“The supply chain for agricultural materials throughout the nation is still extremely backwards and rudimentary compared to the standards of developed nations,” said Mori Mutsuya of the JICA.
As a consequence, he said there are many unnecessary intermediary levels, which contribute to considerable inefficiencies, higher prices and unstable supplies coupled with dubious quality.
JICA is working with farmers and others with an interest in the industry to give effect to a cooperative model aimed at equipping smallholders with large-scale production suppliers to meet their needs for fertilizers, pesticides and other production materials.
Under the new cooperative model goods and services will be available to smallholders on a timely, quality, consistent and more economical basis, thus making agriculture more profitable for the typical farmer.
“During the current phase of implementing the JICA project we are providing lots of training courses,” with the aim of equipping the cooperatives with necessary knowledge and skills on providing services to their members.
We are following the blueprint used in Malaysia said Mutsuya, which has resulted in Malaysia’s small farmers currently generating incomes eightfold those of their Vietnamese counterparts.