This approach has provided positive results and opened up a new way of boosting the agricultural industry. This is the first time local farmers have become part of a supply chain model.
Under this model, enterprises will provide farmers with corn seed, teach them new cultivating techniques and ensure an output market. Farmers can pay for the seeds after they have harvested their corn. Hong has been growing corn for years but this her biggest ever crop.
Farmer Ha Thi Hong in Ban Cam Village, Bao Thang, Lao Cai, said: "This season I harvested 6 tons per hectare. Before it was only 4 tons and I also had to buy seeds at the market. Sometimes I bought fake or low quality seeds. Now the enterprise gives me seeds so I don’t have to worry".
Local authorities say that preferential policies have been created to support farmers, but the results have been limited. From now on, they have decided to focus on enterprises and help them build links with farmers in the hope of driving local agriculture forward.
Director Nguyen Anh Tuan of Agriculture and Rural Development Department said: "We will create preferential packages for land, capital and transport fares. We will also help local enterprises connect with each other to transfer technology".
Lao Cai Province is now switching to higher value crops instead of rice. This new model that makes full use of the enterprise – farmer connection is looking like an effective way of lifting the local agricultural sector.