Export official agricultural products to China: Identify the right way to act

Without properly identifying the Chinese market and changing the way the production is organized according to the value chain and commodity lines, our country's agricultural products will still be in surplus and reduced prices. And forever only the “wheelbarrow” cargo carts, will be the “fast train” abandoned on the export road …

Agricultural products – roads and signs

According to the General Department of Customs (Ministry of Finance), in the first 9 months of this year, agricultural exports include vegetables, cashews, pepper, tea, coffee, rice, cassava and cassava and rubber products … The country's total revenue reached 12.54 billion USD, down 7.9% compared to the same period in 2018.

In particular, China is still the largest import market of Vietnam's agricultural products with US $ 4.25 billion, down 10.6% over the same period last year. Typically, in the reduction of exports to the Chinese market, vegetables and fruits only reached US $ 1.9 billion, down by 13.5% compared to the same period in 2018.

In early November 2019, the road to Tan Thanh border gate (Lang Son) was congested, with more than 5,000 trucks carrying agricultural goods of Vietnam waiting to be sold to China. Why is there such a congested situation? There are many reasons, among them, the basic reason is that China has “set up signs” by tightening processes, principles, procedures and quality of imported agricultural products to meet the requirements of “Reform.” supply structure is the key direction for consumption ”.

Therefore, China increased official import, tightened quota import; traceability of imported vegetables and fruits and requires Vietnam's agricultural products to have a planting area code, VietGAP certificate, packaging establishment code to ensure safe and clean hygiene. , diseases on vegetables, tubers, fruits …

However, the organization of production in agricultural raw material areas in our country is still slow, linked in a chain associated with testing quality and production habits of farmers, agricultural cooperatives do not like timely response.

Which solution is sustainable?

Back to the problem of exporting agricultural products, is it reasonable that China only erects “signs” with Vietnam's agricultural path?

In 2017, China's Socio-Economic Development Strategy set out seven goals; in which there are 3 objectives related to import and export are: Building comprehensive social well-being; reform of supply-weight structure; revive rural and agriculture, improve the quality of the supply system as the owner direction ”. Therefore, the tightening of imported agricultural products in China is both in line with international practices and at the same time responding to the change of domestic consumers.

These “signs” were set up not only for Vietnamese agricultural products but also for all Chinese customers. Clearly identifying this problem, producers, businesses, exporters … need to change their minds, find solutions to organize production and trade activities; turn wheelbarrows into “fast trains” on official and sustainable export routes. To achieve that goal, it is necessary to synchronize with 4 groups of solutions.

Firstly, in terms of ideology and awareness, it is necessary to properly and fully identify the Chinese market, which is undergoing a drastic change in consumption habits, first of all nearly 50% of the households close to the well-off level in in the city, urban areas, and officials, officials … using safe agricultural products, traceability, food hygiene.

Therefore, it is necessary to change the mindset and awareness from the export of small agricultural products, considering the Chinese market as “cheap and easy-going” to the thinking of producing high-quality and responsible agricultural products. society according to contract standards, being traded through official export routes, to supermarkets and trade centers of China. Only when Vietnam's agricultural products enter the supply chain will official exports succeed.

Secondly, regarding mechanisms and policies: Continuing to open with “cross-linking” of the Ministry of Agriculture and Rural Development with the Ministry of Industry and Trade, the Ministry of Finance, the Customs … in bilateral negotiations between Vietnam and China. on quality standards, quarantine methods, tax rates, customs clearance mechanisms and liquidity … for each agricultural product. Market information must be transmitted to enterprises, producers, industry associations and localities throughout the country.

In particular, the priority area is 42 provinces and cities with 1,309 crop area codes and 32 provinces and cities with 1,435 packing codes for 9 kinds of fresh agricultural products that have been approved by China. In this group of solutions, the Government and the National Assembly need to be more aggressive in supplementing, amending and promulgating concentrated policies and accumulating land in order to create a specialized and continuous cultivation area … for convenient farming area code.

Thirdly, regarding the organization of production: This is the most important and decisive solution for the scale and quality of official and sustainable export of agricultural products to the Chinese market. In order to achieve the immediate and long-term goal, it is necessary to arrange the cropping season for Chinese plants of the same type that Vietnam has in the export list such as watermelon, dragon fruit, banana, litchi, jackfruit, longan, mango, rambutan … to sell more, have a higher price. Thereby, gradually bringing grapefruit, breast milk, durian … which is the strength of Vietnam to sell into the Chinese market.

Along with that, enhance the application of science and technology, new technology in production. Focusing on investing in preservation and deep processing technology associated with the export raw material area, in order to extend the storage time and product consumption time, especially at the time of the month and cold days in the Northern Central region. The country borders Russia, including 3 provinces of Heilongjiang, Jilin and Liaoning, with 150 million people, with great purchasing power and long-term purchasing power throughout the year.

Another solution is to organize closely and effectively link agricultural value chains and agricultural export products both inside and outside the export list; in which, linking farmers with farmers, cooperatives with cooperatives, enterprises and enterprises, in order to properly and fully comply with the production process, control the input materials of production, ensure safety and hygiene.

In addition, improving the capacity and effectiveness of training, training farmers, building cooperative groups, cooperatives strong enough to gather and lead farmers to implement the chain of agricultural and commodity links to go from win the season to win the contracts.

Fourthly, to focus on building a leading enterprise as a center and a focal point of regional linking activities in agricultural production, processing and export. At the same time, it is the “fulcrum” and belief that lead small and medium-sized enterprises, localities and economic organizations of farmers to build 3-level agricultural product brands: Collective, enterprises and countries.

This is a “weapon” to seek, expand and penetrate deeper into the Chinese market in particular, the global market in general as Vietnam deepens its integration. The success lesson of TH Trumilk Group, which exports long-term fresh milk products to the Chinese market, is a practical and vivid testimony.

Tailed sound

Agricultural production associated with agribusiness is a enrichment calculation, in the process, a new playground has been established between good businesses and cooperatives, owners of farms, farms, farms and households. good production and business in the link with value chain of agricultural products and commodities. That is the basis and conditions for the official and sustainable export path of agricultural products, confidently entering the global economic integration.

However, poor farming households, ethnic minorities, areas facing extreme difficulties, regions prone to natural disasters, epidemics, etc. are very easy to stand on the sidelines of development or receive only “small change”. in the export value chain.
“No one is left behind” – The message is in need of a change in thinking and action, requiring the determination of the whole political system to join in for rich farmers, agriculture, and national flourishing.

Agricultural expert Hoang Trong Thuy
Source: Economy & Urban