The Moc Chau Dairy Cow Breeding JointStock Company is deploying a programme to insure milk and milk-cows inthe northern province of Son La to help local farmers stabiliseproduction.
If local farmers pay an annual insurance fee of 250,000 VND per head ofcow, they will be compensated if a cow dies or cannot produce milk. Thecompensation level can be as much as 10 times the fee.
Also, if the milk price on the domestic market drops 30 percent,farmers, who pay a fee of 50-100 VND per kg of milk sold to thecompany, can receive compensation of up to 60 percent of the losstriggered by the price drop.
The company’s General Director Tran Cong Chien said that the programmehas received a warm response from farmers with nearly 1,000 cows beinginsured and up to 10 billion VND in premiums paid. Over the past threeyears, the company paid to insure over 670 cows.
Moc Chau district now boasts over 480 cow-raising households with mostof them being small-sized and only about 30 operating on a large-scale,with a monthly income of around 80 million VND per household.
According to agricultural experts, the insurance model is necessary and should be expanded in the coming time.
Agriculture is the sector most adversely impacted by epidemics andnatural disasters, however, state policy as well as its legal frameworkfor insurance are not sufficient, and are not encouraging farmers andinsurers to participate.
The country now has 1 percent of its total domestic animals and crops insured./.
If local farmers pay an annual insurance fee of 250,000 VND per head ofcow, they will be compensated if a cow dies or cannot produce milk. Thecompensation level can be as much as 10 times the fee.
Also, if the milk price on the domestic market drops 30 percent,farmers, who pay a fee of 50-100 VND per kg of milk sold to thecompany, can receive compensation of up to 60 percent of the losstriggered by the price drop.
The company’s General Director Tran Cong Chien said that the programmehas received a warm response from farmers with nearly 1,000 cows beinginsured and up to 10 billion VND in premiums paid. Over the past threeyears, the company paid to insure over 670 cows.
Moc Chau district now boasts over 480 cow-raising households with mostof them being small-sized and only about 30 operating on a large-scale,with a monthly income of around 80 million VND per household.
According to agricultural experts, the insurance model is necessary and should be expanded in the coming time.
Agriculture is the sector most adversely impacted by epidemics andnatural disasters, however, state policy as well as its legal frameworkfor insurance are not sufficient, and are not encouraging farmers andinsurers to participate.
The country now has 1 percent of its total domestic animals and crops insured./.
