An Thai Investment Joint Stock Company is one of the enterprises in Dak Lak province investing deeply and extensively in agriculture, with many products that can be sold in the EU market. The company has closed from investing in raw material areas to building a coffee refining factory with a capacity of 20,000 tons per year; There are many new and quality products. In addition, the company also produces and processes many kinds of strong agricultural products, such as pepper, cocoa, and macadamia, so its expectations are for new opportunities.
However, when talking about opportunities in this market, Mr. Nguyen Xuan Thai, Director of An Thai Investment Joint Stock Company, said that Vietnamese enterprises can only succeed when they can stand against very strong enterprises in the bottom. industry.
“This is an opportunity for businesses to enter a more demanding market. However, there are many difficulties because our business has a long history, but compared to other coffee companies in the world, they are much stronger than themselves. That’s why we are fighting with giants ”, said Mr. Nguyen Xuan Thai.
While enterprises in the Central Highlands pay special attention to upgrading technology, innovating business strategies and tactics, aiming to win the competitive pressure in the EU market, the Central Highlands provinces pay special attention to attach importance to consolidating the production base, promoting the advantages and overcoming inherent weaknesses of the region’s agriculture.
The fertile land, specific climate, the level of farmers increase a lot compared to before, still not enough to offset the disadvantages of the agriculture where 90% of the cultivated area belongs to the farm households. The fact that each household cultivates in its own way, does not comply fully with quality and environmental standards, it is very difficult to create products that fall through the strict barriers of inspection.
Pepper is one of the agricultural products of the Central Highlands that has difficulty accessing the EU market. (Artwork: KT)
According to the Ministry of Agriculture and Rural Development, to overcome the major weaknesses are facing, the only way is for businesses to link and cooperate with farmers and cooperatives. Currently, there are also more than 150,000 hectares of coffee, equivalent to nearly 30% of the total area, is the raw material area between businesses and farmers.
Each year, this area produces more than 400,000 tons of certified coffee beans, selling at a higher price of 30-300 USD / ton compared to the general market price.
According to Mr. Nguyen Do Anh Tuan, Director of International Cooperation Department, MARD, if these linkages are widely spread, Central Highlands agriculture will be unified in value chains. However, the association, despite having a considerable scale, is still in a precarious position.
“It seems that these links are still very precarious. Farmers are small, the capacity to comply with the regulations on quality and food safety still has many problems. Enterprises, most of them are still buying paintings, selling paintings, they still like to buy on the floating market and then take the shipments and then push them down the ship ”, said Mr. Nguyen Do Anh Tuan.
Few links, more pictures to buy, sell pictures, production pictures, agriculture in the Central Highlands has not yet solved the problem of coffee and pepper, and continues to have problems in the fruit industry, with the crisis of redundancy. Booth avocado products are a hot example. From nearly 100,000 / kg a few years ago, the price of Booth avocado is just under 10,000 VND, which is very difficult to sell.
According to Ms. Nguyen Thi Xuan Huong, Director of Huong Cao Nguyen Agricultural Service and Production Joint Stock Company, Dak Lak province, with a single farming method, current feelings, agricultural products will be difficult right here. the domestic market, not waiting for the arrival to the EU market.
“In the past, Dak Lak avocado avocado was the main season, and booth avocado was off-season, so the price of Booth avocado was high. So farmers race to grow avocado booth. How many areas of wax butter is also cut and grafted to become wax butter because this grafting takes only 1 year for the product. As a result, up to this point, booth avocados turn into seasonal avocados at low prices. But wax avocado is turned into off-season avocado, the highest price is 45,000 VND / kg ”, said Ms. Nguyen Thi Xuan Huong.
In order to overcome the widespread fragmentation, in addition to large enterprises actively building material zones, the cooperatives in Dak Lak in particular, and the Central Highlands in general, have undergone careful preparation. Cultivation following the VietGap process has become popular; International certified coffee producers such as 4C, UTZ, FairTrade to satisfy the high end markets, have also become familiar. However, most of the cooperatives are also in the face of impatience, mainly because of financial problems and business experience.
According to Mr. Vu Dinh Hoang, in charge of coffee projects of Minh Toan Loi Agricultural Production & Service Cooperative, Krong Nang District, Dak Lak Province, after effective policies to support farmers and cooperatives, the Countries need to pay attention to promote more links, in order to synchronize from input to production and market output.
“Making high quality coffee and agricultural products for export requires a lot of capital. At present, all banks do not accept loans to cooperatives that can only mobilize from members. As we produce 300ha and mobilize internally a few billion, it is not impervious. Therefore, the State should have policies to connect us with the input and output side, ie with the fertilizer supply enterprises and the enterprises purchasing and processing for export ”, Mr. Vu Dinh Hoang shared.
Farmers in the Central Highlands have improved their qualifications; Climate land in the Central Highlands has a high specificity, ensuring that the quality of agricultural products can meet any difficult market. On a small scale, agriculture in the Central Highlands has had many successful units and businesses. But EVFTA includes great commitments to very large markets. Farmers, cooperatives and businesses need to connect their arms wide enough, tight enough to take advantage of the opportunities and overcome the challenges that are opening up.
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