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In the afternoon of February 3, MARD held an emergency meeting on the agricultural product trade situation due to the impact of acute respiratory infections caused by new strains of corona virus.
According to the Ministry of Agriculture and Rural Development, the conference took place to represent representatives of ministries, branches, localities, industry associations and enterprises to propose immediate and long-term solutions to boost Vietnam's agricultural trade in the new situation. with increasingly complicated developments of the epidemic. In 2019, Vietnam's exports of agricultural, forestry and fishery products to China reached US $ 8.47 billion, down 2.6% over the same period in 2018. With the complicated and unpredictable situation of acute respiratory infections caused by new strains of corona virus and the actions of the Chinese Government to restrict commodity trading, there will be negative impacts on agro-forestry trade. seafood of two countries. |
2:00 PM – Minister of Agriculture and Rural Development Nguyen Xuan Cuong delivers opening speech at the conference:
According to Minister Nguyen Xuan Cuong, acute pneumonia caused by the corona virus strain is a very dangerous new disease that threatens the lives of people and the global economy. The disease spread from Wuhan (China) to 27 countries, with 17,000 cases, 362 deaths, including 1 case outside China, the disease is on the path of an epidemiological cycle, increasing rapidly. It is worrying that the epidemic has no vaccines, no specific medicines.
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More dangerous is the weather factor which makes this epidemic even more dangerous. Drizzle, cold in the North is extremely suitable for this disease, which predicts a bleak future for global economic development.
Vietnam currently has 8 people, 3 provinces and cities have announced the outbreak. Not to mention, on February 1, 2020, China continues to announce the H5N1 epidemic point in Hunan, in which the cross-infection to humans is extremely complicated. This fact poses challenges and requires strong solutions to cope with this situation. Before this situation, the Secretariat and the Prime Minister had instructed and asked all levels of the sector to get involved. drastically.
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Faced with forecasts of major economic losses, with agricultural products alone, China is a large market, so agriculture will be most vulnerable, such as many dragon fruit and watermelon products; hurt investment. Currently, all contents of negotiations between the two parties have stopped, for example, durian products, sweet potatoes, oats and jelly are preparing to sign the protocol to be officially exported to China but currently know how.
Therefore, the Ministry of Agriculture and Rural Development organizes a conference to ask the opinions of the ministries, businesses and associations to correctly and accurately identify the direct impact of this disease, first of all the Chinese market with Vietnamese agricultural products. , thereby identifying immediate and long-term solutions for businesses and farmers to overcome.
At the same time, turning challenges into opportunities, discussing solutions to build new markets, thereby restructuring the agricultural sector farther longer with a sense of urgency but not bewilderment.
Without corona virus, there will be other diseases because anything will happen under climate change. Therefore, we need to be mentally prepared to respond proactively.
2:15 pm – Deputy Minister of Agriculture and Rural Development Tran Thanh Nam reports the situation of agricultural product trade before the impact of the acute respiratory infection caused by corona virus:
In 2019, Vietnam's exports of agricultural, forestry and fishery products to China reached US $ 8.47 billion, down 2.6% over the same period in 2018. In particular, export products decreased compared to the same period. The period of 2018 includes: vegetables and fruits reaching 2.42 billion USD, down 13.6%, cassava and cassava products reaching 864 million USD, decreasing 2.4%, rice reaching 240 million USD, decreasing 64.8%, and coffee reaching 101 million USD decreased by 7.7%.
With the complicated and unpredictable situation of acute respiratory infections caused by new strains of corona virus in recent days and the actions of the Chinese Government in restricting trade in goods to avoid crowdedness. who facilitate the spread of the disease, it is predicted that the acute pneumonia will have negative impacts on the trade of agriculture, forestry and fishery products of the two countries.
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According to Deputy Minister Tran Thanh Nam, many agricultural products were affected, affected by the respiratory infection caused by Corona virus.
Specifically, for the key fruit products, especially dragon fruits, watermelons account for a large proportion to serve the Chinese market during the Tet holiday and after Tet holiday. Through review, from now to the end of January Full moon, in Long An province, the harvest of dragon fruit is about 21,600 tons. The next batch from February 8 to February 28 will harvest about 54,000 tons. In early March, in Tien Giang harvested about 10,000 tons …
Most of these products are fresh and unprocessed. Although localities have guided and actively adjusted production plans, local congestion and oversupply will take place due to limited transactions at border market pairs in Quang Tay and Van provinces. In the South, the Chinese Lunar New Year holiday schedule and measures to ensure prevention of nCov pneumonia were implemented from both sides.
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For livestock products that are exported to China, especially Vietnamese dairy products that have been allowed to export officially in October 2019, the export will face difficulties in domestic and national trade. China's economy has stalled due to the impact of the corona virus disease.
For seafood exports to China in 2019, there was still a good growth rate (up 22% compared to 2018), especially in December 2019 increased by 36.2% compared to November 2019, of which a the number of products with a strong growth such as shrimp increased 17%, pangasius increased 61.5%; squid and octopus increased by 16.1%.
Looking back in the first quarter of 2019, Vietnam's shrimp and pangasius exports to China decreased (15% of shrimp and pangasius decreased by nearly 2%), making the total value of seafood exports to this market decrease by 5% compared to In 2018, it was only 239 million USD.
Therefore, for the first quarter of 2020, the Chinese government's action to “shut down” all activities will make the export of seafood difficult when the delivery time.
Specifically, many Chinese importers have informed Vietnamese seafood exporters to suspend deliveries until February 9, 2020 or until information is normalized. back from the Chinese Government.
Along with that, the suspension of flight routes, difficulties in traffic between the two countries will have a great influence on the trading and exchange activities of businesses of the two countries. Especially for activities of transporting agricultural commodities by air, waterway and road.
14.25 – 2 scenarios for coping with corona pneumonia epidemic of MARD:
Short-term plan:
After the Lunar New Year holiday to February 9, 2020, if nCoV-level pneumonia is not effectively controlled and spread on a wide scale, the Government of China will continue to apply measures. stronger.
Specifically: restrictions, tightening travel, movement of people between localities of China; prolonging the restriction of activities of transaction points, wholesale markets, agricultural product distribution centers in many localities of China in order to avoid large crowds to facilitate the spread of epidemics; prolong the closing of purchase and sale transactions at pairs of markets in border areas.
In this context, the Ministry's units seriously implemented Official Letter No. 79-CV / TN of January 29, 2020 of the Party Central Committee's Secretariat; Directive No. 05 / CT-TTg of January 28, 2020; Official Dispatch No. 121 / CD-CP of January 23, 2020 of the Prime Minister on the prevention and control of epidemic pneumonia; Decision No. 173 / QD-TTg of 1/2/220 on announcing the epidemic; continue to update and closely follow the directions of the Central Government and the Government to effectively implement the prevention of acute pneumonia epidemic.
Plant Protection Department, Animal Health Department coordinates with functional forces at the border to strengthen animal and plant quarantine, prevent H5N1, prohibit the import of wildlife into Vietnam, comply with the instructions of Prime Minister at Directive No. 05 / CT-TTg dated January 28, 2020 on prevention and control of acute respiratory infections caused by new strains of corona virus.
The Department of Agro-product Processing and Market Development and other specialized agencies actively coordinate with the Trade Office of the Embassy of Vietnam in countries around the world to comprehensively and smoothly deploy in order to achieve the highest efficiency. Leaders of the Ministry's leadership on market promotion and development in key, potential and niche markets right from the beginning of 2020, creating a breakthrough in market diversification.
Specifically, the delegation led by Ministry leaders and Vietnamese agricultural product exporters to Dubai (UAE) from February 15 to expand the Middle East market; The mission was led by the Ministry leaders and Vietnam's agricultural product import and export enterprises to the US from February 22; The mission was led by the Minister and enterprises exporting Vietnam's agricultural products to Brazil in March 2020; Organizing missions to expand the market to Japan (March 2020) …
Sticking to the Embassy of Vietnam in Beijing to exchange and contact with the General Department of Customs of China to arrange the trips of Chinese experts to Vietnam in the first quarter – February 2020 to solve difficulties.
Continue to coordinate with the Trade Office of the Embassy of Vietnam in China to deploy market promotion and development missions in key localities of China at the most appropriate time right after the Chinese side. National control of coronary pneumonia outbreak.
Plan for outbreaks lasting months:
The Ministry of Agriculture and Rural Development cooperates with industry associations, enterprises, units of Industry and Trade, and localities to promote trade promotion to bring agricultural products to consumption in large supermarket chains and chains; giving priority to the domestic market; promote preservation and processing.
Along with that, focusing on directing research to adjust a number of plants and animals to suit the needs of the consumer market and comparative advantages of each locality.
14h30 – Mr. Nguyen Van Dong – Director of Department of Animal Health (MARD) reports on the prevention of avian influenza in the context of a new H5N1 outbreak in Hunan:
Since early January 2020, the world has recorded outbreaks of avian influenza in 11 countries and territories. In China, on February 1, a farm was found in Songcheng District, Shaoyang City, Hunan Province with 7,850 chickens and 4,500 of which died from influenza A / H5N1.
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In Vietnam, in 2019, avian influenza occurred in 70 livestock households, 44 communes and 41 districts of 24 provinces and cities were forced to destroy 133.203 poultry. From the beginning of January 20/20 up to now, there is only 1 avian influenza A / H5N6 outbreak in the country over 30 days in Quang Ninh province, but the outbreak has been controlled timely.
At present, avian influenza is a local disease, it has been well controlled and the disease does not occur on a large scale. Avian influenza outbreaks appear scattered, each province appears in 1-2 small households with poultry have not been vaccinated.
Forecasting in the coming time, the disease may continue to occur due to many different reasons. Currently, the total poultry population is very large (467 million), the weather conditions are adversely changing …
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Demand for transportation, slaughter, and consumption for festivals at the beginning of the year increased. The organization of vaccination for avian influenza for poultry at a low rate in some localities, especially for poultry farming households.
Therefore, the risk of avian influenza pandemic appears, spreads very high and risks affecting public health, especially in the condition of acute pneumonia caused by new strain of corona virus (nCoV).
Currently, Vietnam has not detected cases of influenza A / H7N9 infection. However, the risk of influenza A / H7N9 virus and some other virus strains such as A / H5N2, A / H5N8 infection is high.
On 10/1, Department of Animal Health issued Official Letter No. 37 / TY-DT sent localities to announce the situation of avian influenza virus circulation and recommended the use of vaccines suitable to each strain, virus branch. avian flu.
14h40 – Deputy Minister of Industry and Trade Tran Quoc Khanh assessed the impact of pandemic influenza virus on import and export activities:
Import-export activities are adversely affected for a number of reasons in our assessment as follows:
The first is a decrease in demand, for example the Starbucks chain in China, which has closed a lot of stores, leading to a reduction in demand for coffee. Besides, the chain of stores like McDonald's, KFC, especially in Wuhan, affects the demand for white fish. Or other Chinese restaurants are also empty, leading to a reduction in seafood consumption.
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The second reason is that the border market opens more slowly than usual, as it is known that the Chinese side will be closed until February 9. The closure of the border market has interrupted the exchange of residents, which is an important form of exchange, especially for agricultural products of Vietnam.
The third reason is that Chinese buyers were unable to enter Vietnam, resulting in no new orders even though some fruits were already in service. Every five hours, they have come very busy to prepare to buy fruits and fruits for the Chinese market.
15:00 – Vice Chairman of Lang Son Provincial People's Committee Nguyen Cong Truong: Should not bring goods to Lang Son at this time
In 2019, the total import-export turnover between Lang Son and Chinese provinces will reach about US $ 4,750 billion, of which the trade surplus is over US $ 2 billion. A total of 186,272 vehicles were exported through 12 border gates in Lang Son province, a very large number.
Particularly in December, the number of vehicles cleared through the provincial border gates was 12,600 vehicles, down over the same period, due to disease, vehicle control and traceability.
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Before Tet, import-export activities were normal, until 28 Lunar New Year of the Rat at the border gates of Lang Son exported all goods, no cars left in stock.
However, from the 1st of Lunar New Year, outbreaks of disease occurred, China closed 9 pairs of border markets from January 31 to February 8, and if the epidemic was still complicated, it would last for a long time so export agricultural products to China. difficult, there are still 333 vehicles carrying agricultural products awaiting clearance, including 190 dragon fruit vehicles, weighing over 5,300 tons.
It is worth mentioning that, dragon fruit products are still being brought up, particularly for dragon fruits, we have opened a separate export road at the landmark of the two sides Vietnam – China just inaugurated, and have exported 8,000 vehicles.
Up to now, no case has been detected in China's border districts, which is fortunate.
This morning, in direct talks with China, on 3/2 agreed for goods and vehicles to pass, but at Huu Nghi border gate, there was an object reporting that the Chinese people were busy entering and causing confusion. We have requested to remove, impose an administrative penalty of 20 million VND, 80 guests have cleared us and requested to return to you, temporarily not allowing foreigners to enter Vietnam, stopping all import-export and closing. secondary border gates, open trails and 10 Vietnamese citizens have been isolated.
In this morning, if you take 190 dragon fruit vehicles we will turn from Tan Thanh border gate to Friendship, even if it is only through the market, but no contract, so we still decided to stay in Tan Thanh.
The Director of Huu Nghi Border Gate Customs Branch also informed that from 2-4 hours for normal vehicles to pass through with 65 cars.
We recommend that businesses and associations limit their cars to Lang Son at this time, look for other solutions to sell domestically, because they are also waiting and costly.
We have also instructed, the yards only charge the initial fee, and the rest days are not allowed to be collected because people are struggling, the price of dragon fruit before Tet 35,000 VND / kg, now only 3,000 – 4,000 VND / kg, watermelon is VND 1,000 / kg.
15.15 – Mr. Pham Van Canh, Vice Chairman of Long An Provincial People's Committee:
Currently, the area of dragon fruit of Long An produces about 9,587 ha (out of 11,826 ha) with an output of 320,000 tons. From January to the end of February 2020, there are about 30,000 tons, of which 2.0000 are in stock and at the end of February 2020, harvest 28,000 tons.
Regarding processing and purchasing establishments, Long An province has 154 facilities and 100 establishments have cold storage, an average of 50 tons / warehouse, equivalent to a capacity of 7,000-8,000 tons. The whole province has 15 establishments that sell dragon fruits directly to China; The rest is processed and processed for Chinese warehouses.
Regarding processing facilities, there are 6 facilities for dry processing, 2 units for juice processing. Nafood has signed contracts with farmers about 1,000 tons. On the planted area of 9,587ha, there are 120 facilities granting code and exporting to China.
The situation of purchasing dragon fruit of Long An is mainly Chinese tourists. The price is mainly decided by Chinese traders. However, contracts with farmers are uncertain so risks often occur, due to sale through traders. The market is mainly sold through China with 75%, while 25% of Thailand, South Korea, Singapore, Japan …
Evolutions from January to now, there are 2 companies with large purchasing power: Hong Thai Duong Company buys 30-40% of the production, deposits 300 containers with the purchase price of VND 40,000-50,000 / kg. However, up to now, this company has stopped buying, promising to support farmers 4,000 VND / kg. The second company, Phu Quy Company, canceled 200 containers, but delivered the purchase price of VND 5,000 / kg. Some companies also make deposits like the two companies pay farmers VND 5,000 / kg.
Facing difficult consumption situation, when farmers dragon fruit, nearly ripe, they cut off, great damage. Long An Province went to China to explore and promote dragon fruit, but found it difficult. The province proposed the Department of Processing and Agricultural Development Department (Ministry of Agriculture and Rural Development), Ministry of Industry and Trade to support the export of dragon fruits at the border gates, to promptly negotiate and remove difficulties for dragon fruits. At the same time, support the export of export dragon fruits, trade centers, supermarkets and major wholesale markets in the country.
Long An also asked MARD to support the storage of hibernation, extend the storage time, preserve dragon fruits, and expand the market to consume this item.
15h30 – Mr. Nguyen Hoai Nam, Deputy General Secretary of Vietnam Association of Seafood Processing (VASEP): The tuna processing industry has found opportunities
Currently, the impact of canceling orders on aquatic products due to the corona virus has not been available, but orders are delayed and order adjustments are slowed down. The partners promised to start receiving goods on February 16.
Second, a number of large shipping lines stopped accepting container shipping to China. Major Japanese customers offered not to ship goods to China. For EU, US, at the beginning of the year they came to evaluate the factory, visited the factory but now it has stopped. Some customers they don't come to, but evaluate from afar.
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Enterprises that have exported to China a large volume, currently in stock, large inventory costs, about 0.9-1.1 USD / pallet. In China, customers sell restaurants directly, when restaurant systems stop or go down, large grocery stores decrease or stop because they do not want to lose the cost of storing goods.
There are risks, but there are also some opportunities. We see that there are two opportunities to promote production without much impact: First of all, true businessmen, Vietnam prepares canned and frozen goods. Events like this after 3-5 months, a clear adjustment of consumption culture, not eating much raw, less fresh goods, but canned and frozen goods will be in great demand.
The second opportunity, some Chinese industries are competing with us such as tuna, China is one of the five big tuna selling countries, now countries do not buy Chinese tuna, so the price dropped deeply. Vietnamese tuna businesses are seeing this as an opportunity for other sources of consumption, increasing market share and prices.
15h45 – Mr. Nguyen Ton Quyen – Former Vice President and General Secretary of Vietnam Timber and Forest Products Association: Wood enterprises have been changing direction.
Influence of the flu virus caused by corona virus, the export of woodchip to China immediately decreased sharply, but I think that this is an opportunity for the wood processing industry to export wood chips. not high value, not sustainable development of forest capital.
At this point, when the export of woodchip decreases, it will supplement the domestic wood material sources to produce artificial boards and MDF, creating high added value.
In the past 2 weeks, many enterprises of the wood industry have changed direction, there have been 3-4 enterprises specializing in making export chips to buy equipment for producing plywood and fuel wood.
Sharing the same view, the representative of Vietnam Food Association said that immediate rice export is not much affected by corona virus flu.
16h00 – Mr. Nguyen Dinh Tung – Vietnam Fruit and Vegetable Association: Proposal to support electricity bill for fruit storage enterprises
The outbreak of coronary pneumonia immediately affected the prices of many agricultural products, particularly fruits. For example, durian, before Tet, the price reached 70,000 VND / kg, now only 40,000 VND / kg; dragon fruit is only 3,000 – 4,000 VND / kg, especially in some places watermelon price is only 1,000 VND / kg.
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It can be said that the group of enterprises exporting fruits to China was paralyzed due to the impact of the Wuhan flu, traders who ordered in granaries to export to China to serve the Full Moon in January were also deposited. dropped because the price was too low.
Farmers who are not affiliated with the enterprises are also severely damaged, associated farmers are still purchasing.
Facing this fact and the flu virus due to coronavirus that never ends, the Vietnam Fruit and Vegetable Association proposed to the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade to continue supporting and promoting the export of agricultural products to other markets; planning the planting areas, doing well the preservation work, particularly the Ministry of Industry and Trade supports electric money for units participating in fruit preservation to overcome difficulties in this period.
16:15 – Ms. Nguyen Thi Phuong – Deputy General Director of Central Retail Group: Committed to supporting consumption to help farmers in the scope of their possible
Currently, Big C has 37 supermarkets in 22 provinces and cities, consuming a relatively large amount of agricultural products daily. Facing the effects of the corona virus flu on agricultural exports, Big C did not stand out.
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We are committed to supporting consumption to the maximum extent with the farmers. In recent years, we have also received proposals from the Department of Agriculture and Rural Development of Binh Thuan Province, the Department of Agriculture and Rural Development of Gia Lai Province to support the consumption of dragon fruits and watermelons. Currently, according to me, the price of dragon fruit is not yet negative, specifically, dragon fruit we buy at the warehouse for 14,000 VND / kg, watermelon 6000 VND / kg.
In order to help facilitate the sale of agricultural products, we recommend to the Ministry of Agriculture and Rural Development for a list of outstanding agricultural products for us to program, have a reasonable purchasing budget, and promote the maximum for people.
In this context, I think that cooperatives and farmers should return to the domestic market and seriously with this market. It is a fact that many cooperatives when exporting prices prefer to sell to China quickly but do not want to sell to supermarkets because the goods have to go through many stages of negotiation and standards.
But if we keep this way, when exporting hard, there are no roads to the supermarket, so it is necessary to focus on the domestic market with 100 million people.
16h30 – Minister of Agriculture and Rural Development Nguyen Xuan Cuong concludes the conference: No change, no crying for corona, crying for other things
In the context of difficulties in consumption, every industry has found opportunities in difficulties such as the wood industry, fisheries, …
This is a welcome thing, we will absorb the completed script as well as identify the solution groups.
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We want people to accompany, share information and respond both ahead and long term. In the coming time, people and businesses need to produce responsibly and find out many opportunities and solutions such as increasing storage in cold storage, increasing processing … and considering it as a pressure to restructure, Open market.
Provinces and associations review industries, first of all tycoons of agricultural exports to China. As in Long An, farmers do not stimulate off-season flowering. With 150 establishments in the locality with more than 100 establishments having frozen warehouses, they must balance, concentrate reserves in cold stores, increase processing and offer solutions for stable consumption of about 30,000 tons / month.
Along with that, retail businesses like Hapro, Big C … need to be active, when the vulnerable dragon fruits, which cannot cross the border, pay special attention to the domestic market.
Particularly for the watermelon group, the Minister instructed farmers and localities to limit seeding and transfer to other crops such as soybean, maize, vegetables …
The most important thing is that localities must encourage farmers to produce chain-linked and linked production. As in Son La, they established many cooperatives, so there was almost no rescue situation. Nếu không làm theo chuỗi, không tái cơ cấu, không khóc vì con virus corona thì cũng có thể lao đao vì những dịch bệnh, biến động khác.
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