Report A case study of collective economic forms supported by Vietnam Farmers’ Union

The model of Organic agricultural products cooperative in Mong commune, Luong Son town, Hoa Binh province. The number of members: at the begining there were 8 households, now 15 households In 2008: the cooperative group of organic vegetables production; In 2011 the organic agricultural product cooperative was established. The total of farming land: 0.6 ha ( hired land: 0.3 ha) The total of existing asset value: (one hundred sixty two million dong) = USD Management board of the cooperative: 3 people Kind of product: organic vegetables (PGS certificate) /differentiation of products Production supply: 3 -3,5 tons of vegetables/month (60% for Hanoi market) )

Organic agricultural products cooperative (continued ) Production and consumption: through the contract with Tam Dat, Vinagap, Ecomart company Form of the contract: purchase contract Period of the contract: 1 year The price of products: the enterprise determine a price, the cooperative calculate a price, two parties make an agreement. When the market price raise, 2 parties will discuss and unite and then the price can be adjusted direct consumption: a part from production that selling according to the contract to the companies, the cooperative has right to sell products to other customers following the orders of schools, collective kitchens…

Strength and weakness Strong points: selling products following the contracts, create the differentiation of products, directly selling following the orders. The average price: đ/kg/ selling to the enterprises following the contracts. -The average income of members is from 2-3 mill.VND per month (raising income from 50 – 70%). Weak points: lack of farming land, lacking of products for supplying new orders. The enterprise gets more profit from the supply chain (the cooperative sells 1.300/kg, the enterprise sells to consumers: – đ/kg)

11/16/20155 The necessary conditions for sustainable development of collective group/ or cooperative 1. People should voluntarily participate in and have same objectives in a any determined product value chain. 2. CG/Cooperative should be set up by the collective technique contents/action 3. Farmers in CG should be equipped with the knowledge on: Business planning set up and product marketing according to crop or production cycle; Market access and involvement, especially high range market Apply the same technique and production process for getting same outputs 4. Leaders /Heads of Cooperative and CG should be trained on: Groups management and business planning, Marketing, negotiation, contract and partnership relation, supply chain management - Information sharing - Finance management, fund raising -Building up the relationship with stakholders/ actors in supply chain