Exporting agricultural products – creating momentum at the beginning of the year

Right at the beginning of 2024, Vietnam’s seafood exports to some markets such as the US, EU, Korea… showed signs of recovery. Rice products are also forecast to continue to be favorable; Vegetables and fruits have prospered since the beginning of the year, in which durian still holds the top position.

Experts predict that seafood exports in the first half of 2024 will recover slightly compared to the low base of the same period in 2023.

In 2023, Vietnam has created a bright spot in the global economic and trade picture. Outstanding are the achievements of the agricultural sector with bold imprints from records. In a difficult economic context, agricultural sector growth still reached 3.83%. This is the industry’s highest increase in the past 10 years. There are more than 10 agricultural products with export turnover of 1 billion USD or more. Many agricultural products have record growth rates such as rice, durian…

Harvest season.

Opportunity for Vietnamese rice

Some rice exporters in the Mekong Delta said that market signals in 2024 are very good. Export activities have been conducted continuously by enterprises since the beginning of the year because world market demand is still high, while supply is limited. Mr. Pham Thai Binh – Chairman of the Board of Directors of Trung An High-Tech Agriculture Joint Stock Company forecasts that rice exports in 2024 can reach over 5 billion USD.

“The price of 5% broken rice is not less than 700 USD/ton. In 2024, the minimum amount of rice exported will be the same as in 2023 but the value will certainly be 15 to 20% higher. In 2023, it earned 4.8 billion USD, then in 2024, rice turnover must be over 5 billion USD” – Mr. Binh commented.

And Mr. Nguyen Van Thanh – General Director of Phuoc Thanh IV Co Ltd., Vinh Long, said that rice prices in 2024 still depend largely on India’s move to consider lifting the ban. However, despite objective factors that are difficult to predict, rice prices in 2024 may still be high. “FAO forecasts suggest that the world will have a shortage of about 5 million tons of rice. Countries also realize this and most recently Indonesia has opened many bidding packages to buy reserves. I believe that the world rice market in 2024 will still be good” – Mr. Thanh said.

According to Mr. Le Thanh Hoa – Deputy Director of the Department of Quality – Processing and Market Development (Ministry of Agriculture and Rural Development), global rice output could reach a record of nearly 520 million tons, while consumption consumption is also approaching 525 million tons. Thus, the world will have a shortage of 5 million tons of rice next year. Furthermore, global rice inventories have decreased to just over 160 million tons, so this is a great opportunity for Vietnam’s rice industry.

In addition, import demand of countries will fluctuate. Some countries will reduce imports such as Brazil, Egypt, Ghana… but some countries, including Vietnam’s major trading partner Indonesia, are forecast to increase imports by about 600,000 tons, or like the Philippines – an important partner. Another important factor of Vietnam in 2023 is estimated to import more than 2.8 million tons of rice, of which 90% of the imported volume is from Vietnam.

Although new signals appear, the seafood industry has set a rather conservative export target for 2024.

Expect new records

In 2023, fruit and vegetable export turnover will reach a record of 5.69 billion USD, an increase of nearly 70% compared to 2022, far exceeding the previously set target of the Ministry of Agriculture and Rural Development. In particular, dragon fruit and durian have become the products with the highest export value with over 2 billion USD. With main markets being China, America, Korea, Japan, Thailand, Australia…

To get those impressive results, one of the reasons people mention as a trend in 2024 is that many fruit and vegetable raw material areas have expanded and farmers have cultivated according to standards. VietGAP, GlobalGAP. As Mr. Dang Phuc Nguyen – General Secretary of the Vietnam Fruit and Vegetable Association said, quality has made a big shift, ensuring criteria for entering many markets. Besides, there is diversity in products with many fruit items that are popular in the world market

Continuing the positive signals of the market in 2024, in the first days of the new year, Vina T&T Import-Export Co., Ltd. coordinated with the People’s Committee of Cho Moi district, An Giang province and departments, branches and localities to announce Exported the first batch of VietGAP green-skinned mangoes to 2 markets: Australia and America.

In Dak Lak province, Nutri Soil Import-Export Joint Stock Company also opened at the beginning of the year with the first batch of more than 10 tons of macadamia nuts officially exported to the Korean market.

Cao Phong orange – a specialty of Cao Phong district (Hoa Binh province) also received good news when the People’s Committee of Cao Phong district coordinated with the Department of Agriculture and Rural Development and businesses to organize a ceremony to export the first shipment of oranges to UK market. Cao Phong oranges are popular in the British market because they meet Global GAP product quality and production process standards.

In 2024, Vietnam’s fruit and vegetable industry is forecast to grow by 15-20%, continue to reach new peaks, possibly surpassing 6 billion USD, and even reaching the 7 billion USD mark. Currently, the Ministry of Agriculture and Rural Development is carrying out many activities to promote the development of Vietnam’s fruit and vegetable industry. Because according to statistics, Vietnam’s fruit and vegetable export turnover only accounts for about 2-3% of the total world fruit and vegetable export turnover. Thus, the potential for this industry is very large. The important thing is how to exploit these potentials well.

Set conservative goals

Unlike rice and other agricultural products, in 2024, the fisheries industry sets a cautious target with total seafood output reaching 9.22 million tons, equivalent to 2023; Turnover reached 9.5 billion USD, a slight increase of 3% compared to 2023.

In 2023, according to the Vietnam Association of Seafood Exporters and Producers (VASEP), seafood exports for the whole year 2023 are estimated to reach 9.2 billion USD, reaching 92% of the plan (10 billion USD). In particular, focusing on main product groups such as: Shrimp export of about 3.45 billion USD; Pangasius about 1.9 billion USD; mollusks about 0.8 billion USD; Tuna is about 0.9 billion USD.

It is forecast that Vietnam’s seafood exports in the first half of 2024 will only recover slightly compared to the low base of the same period in 2023 due to uncertain market demand. The world economy still faces many difficulties, inflation has decreased but has not yet reached the target level of countries, high interest rates… are still factors affecting the global economic recovery. Therefore, consumers will not be truly comfortable in their spending decisions, and global seafood consumption demand is unlikely to increase strongly.

Big challenges remain

Talking about export numbers in 2024, many experts and businesses believe that the agricultural industry’s export target of 54 – 55 billion USD in 2024 is completely achievable, but many difficulties and challenges must be overcome. .

Experts point out that currently, rice and fruit exports are the fulcrum of the agricultural industry. But although rice exports reached the highest record in more than 30 years, the total value of turnover only reached 4.8 billion USD, and fruit reached more than 5 billion USD. Meanwhile, seafood exports once reached 10 billion USD and this year dropped to more than 8 billion USD.

Thus, fisheries are still the focus of the agricultural sector.

Ms. Le Hang – VASEP Communications Director said that in 2024, many difficulties will continue to dominate the situation of seafood production and export. In particular, inflation in major countries has been contained, the world economy has bottomed out, but recovery is slow, affecting demand for seafood consumption. Geopolitical issues in the world certainly disturb global trade, including seafood. Since then, transportation costs have increased and input product prices for aquaculture and seafood processing have increased. It could also cause a new inflationary storm that will affect seafood consumption demand in 2024.

Mr. Ho Quoc Luc – Chairman of the Board of Directors of Sao Ta Food Joint Stock Company commented that in 2024 the shrimp industry will continue to face many difficulties such as inflation causing purchasing power to decrease, the supply of cheap shrimp will still remain. maintenance, the problem of farmed shrimp being attacked by diseases…
“The strength is deep processing capacity, but it is difficult to compensate for the high cost of shrimp farming. Therefore, the ability to operate the shrimp industry in 2024 is only at the same level as last year” – Mr. Luc commented.

​Source: https://daidoanket.vn/xuat-khau-nong-san-tao-da-dau-nam-10271276.html