09.05.2022, 13:51

Grasping agricultural products’ data before promoting to the market

Grasping agricultural products’ data before promoting to the market

Minister Le Minh Hoan called for stakeholders to propose innitiatives in agricultural products consumption. Photo: Duc Minh.

Developing the concept of policy marketing

Minister of Agriculture and Rural Development Le Minh Hoan stated at the Conference on Promotion of Agricultural Production and Consumption on May 8 that now is the time for the entire agriculture industry and other ministries, departments, and localities to systematically establish a program for the consumption of agricultural products.

He ordered the units to devote their full force to the fruits that are soon to be harvested, including jackfruit, mango, and durian.

"In order to get the most profit after selling the products, we must know exactly what we have in our hands. Therefore, all product-related data, such as output, yield, cost, crop, and planting code area, must be clear, the minister said in his inaugural address.

The virtual conference, which included 40 provinces and cities, was also an opportunity for the agriculture business to provide estimates and projections for production organization and agricultural consumption for the second quarter of 2022. The event also served as a foundation for a number of further initiatives, such as the formation of the 970 Agricultural Connection Forum, a sort of trade exchange between sellers and buyers that was conducted during the last months of 2021.

In addition to information and promotion initiatives, the MARD chairman demanded that each official in the agriculture business quickly develop a "marketing policy" mindset.

It was mentioned that any policy must prioritize the benefits to the public. Instead of having people, businesses, and cooperatives to independently review legal papers, policymakers must disseminate the new laws to as many people as possible.

"We discussed the agricultural economy, but it seems that just the producer side is undergoing transformation.  To accelerate and further the progress, the  Minister proposes constructing the whole ecosystem in accordance with market procedures, including methods and regulations.

He used Thailand as an example of how firms and individuals are instructed to adjust to China's Orders 248, 249 implementation. Consequently, the former aided packaging facilities, material zones, and processing factories in enhancing their competitiveness in accordance with the new regulatory framework, which had been modified to fit Chinese criteria.

The data of the Department of Crop Production indicate that this year's agricultural output will be similar to that of prior years, with the exception of longan, which production will see a significant surge.

However, if immediate action is not done, the consumption of agricultural goods may follow a similar trajectory to that of exports of vegetables and fruits in April 2022, which declined by around 18 percent over the same time period. China shuts several border crossings to uphold its "Zero Covid" policy.

People in My Loi A commune, Cai Be district, Tien Giang province have had a stable income for many years thanks to jackfruit trees.

Avoid the condition of being subjective and negligent

In 2021, Vietnam's agriculture, forestry, and fisheries exports reached a record-breaking USD 48.6 billion. Which six goods have revenue of above USD 3 billion (wood and wood products; shrimp; vegetables; cashew nuts; rice, rubber). The industry's surplus in trade totaled USD 6.44 billion. The added value of the agriculture industry is between 2.85 and 2.9%.

Despite a series of favorable data, Minister Le Minh Hoan is "concerned" about the unsustainable nature of this development. The cause is due to the subjectivity, and neglect from localities and companies. 

On the local level, the Minister said that even though the year 2022 has passed, provinces and cities continue to compile production direction figures based only on planting area and anticipated yield. Numerous variables relating to economic profit, such as cost of manufacturing of completed goods, map of raw supplies, and harvest time, the majority of which are "approximate," "about," or "maybe."

The Minister questioned the heads of many Departments of Agriculture and Rural Development about the prices of jackfruit, mango, and durian at the Conference to encourage agricultural production and consumption on May 8. Specifically, the cost of Type I jackfruit in the Mekong Delta is around VND 6,000 per kilogram, whereas Type II costs approximately VND 4,000 per kilogram. On the contrary, the Minister inquired, "Why do people still plant?" The explanation is that the price is sufficient to pay manufacturing expenses despite being low.

"If the price decreases, nobody is pleased. On the route to an agricultural economy mindset, however, we must be profit-driven. The price decline is a result of market adjustment, logistical issues, diseases, and the export market. I t is vital to precisely identify manufacturing costs and eliminate wasteful expenditures, as indicated by the minister.

Vietnamese durian is about to be officially exported to the Chinese market.

In some raw material regions, some have opted to chop down important crops such as dragon fruit and mango. However, according to the Minister of Agriculture and Rural Development, this is a kind of "market self-regulation." As a result of the cyclical nature of the economy, it is not the farmer's responsibility to exaggerate and exacerbate the situation.

On the business front, the minister said openly that some huge corporations continue to be subjective in upgrading the quality and design of their goods and fail to heed export market signals. In addition, some locations underestimate the prevention of Covid-19 on the packaging or during packing, which increases the danger of producer cross-contamination.

On the side of the people, the Minister advocated for more cooperative involvement. He noted that a lack of cooperation might easily develop into rivalry. From this perspective, the cooperative is not only an economic model but an ideology that must be fostered from the bottom up.

Tran Thanh Nam, deputy minister of MARD, instructed units under MARD to complete four duties. Before the fresh harvest, he tasked the Department of Agricultural Product Processing and Market Development with coordinating with appropriate units and enterprises to plan a fruit marketing conference.

Second, he appointed the SPS Vietnam Office to promptly execute local coordination plans, particularly in big raw material locations, to guide new export laws in some important markets, including Order 248, and Order 249 in China.

Thirdly, as management units, those responsible for issuing new codes of growing regions, agricultural areas, and export packing businesses must increase management, inspection, and review while maximizing their role and ownership. localized action

Fourth, is to prepare scenarios for some agricultural products that are about to come into the season such as bananas, jackfruit, and rice for export to have a suitable consumption plan.

Authors: Bao Thang - Duc Minh

Translated by Linh Linh