennial plants like avocado, papaya, and jackfruit to block wind and contaminated water from entering his organic cultivation area. This method has ensured his farm has met organic standards for four consecutive years.

Hung practices natural farming using IMO (Indigenous Microorganisms) biological products. Macro and micronutrients like nitrogen, phosphorus, and potassium are extracted from fermented fish, bananas, and avocados. Hung only buys cheap fish for the nitrogen and ferments the other substances from fruit available on his farm.

He said that organic farming costs are about 20 million VND (approximately USD 786) less per hectare than chemical farming, though it requires more diligent labor. However, certified organic pepper sells for 25-30% more than the market price.

Not far from Hung’s farm is a pepper and coffee intercropping farm owned by Nguyen Van Thanh. In his third year as a cooperative member, Thanh’s farm has been inspected once but has not yet received organic certification. Despite this, the cooperative buys his pepper at a higher price than the market rate. Thanh said he has a solid grasp of the organic farming process after two years and is confident his crop will be certified this season.

“Before, I used chemical farming, just buying fertilizer and pesticides from stores," Thanh said. “Now, I handle pests with a mixture of pungent, bitter, and astringent substances fermented from garlic, chili, ginger, and galangal. Being in the cooperative helped me understand that a natural ecosystem needs many insects, including weeds, because one species feeds another. Some insects harm the plants, but others prey on the harmful ones."

“Weeds also help retain moisture, reduce soil erosion, especially on slopes, and create an environment for beneficial insects like worms, crickets, and ants," he added. "If the soil has no weed cover, it will be very dry and won’t retain beneficial insects."

"Besides higher profits, organic farming offers many other benefits", Hung explained. "It protects the health of ourselves and the community, improves soil texture, and increases water retention and drainage. It also boosts beneficial microbial species in the soil, enhancing the vitality of plant roots and limiting harmful pathogens."