Farm Produce Export Needing Joint Coordination of Related Associations

Since mid-May 2009, Vietnam exported nearly 30 tonnes of dragon fruits to the United States. At present, dragon fruits are making highest export revenues amongst Vietnamese fruits in the United States. The specialty fruit has gradually penetrated US supermarket chains. According to the Vietnamese Ministry of Industry and Trade, the US Animal and Public Health Information System (APHIS) under the Department of Agriculture approved the commercial import of fresh dragon fruits from Vietnam. Apart from dragon fruits, hundreds of tonnes green-skinned grapefruits and Nam Roi grapefruits have been exported to the European Union (EU), Japan, South Korea and other markets. A merchant in Ben Tre province reported to sign contracts to export 200 tonnes of green-skinned grapefruits to the EU in 2009 and has shipped 80 tonnes. The purchasing price of green-skinned grapefruits is now standing at VND24,000 each unit (each fruit weighs 1.5 kilos). Exporters in Ben Tre province said they earned US$8.7 million from coconut fruits and coconut products to China in the first eight months of 2009. A company in Tien Giang province has also sought out the way to penetrate the US market for its fresh citronellas, peppermints, papayas and other commodities. Meanwhile, in the first months of this year, the demand for Vietnamese sweet potatoes and manioc exceeds the supply. China, which holds 80 per cent of global root food output, is seeking root foods in the Vietnamese Mekong Delta. Vietnam’s manioc shipments to China in the first seven months of 2009 rose 85 per cent year on year.

 

More and more Vietnamese farm products are entering global markets. This is a good signal for farmers. Recent forecasts on global farm produce consumption are very positive for farmers. China is now a major market for Vietnamese farm produce. According to Vietnamese Ministry of Industry and Trade, China is estimated to spend US$1,300 billion on imports and the neighbouring country makes up for some 14 per cent of Vietnam’s import and export turnover. The Vietnam Cultivation Department under the Ministry of Agriculture and Rural Development said the global demand for fruits was estimated to jump to 3.6 million tonnes in 2014. The demand for tropical fruits was forecast to increase 24 per cent. The United States is expected to be the largest importer, followed by the EU and Japan. The US and the EU are estimated to account for 70 per cent of global imports.

Currently, Vietnamese agricultural products and fruits have been exported to more than 50 countries and territories in the world. Unique products like star apples and malpighia are expected to help Vietnam boost export markets. The Ministry of Agriculture and Rural Development forecast Vietnam will earn US$760 million from export of fruits in 2010 and US$1.2 billion in 2020. However, a large majority of farm produce exported are unprocessed. Remarkably, the export of fruits remains below expectations. The country earned only some US$350 million in 2008 and US$400 million in 2009. Many companies caused prices of fruits to plunge because they reacted unwisely to the demand. The door to global market has opened but Vietnamese agricultural products need an accelerator which requires joint efforts of many related sides.

 

 

In fact, Vietnam has small average per-head cultivating area but sound agricultural policies not only help ensure sufficient foods for national demand but also create jobs and increase incomes for farmers. This proves that Vietnamese smallholding agriculture still creates high value. However, when Vietnam integrates into the world economy and exports its agricultural products, it exposes many weaknesses in smallholding farming, including substandard international quality and high production price, which lead to competitive reduction. These are attributable to both production practices and export regulation. Moreover, Vietnam needs to restructure its agriculture to expand household production, farm production and co-operative models to create products of higher competitiveness.

 

According to experts, the Vietnamese agricultural production needs to focus on higher commerciality by expanding unit scale. This means that the production basis will be maintained while the process of accumulating land will be carried out. Farmers will interchange their scattered land plots to enlarge their lots. Each co-operative will focus on one key product. This is the foundation to edge up export competition. In a market-based economy, price is the most dangerous weapon. Thus, Vietnam needs to have a larger production output, higher quality and lower product price. Last but not least, it necessitates suitable export regulating policies. Thus, the role of industry associations is very important.

 

Experts pointed out that industry associations are now only focusing on gathering exporters, not farmers - the direct producers. Industry associations only play the role of regulating export, not production. Managing export and production of agricultural products is still overlapped and lack of a general leader. To develop agricultural production sustainably, Vietnam needs to have consistent and united management. Industry associations or industry alliances can be assigned to regulate export and production as they know the demand and capacity of their industries. Associations must ensure benefits of producers and dealers and must protect their members. They must have sufficient information, market orientations and market forecasts. They must transmit such information to producers to help them decide what to be done. They must be professional entities, or in other words, they must have specialists of market, science, technology and production organisation. Besides, they must have sufficient power to regulate from production to consumption, quality supervision and food safety and hygiene. They must present a wide range of concerned entities such as sellers, processors, farmers, technical and farming service providers, material providers, merchants and others. Particularly, they must be responsible for protecting the rights and interests of producers, processors and traders. Thus, the must gather efforts of the State, farmers, companies and scientists.