Son Duong Sugar and Sugarcane JSC: Money-spinning Crop for Farmers

Source: Pano feed


For the past few years, if someone went to Hao Phu commune, Son Duong district, Tuyen Quang province, he/she would be very surprised at the current prosperous look in this purely agricultural land. Local people are now able to build new houses and purchase expensive motorised vehicles. This prosperity started when Son Duong Sugar and Sugarcane Joint Stock Company introduced money-spinning sugarcane to this agriculture-based land.

In the past years, Son Duong Sugar and Sugarcane Joint Stock Company has boosted up business cooperation with farmers who grew and supplied sugarcanes for the company. Every year, the company signed contracts with farmers to provide them with seedlings, materials, fertilisers and money for soil enrichment and purchase sugarcanes when they harvest. The company also provides them with money to buy pesticides, tend sugarcanes and pay taxes to the State Budget. The degree of supports depends on their sugarcanes sold to the company, stated in contracts, which are made annual. With this cooperation method, farmers did not face major difficulties in capital for farming and caring. Tuyen Quang is a big producer of sugarcane in Vietnam.

Apart from providing materials and funds for farmers to grow sugarcanes, the company also sends its technical staffs to fields to guide technology transfer and train farmers. Besides, the company has applied a lot of policies to support and encourage farmers to develop sugarcanes like encouraging localities and farmers to replace unproductive rice fields with sugarcanes and plant the crops near the company’s facilities. The firm also assists farmers to adopt new high-yield sugarcane varieties, lend them to buy vehicles to transport sugarcanes, tractors to plough the soil and buy pumps to water the cane. They are also lent to buy or exchange land.

The company has also applied a reasonable sugarcane procurement method which benefits sugarcane growers. The firm purchases sugarcanes based on their cane quality (commercial cane sugar – CCS) and drive trucks to fields to take the sugarcanes. Remarkably, if sugar prices hike and the company earns hefty profit, it will redistribute profits for farmers or support farmers to buy fertilisers and other materials.

To assure farmers, Son Duong Sugar and Sugarcane Joint Stock Company announced the list of buying prices for the 2014 – 2015 crop and sent it to authorities. General Director Bui Hung Thinh said the sugarcane buying price is VND900,000 per tonne this year. To ensure stable production and competitive refined sugar, the Management has applied many measures to cut costs and improve products quality like rearranging the workforce, improve machine performances, expanding retail channels, and others.

Duy Binh

Đăng ký: VietNam News