Page 97 - Agricultural innovation

Figure 30. Stakeholders in Alliance model for Artichoke Tea Production

associated with the technical and management support role of the management agency (DARD) has
helped this link be implemented closely, not broken due to subjective factors (farmers sell products to
other units or businesses do not buy products from contracted farmers) or objective factors (market,
weather, risks in production and business...).

5.13.3. Opportunities and challenges
The model of association between cooperatives and companies has the opportunity to expand in
the future in line with the development orientation of commercial, especially with medicinal plants
in remote areas. Through this linkage, farmers and businesses can take advantage of each other as
well as fill gaps for sustainable development. This model can be extended and applied to other plants
and animals.
However, this linkage model also has certain challenges. Increased consumer demand along with
the appearance of many other artichoke brands (unknown ingredients, mixed with other ingredients)
of small production facilities are competing strongly with Ngoc Duy products. In addition, the
association requires financial and technical potentials of businesses as well as farmers’ awareness in
compliance with production processes and commitments in contracts. This is often violated when
there are fluctuations in production and business, especially the price of raw materials in the market.

5.13.4. Conclusions
The partnership model to support farmers to develop production under the Artichoke Production
Alliance of Ngoc Duy Company will continue to be replicated to meet the increasing demand for
production materials. This model has achieved remarkable results in recent years thanks to the close
cooperation between three parties: farmers–businesses–management agencies. This is a form of
cooperation that is being encouraged by the Government of Vietnam but has not been successful
due to many reasons. The results obtained from the Alliance model of artichoke tea production can
also be applied to other agricultural commodities. The support of management agencies has enable
farmers and businesses to utilise the partnership more strong but not so loose as usual. The business
is maintained and implemented in a stable and long-term manner, bringing practical benefits between
the two parties.

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