Minister of Agriculture and Rural Development: Short value chain, agricultural products face risks

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“At present, a number of industries such as shrimp, catfish, dairy cow… have made significant progress in deep processing, creating longer-lasting products. However, all aspects from farming, husbandry … most of the value chain are still very short, need to focus on restructuring “- MARD Minister Nguyen Xuan Cuong affirmed at the ISG 2019 plenary meeting with the owner “Developing sustainable raw material areas, improving processing capacity and market access for Vietnamese agricultural products”.

Do more, less processing

Speaking at the conference, MARD Minister Nguyen Xuan Cuong said that Vietnam's agriculture is facing three major challenges: small scale production, the impact of climate change and challenges from economic integration. world.

To address these three challenges, there is no other way that Vietnam can focus on restructuring agriculture towards concentrated production, developing advantageous industries, promoting the application of new science and technology and reorganizing production.

Processing and preliminary processing of fruits to keep fresh produce right after harvesting is a basic requirement for agricultural exports. Photo: Danh Lam / TTXVN

This year, a series of traditional and strong products of Vietnam such as rice, pepper, cashew nuts, fruits … all met difficulties in consumption markets due to changes in trade policies of markets. market and prices tend to decrease. Meanwhile, the processing of agricultural products in Vietnam is very weak, the participation in the global agricultural value chain is not significant. Like coffee, we still export about 90% of raw output, so we have suffered a great deal of value when prices fall while prices of processed coffee products remain stable.

Mr. Ousmane Dione – Director of the World Bank in Vietnam highly appreciated Vietnam's export turnover of agricultural products, but expressed concern about the unstable trend in Vietnam's exports. Along with the downward trend of a series of major agricultural products, agricultural growth in Vietnam is having to trade a great deal in terms of environment, deforestation and biodiversity loss. Along with that are many market failures and defects in the organization of production and trade systems.

Meanwhile, Mr. Stein Hansen – Regional Director of the United Nations Industrial Development Organization (UNIDO) stated a very significant number, in developing countries only about 30% of agricultural exports. processed while this ratio reaches 96% in developed countries.

“High-income countries have created US $ 200 of added value for a ton of processed agricultural products, while developing countries can only generate US $ 50 of added value,” he said. Stein Hansen said.

Therefore, UNIDO wants to help Vietnam promote sustainable and inclusive business opportunities for the rural poor through the development of agricultural value chains, strengthening production links, and market access.

Change to avoid “crumbling”

In 2019, Vietnam enters a new era with new generation free trade agreements (FTA). In addition to the opportunities when FTAs ​​come into effect, the agricultural sector also faces many difficulties and challenges, requiring further restructuring to enhance competitiveness and create more new added values. .

Meanwhile, the world economy has been more unstable and the trade and technology friction between major economies has led to the rise of protectionist trends and increased trade barriers from importing and exporting countries. increasingly higher. The planning of raw material areas, reorganizing production, developing and processing agricultural products, improving product quality, opening markets and overcoming technical barriers have become urgent issues for the agricultural sector. Vietnam.

To meet the above requirements, a range of issues from building sustainable raw material areas, agricultural infrastructure, logistics systems, attracting businesses to invest in the food processing industry and technology upgrades. Processing, supporting management of standards, quality standards and food safety, developing agricultural distribution systems … not only require high efforts of the agricultural sector but also need the support of the community. international, business, actors in the value chain of agricultural production.

Sharing the way of building its material area, UNIDO representative said that defining its strength from harvesting to market, the unit chose small and medium-sized private enterprises to establish chains.

Enterprises are selected in the core material areas to cut intermediate stages, reduce risk costs in the product, and further monitor the input materials. This organizational model has helped improve the organization of production, stabilize product quality, reduce post-harvest losses, and thereby raise incomes for farmers and businesses.

Specifically, UNIDO has established mango chains in the Mekong Delta and vegetables in the Northern Uplands. The result is encouraging when one of the first two enterprises to export mangoes to the US market is from this model. In addition, along with harvesting techniques, the unit's mango product has increased the storage period from 12 to 30 days. Selected enterprises have also connected the material area to 3 times from over 300 hectares to nearly 1,000 hectares. UNIDO hopes there will be more chains on more products next time and larger chains.

Minister of Agriculture and Rural Development Nguyen Xuan Cuong:

Just done a good job opening the market

Vietnam has good capacity in production, however, it is not good in efficiency. Our production capacity at the beginning with small-scale models gathered into very large numbers, but this is only large in quantity, the product is still rough. Such production is not possible for high efficiency, stability and market risk, waste of resources and product waste are a reality.

Therefore, developing centralized materials as to how to be enough for the processing industry is a problem. Currently we create a lot of raw materials, but processing in all sectors a common assessment is still very inadequate. Currently, some industries such as shrimp, catfish, dairy cow … have had a significant development step in deep processing, creating longer-lasting products. However, all aspects from farming, husbandry … most of the value chain are still very short.

Our country's agricultural products have gone to 185 countries in the world with a value of over 40 billion USD, but most of the markets we open are not sustainable, ensuring the size of goods volume and especially risk. very high. This shows that we must make more efforts in the process of market development. Vietnam has done well with the market opening, but also organized market exploitation, struggled to protect the market, and together with the exploitation market, this stage was still weak.

According to danviet.vn

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