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  • Agricultural exports - Change quantity to quality

    Dec 20th, 2016

    As exporter of many agricultural products such as pepper, top, coffee, cashew, rice ... but 90% of the agricultural exports of Vietnam's crude production, poor quality and heterogeneity should significantly decrease the value . In addition, the finished product to the consumer are called foreign brands, so just enjoy the lowest in the product chain.

    Improving the quality of agricultural products

    More than 20 years ago, Vietnam has stopped exporting crude to today become the country's export processing and it leads the world. But what's new in the form of processing, must sell through intermediaries to the new processing used.Currently, this sector is once again "reform" when moving through deep-processing stage to enhance the added value, to be able to supply directly to supermarkets in America (Walmart, Costco, Tesco ...) or Germany as the way that company LS, NH company and several other companies are doing.

    About 20 large enterprises investing deep processing products such as salted cashew noodle, fried cashew butter, seasoning it, it mixes, confectionery articles ... with 15,400 tons capacity / year, others are retail facilities, supply for the domestic market of about 20,000 tons / year. There are 26 establishments nut shell oil processing capacity of 80,000 tons / year and 5 basis cashew shell oil refining capacity of 6,000 tons / year. Though modest compared to the export of hundreds of thousands of tons of people, but it is a positive move in the right direction.

    According to the World Coffee Organization (ICO), Vietnam ranks second in volume after Brazil's coffee exports, but in terms of value at No. 3 after Colombia. Even without the beans yet, but thanks to the deep processing of green coffee imports and re-exports to Germany and Switzerland at No. 4 and 5 of the export value.Association of Coffee - Cocoa Vietnam (Vicofa) said the coffee industry aims to enhance value. Instead of exporting raw coffee beans, are gradually increase the proportion of green coffee processing, was estimated at 30% (compared to 10% today), instant coffee and roasted at 25% yield (vs. more than 11% today), exports reached US $ 3.8 billion - $ 4.2 billion by 2020.

    According to Mr. Luong Van Tu, chairman of Vicofa, coffee processing and exporting only about 4% of total coffee exports (1.7 million tons) but in terms of value accounts for 10%. This year, the value of processed coffee exports may reach 325-350 million. Processing of coffee will increase the coming years as domestic and foreign enterprises continue to invest in this direction. As Vietnam Nestlé invested nearly $ 300 million, Olam, Trung Nguyen, Vinacafe Bien Hoa, Me Home ... is also building or expanding production scale. Tin Nghia Corporation and a number of other domestic enterprises processing project of instant coffee to catch the free trade agreement with the EU, Asian Economic Union - Europe, Korea ... when the tax rate only 0% - 5% instead of 15%. But at present the most feasible is China, an important market for processed coffee from Vietnam. Trung Nguyen, Vinacafe Bien Hoa has been strong exports to this market instant coffee types 2.1 and 3.1. This is a medium-range market, instead of gaining a foothold in the market of processed coffee in the developed countries, which already have large corporations dominate the market.

    As exporter of many agricultural products such as pepper, top, coffee, cashew, rice ... but 90% of the agricultural exports of Vietnam's crude production, poor quality and heterogeneity should significantly decrease the value . In addition, the finished product to the consumer are called foreign brands, so just enjoy the lowest in the product chain.

    Improving the quality of agricultural products

    More than 20 years ago, Vietnam has stopped exporting crude to today become the country's export processing and it leads the world. But what's new in the form of processing, must sell through intermediaries to the new processing used.

    Currently, this sector is once again "reform" when moving through deep-processing stage to enhance the added value, to be able to supply directly to supermarkets in America (Walmart, Costco, Tesco ...) or Germany as the way that company LS, NH company and several other companies are doing.

    About 20 large enterprises investing deep processing products such as salted cashew noodle, fried cashew butter, seasoning it, it mixes, confectionery articles ... with 15,400 tons capacity / year, others are retail facilities, supply for the domestic market of about 20,000 tons / year. There are 26 establishments nut shell oil processing capacity of 80,000 tons / year and 5 basis cashew shell oil refining capacity of 6,000 tons / year. Though modest compared to the export of hundreds of thousands of tons of people, but it is a positive move in the right direction.

    According to the World Coffee Organization (ICO), Vietnam ranks second in volume after Brazil's coffee exports, but in terms of value at No. 3 after Colombia. Even without the beans yet, but thanks to the deep processing of green coffee imports and re-exports to Germany and Switzerland at No. 4 and 5 of the export value.

    Association of Coffee - Cocoa Vietnam (Vicofa) said the coffee industry aims to enhance value. Instead of exporting raw coffee beans, are gradually increase the proportion of green coffee processing, was estimated at 30% (compared to 10% today), instant coffee and roasted at 25% yield (vs. more than 11% today), exports reached US $ 3.8 billion - $ 4.2 billion by 2020.

    According to Mr. Luong Van Tu, chairman of Vicofa, coffee processing and exporting only about 4% of total coffee exports (1.7 million tons) but in terms of value accounts for 10%. This year, the value of processed coffee exports may reach 325-350 million. Processing of coffee will increase the coming years as domestic and foreign enterprises continue to invest in this direction. As Vietnam Nestlé invested nearly $ 300 million, Olam, Trung Nguyen, Vinacafe Bien Hoa, Me Home ... is also building or expanding production scale. Tin Nghia Corporation and a number of other domestic enterprises processing project of instant coffee to catch the free trade agreement with the EU, Asian Economic Union - Europe, Korea ... when the tax rate only 0% - 5% instead of 15%. But at present the most feasible is China, an important market for processed coffee from Vietnam. Trung Nguyen, Vinacafe Bien Hoa has been strong exports to this market instant coffee types 2.1 and 3.1. This is a medium-range market, instead of gaining a foothold in the market of processed coffee in the developed countries, which already have large corporations dominate the market.

    Even with rice, Deputy Minister of Industry and Trade Tran Quoc Khanh said that the need to change the format of thinking through the rice production of goods towards optimal yields. Export 3-4 million tons / year at good prices, equivalent to export 6-7 million tons lower prices. Just do 2vu / year instead of 3 cases / year.

    Organic Product Breakthrough

    There are many occasions to go and capture consumer trends, overseas Vietnamese in Australia - Dr. Nguyen Quoc Vong (RMIT) once advised: "If conditions should go straight to the production of organic agricultural products to enhance value increases for agricultural products. This is high-end segment of the affluent and older, although difficult, but willing to buy high-priced because of food safety issues and health ".

    Sharing the same view, Nguyen Lam Vien, Chairman and CEO Vinamit identification, common agricultural markets in developing countries, almost fully booked for the latecomer country like Vietnam , when the strong group has staked out the market, agricultural products deep processing of Vietnam is hard to penetrate. If so, that product must also accept foreign brand to bring value can not be higher.Participation in trade fairs abroad, especially in the US, retailers are always cautious with products from Vietnam due to the quality of agricultural products equate Vietnam with China, not to ensure food safety. Thus, if the sale of processed products on the market to-eat to go around Taiwan with other brands can be hope.

    The trader explained, because consumers are not assured of quality, to buy insurance with a very high price it is difficult to compete with similar products of other countries. Through research, he discovered Vienna, if the product is certified organic will be more likely to share many geographical balance to invade.

    Earlier last December, received a certificate Vinamit organic farming, organic processing and organic agricultural products according to standards of the US Department of Agriculture (USDA Organic) and European Union (ECOCERT - EU). Such certificates organic certification standards for production lines, processing and packaging at the factory with raw material fruit supply from the company's farms in Binh Duong. Vinamit reached 73 EU Organic items and 81 items of the USDA Organic. Organic Vinamit granted international code full level, after completing all 545 indicators for assessment under the direct supervision of experts in place Control Union, with more than 100 product samples sent tested and rated independent in the Netherlands.

    According to Nguyen Lam Vien, organic certification system is open Vinamit help put agricultural Vietnamese decent entered the North American market, Japan and the EU, which has higher requirements, more stringent nutritional values and environmental care. De Boer Richard, CEO of Control Union, said consumers increasingly more aware of the food choices. By 2015, the consumption of organic agricultural products up to 80 billion dollars and continues to grow future.

    Organic Product Breakthrough

    There are many occasions to go and capture consumer trends, overseas Vietnamese in Australia - Dr. Nguyen Quoc Vong (RMIT) once advised: "If conditions should go straight to the production of organic agricultural products to enhance value increases for agricultural products. This is high-end segment of the affluent and older, although difficult, but willing to buy high-priced because of food safety issues and health ".Sharing the same view, Nguyen Lam Vien, Chairman and CEO Vinamit identification, common agricultural markets in developing countries, almost fully booked for the latecomer country like Vietnam , when the strong group has staked out the market, agricultural products deep processing of Vietnam is hard to penetrate. If so, that product must also accept foreign brand to bring value can not be higher.

    Participation in trade fairs abroad, especially in the US, retailers are always cautious with products from Vietnam due to the quality of agricultural products equate Vietnam with China, not to ensure food safety. Thus, if the sale of processed products on the market to-eat to go around Taiwan with other brands can be hope.The trader explained, because consumers are not assured of quality, to buy insurance with a very high price it is difficult to compete with similar products of other countries. Through research, he discovered Vienna, if the product is certified organic will be more likely to share many geographical balance to invade.

    Earlier last December, received a certificate Vinamit organic farming, organic processing and organic agricultural products according to standards of the US Department of Agriculture (USDA Organic) and European Union (ECOCERT - EU). Such certificates organic certification standards for production lines, processing and packaging at the factory with raw material fruit supply from the company's farms in Binh Duong. Vinamit reached 73 EU Organic items and 81 items of the USDA Organic. Organic Vinamit granted international code full level, after completing all 545 indicators for assessment under the direct supervision of experts in place Control Union, with more than 100 product samples sent tested and rated independent in the Netherlands.

    According to Nguyen Lam Vien, organic certification system is open Vinamit help put agricultural Vietnamese decent entered the North American market, Japan and the EU, which has higher requirements, more stringent nutritional values and environmental care. De Boer Richard, CEO of Control Union, said consumers increasingly more aware of the food choices. By 2015, the consumption of organic agricultural products up to 80 billion dollars and continues to grow future.


    Source: Sai Gon Giai Phong Newspaper