An Phong Dak Nong Investment and Export Import JSC: Improving Agricultural Value Chains

5:18:00 PM | 5/3/2015

Founded in 2005 with the main business scopes of processing and exporting agricultural products, An Phong Dak Nong Investment and Export Import Joint Stock Company has made a constant effort to raise the sustainable value of local agricultural products, thus significantly contributing to the development of the agricultural sector in particular and of Dak Nong province’s socioeconomic development in general.
According to Director Nguyen Nho Ly, seeing that the investment environment in Dak Nong province is very attractive with a lot of advantages for agricultural development, particularly coffee and pepper production, the company decided to choose Dak Nong province to locate its production and business base. The company has to date had stable operations and affirmed its position in the locality. In 2014, An Phong Dak Nong Company decided to build a coffee processing facility with an annual designed capacity of 50,000 tonnes and a pepper processing plant with a yearly capacity of 10,000 tonnes. The two projects aimed to build the brand name of local key agricultural products.
Remarkably, the construction of a white pepper processing plant was a bold decision as it required strict production processes and careful technical investment to ensure the premium quality and flavour of Dak Nong pepper. With the support of local government, the plant is expected to go into operation in the first quarter of 2015.
An Phong Dak Nong Company is also preparing to establish a coffee and pepper value chain project as guided by the Provincial People's Committee. With this project, the company will build a self-contained production process to turn out high-quality, well-branded products that meet safety standards and international certificates. The firm is considering investing in pepper oil production - a unique product that has been ignored by domestic enterprises. These factors will shape value-increasing, branding and export promotion goals.
The firm is applying for 10-20 ha of land to start its self-contained agricultural production processes towards sustainable development. The zone will plant crops and apply new technical advances to tending, harvesting and preserving products. It will sign contracts with farmers to provide seedlings, advise on farming techniques, and acquire products for processing. Nevertheless, this linkage is very volatile. Director Ly said the company admitted 2,000 households with 5,000 ha of coffee to its value chains. In 2015, it will continue assisting farmers to carry out products with certified products, specially pepper. To strengthen this cooperation, the company needs more policy supports from local authorities.
To expand coffee production and processing scale in Dak Song, the company, with annual revenue of more than VND3,000 billion, invested more than VND50 billion to build modern facilities for high-quality product processing for export. Due to hard capital access, the firm hopes local governments will assist it to borrow money more easily to carry out its projects to raise agricultural efficiency and improve livelihoods for farmers.
Thanh Mai