Enterprises spend nearly 3 billion VND to support papaya growers

Nghe An Nafoods Company has transferred nearly 3 billion VND to support papaya growers of Tay Hieu cooperative after liquidating the contract to supply seeds and consume products.

On the afternoon of August 21, Mr. Nguyen Quang Trung, Director of Tay Hieu Agricultural Cooperative, said that he had received nearly 3 billion VND from Nafoods Passion Fruit Joint Stock Company (Quan Bau Ward, Vinh City, Nghe An Province). In the near future, this unit will complete procedures to transfer money to members, with each household receiving an average of 45-500 million VND.

"The cooperative grows nearly 14 hectares of papaya and currently has 130 tons of ripe fruit left. Some businesses want to buy it for 3,000 VND per kilogram, but people are selling it on the retail market for 3,500 VND. The unit is supporting members to sell it," said Mr. Trung.

A papaya garden in Tay Hieu cooperative. Photo: Hung Le — A papaya garden in Tay Hieu cooperative. Photo: *Hung Le*

Previously, in November 2022, Tay Hieu Agricultural Cooperative and Nafood signed a contract to supply Taiwanese papaya seedlings and purchase fruit products. Tay Hieu purchased seedlings for planting and development, while Nafoods purchased fresh ripe fruit, equivalent to 80 tons per hectare, from July 2023 to December 2024.

16 families inside and outside the cooperative participated in planting more than 27,000 papaya trees on an area of nearly 14 hectares. On average, each household spent more than 300 million VND, working from 5 sao to 2 hectares.

However, on July 19, right at harvest time, Nafoods sent a notice to terminate the economic contract "due to force majeure, affected by the Russia-Ukraine war" and could not export.

In mid-August, more than 50 tons of papaya had fallen from each hectare before they could be sold. In recent days, although ripe fruit had fallen all over the ground, rotting and covered in insects, the cooperative did not dare mobilize manpower to collect and destroy them for "fear of violating the contract".

Many ripe papayas have not fallen yet but are already damaged. Photo: Hung Le — Many ripe papayas have not fallen yet but are already damaged. Photo: *Hung Le*

On August 18, at a meeting with Tay Hieu Agricultural Cooperative and its members, Nafoods Company agreed to terminate the contract and compensate 225 million VND per hectare, with a total amount of nearly 3 billion VND. The procedures will be completed and the money transferred to the people by August 21 at the latest. In addition, the company will support 50% of the amount of money for buying seedlings that households still owe, with 8 million VND per hectare.

With the remaining papaya trees and fruits grown in the cooperative gardens, Nafoods allows people to consume them at will. The company will help find outlets, because there are currently many small traders, markets and supermarkets in the area that have connected and want to buy.

Duc Hung

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