Flour enterprises are worried about losing tens of millions of dollars because of regulations ... weed prevention

Text of Department of Plant Quarantine Region I. Photo: N.Hiền

This is the information given at the seminar "Difficulties of Vietnamese enterprises when importing wheat" organized by the Ho Chi Minh City Food Association held on 8/8.

Regulation "the sky is falling" In recent days, enterprises import wheat and flour production as "sitting on the fire" after receiving the letter from the Department of Plant Quarantine Region I on the re-export of lots of quarantine objects which are listed to be kept in quarantine infested with the weed, Cirsium arvense (in Vietnamese).

Accordingly, the Official Letter from the Plant Quarantine Sub-Department signed by Director Nguyen Trung Ha on 5/9/2018 stated: “Following the instructions of the Plant Protection Department, starting from 1 January 2018 Cirsium arvense weeds will be subject to re-export treatment. At the same time, the Plant Protection Department shall report to the Ministry of Agriculture and Rural Development for consideration and issue a decision on temporary cessation of the import of articles of plant protection subject to Cirsium arvense ". Mrs. Ly Kim Chi, Chairman of the Food Association of Ho Chi Minh City, stressed that the above regulation would cause terrible damage to not only wheat importers and wheat producers but the entire commune Assembly. Specifically, food producers using flour, from bread, dumplings, candy, shrimp noodles, fast food ... will be affected by this regulation. However, the question is whether the above regulation is necessary. According to experts in the discussion, this is not necessary.

Dr. Tran Duy Khanh, director of the APEC Institute for Business Studies and Training and an expert in the field of agriculture, asserts that Cirsium arvense is completely harmless to human beings; it is only in competition for nutrition with field crops. There is no report of the growth of this grass in Vietnam although wheat has been imported from enterprises for decades to produce flour. Mr. Phan Thanh Hieu, deputy general director of Binh An Flour Mill said that wheat infected with weeds is not a new problem. Over time, wheat importing companies have found many shipments with this grass and are still able to put it into production, but they do have strict controls. Specifically, wheat is passed through machinery to remove impurities (including weeds) prior to production of wheat flour. For the removed impurities, the company will invite representatives from the plant quarantine department to carry out the culling and this process is being applied very well. Commenting on the fact that businesses can find alternative sources of wheat which is weed infected, businesses are saying that this is not possible. Because the cultivation of wheat in Vietnam is not very effective, while each land has different characteristics, wheat has different characteristics. Le Van Vu, deputy general director of Binh Dong Flour Company, said that in Binh Dong there are products that are required to use US wheat but it is impossible to replace with rice from other places.

Moreover, in the opinion of businesses, the signing of the supply contract has to go through a long period of negotiation, so it can not immediately have an alternative source, and November 1 is fast approaching.

Meanwhile, Mr. Tran Duy Khanh gives evidence of documents of the Plant Protection Department to MARD, which lists more than a dozen countries that have recorded Cirsium arvense weeds. Thus, most of the wheat producing countries have the appearance of Cirsium arvense. Therefore, businesses will almost have to go "hand in hand" to buy wheat which is not infected with Cirsium arvense weeds. Terrible damage "According to the market principle, where it is cheap and good quality, wheat is bought. But with this regulation, enterprises may have to buy expensive goods and quality is not equal," Chi said. Mrs. Kao Huy Phuong, vice president of ABC Bakery, said ABC Bakery uses 13 tons of wheat per day, which can reach up to 20 tons per day. The company is still using local suppliers' flour. However, according to Mrs. Phuong, if flour mills cannot import wheat due to weed regulations, it is likely that the company will have to import flour from overseas at high prices and added costs. These charges will be added to the production cost and the consumer is the victim.

Huynh Kim Chi was worried about the shipment of more than 200 billion that is on the way. Picture: N.Hiền

Mrs. Phuong added that from the beginning of the year Vietnam exported more than 200,000 tons of wheat to markets like Thailand. No import of wheat means that there would be no wheat flour for export. . Representatives of Viet Quang Company also said that each ship imports wheat weighing 30-50 thousand tons, worth about $ 20 million (equivalent to nearly 500 billion VND). If forced to re-export, the damage will be extremely large. Feed industries can be replaced by maize and cassava, but the food industry alone cannot be replaced.

Mrs. Huynh Kim Chi, Chairman of the Board of Directors of the International Flour Mill Company, said that the company is importing a wheat ship worth over 200 billion dong and goods are on their way to Vietnam. If forced to re-export, the damage is not only above 200 billion, but also the livelihoods of more than 500 workers when the plant must stop operation due to lack of raw materials, and the market will not have consumer goods...

Mr. Pham Van Binh, representative of Tan Long Company, also added that in the contract of supplying goods there is no provision on the percentage of grass seeds in wheat. Therefore, the unilateral termination of business contracts may also be subject to a contract penalty...

Meanwhile, Phan Thong Cuong, a representative of the wheat flour company, said the company had contacted suppliers to ask them to remove the grass seeds from wheat before exporting to Vietnam. But the suppliers refused because the process of harvesting is in the industrial mode, the investment of machinery for the above process is also costly.

According to experts and businesses, Ly Kim Chi said that the Food and Foodstuff Association of Ho Chi Minh City will send a letter to the Ministry of Agriculture and Rural Development discussing the grounds for issuing the above regulation of the Plant Protection Department, and regarding the consequences to business and society. At the same time propose the cancellation of the above provisions. Then, if MARD fails to respond, the Association will continue to petition the Prime Minister to be able to solve this problem before 1/11.