Strong but farmers swim alone
Bac Lieu province has a total cultivated area of up to 180,500 hectares, with an annual rice output of over 1.2 million tons. Along with shrimp and other agricultural products, rice is considered the mainstay of the economy, but Bac Lieu rice is still struggling.
Mr. Nong Van Thach - Chairman of the Board of Directors of Ba Dinh Cooperative (Hong Dan District) - said: Production linkage with enterprises forces farmers to use all the products they provide, while those products are not always suitable for technical and land conditions. On the other hand, the area of consumption is not large, so farmers do not want to participate in the linkage.
Mr. Nguyen Van Cuong - Chairman of Vinh Cuong Cooperative - said that after purchasing rice, the Cooperative will mill the rice, package it, and find a place to sell it. In Bac Lieu, there is no licensed rice purchasing and exporting unit, so the Cooperative must cooperate with businesses outside the province. This means that the costs for the business are higher.
Meanwhile, local authorities focus on building raw material sources and developing production to increase productivity, output, and quality. Purchasing, processing, and exporting are beyond the reach of local authorities.
Mr. Tran Anh Thi - Chairman of Vinh Loi District People's Committee - said that the district's strength is rice production. Therefore, the district will continue to maintain and develop specialized rice growing areas that adapt to climate change. Focus on investing in infrastructure such as electricity, roads, canals, dykes, electric pumping stations, etc. with the goal of improving the ability to respond to climate change. At the same time, the district encourages the development of agricultural cooperatives and cooperatives to promote links between farmers and businesses in rice production and consumption.
Losing millions of dollars every year
Bac Lieu's rice export turnover is still zero, although it supplies the export market with about 400 million USD worth of goods each year, which food companies count as the export source of businesses.
Chairman of Bac Lieu Provincial People's Committee Pham Van Thieu said that the province has a large rice output but cannot export rice, which is a huge loss. Not only is it a loss for the budget but also for the people.
The Chairman of Bac Lieu acknowledged that when it comes to harvest, farmers are completely dependent on brokers: Brokers call for combine harvesters to come and harvest; brokers introduce buyers; brokers give prices to farmers...
"Brokers manipulate all stages of the province's rice harvest, do the localities know? I think they know everything, but it's difficult to do, difficult to prohibit because we don't have factories that purchase in large quantities. Rice is sold to traders outside the province to buy. Cooperatives and associated enterprises also transport Bac Lieu rice to other places. When rice prices increase like now, it's okay, but when rice prices decrease and are harvested right after the rain, farmers are forced to lower prices, which is natural," said Mr. Thieu.
Faced with this reality, Mr. Luu Hoang Ly - Director of the Department of Agriculture and Rural Development of Bac Lieu province - said that the Department is encouraging investment in the field of rice consumption; besides, building a strong enough rice brand to serve export.