V. Key finding and Conclusion:
By analyzing the case of Shan Tee cooperative at Yen
Bai province, we realize that participating into Fair
Trade Organization is a right direction for them, it not
only solve problems in business profits for the
cooperative but also the optimal solution for the
sustainable economic development.
The Development of Production and Sales
Fair-trade has made the advantages for the
development of cooperative brand of tea. Shan tea
products which are accepted by fair-trade certification
is also proved that the quality of tea products are very
good cooperative standards of organic agricultural
products - agricultural products grown "clean" does not
use chemical fertilizers, pesticides, grown separate
from the living area of people. This has helped ease
Shan product potential partners for the market
especially in overseas with high demanding markets
such as the UK, the USA, and Germany… Therefore,
outputs and sales quantity have developed significantly
as shown in following table:
Year Output (tons) Sales (billion)
2009 40 1.6
2010 65 2.8
2011 102 5
Source: Interview Chairman and business data
collected by research group
Social and Community development
A noteworthy point is that the contribution of the Shan
Van Chan cooperative society in general which is
typical Chairman Nguyen Quoc Toan. Stemming from
a desire to produce and maintain varieties beneficial for
the health of consumers, his tea cooperatives had
somewhat changed economic situation of the poor
mountainous communes. By starting project, he was
sticking close to ethnic people, and therefore he
understood clearly about their difficult life, so that he
designed a business plan that not only for profit but
also for the quality of life of poor people there. So he
was suggested for Fair Trade participation, he has
determined to put his operatives in this system
although encountered difficulties seemed
insurmountable at that time.
Previously, people faced to life's difficulties and
deprivations in many aspects. They live mainly
on the mountain, almost apart from economic
and social progress of the country, no electricity,
no clean water, no infrastructure for
community activities. Most children do not
attend school because of family problems or the
road to school is too far away and difficult to run
by foots. After the local government implement
poverty reduction programs, and when the cooperative
took part in fair-trade, the people have been displaced
from their mountains to midlands.
With the help from Fair-trade, the ethnic people
realized that improving the quality of Shan tea should
be more valuable and with higher return of income for
each household as well as for their community
8
development. When Shan tee production was
expanded, many families buy more cattle to increase
tee production. For example, as reported by the social
cooperative, more 70 buffaloes and 60 cows was
bough by the famer for tee production. Furthermore,
people are getting more welfare and happy not only by
higher income but somewhat by improve their social
and community lives (Based on Fair-trade agreement,
after transferring of the amount of Fair trade refund on
collective account, 30% of the fund will be divided
equally among households, about 25% to fund for
administration and 45% will develop social welfare
projects based on requests and consent of the members
of the community). The community must have specific
schemes and financial reports for the inspection of
Fair-trade organization on implementation of public
welfare and equal protection for all people here.
Quality of their social life is also improved by sharing
common activities in the cultural house build from the
Fair-trade money (The ethnic people now said that they
get use to come the cultural house to exchange
information on methods of cultivation of agricultural
crops, how to care for tea, updating the information on
the Fair-trade policies as well as government
supporting programs). In addition, to help people travel
in more convenient way, the community decided to
spend 80 million of Fair-trade funding to build two
wooden bridges instead of the old temporary bridge.
Then, the new road to the mountain was repaired with
the help of the Fair-trade fund. By using Fair-trade
funding for community development, a 500m long
water canals have been completed to help farmers take
advance of water on irrigation for crops as well as fresh
water for their living. When interviewed, people are
happy to have a share that "from participating tea and
selling organic tea cooperative, their family bought the
motorbike, house was built by the cement, we are very
happy with such improvement."
Obviously, to make a positive change in the social -
economic development of the four poor villages with
ethnic people, we cannot be denied the meaningful
contribution of Van Shan cooperative with the ethics
business venture of its Chairman Mr. Nguyen Quoc
Toan.
Green Production and its impacts
In addition to the lives of the people here are clearly
changed, to join the Fair Trade system through the
production of clean tea, clean production process does
not use chemical fertilizers, do not use pesticides are
effective sustainable development. A surface can
contribute to protecting the environment, the
ecosystem, the Fair Trade system also influence the
impact of agricultural production practices towards the
trend of "green growth”.
In conclusion, after nearly 10 years of full efforts, in
early 2006, the cooperative applied to WFTO
organizations for certification for their tee product
brand. To be certified organic products from WFTO
organizations, Shan Van Chan cooperatives, the
chairman and its member’s farmers have to stick into
the agreement with many commitments and
compliances with Fair-trade provisions to ensure
standards of the Shan tee production, based on the
principles of WFTO.
From 2006 - 2008, WFTO has consistently held
inspection and product testing and native plants,
production processes, the implementation of social
work. Until late 2008, when they reach the standards,
cooperatives were certified organic tea first take effect
within a year and finally they have got the 3 year
certificate since 2010. This story also tells us that the
success of new set up business today can goes along
with right business institution and with many efforts of
entrepreneurship.