From the garden to the retailer, each kg of dragon fruits increased by 7,000đ

The price of agricultural products in general, dragon fruit in particular, which the newspaper reported, from the garden to the retailer increased many times, can be concluded is due to too many intermediaries.

I give an example of this, the cost of transportation (including loading, car rental) of the owner of the basket from the local dragon fruit to Ho Chi Minh City has lost about 2,000 VND / kg. The profit of the owner is 500 VND / kg more, that is, the total price has added 2,500 VND / kg. But not people have sold to the owners immediately because of low output, transportation is far away, so they have to sell to another level as local traders.

Tu vuon den nguoi ban le, moi kg thanh long tang 7.000 dong hinh anh 1
Dr. Vu Dinh Anh, economist: Many intermediate steps lead to agricultural products price.

Through traders, fruit prices are added at least a few thousand per kg. When the dragon fruit reaches wholesale markets in Ho Chi Minh City, the vendor sells to an intermediary who lures the wholesalers to wholesale markets. The words of the middleman is 500 VND / kg. Intermediaries sell to retailers in markets, shops with a profit of about 1,500 VND / kg. Thus, from the garden to the retailer, the price of fruit increased by VND 6,000 – 7,000 per kg.

But that is not the final number, because retailing to the consumer is the object that pushes the price up the most, usually 40-50% of the value they buy. Not only dragon fruit, I know, Lai Vung mandarin, Tam Binh orange too. Last year, the price of these fruits purchased at the garden was only around 10,000 VND / kg.

But when it comes to HCM City’s wholesale fruit market, prices have doubled, even four times the price in the garden. From the dragon fruit, oranges, tangerines, or larger rice and seafood, if we go into the practical analysis, we find that the circulation system distributes too many levels, Distributors have to make sure they are profitable, so they try to buy the best, cheapest and best selling agricultural products at the fastest, fastest prices.

This process makes producers and consumers the most disadvantaged. So the question is, why do not farmers directly bring the agricultural products directly to supermarkets, wholesale markets to reduce many traders, increase profits?

Theoretically, it can be immediately answered that farmers need to set up cooperative groups, linked with businesses to cover agricultural products. However, in reality, cooperative groups, cooperatives and cooperatives have not met the requirements. Another reason is that the production of farmers is very fragmented, not scale and quality is not guaranteed.

Tu vuon den nguoi ban le, moi kg thanh long tang 7.000 dong hinh anh 2
Dr. Nguyen Do Anh Tuan, director of the Institute of Strategy for Agriculture and Rural Development: No processing industry, enterprises and farmers difficult to shake hands.

After the transition from a subsidy to a market economy, the old-fashioned commodity distribution system was gradually abolished. Similarly, the system of purchasing, distributing in the form of cooperatives, state-owned enterprises gradually formed large exporters. This contributed to the formation of a mechanism for purchasing and distributing agricultural products in new forms, forming a free market for distribution.

These problems have created irrationalities in the distribution of agricultural commodities today. From production to distribution systems of agricultural products there are many problems to be reorganized. The chorus is falling season and vice versa, it affects income and life of farmers.

Our market channel has too many intermediaries: from farmers to middlemen, middlemen, processors, and marketers. Production infrastructure of agriculture is small, derived from our land is fragmented, pulling goods produced hard to sell high prices.

In order to reduce the intermediate stage, it is important that the processor and consumer must link with the producer (farmer). But sadly in Vietnam, both consumers and consumers are not ready to cooperate.

This stems from our agricultural planning that is mostly still on paper. No consumer would dare invest money to farmers to produce a specific product on land that people could freely convert to any crop.

In many countries, agricultural planning is usually a “dead” plan, ie when the authorities determine which land to grow certain agricultural products will always be so, there is no crop planting as Vietnam now present.

Thus, new consumers dare to invest in farmers to develop raw material areas. As the linkage between farmers and enterprises becomes stronger, the intermediary stage will be reduced.

In order to produce fruit or food at high prices, farmers have to participate in scientific and advanced production organizations, organized production, gradually reducing intermediate traders, ie from Farmers come straight to the plant and export, or directly to the consumer.

To achieve that, businesses and farmers or production organizations must have a contract. The conditions for cohesion between enterprises and farmers include the legal corridor, focus area planning, cooperation with banks … in the form of businesses and peasants along the way of development.

Organizing the production, distribution and circulation of agricultural products and foodstuffs will benefit both farmers and consumers as a result of minimizing the intermediary stage of distribution. However, to do this is not easy. Because our land and orchard are quite fragmented, the gathering of farmers into cooperative organizations, unity groups and production areas is still difficult.

From the unreasonable situation in the distribution of agricultural products, the model for rural development, agriculture, ensuring the interests of farmers to our country’s agricultural needs and food security both export, The problem is hard to wait for solutions from experts and leaders with enthusiasm for farmers.