The economic value of aloe vera is significantly enhanced thanks to the association with enterprises in export processing. Photo: N.H

Abundant input, stable output

Being one of the few plants that can adapt to the harsh weather of Ninh Thuan, in the past, the economic value of aloe vera was very low. Although easy to grow, due to no output, and cheap price, few people are interested in this plant.

However, since Canh Dong Viet Food JSC (VietFarm) - a member of GC Food Group, built a factory here in 2014, and guided people on how to grow and care for aloe vera according to export standards and output consumption, the value of aloe vera in Ninh Thuan has changed markedly.

More than 200 households in Phan Rang - Thap Cham city have signed an association contract with VietFarm. The average income of each household is VND8-20 million/month, many times higher than that of other short-term crops. Living well thanks to growing aloe vera, the people here feel secure to focus on production without having to worry about price and output.

Nguyen Van Thu, Chairman of the Board of Directors of G.C Food, said that in order to create a strong connection with farmers, besides commitments on product output and purchasing price, the company regularly sends experts to guide and popularize new farming processes, which are less fertilizing, no spraying, and saving costs but still achieving high yields. This has helped the factory to have qualified raw materials for production, farmers are guaranteed output and stable life.

Similar to the aloe vera in Ninh Thuan, the banana tree in Dong Nai has experienced many rescues due to "good crops - price drop".

However, many farmers here have changed the situation by linking production to export standards. Thanh Binh Cooperative (Trang Bom District, Dong Nai) is a typical example, with an area of about 120 hectares, bananas in Thanh Binh have been exported to many markets such as Korea, Japan, and China.

Ly Minh Hung, Director of Thanh Binh Cooperative, said that since the Lunar New Year, banana exports have been favorable, especially for the Chinese market. As a result, the price of bananas this year is at a very high level, reaching VND12,000-14,000/kg and is expected to continuously increase.

Enhance the value

Packing processed aloe vera products at VietFarm factory. Photo: N.H

Stabilizing output and improving the value of agricultural products are the benefits that have been recognized thanks to the cooperation in developing raw material areas.

For example, at GC Food's VietFarm factory, the capacity is currently at 35,000 tons/year. Thanks to modern machinery and equipment, the company can process 200 tons of aloe vera leaves every day. In addition to processing aloe vera jelly with many different flavors, VietFarm also supplies raw materials for many large companies across the country. VietFarm's aloe vera products have also been successfully exported to 20 countries around the world, including many fastidious markets such as Japan, Korea, the EU, and the US.

In 2022, GC Food exported 12,000 tons of aloe vera, up 20% compared to 2021, worth US$6 million. According to this enterprise, with the export turnover of 2022, GC Food was accounting for about 30% of Vietnam's total aloe vera exports in the food and beverage segment.

In 2023, GC Food also closed full-year contracts with partners. “GC Food is not worried about the lack of orders, but the lack of raw materials. Accordingly, besides 130 hectares that are associated with farmers, this year, the company intends to grow to 200 hectares to ensure a stable source of raw materials for the factory," said Nguyen Van Thu.

Thu also set an ambition in the next three years to become the largest supplier of aloe vera products in the region and in the next 10 years to reach a turnover of US$100 million/year, to be the largest aloe vera producer in the world. To realize this goal, the company is researching and preparing to invest in the field of cosmetic chemistry.

Ly Minh Hung, Director of Thanh Binh Cooperative, said that clean production orientation has been applied since the early days of the cooperative's establishment. Accordingly, the organic waste in production is used as fertilizer for banana gardens. In addition to exporting fresh bananas, Thanh Binh Cooperative also invests in a pre-processor and processing house with a banana harvesting line system, a machine for processing dried agricultural products, a machine for plasticizing agricultural products, and a cold storage system for making banana products.

In particular, discarded by-products such as banana sheath, fiber, and dried banana fiber are also used to make environmentally friendly consumer and handicraft products that are consumed in both domestic and export markets.

These products have also been exported to Europe and will soon expand to the Middle East and Asian markets. Thereby, almost all parts of the banana tree are utilized, adding value to banana trees and increasing income for farmers.

Hung also said that many customers knew Thanh Binh Cooperative through handicraft products, then came to buy their fresh bananas. Thus, the by-products have helped to increase the number of customers and expand the market for fresh bananas in the cooperative.