Join the global supply chain to optimize the value of agricultural products

It is necessary to change the mindset in agricultural development, shifting from agricultural production to agricultural economy. Photo: NT

70-85% of agricultural products are exported raw

With the total export turnover of agricultural, forestry and fishery products reaching more than 29 billion USD in the first 6 months of 2024, an increase of nearly 20% year on year; the proportion of processed agricultural products gradually increased, the consumption market was expanded, and exports increased rapidly in terms of output, value and proportion of high-quality products.

According to Professor, Dr. Thai Dong Soan, National Chung Hsing University, Taiwan (China), to enhance the value of agricultural products, Vietnam needs to start from selecting plant varieties, which not only prioritize plant varieties that only give high yield but need to prioritize plant varieties that produce better quality products and higher economic value also. Based on the climatic conditions, geographical location and soil of each region to vary different fruit and vegetable growing areas, thus promoting the strengths and advantages of each locality. In addition, it is necessary to have training courses to improve knowledge for farmers with the cooperation of the government and cooperative federations, so that each farmer can become an agricultural expert.

Speaking at the seminar "Opportunities and potentials of Vietnam-Taiwan agriculture in developing agricultural product chains", Minister of Planning and Investment Nguyen Chi Dung emphasized that, besides the achievements, Vietnam's agricultural development is still unsustainable. In particular, the growth rate tends to decrease, production and business organization mainly relies on small households, lacks linkage; the quality and efficiency of the collective economic sector and cooperatives are not high. Vietnam's export products have low value and competitiveness compared to other countries in the region, the level of participation in the global supply chain of agricultural products is still not high.

Statistics show that 70% - 85% of Vietnam's agricultural products are exported in raw form or with low processing content. The situation of good harvest but low price is still common, fragmented production, uneven quality of agricultural products, outdated and unsynchronized processing technology, unattractive designs, high production costs, leading to poor competitiveness and price pressure in the international market.

The number of enterprises investing in the agricultural and rural sector is still low, accounting for about 1.3% of the total number of enterprises, most of which are small and medium-sized ones, limited in human resources, finance, science and technology, market development capacity and raw material areas. Due to their small scale, most small and medium-sized enterprises do not have enough resources to invest in purchasing testing and inspection equipment, advanced processing and preservation machinery and equipment. Enterprises and cooperatives have not yet accessed a source of highly skilled experts to support and advise on developing business ideas, perfecting products, etc. Therefore, it is necessary to change the mindset in agricultural development, that is, to shift from agricultural production to agricultural economics. Future growth must be based on new, higher quality varieties, switching to organic, clean products. In addition, the production structure and the way the supply chain is organized also need to change to meet green, sustainable standards, thereby increasing export value.

Linking to produce and consume according to the value chain

To boost the export of agricultural, forestry and fishery products and at the same time increase the value of agricultural products, according to experts, businesses must cooperate to produce on a large scale, synchronously and have links from production, processing to consumption between farmers, cooperatives and businesses.

Dr. Dang Kim Son, former Director of the Institute of Policy and Strategy for Agricultural and Rural Development, said that linking to produce and consume agricultural products according to the value chain is the backbone in restructuring the agricultural sector. The development of linkage chains will lead to the logic division of work for each production object, thereby contributing to increasing added value to ensure sustainable development.

Proposing solutions to develop agricultural product chains, Dr. Ngo Phuong Thao (Dai Nam University) said that in order to enter foreign markets, Vietnam needs to perfect and synchronize the stages in the agricultural product supply chain for export. At the same time, it is necessary to participate more actively in the global agricultural supply chain, especially exporting directly to large distribution systems in developed countries, to increase the added value of Vietnamese agricultural products. Accordingly, it is necessary to build a model of agricultural supply chain focusing on increasing the added value of products from the first stage, and to reorganize production, from the stages of breeding, care, harvesting, and processing, which will be the prerequisites for building an effective export strategy. In particular, the State needs to play the role of referee in a level playing field, with clear policies to facilitate businesses and farmers to sign contracts to buy and sell raw materials, have reasonable planning of processing factories associated with each specific raw material area, and support the building of collective brands and geographical indications for exported agricultural products.

Dr. Ngo Phuong Thao also said that it is necessary to complete the classification of agricultural export growing areas according to each typical product group in each locality. At the same time, encourage production households to participate in the planned areas through capital investment activities, support the conversion of varieties on existing cultivation areas, and provide technical and technological support to farming households to increase productivity and achieve high efficiency. Moreover, the State should focus on building collection points to process all fertilizer and pesticide packages used in agricultural production. At the same time, encourage and support agricultural export processing facilities to apply high technology in the production and processing chain to ensure quality and food hygiene and safety to meet the requirements of importers. Create and strengthen links between members in the agricultural export product supply chain to operate and develop sustainably. Raise awareness of the supply chain and the benefits of members when participating in the agricultural export product supply chain.