Strive to reach export turnover of USD 14 billion in second quarter of 2023

With early forecasts about the difficulties and challenges of the global agricultural market in 2023, the report of the Center for Digital Transformation and Agricultural Statistics (MARD) shows that the total export and import turnover of agricultural, forestry and fishery products in the first three months of the year were estimated at USD 20.6 billion, down 11.2% over the same period last year. Export turnover was estimated at USD 11.2 billion, down 14.4%; import turnover was estimated at USD 9.4 billion, down 7.2%. The agricultural sector had a trade surplus of USD 1.8 billion, down 39.6%.

Pork prices experience a downtrend

Mr. Tong Xuan Chinh, Deputy Director of the Department of Livestock Production (MARD), said that the reduction of live hog prices was not only happening in Vietnam but was actually a global trend due to the disruption caused by the Covid-19 pandemic.

The China market is a prime example. This country's pig price was VND 25,000-27,000/kg higher than Vietnam's in 2022, but now it is on par with Vietnam's at 2.1 USD/kg, equivalent to more than VND 49,000/kg. In a similar manner, live hog prices in the Philippines and Thailand also suffer a decrease.

“The Covid-19 pandemic has pushed up the price of animal feed ingredients without signs of ending. It is impossible to confirm when the price of animal feed will stabilize again, not to mention the purchasing power of consumers is very weak at the moment. Meanwhile, production at household and farm scale has improved, gaining high productivity thanks to the application of technology,” said Mr. Tong Xuan Chinh.

On the side of the MARD, Mr. Tong Xuan Chinh said that the Ministry had directed the Department of Livestock Production to provide guidance on specific technical measures to reduce production costs such as supporting small livestock farmers to mix animal feed and making the most of local raw materials, applying scientific and technical advances, developing livestock production models in accordance with multi-valued goals.

After receiving news of an increase in the price of feed ingredients, the Department of Livestock Production reported to the Ministry and proposed a 2% tax reduction on soybeans and oilseed meals. Livestock associations are providing ideas to fully utilize the niche market of animal feeds. The Ministry of Agriculture and Rural Development has also reported to the Government to adjust the tax rate to 0%.

In the near future, the MARD will direct the Department of Livestock Production to apply policies to support husbandry development, including many aspects of the livestock product value chain.

USD 14 billion in export turnover for the agriculture sector in second quarter of 2023

Having in-depth analysis of the agroproduction and trade situation in the first quarter of 2023, Deputy Minister Phung Duc Tien said, “In the context of difficulties and complications inside and outside the country, the total export and import turnover of agricultural, forestry and fishery products in the first three months of the year was estimated at USD 20.63 billion, down 11.2% over the same period last year. In which, export turnover was estimated at USD 11.19 billion, down 14.4%.”

The MARD assessed that 2023 would be a difficult year. Deputy Minister Phung Duc Tien therefore emphasized the essentiality of synchronous, flexible, creative solutions, constant innovation and expansion of mindset, quick action and real results to open the market. These tasks are considered the most important in the next period.

Regarding market expansion, Deputy Minister Phung Duc Tien noted that potential markets should be put into consideration to prioritize opening. With the assistance of agricultural counselors and ambassadors, the sector’s units can organize business delegations to visit production facilities and learn from foreign experiences.

Deputy Minister Phung Duc Tien state the agricultural industry’s target in the next period: "In second quarter of 2023, the whole industry will strive to reach an added-value growth of 2.9 - 3.0%, with the total export turnover of agricultural, forestry and fishery products reaching an estimate USD 14 billion".