When the farming area and output of lemongrass in some wards and communes of Hoa Binh city exceeded the market demand in 2015, many local households had to harvest and burn the excess. With sharp thinking and a thirst for knowledge, Nguyen Thi Binh in Thong Nhat ward found a solution, creating an outlet for lemongrass. The Dao Hamlet Agriculture Cooperative was established, paving the way to poverty alleviation for local farmers.
Nguyen Thi Binh, Director of the Dao Hamlet Agriculture Cooperative in Thong Nhat ward, talks about its efforts and achievements.
When it was newly established, the cooperative had 20 members, with Nguyen Thi Binh serving as its director. In the early days, they faced an array of difficulties due to a lack of experience, capital, and physical facilities, hence resulting cautious operations.
"In 2019, I participated in the startup and innovation contest 'Women and the Future of the Green Economy' with the idea of cultivating and processing lemongrass essential oil in a value chain to provide safe and environmentally friendly products. After winning the prize and attending the national startup day, my idea received financial support worth 150 million VND (6,186 USD) from the provincial Women's Union,” Binh shared.
Utilising the fund, cooperative members’ contributions, and bank loans, the cooperative invested in a modern lemongrass essential oil distillation line costing about 500 million VND as well as in labels and packaging.
In 2021, its lemongrass essential oil product was recognised as meeting 3-star standards under the provincial One Commune One Product (OCOP) programme. "Being recognised with the OCOP product helps elevate the value and branding of our product,” said Binh.
Currently, the cooperative has 86 members, of whom 90% are from the Dao ethnic minority group, each earning an average monthly income of 5-6 million VND. Members with poor and near-poor backgrounds have now improved their economic situation, leading more stable lives.
Trieu Thi Hoa, a cooperative member, said: "My family was poor with financial difficulties. Since joining the cooperative, we have been provided with opportunities to borrow investment capital and received support for production expenses regarding fertilisers and seedlings, and technical guidance. The outlets for the plants are also guaranteed by the cooperative. Since joining the cooperative, my family has acquired many amenities such as a television, motorbike, and small savings, gradually escaping poverty.”
According to Bui The Dung, Chairman of the Thong Nhat Ward People's Committee, the ward now houses nearly 150ha of lemongrass cultivation. The cooperative’s processing facility has helped ethnic minority people in the area get rid of poverty, earn stable jobs, increase income, and contribute to the local economy.
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