Vina T&T group has just established and operated, however, Vina T&T becomes the leading fruit enterprise to the hard market US and Canada for example. Thanks to the connection with farmers, the company establishes the raw material area.
Export Fruits to hard market
Vina T&T Import Export Trading Service Co., Ltd was established in 2014, the main purpose is to take part in exporting fruits. According to Mr. Nguyen Dinh Tung, General Director of Vina T&T, in the first period, the company purchases the fruits through traders. However, this way shows the unstable especially the price. For example, when a company makes the contract with the foreign customer, unfortunately, the domestic price continuously increases leads to the lost.
Therefore, in 2016, Vina T&T decided to shake hands with longan growers at Cu Lao An Hoa (Chau Thanh, Dong Thap) to build raw material labels. This is a large longan growing area of Dong Thap province, with favorable natural conditions to develop longan trees; farmers have much experience cultivating good quality fruits.
The problem is that the reorganization of production for longan meeting the demand for a hard market. Many Longan growers have progressive ideas, which do not do business in the small capacity as well as spontaneous. For this reason, they want to create the link with enterprise in order to ensure the output with a reasonable price.
Furthermore, Vina T&T signs the contract with the farmers. Next, the raw material with 76 square ha at Cu Lao An Hoa is created. By doing this, the price is not only stable but also higher than the market Price. Thanks to connection, the farmers at Cu Lao An Hoa do not worry about the output as well as Vina TT has the good material for the hard market.
The success of the longan growing area at Cu Lao An Hoa, company expands the other growing areas, for example, rambutan at Cho Lach (Ben Tre), Mango at Vinh Long Province, Star apple at Soc Trang Province, Dragon Fruit at Tien Giang Province, etc.
In raw material areas, Vina T&T has signed a contract of product consumption according to the company’s export ability with cooperatives in the area, with stable and higher prices than the market. For instance, Star Apple area at Ke Sach( Soc Trang Province), the price went down at 11,000 VND to 12,000 VND per kg, but the price that Vina T&T purchases at 36,000 VND per kg. At the input stage, Vina T&T is associated with an enterprise supplying good quality organic fertilizer to farmers. At the cultivation stage, Vina T&T “asked” the Southern Fruit Research Institute, the Southern Institute of Agricultural Science, to manage and advise farmers how to plant and take care of fruits according to safety standards to meet the export requirements. Vina T&T also associated with the School of Agriculture and Rural Development Management 2 to train staff for agricultural cooperatives associated with the company. Recently, to ensure traceability, Vina T&T also cooperates with a camera company to access the origin right in the orchards.
Base on this model, the raw material areas work very stably and effective for all of the participants. For this reason, all of the material areas have the tendency to expand for example Longan at Cu Lao An Hoa, The total areas between Vina T&T and the farmers increase to over 90 square ha. All in all, Vina T&T has more than 500 square ha raw material areas, for example, Longan, Rambutan, Dragon Fruit, Coconut, etc. In the future, Vina T&T will continue to expand the fruit material area in Vinh Long, Dong Thap, etc.