Factors in the Formation of Vegetable-for-Processing Areas in Northern Vietnam

Abstract

In Vietnam, the small scale of farms and problems concerning the marketing of fresh farm produce has resulted in undeveloped vegetable production, especially in provinces remote from consuming regions. Recently, however, agricultural cooperatives located in those regions are trying to introduce and expand vegetable production through contracts with food processing companies for production of ingredient vegetables. The aim of this paper is to identify the factors in the formation of such areas through a case study of a cooperative in Nam Cuong (Nam Dinh province, Vietnam). The study shows that farmers of the Nam Cuong co-op, after commencing contract production of vegetables, were able to improve the stability of farm management and increase incomes, while also improving the land-use efficiency of each farm. The research identifies the following factors for success', proximity of Nam Cuong co-op to the processing company; a level of experience in producing commercial crops like peanuts and potatoes; Nam Cuong co-op taking the lead in development of infrastructure in the production area; and strong cooperation between government, agricultural co-ops, and food processing