Minister Le Minh Hoan: The market decides the survival of the production and circulation of goods

The conference is a practical activity of the agricultural sector to quickly implement the Resolution of the XIII National Party Congress into life and organize the effective implementation of the agricultural restructuring plan for the period 2021 – 2025. focus on value added under the direction of the Government and the Prime Minister in Decision No. 255 / QD-TTg dated February 25, 2021.

The conference focused on an overview assessment of the field of agricultural product processing and market development in a new context, mixed with many challenges and opportunities. Especially, in the flexible and rapid change in the world’s processing technology trend. Application of digital technology to optimize production and resources in the processing of agricultural products in the world and approach to Vietnam. Applying the transfer of scientific and technical advances in post-harvest technology in order to increase the value of agricultural products for export.

In addition, the conference also shared trends in the world agricultural market and issues raised about standard agricultural production. Issues related to building, protecting brands and supporting the development of geographical indications for businesses in the agricultural sector. In particular, opening the agricultural market to create new signals of leading and impetus to perfect the institution, increase enforcement efficiency and linkage in the market.

Overview of the National Conference on promoting the processing and development of the agricultural market in 2021

Processing creates added value

Minister Le Minh Hoan shared: The value chain of agricultural production will be interested by many people. Strictly speaking, if we sell an innovative product, we sell its value, not the price. We have integrated a lot of knowledge and technology functions in the processing of agricultural products, which is a story that is currently interested.

According to Minister Le Minh Hoan, currently agricultural products in the country have 20-30% through export processing. Meanwhile in Taiwan, they have nearly 80% of agricultural products through new processing sold to the market. Therefore, in the agricultural sector, we have to compare the two above numbers between the two countries, from which there is a plan to proactively process agricultural products through processing to create added value.

Besides, it will solve the problem of oversupply, reducing the pressure on farmers who often encounter the fall in prices. The market does not expand, the demand does not increase but the supply increases, the agricultural products must definitely reduce prices, leading to “rescue” such as onions in Vinh Chau (Soc Trang), oranges (Ha Giang and Tuyen Quang). For a long time, the agricultural sector in our country has heard that rescue agricultural products are like a bend of the market law when there is an imbalance between supply and demand.

The Minister said that it is the processed products that will solve those reasons. First, solve the market supply. Instead of selling at the same time, we now reduce the output so that the price will show the scarcity of the commodity. As a rule, what is less, the selling price will be high, and what is more, the excess selling price will decrease. It’s the invisible hand of the market that will govern those stories.

Not only helps stories create value-added chains of agricultural products in our country, but also helps develop agriculture, in which agricultural products go into the rule of its value chain. Since then, there are solutions to overcome the situation of our country’s agricultural products to reduce the problem of the season of devaluation.

In fact, domestic agro-processing enterprises now have more than enough capacity to do so. Here the State and businesses join hands to help expand markets, or research science and technology in processing and post-harvest preservation.

The ecosystem is in harmony in the development

At present, MARD pays more attention to agriculture cooperatives or small and medium enterprises. This is the daily majority living in hamlets, villages directly with agricultural products. That is the purpose that the State wants to create for that majority by supporting investment capital sources, logistics infrastructure, post-harvest preservation technology, processing technology for cooperatives and small and medium enterprises. From there, we strike a balance of policy for large firms and recognize the majority of rural economic product-making actors.

Although these subjects are quite small, they solve the direct crop problems of each local area in the country. Then from the initial preliminary processing products of cooperatives or small and medium enterprises will bring larger firms to refine.

From there, Minister Le Minh Hoan concluded: From the market segment, what will farmers do? What can cooperatives do? What can SMEs do? And what can big business do in the end? Thus, agricultural products will create a harmonious ecosystem in the development. The first is to create jobs for rural farmers from the story of agricultural product processing./.

According to Mard

Leave a Reply

Your email address will not be published. Required fields are marked *