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Leverage for agricultural cooperatives

BAC GIANG - Bac Giang currently has more than 1,100 cooperatives, of which more than 65% are agricultural cooperatives. In order to concretize the Party and State's guidelines and policies on collective economic development, the province has issued many policies to support and encourage cooperatives in this field.

More than 100 cooperatives get support

To encourage cooperative economic development, in 2018, the provincial People's Council issued Resolution No. 24/2018/NQ-HDND stipulating a number of policies to support and encourage the development of cooperatives and cooperative unions operating in the field of agriculture.

Bac Giang province, agricultural cooperatives, collective economic development, support and encourage cooperatives, expanding production scale

Supported to buy an oil extraction line, the Quang Duy Agricultural Cooperative has increased its capacity from the previous 80 liters to 600 liters per day.

These support policies have contributed to motivating agricultural cooperatives to pay more attention to design, printing, and improving labels, packaging, and traceability stamps; investing in expanding production scale and raising product quality to meet increasing market requirements.

The Quang Duy Agricultural Cooperative in Dong Lac commune, Yen The district was established in 2019 with seven members, processing agricultural products such as peanut oil, gac oil and sesame oil bearing the brand of Dai An.

Nguyen Van Thang, director of the cooperative, said: "Supported to purchase machinery, the cooperative has increased its oil extraction capacity from the previous 80 liters to 600 liters per day, with significant improvements in product quality."

Thanks to that, the Dai An cooking oil brand is increasingly known to many customers, with some products meet OCOP (One Commune One Product) standards. The cooperative's revenue in 2023 is expected to reach over 3 billion VND (123.533 USD).

Promoting sustainable development of cooperatives

With the State support, agricultural cooperatives have done a good job of linking farmers together to move from small-scale production to large-scale concentrated commodity production for processing and export, creating new high quality agricultural products. 

Bac Giang province, agricultural cooperatives, collective economic development, support and encourage cooperatives, expanding production scale

The concrete road leading to the Huong Son Clean Pineapple Cooperative has just been invested by the Department of Agriculture and Rural Development.

For example, the Huong Son Clean Pineapple Cooperative in Lang Giang district is growing more than 80 hectares of pineapples. This year, with nearly 1 billion VND (41,177 USD) supported by the provincial Department of Agriculture and Rural Development, the cooperative has invested in building nearly 1 km of concrete road into the production area.

"Thanks to the road, the sale of pineapples and some other agricultural products and the transportation of fertilizers by cooperative members are more convenient. The product is recognized as meeting OCOP standards and consumed in many domestic markets", said Hoang Van Tien, director of the cooperative.

According to the provincial Cooperative Alliance, Bac Giang now has about 120 agricultural cooperatives join linkage activities under contracts. At the same time, they are also in charge of purchasing and bringing products to the market, helping to save costs and increase profits.

To remove obstacles and further promote policy effectiveness, creating more important levers to help cooperatives develop sustainably, the agriculture sector has advised and proposed the provincial authorities to amend and supplement a number of regulations.

Accordingly, it proposed abolishing the "corporate income tax support" because the State has a policy of exempting and reducing corporate income tax for cooperatives with income from farming, animal husbandry, aquaculture, processing of agricultural and aquatic products.

It is necessary to expand those eligible for interest rate support, including cooperative members; reduce the minimum land rental area appropriate to each region (5 hectares for midlands and mountainous areas, and 7 hectares for plains) and increase the support level to no more than 20 million VND per ha per year. There should be specific policy mechanisms to encourage businesses to invest in agriculture and rural areas in the province.

 

Nguyen Huong
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Bac Giang province, agricultural cooperatives, collective economic development, support and encourage cooperatives, expanding production scale
 
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