Farmers in Yen Dung District, Bac Giang, are reaping significant profits from processing potatoes, with net earnings reaching 3.5 million VND per sao (approximately $150 per 360 m²). This success comes from structured cooperative farming models, mechanization, and guaranteed purchase agreements with businesses.
Expanding Potato Cultivation
According to Mr. Khong Minh Tung, Head of the Yen Dung District Agriculture and Rural Development Office, the district cultivated 830 hectares of potatoes in the 2020 winter crop, accounting for 48.8% of the total winter crop area. To maximize income per unit area, the district established 8 cooperative farming models (each covering 5+ hectares) specializing in Atlantic processing potatoes—a variety favored by food processors. These models span multiple communes, totaling 62 hectares.
Farmers participating in these cooperatives receive support in high-quality seeds, fertilizers, pesticides, and technical training, ensuring optimal yields. Additionally, they benefit from contract farming, where businesses purchase the entire harvest at a stable price of 8,500 VND/kg.
Mechanization and Higher Yields
By adopting mechanized harvesting, farmers have improved efficiency and reduced labor costs. After just three months of cultivation, the average yield reaches 6.5 quintals (650 kg) per sao. At the current price, this translates to a net profit of 3.5 million VND per sao—a significant improvement over traditional crops.
Mr. Tung emphasized:
“Centralized production zones enable mechanization, better irrigation, pest control, and guaranteed sales, minimizing input costs and maximizing profits. Contract farming reduces risks, making potato cultivation a sustainable choice.”
Global and Regional Potato Market Trends
Vietnam’s potato industry is growing, with rising demand from snack and processed food manufacturers. Globally, the processed potato market is projected to grow at 4.5% annually (2023-2030) (Source: Statista). Bac Giang’s success aligns with this trend, proving that value-added agriculture can enhance rural incomes.
Bac Giang’s processing potato model demonstrates how contract farming, mechanization, and government support can boost profitability for smallholders. With stable prices, reduced risks, and high yields, this approach offers a blueprint for sustainable agriculture in other regions.
