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The Hai Phong Tomato Processing Plant has been
left with little tomato supply to keep itself
running, as farmers turn their backs on it in
search of better prices for their crops. "Many
farmers are running after immediate profits and
ignoring long term production" said factory
director Nguyen Van Xien.
The VND 43 billion (US$2.8 million) factory is
designed to process up to 36,000 tonnes of tomatoes
peryear, yielding about 4,000 tonnes of condensed
product. Instead, it takes in about 3,000 tonnes,
and has only output 1,500 tonnes of condensed
tomatoes since it first went into operation two
years ago.
The short supply provides enough for just 12 days
of production; the rest of the year the factory
is forced to process other fruit. The processing
milI can't compete: lt buys farmers' tomatoes
at VND 500 to VND 800 per kg, while market prices
fetch between VND1,500 to VND 1,700. At peak times,
farmers can sell a kilogram for up to VND 2,500.
Xien suggested tomato plantations be set up near
the factory and a production zone should be established
to secure a stable tomato supply. Others said
farmers often sell their produce to private traders
who have provided them investment capital. So
they suggested the factory should be a direct
investor in an established supply zone.
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