NÔNG NGHIỆP VIỆT NAM — TẠP CHÍ NÔNG NGHIỆP ĐÔNG NAM Á

Cutting chemical fertilizer for 200,000 yen in profit: the sourcing window opened by An Giang organic rice

In one corner of the Mekong Delta, organically grown rice clearly exceeded the returns of conventional farming. The profit on organic rice recorded by the Tan Thuan agricultural cooperative of Gieng Lien commune, An Giang province, in the 2026 summer-autumn crop was 33.576 million dong per hectare (about 200,000 yen at 10,000 dong ≈ 60 yen, as of July 2026, subject to change). That is 11.62 million dong—roughly 70,000 yen—more than conventional farming. For Japanese procurement staff looking for domestic high-quality rice, it reads as a story of a new supply source budding in the Mekong.

TOC

The one-hectare figure that broke "organic means thin margins"

That organic rice takes more labor and yields less had long been the premise even in growing regions. The Tan Thuan cooperative's summer-autumn crop pushes that premise back with numbers. The yield was 7.5 tonnes for organic and 6.5 tonnes for conventional—organic being one tonne more. By holding down chemical fertilizer and pesticides, input costs fell by 4.4 million dong per hectare (about 26,000 yen), and total input costs came in at 20.4 million dong (about 120,000 yen). Yield rose, cost fell, and the unit price was protected too—because all three lined up at once, profit grew.

What supports the unit price is a purchase contract with a company. TTP Global of Ho Chi Minh City buys at 7,200 dong per kilogram (about 43 yen), a mechanism that, unlike market sales tossed about by conditions, lets the take-home be foreseen before planting. In this growing region, a circuit that turns organic's added value into cash as the farmer's profit is working. Selling 7.5 tonnes at 7,200 dong gives revenue of about 54 million dong. Subtracting the 20.4 million dong of inputs from that nearly matches the 33.576 million dong profit in the article.

The organic-versus-conventional gap in figures

Item organic cultivation Conventional farming
Yield 7.5 t/ha 6.5 t/ha
Profit per ha 33.576 million dong (about 200,000 yen) about 21.96 million dong (about 130,000 yen)
Profit gain versus conventional +11.62 million dong (about 70,000 yen) —
Purchase price 7,200 dong/kg (about 43 yen) Market sale
Input-cost reduction -4.4 million dong/ha —

The conventional-side profit is an approximation back-calculated from the gain, and what the original gives is organic's profit and the difference. What deserves attention, more than the difference itself, is that the gap arises not as "compensation for enduring lower yield" but from the sum of "higher yield + lower cost + fixed unit price."

Toward brand and scale: the growing region's next move

The cooperative and the province's farmers' association are trying to bundle this result into a brand called "An Giang organic rice" (hat gao huu co An Giang). Furthermore, toward the 2026–2027 winter-spring crop, they set a plan to expand the organic cultivation area to 20,000 to 30,000 hectares. It is a move to raise it from one cooperative's demonstration to a province-wide supply lot. Gieng Lien commune lies in a Mekong Delta grain belt incorporated into An Giang province in the 2025 provincial reorganization, and the paddy-rice planting base itself is thick.

An Giang's rice-growing is not only organic in motion. The province as a whole produced 5.3 million tonnes in half a year, with a flow of steering from quantity to quality and low emissions advancing at the same time. For the full picture, the move in which An Giang produces 5.3 million tonnes in half a year and heads from quantity to quality and low emissions covers it in detail. On the production ground too, in the neighboring Son Hoa district, the rice-farming DX in which a cooperative earns with drones and alternate wetting and drying is advancing, with organic conversion and labor-saving running side by side.

How it counts for Japanese sourcing

Japanese rice sourcing continues in a phase of fretting over domestic crop conditions and price swings. That an organic growing region where quality and volume can be designed through fixed-unit-price purchase contracts is growing there adds one option when considering alternative supply or blended raw materials. Especially for buyers who want to put forward "organic" or "low-pesticide" in commercial and processing use, a growing region where traceability and contract farming come as a set is easy to work with.

The form of a purchase contract is also easy for Japanese buyers to read. With market sales, a vicious cycle easily arises in which prices collapse in a bumper year, farmers quit organic, and supply thins. A fixed unit price has the company side take on that swing in exchange for being able to build area and quality into a volume plan. A design in which buyer, farmer, and intermediary company share price-fluctuation risk makes it easier to build a longer sourcing relationship than one-off spot buying, and it suits Japanese manufacturers that want to secure a set quantity each year as processing raw material.

That said, at present the original does not state export destinations or a concrete track record toward Japan. The variety name is also not specified, and whether it suits Japanese taste or milling yield needs confirmation with actual samples. The type of organic certification (whether an international or domestic standard) and how much the 20,000-to-30,000-hectare plan lands as actual area are also points to pin down early if you are considering sourcing. The very picture of organic cultivation exceeding conventional in profit is, on the coffee ground too, the case of four households in Gia Lai overturning the conventional wisdom on yield and profit—confirmed as such, and in Vietnamese agriculture the assumption that "organic equals thin margins" is beginning to crumble.

Summary

An Giang's organic rice is a real example in which the three points of yield, cost, and unit price lined up at once to push up profit. One cooperative's figure of 33.576 million dong connects to the next blueprint of branding and expansion to 20,000 to 30,000 hectares. As for how the Japanese side should move: first inquire into the variety and the content of the organic certification, and measure taste and yield with a small actual sample. The strength of a fixed unit price under contract farming can provide a floor for sourcing that is otherwise shaken by market prices.

Sources

Let's share this post !

Author of this article

While running a food brand in Kyoto, I have worked on products that bring out the appeal of ingredients, such as dried vegetables and vegetable powders. I am now in my second year living in Vietnam, where I am also involved in coffee production on the ground, learning the whole process from cultivation to processing and flavor development. Out of a wish to deliver foods people can enjoy with peace of mind in everyday life, I value products whose production background and the faces of their makers are visible. Drawing on the appeal of both Japanese and Vietnamese food cultures, I aim to bring a little richness to daily life.

TOC