In the context that all input materials are increasing and the food crisis is spreading, will Vietnam’s rice grain turn its advantage into an even greater opportunity to affirm its brand, raise its value, increase its value, thereby improve the lives of farmers?
While the prices of petrol, fertilizers, pesticides, etc… have increased like never before, farmers in the Mekong Delta still have to cling to their fields to do the noble and sacred task of “Ensuring national food security”.
Lower production costs to increase income for farmers
However, the disadvantage of farmers is the high production cost, but the selling price of rice hardly increases. Therefore, the problem for the agricultural industry is to ensure income for farmers to reduce production costs.
Thus, first of all, it is necessary to reduce input costs such as fertilizers, pesticides, etc., and apply advanced technology to the stages of rice drying, storage and processing to reduce production losses, improve and protect the quality of the rice grain will increase the export price.
Second, rice must be brought into high-end markets, when enterprises export high-priced rice, it will raise the purchase price of rice for farmers.
Vietnamese rice is now present in more than 150 countries and territories and exports about 6.3 million tons of rice per year, but most of it is plain white rice.
According to a report by the Department of Crop Production – Ministry of Agriculture and Rural Development, in the winter-spring rice crop of 2021 to 2022 in the Mekong Delta, rice varieties: aromatic, specialty accounted for 33.29%, and high-quality rice accounted for 49.64%, medium quality rice accounted for 7.12%, sticky rice 8.93% and other varieties 1.02%.
Thereby, it is clear that the structure of rice varieties has shifted from the group of medium quality varieties to the group of fragrant, specialty rice to meet export demand. The story is how to conquer the high-end market?
Vietnamese rice is still “modest” in the US and EU
In 2020, Vietnam’s rice exports to the EU market only reached 58,855 tons. From August 1, 2021, the effective EVFTA Free Trade Agreement has opened up unprecedented opportunities for Vietnamese rice and in 2021, Vietnam has exported nearly 65,000 tons of rice to this market.
In the first 4 months of 2022, the amount of rice exported to the EU market reached over 30,000 tons, worth $23 million. Particularly in the first quarter of 2022, the amount of rice exported to the EU increased nearly 4 times in volume and 4.3 times in value compared to the same period in 2021. It is forecasted that rice exports to the EU will also increase quite well, especially when the quality of Vietnamese rice is increasingly improved, mainly fragrant rice, hitting the tastes of European consumers.
According to the EVFTA commitment, each year the EU gives Vietnam a quota of 80,000 tons of rice, including: 30,000 tons of milled rice, 20,000 tons of unmilled rice and 30,000 tons of fragrant rice. Especially, the EU will completely liberalize broken rice, this commitment helps Vietnam to export an estimated 100,000 tons to the EU annually.
Although the amount of rice exported to the EU market is increasing, compared to the amount of rice that Vietnam is exporting, it still accounts for a very modest rate of 1.58%.
In 2021, Thai rice sold 573,786 tons, while Vietnamese rice sold only 15,235 tons (accounting for 1/37 compared to Thailand). While the US is the market with the highest export price of rice.
Elevate the brand to increase value
As a powerhouse of rice exports, Vietnam’s rice brand has been registered in many countries. However, the weakest point of rice is also the brand problem.
Why do Thai enterprises exploit the world’s delicious rice brand ST25 more effectively than Vietnamese enterprises? This is a big question.
So, is rice from Thailand more prestigious than from Vietnam? Like made in Thailand, why is it more successful than made in Vietnam?
That is the trust of consumers, of the market. When consumers have faith in a brand, that brand will become a brand, from a business’s brand after a long time, it will become a national brand. The brands of the US, Japan, UK, etc… have stood firm in the global market for many decades thanks to that.
There have been many Vietnamese enterprises interested in exporting to foreign markets with their own brands, such as A An rice brand of Tan Long Group is a typical example. After a period of time building A An rice brand in the domestic market, the success in the domestic market has allowed A An rice to reach the world market, and recently A An rice has been successfully exported to Vietnam. fastidious markets such as Japan and Germany, etc…. In the future, A An rice will be introduced into the supermarket system in Europe.
Decoding the bottlenecks of rice
“Opening up the flow of Vietnamese rice grains” is the topic of the seminar that will take place on June 22, 2022, at Muong Thanh Hotel, Can Tho City, organized by Business Life (Labour and Trade Union Magazine) organized in collaboration with Can Tho Promotion Agency (CPA).
The workshop will consist of 2 sessions:
Session 1: Sustainable rice production, increasing profits for farmers.
Session 2: Solutions to remove bottlenecks in the rice supply chain, increasing the value of Vietnamese rice grains.
With the participation of speakers from the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the Mekong Delta Rice Institute, businesses in the rice industry from production, processing to export will sit down, discuss, identify bottlenecks, at the same time look for solutions to remove, actively link and share experiences so that Vietnamese rice grains are raised and valued in the international market, farmers peace of mind with the fields, the rice industry develops in a sustainable way.
For more information, please contact: Reporter Nguyen Huyen 091.8420635
Register for the seminar: Ms. Tran Hoa 098.9138129.