June 29, 2022 | 13:22 GMT +7

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Wednesday- 14:56, 08/06/2022

Agriculture industry employs strategies to adapt to market fluctuations

(VAN) MARD came up with many strategies to respond to the market swings. Thereby, agriculture export in the first five months of the year reached USD 23 billion, and trade surplus achieved USD 5.1 billion.

Production attaches to the market

To enhance production organization attached to agricultural consumption, the Ministry of Agriculture and Rural Development has collaborated with other ministries, sectors, and localities to regulate production scale and structure to match the strength, market needs, and climate change adaptability.

Prime Minister Pham Minh Chinh visits the OCOP booth at the Son La Fruit Festival in 2022. Photo: Nguyen Chuong.

Prime Minister Pham Minh Chinh visits the OCOP booth at the Son La Fruit Festival in 2022. Photo: Nguyen Chuong.

The ministry also directs the construction of close and synchronous relationships between producers and companies in processing, product consumption, coordinating research, anticipating market supply and demand, and timely providing to localities, businesses and people adjust output appropriately.

As a result, the system of production groups, notable cooperatives, plays an increasingly vital role, especially in agricultural and rural development. Especially the task of coordinating farmers to produce according to safe processes and internal supervision of product quality.

In particular, in the first five years of 2022, there were 456 newly-established agricultural cooperatives, uprising the total number of agricultural cooperative associations to 77, over 18,500 agricultural cooperatives, of which 60 percent were graded well.

Besides investments and development of medium and small firms, large corporations and enterprises have supported investments into agriculture, becoming fundamental pillars of the value chains including Nafoods, Dong Giao, TH, Doveco, Dabaco, Masan, Vinamilk, Lavifood, Ba Huan, Bien Dong among others.

The structuring of production connections according to commodity chains has underlined the right direction of modern agricultural production, evolving in a variety of forms and levels. Specifically, to date, the country has over 6,925 agricultural linkage networks; attracting the involvement of 293 scientific institutions, 4,393 cooperatives, 777 cooperative groupings, 1,910 companies, and approximately 700,000 farmer families.

Regarding the production organization attaching to standard and concentrated material area development, MARD adopted the "Scheme on piloting establishment of standard agro-forestry raw material areas serving for domestic and international demand in the period of 2022-2025".

The project focuses on creating concentrated raw material areas in 14 provinces across the nation with key force products being fruiters, rice, coffee, forests, and seafood (shrimp). 

The Ministry of Agriculture and Rural Development is constantly looking for new markets, stepping up negotiations to open markets, and promoting agricultural products. In the photo: Minister Le Minh Hoan presents a gift of Vietnam's OCOP products to Mr. Carter Roberts, President and CEO of World Wildlife Fund in the United States within the framework of the working visit to the United States with Prime Minister Pham Minh Chinh from May 11-17 Photo: Le Trung Quan.

The Ministry of Agriculture and Rural Development is constantly looking for new markets, stepping up negotiations to open markets, and promoting agricultural products. In the photo: Minister Le Minh Hoan presents a gift of Vietnam's OCOP products to Mr. Carter Roberts, President and CEO of World Wildlife Fund in the United States within the framework of the working visit to the United States with Prime Minister Pham Minh Chinh from May 11-17 Photo: Le Trung Quan.

It also consistently seeks new markets, strengthening negotiations to grow the market, create forms of production connections, and product consumption according to the value chain.

Numerous delegates have been sent abroad to promote, trade, and expand agricultural product markets in niche and prospective markets. Contributing to the total export turnover of agricultural, forestry, and fisheries goods in the first five months of 2022 increasing by 16.8 percent to USD 23.2 billion, the trade surplus reached USD 5.1 billion, a 3.1-fold increase compared to the same period last year.

Shifting the mindset to an agricultural economy

In response to price fluctuations in some agro, seafood, animal feeds, and agricultural material goods, MARD recommended a number of market stabilization measures.

The ministry has consolidated the Steering Committee for Agricultural Product Market Development and established thematic working groups to actively support information connection between production and consumption of agricultural products; capture output during periods of peak harvest and market demand in order to cast orientations and scenarios to promote consumption, limit oversupply, and lower prices.

In the last year, the input raw materials of agricultural production have relied mostly on imports, and the Covid-19 and Russia-Ukraine conflicts have disrupted the value chain, driving up the prices of supplies, production expenses, and product prices.

To address the issues, MARD instructed local governments to manage production organization and seasonal crop plans in accordance with weather conditions and market signals, therefore assisting farmers in generating more predictable income and profits.

Promoting community agricultural extension in the direction of "cutting expenses - improving quality" is another beneficial method; guiding people to farm properly, minimize input materials, and utilize agricultural byproducts.

In terms of information, the MARD has increased the openness of pricing and market information; communication to raise awareness and provide suggestions on production to ensure the balance of supply and demand, and to restrict the market surplus of commodities.

Total export turnover of agricultural, forestry, and fishery products in the first 5 months of 2022 reached 23.2 billion USD, up 16.8%, and trade surplus reached  USD 5.1 billion. Photo: Vietnamese Embassy in Japan.

Total export turnover of agricultural, forestry, and fishery products in the first 5 months of 2022 reached 23.2 billion USD, up 16.8%, and trade surplus reached  USD 5.1 billion. Photo: Vietnamese Embassy in Japan.

Throughout the difficulties of Covid-19, the Ministry held conferences linking the consumption of local agricultural specialties to the domestic market, particularly in major cities such as Hanoi and Ho Chi Minh City.

Through significant events such as fairs, exhibits, and market fairs, the agricultural business regularly organizes trade promotion, introduces and promotes high quality, safe, organic agricultural goods, OCOP products...

In the near future, MARD will adopt the "Agricultural product supply and demand database management system" as a tool to monitor supply and demand, consequently giving the necessary scenarios and intervention solutions to control supply and demand for each commodity group and area.

Concerning the issue of rising input costs, the Ministry will continue to offer solutions to overcome the shortage of seeds and agricultural materials for production; increase the use of concentrates, reduce roughage, and maximize by-products in the production and processing of agricultural products.

Facilitate procedures

Reforming administrative procedures, encouraging investment, and enhancing the business climate have been the Ministry of Agriculture and Rural Development's top priorities in recent years.

The estimated savings from the simplification and elimination of administrative procedures are close to VND 2 trillion. As a result, agricultural enterprise forces are becoming more robust and more interested in investing in agriculture and rural regions, which are at the center of the agricultural goods' value chain.

There are currently 14,800 businesses investing directly in agriculture across the nation. In addition to the growth and investment of small and medium-sized businesses, a number of big businesses and companies have encouraged investment in high-tech applied agriculture.

Adopting technologies to improve the value

The Ministry of Agriculture and Rural Development encourages and creates favorable conditions for research and application of technologies to create safe and high-quality agricultural products along three product axes: I National key product group; (ii) Provincial key product groups; and (iii) Local Product Group (OCOP).

Currently, high technology and sophisticated technology are utilized at every stage or across the whole agricultural production chain.

The nation has established approximately 2,000 cooperatives utilizing advanced technology. Vegetables, fruits; development of plant types; flowers, mushrooms; raising chickens, pigs, dairy cows, and aquaculture; processing and preservation of agricultural goods are the production areas that have adopted advanced technology.

Author: Tung Dinh

Translated by Linh Linh

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