Agreement signed for hibiscus flowers production and consumption

HNN.VN - On the afternoon of July 10th, the Department of Finance, in coordination with Luxembourg Project Management Board, Project Technical Support Office, and Mekong Herbals Joint Stock Company (Mekong Herbals), held a contract signing ceremony for the production and consumption of organic standard hibiscus flowers with households in Phong Thai and Phong Dien Wards.

Representatives of Mekong Herbals JSC sign a cooperation agreement with local cooperatives

The “Promoting climate - friendly smart agriculture and inclusive finance in Vietnam to improve adaptability, resilience, and recovery to climate change impacts for farming households, especially Women (Project VIE/039)” technical support project is funded by the Government of Luxembourg in Hue City for the period of 2025-2026, with a total budget of 2 million euros.

Accordingly, the Government of Luxembourg has approved and signed the VIE/039 25 3497 co-financing agreement with Mekong Herbals JSC to develop the organic hibiscus flowers value chain and a 60-hectare raw material zone from April 2025 to December 2026.

Mekong Herbals and the cooperatives in Phong Thai and Phong Dien Wards signed a cooperation agreement for the production and purchase of organic-standard hibiscus flowers.

Mekong Herbals will conduct field surveys and sign buyout contracts for the entire crop in 5 years with linked groups/farming households in the Phong Dien and Phong Thai wards to grow 60 hectares of hibiscus. Project VIE/039 will initially support farmers with 50% of the cost for seedlings, organic farming training, organic certification, and organic fertilizer treatment solutions through Mekong Herbals for the first 60 hectares. Mekong Herbals will advance 30% of the seedling cost, which will later be deducted from the value of harvested crops. The remaining 20% of the cost for seedlings and supplementary fertilizers will be covered by the farmers themselves. Mekong Herbals will also provide organic farming training for contracted farmers, covering land preparation, crop care, harvesting, and post-harvest quality control. Households will receive support during the organic certification auditing process with relevant agencies as well.

Mekong Herbals also committed to purchasing non-certified organic hibiscus flowers at a price of 13.000 VND/kg, with an annual 10% price increase.

By HOANG ANH