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527. Yen Bai PCA (Viet Nam) – successful story in cooperatives

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Country: Vietnam
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Tram Tau district is one of the most difficult areas in Yen Bai province, located in a mountainous area with nearly 100% of the population from an ethnic minority (H’Mong and Thai people). The bad traffic condition, severe weather, along with the limitation of land for agriculture, prevent people here from improving the living condition. Exploiting the forest, growing maize and rice are the main income sources for people here.

HuongChanh Cooperative was established in June, 2018 with seven members at first. The main service is supplying seedlings and fertilizers.

Around October 2018, HuongChanh cooperative had a study visit to Van Chan district in Yen Bai and Van Ban district in Lao Cai to learn about the model of growing lemongrass and processing oil from lemongrass.

In December 2018, HuongChanh Cooperative started their operation by growing lemongrass with about 20 hectares. After 6 months, in June 2019, the first harvest was collected and processed oil of lemongrass for the first time as a test.

Some remarkable results from the lemongrass model is giving higher profit than growing rice, about seven to nine times.

Up to now, more than 300 households are involved in the project of HuongChanh Coop to grow lemongrass with the area of about 500 hectares. Yen Bai PCA and District People Committee strongly support the project.

Based on the first result, Yen Bai PCA decided to invest HuongChanh Cooperative the system of processing lemongrass oil in July 2019. After that, HuongChanh Cooperative signed the contract of consuming products of the 300 households in the district as well as support the production.

Apart from economic benefit, one important eco-benefit is that lemongrass don’t absorb any chemical fertilizer so that it contributes to protect environment.

Based on the effectiveness of the lemongrass project and the business plan of HuongChanh Cooperative, in the coming time, more farmers will join into the cooperative project.

Author of this story
YenBaiPCA
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