TrueCoop Organic Cashew Cooperative: Pioneering Sustainable Pathways for Cashew Cultivation

TRUECOOP is considered the passion of Mr. Truong Thanh Vien, Chairman of the Board of Directors of TRUECOOP Organic Cashew Cooperative, and his colleagues. Despite numerous difficulties and obstacles in the way, the cooperative still pursues its determination to make organic cashew products according to US, EU and Fair Trade standards.

Leverage for Vietnamese agricultural products to go global

To make an agricultural product brand for Vietnamese people, in 2017, Vien and his colleagues boldly launched a ‘brainchild’ called TRUECOOP Organic Cashew Cooperative. “We devote our own enthusiasm and confidence to make effective solutions on planting, tending and sustainable development of cashew trees for cooperative members. At the same time, we provide customers with delicious organic cashew products with traceable origin,” he said.

Before choosing Ninh Thuan as a destination to realize his idea, he had gone to seven provinces and cities for this purpose. Luckily, provincial authorities were knowledgeable and passionate about cashew nuts and ready to listen and accompany this model of TRUECOOP. To date, the cooperative has 4,000 ha of cashew farming area that meets organic standards of USDA, EU and JAS.

In its early days, the cooperative planned to form the tripartite connection of merchants, authorities and farmers. Currently, TRUECOOP is linking 2,166 farmer members with nearly 4,000 ha of cashew land. Recently, it also coordinated with People's Committees of Ninh Thuan districts to sign organic cashew contracts with farmers under the “Organic cashew production development project along the value chain in 2023 - 2025” project. This practical project is consistent with districts’ policy and is also an opportunity for the cooperative to work directly with every household to instruct them to plant and care for cashew trees effectively.

Towards a farmer-owned cooperative

Cashew trees are grown on mountainous degraded land and in protective forests to green bare hills, prevent erosion and increase people's incomes. Recently, many companies have invested in cashew trees to bring economic benefits to people and open up new ways for cashew development in Ninh Thuan province.

Vien actively advises farmers to grow crops naturally and not use pesticides. In addition, TRUECOOP has also self-incubated and transferred a million cashew seedlings in the past five years.

After nearly 6 years of operation, TRUECOOP Organic Cashew Cooperative has secured steady development and improved “win-win” business performance. Furthermore, TRUECOOP also wants to become a leading farmer-owned cooperative specialized in manufacturing Vietnamese processed organic cashews in the next 10 years and will be a reliable partner for sustainable customers, farmers and suppliers.

Notably, in its development, the cooperative has also actively set aside 25% of its profits for its Welfare Fund to support seedlings and essential technical equipment for farmers. “For TRUECOOP, no one is an opponent but a companion. Since our inception, we have wanted to build an effective production chain. So, we established BioValley Vietnam Company (the factory will be built in the first quarter of 2024 and put into operation in 2024). Up to now, we have established markets in Europe, South Korea, the Netherlands and others. In the next three years, BioValley Vietnam Company is expected to open a branch in the Netherlands to seek the market, build Ninh Thuan cashew brand and tap the European market to the fullest. In the next 10 years, we target 10,000 tons a year. We hope that the local government will continue to assist and have long-term support policies for the business community. At the same time, we encourage the sustainable development of a cooperative economy, with the core being cooperatives with many diverse forms of association and cooperation; create diffusion and replicate many effective production models; enable collective economic development; and ensure harmonious interests of all stakeholders,” Vien said.

By Han Luong, Vietnam Business Forum