VietNamNet Bridge – More contracts between farmers and companies in Mekong Delta provinces are being broken, and as a result, more lawsuits are being filed.
According to the latest survey of the Viet Nam Chamber of Commerce and Industry's (VCCI) Can Tho branch, farmers have complained that companies were buying at the lowest prices and refusing to pay other expenditures related to production.
In other words, they did not share the benefits as well as the risks.
On the other hand, companies claimed that farmers had been ready to break contracts for higher benefits and that they did not keep original agreements.
They said farmers were also using more additives, stimulants and agricultural chemicals to their products.
In addition, farmers have not used scientifically proven feeding techniques and cannot ensure quality.
"Trading relations between farmers and enterprises are not good and are unfair in the long-term," Nguyen Huu Nguyen, chairman of An Giang Province's Chau Phu Tra Catfish Cooperative, was quoted as saying in the Sai Gon Giai Phong (Liberated Sai Gon).
"Despite major contracts with farmers, enterprises never make deposits and do not become notarised," he added.
In addition, enterprises often did not make payments or were late in paying, from one month up to one year. Meanwhile, farmers must borrow money and pay interest at banks.
"It's a big risk and farmers also suffer interest payments on loans after selling fish. This has caused thousands of households in the Mekong Delta to go bankrupt," he added.
However, according to Nguyen Van Nhut, deputy general director of Nam Viet company, companies cannot make deposits to farmers because the costs would be too high.
"Why don't farmers give us a deposit to ensure that they have fish to sell?" he said.
Due to such conflicts, more contracts are being broken.
The farmers have the potential to make the products gain but he would receive a low income in the production value chain.
Farmers' work is seasonal, production is small in scale, and market and technical information is minimal.
"These are all weak points for farmers," said Nguyen Phuong Lam, head of VCCI's Can Tho branch's legal department.
Moreover, few enterprises invest in farmers' production, and authorities have not done a good job of regulating the two sides.
The role of the Farmers Association and the financial regime regulating connections between farmers and enterprises remains unclear. To achieve successful transactions, experts said clear and detailed contracts should be created and carried out through banks. Insurance for agricultural products should also be included in contracts, Lam said.
Dr. Vo Hung Dung, director of VCCI's Can Tho branch, said that farmers should sell their products through contracts to ensure their rights and to limit risks.
"Farmers should unite. They need to improve quality and learn about laws and regulations so they can become great partners," Dung said.
At the same time, the Government should create a master plan for localities.
"The Government should issue new policies on owning land, and promotion of long-term production," said Dr. Nguyen Anh Phong of the Agriculture and Rural Development Strategy and Policy Institute.
VietNamNet/Viet Nam News