According to the project contract on the supply of papaya seeds and product consumption between Tay Hieu Agricultural Cooperative (Thai Hoa Town, Nghe An) and Nafoods Passion Fruit Joint Stock Company (Nghe An), signed in November 2022, the enterprise will purchase all papaya products for the Cooperative.
Currently, 13.3 hectares of papaya trees of Tay Hieu Agricultural Cooperative have entered the harvest season, with a yield of nearly 2,000 tons of fruit, most of which have ripened and rotted, with yellow roots falling off the tree trunks, but have not been purchased by the company as agreed. Many households are restless, at risk of losing about 8 billion VND.
Papaya garden of a member of Tay Hieu Agricultural Cooperative (Photo: Nguyen Phe).
Mr. Nguyen The Duong, residing in Phu Tan hamlet, Tay Hieu commune, is one of 16 members of Tay Hieu agricultural cooperative participating in the papaya planting project of Nafoods Passion Fruit Joint Stock Company. He said that his family invested more than 175 million VND to plant papaya on an area of 0.5 hectares.
"Thanks to proper care and technical procedures, the papaya trees have grown and developed well. The estimated yield is about 80 tons of fruit. However, up to now, most of the ripe fruit has fallen all over the ground and the company still has not come to buy it for the people," said Mr. Duong.
Papaya growers cry because ripe fruits fall off the ground and turn yellow, no one buys them (Video: Nguyen Phe).
According to Mr. Duong, all the family's capital was invested in the garden, now seeing the fruit falling all over the ground and not being able to sell makes him very sad.
Not only Nguyen The Duong's family, but also the 13.3 hectares of papaya trees of the members of Tay Hieu Agricultural Cooperative are in the same situation.
According to local people's calculations, on average, 1 hectare of papaya trees yields 140-150 tons. With a committed purchase price of 3,500 VND/kg, local people earn over 500 million VND/ha. But in reality, 16 papaya growing households here are at risk of losing about 8 billion VND if there is no solution or compensation for damages from the company.
Papaya is ripe but not yet purchased (Photo: Nguyen Phe).
Speaking to Dan Tri reporter, Mr. Nguyen Quang Trung, Director of Tay Hieu Commune Agricultural Cooperative said : "The enterprise did not purchase because of the impact of the war between Russia and Ukraine. Our cooperative earnestly requests that competent authorities provide legal support to resolve this matter."
According to Mr. Trung, the contract to supply papaya seedlings and purchase papaya products between Nafoods Passion Fruit Joint Stock Company and Tay Hieu Agricultural Cooperative was signed on November 21, 2022, clearly stating that the company will supply papaya seedlings and purchase all papaya products.
Mr. Nguyen The Duong is one of 16 members of Tay Hieu Agricultural Cooperative participating in the papaya planting project (Photo: Nguyen Phe).
In July, when the entire papaya area entered the first harvest, representatives of Tay Hieu Agricultural Cooperative contacted the company many times to purchase, but the business hesitated.
On July 19, the company announced the termination of the economic contract (on the supply of papaya seedlings and the consumption of papaya products), citing the negative impact of the Russia-Ukraine conflict on the export market.
People are at risk of great loss (Photo: Nguyen Phe)..
"Immediately after receiving the notice from the company, we had a direct meeting with Nafoods Passion Fruit Joint Stock Company in Quan Bau ward, Vinh city. Here, we were promised by the company representative to come up with a solution," Mr. Trung added.
Up to now, there have been 4-5 batches of ripe papayas that have fallen off the tree, decomposed, and affected the surrounding environment. Papaya growers on Phu Quy land are in dire need of the community and purchasing companies to join hands.
The damage caused by papaya having no market for farmers is huge (Photo: Nguyen Phe).
On the morning of August 18, speaking with Dan Tri reporter over the phone, Mr. Nguyen Manh Hung, Chairman of the Board of Directors and General Director of Nafoods Nghe An Joint Stock Company, said that the company is looking for the best solution for papaya growers.
Representatives of Nafoods Passion Fruit Joint Stock Company had a meeting with Tay Hieu Agricultural Cooperative and papaya farmers and reached an agreement: The company will support the entire cost for the people of 225,000,000 VND/ha for 13.3ha with an amount of nearly 3 billion VND.
In addition, the entire amount of seedlings that the Cooperative still owes to Nafoods Passion Fruit Joint Stock Company will be paid before August 21. The Company will make the payment to the Cooperative after the contract is liquidated.
According to the explanation, during the contract implementation process, there were objective impacts from the market that led to the interruption of the purchasing organization. The delay in purchasing products was due to objective impacts from the output market, which were beyond the control of the enterprise.
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