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Proposing mechanism, policy and solution to develop the types of vertical linkages in some main agricultural commodities (tea industry)
14 | 07 | 2007
The purpose of the topic is to research the basis of the argument and the experience of the countries in the world; to analyze the types, the vertical linking mechanism of some linking models in the tea industry; to propose some linking types to the tea industry, the mechanism, the suitable policy, the feasible solution to promote the development of the industry.

During the seminar week on checking and taking over the topic and project of the institute in 2006, on afternoon of the 27th­­ December 2006, Duong Ngoc Thi doctor, deputy director of IPSARD, has presented the topic “Proposing mechanism, policy and solution to develop the length associating forms in some main agricultural commodities (tea industry)” at the meeting-hall of IPSARD

The topic was deployed in the regions of Son La, Phu Tho, Lam Dong. The popular vertical kinking models in the current tea industry are the model of the parent company-subsidiary company; the linking model of units on producing, processing and distributing the tea of known geographical origin; the linking model on producing and processing the black tea; the model of Tra Huong Bao Loc; the model of Thai Nguyen green tea.

However, these models exist many problems such as products without special change, unstable output of product, low price; uncared quality of the raw material tea, the weak productivity, low quality; unsecured food safety and polluted environment.

Based on the above results, the author brings out some recommendations to choose the linking types, the mechanism and the policy. The success of value chain in analyzing not only concentrates on producing, processing but also must be interested in the market demand and new product design. It should combine the natural advantage and the biology technology in the production and processing, support the enterprise about technology science and trade name. It is probably to use the associating form on the contract or the unification. In spite of applying whichever of these associating forms, it should have a decisive unit.

For the export products, the special products, it is necessary to link the processing industry with the raw material area construction, the concentrated producing area and the good safety.

After Mr Nguyen Ngoc Thi has finished his report, the representatives have contributed one’s ideas to the research. The ideas are following: it should limit the research scope in order to analyze more clearly. It should have the associating solution that all sides are profitable, creating the strong overall.



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