As the first successful grower of gac (momordica cochinchinensis) on parched and fallow land in northern Hoa Binh province, Dong Duong Joint Stock Company has become a typical unit that brings a better and happier life to local farmers.
Success in a new way
Started as a real estate company, Dong Duong Joint Stock Company built up the strong confidence of customers and partners when it successfully carried out big urban zone and traffic projects in Hanoi, Hai Duong, Hai Phong and Nam Dinh. In Hoa Binh province, the firm carried out Luong Son Commercial and Housing Complex and Truong Han Sieu Residence (in Thinh Lang Ward, Hoa Binh City) and exploited stone (Luong Son Ward, Luong Son District). These are important projects in Luong Son District and Hoa Binh City, the capital of Hoa Binh province.
To pursue sustainable development, in 2011, Dong Duong boldly redirected its investment into the agricultural sector by successfully researching and growing gac and ginger on this poor land. The company’s surveys showed that Hoa Binh province, especially in Luong Son, Ky Son and Kim Boi districts, had vast soil area but they did not have staple crops for farmers to live on. Soil properties were found suitable to grow gac. Therefore, the company actively sought partners to purchase gac fruits harvested by farmers for at least 10 straight years.
With successful experimental growing, evidenced by high-quality fruits and high productivity, Dong Duong signed contracts with 2,000 farming households in the three districts (with 14 communes) in Hoa Binh province. The company provided free seeds, technical assistance and fertilisers to encourage farmers to plant the new crop. The initial investment is VND20 million per hectare.
Dong Duong Joint Stock Company also cultivated gac crops on 2,500 square metres in the Luong Son Urban Area. Currently, the company owns 10 ha of gac and farmers grow nearly 200 ha. The gac acreage is expected to reach 500 ha in the next two years.
With this new direction, in the first year, the company expected farmers’ incomes will be 4-6 times higher than rice cultivation and 3-4 times higher than other agricultural crops. Once production goes into stable operation, the profit per hectare of gac is expected to reach VND80-100 million a year. Dong Duong hoped to rake in VND400 billion of revenue from agricultural products and attracted 4,000 households to join the self-contained production chain. Then, farmers can see gac as a staple crop expected to help reduce poverty and improve livelihoods.
Prestige and quality enhanced
Immediately upon signing contracts with farmers, Dong Duong faced numerous difficulties. The biggest difficulty is farmers are familiar with backward farming methods. Besides, they tend to be hesitant with the company because they used to fail when signing contracts with other companies before. Moreover, the unstable and irregular farming area planning creates difficulties for the company to work out sustainable material zone development roadmaps. Besides, most agricultural products are sold immediately after being harvested to merchants who sell them to foreign companies. Prices are very low. In the meantime, gac oil production factories are now using very backward technologies.
Therefore, Dong Duong Joint Stock Company will invest US$1 million in modern gac oil production lines to increase its value when it reaches the market.
PV
Vietnamese
