Effective and sustainable development of agricultural value chains from agricultural restructuring

Many solutions to improve production efficiency, increase the value of agricultural products and especially build close links in the entire value chain from production to consumption... were proposed at the Forum " Agricultural restructuring: Solutions for effective and sustainable development of agricultural value chains", on August 28 in Hanoi.

The Forum was organized with the aim of promoting sustainable and effective development of agricultural value chains - a core element in restructuring Vietnam's agricultural sector. The Forum was attended by a large number of experts, managers, representatives of cooperatives and agricultural enterprises in the country and international organizations.

In her opening speech, Chairman of the Vietnam Cooperative Alliance Cao Xuan Thu Van said that in the first 8 months of 2024, agricultural, forestry and fishery production activities nationwide continued to have many bright spots, which are important factors creating growth for the agricultural sector and affirming the fundamental role of the economy . Especially maintaining stable growth, meeting domestic consumption needs and serving exports.

“This partly confirms that agricultural restructuring is on the right track, with extremely important contributions from the cooperative economic sector with more than 20,000 agricultural cooperatives and tens of thousands of agricultural cooperative groups, along with over 3.8 million cooperative members who are farmers,” the Chairman of the Vietnam Cooperative Alliance assessed.

Overview of the Forum “Agricultural restructuring: Solutions for effective and sustainable development of agricultural value chains”, August 28 in Hanoi . (Photo: Van Chi)

The issue of survival in agricultural restructuring

According to statistics, currently the whole country has over 4,000 cooperatives participating in value chain linkage (accounting for nearly 13% of the total number of cooperatives) with diverse forms of value chain linkage development according to stages in the agricultural value chain.

Ms. Cao Xuan Thu Van emphasized: “It can be said that in order to promote the consumption of agricultural products in the best way and increase the value of Vietnamese agricultural products, the effective and sustainable development of the agricultural value chain is a vital issue in agricultural restructuring. This is to meet the international market that continues to expand for Vietnam with nearly 20 signed and negotiated FTAs, as well as satisfy the needs of the domestic market with a population of more than 100 million people.”

However, according to the Chairman of the Vietnam Cooperative Alliance, it is necessary to recognize the fact that there are still many limitations and certain challenges for the sustainable development of the agricultural value chain. And one of the biggest limitations today is that the connection between actors in the same stage (horizontal linkage), as well as between stages (vertical linkage) in the value chain is still loose.

In some agricultural product sectors, the horizontal linkage between farmers through cooperatives and cooperatives has only stopped at sharing production experience or accessing support resources from domestic and foreign programs and projects, and has not yet implemented a centralized supply and consumption model. Or in the preliminary processing stage, it has only stopped at the level of informal agreements on zoning for purchasing raw materials, and has not yet formed a horizontal linkage to unify prices and quality.

In addition, the linkage between cooperatives/cooperatives in some industries is only seasonal, not sharing risks and benefits, so it has not achieved high sustainability. In general, the linkages in production and consumption are not really solid.

Not only that, the number of cooperatives that have built product brands is not much, and their competitive value in the market is not high. There are not many cooperatives that have the capacity to organize and link, promote the role of a truly effective bridge, and have the ability to spread in developing production according to the value chain.

Therefore, in restructuring agriculture, to develop the Vietnamese agricultural value chain sustainably and effectively, it is necessary to overcome these inherent limitations. In particular, it is necessary to closely link production, processing and consumption. At the same time, it is necessary to consolidate and develop collective production organizations and vertical linkages between actors in the chain.

In addition, the current trend of consuming green and clean agricultural products in domestic and foreign markets requires the agricultural value chain to promote farmers, cooperatives, and businesses to apply new standards and adjust their chain operations to promote the green transformation process to ensure compliance with market demand.

The urgency to transition to a green, low-emission agricultural food system, and “greening agriculture is not a burden but an opportunity”, is requiring the Vietnamese agricultural value chain to contribute to creating sustainable changes in farming and processing processes.

6 solutions for sustainable development of agricultural value chain

According to Deputy Minister of Agriculture and Rural Development Phung Duc Tien, restructuring the agricultural sector to improve efficiency and ensure sustainability in the agricultural value chain is an important issue for the growth and sustainable development of the economy, ensuring social security and improving the material and spiritual life of the people. In the new context, when Vietnam integrates more and more deeply, agriculture is considered a sector with many opportunities but also facing many difficulties and challenges.

The agricultural sector will continuously develop, improve efficiency and develop sustainably in the agricultural value chain, contributing to building and raising the level of Vietnamese agricultural products in the world market. This is not only the task of the agricultural sector alone but also requires the joint efforts of the whole society, from state agencies, enterprises, cooperatives to farmers.

Deputy Minister Phung Duc Tien pointed out 6 solutions that need to be focused on in the coming time to sustainably develop the agricultural value chain:

Firstly , innovating the structure of crops and livestock: Transforming the structure of crops and livestock towards increasing added value and sustainable development. It is necessary to focus on key products with high competitive advantages, while promoting research and application of science and technology in agricultural production.

In addition, organic and safe agricultural production not only meets the increasing consumption needs of people but also contributes to protecting the environment and public health. There should be policies to support and encourage farmers to switch to organic and safe production.

Second , applying high technology to agricultural production is one of the important solutions to improve the efficiency and sustainability of the agricultural value chain. New technologies such as biotechnology, information technology, automation in agricultural production and management will help increase productivity, reduce costs and protect the environment.

At the same time, applying biotechnology in selecting and creating plant and animal breeds, producing biological fertilizers and pesticides; helps improve productivity, product quality and resistance to adverse environmental conditions...

Third , develop and implement appropriate training, coaching, and technology transfer programs to help farmers grasp and apply scientific and technical advances in production. Training programs provide farmers with modern production techniques, production management, and market access. Training will help improve farmers’ qualifications and skills, thereby improving production efficiency…

Fourth , close linkages between actors in the agricultural value chain from production, processing to consumption are key to improving efficiency and ensuring sustainability. The State needs to have support policies and create favorable conditions for cooperatives, businesses and farmers to cooperate with each other. At the same time, building linkage chains according to the "from farm to table" model will help improve product quality and increase added value.

Along with that, perfect and adjust support policies and encourage the development of agricultural cooperatives, especially new-style cooperatives...

Fifth , expanding and developing the domestic and international agricultural product consumption market is an important solution to improve the efficiency of agricultural production. It is necessary to focus on building brands, improving product quality, and meeting international standards on food safety and environmental protection.

At the same time, build and develop Vietnamese agricultural product brands; promote trade promotion, seek and expand export markets for Vietnamese agricultural products.

Sixth , sustainable agricultural development must go hand in hand with environmental protection and rational use of natural resources. Measures such as the use of biological fertilizers and pesticides, efficient management and use of water resources, and protection of land and biodiversity need to be widely applied. The development and implementation of green agricultural programs and projects will also contribute significantly to sustainable development.

Source: https://baoquocte.vn/phat-trien-hieu-qua-va-ben-vung-chuoi-gia-tri-nong-san-tu-tai-co-cau-nong-nghiep-284182.html