VOV.VN – A Long An cooperative boldly sent people to the Middle East to learn about wholesale markets, open an office and directly sign contracts to supply lemons to many countries in the Middle East region, creating a step forward stable, bringing high value to this agricultural product.
Maximize profits, reduce risks
Recently, the export of lemons in Long An had to go through 5 large enterprises in Ho Chi Minh City and Can Tho. These businesses decide export prices, causing lemon growers to suffer many disadvantages. Therefore, the fact that a local cooperative boldly sent people to the Middle East to learn about wholesale markets, opened an office and directly signed contracts to supply lemons to many countries in the Middle East region has created a stable step, bringing high value to this agricultural product.
After more than 1 year of penetrating the Middle East market, up to now, the transaction office of Ben Luc Agricultural Service Cooperative, Long An at the Dubai wholesale market was formed.
Mr. Phan Thanh Liem was sent by the Cooperative to Dubai (United Arab Emirates – UAE) to be in charge of this representative office. His main job is to be present at the Dubai wholesale market every morning to update and explore the demand for agricultural products and spices in the Middle East.
According to Mr. Liem, this wholesale market is a gathering place for most imported agricultural products, including lemon products from other countries for transshipment to UAE localities and neighboring countries. Being present at the market helps him promptly grasp information, thereby flexibly and proactively negotiate prices with partners and then report to the cooperative.
Through the contact of Mr. Liem and a number of local associates, many shipments of lemons and other agricultural products from Long An were smoothly exported to the Middle East market.
“Not only lemons, but also flexible to bring in other agricultural products that local people have demand for. When the price of lemons is good, we bring a lot of lemons. When the price and output are low, we combine dragon fruits, coconuts, guavas… through a trading company in Dubai to deliver directly to customers. This increases profits, increases competitiveness, and greatly limits fraud and price gouging. At the wholesale market here, there are actually many scams,” Mr. Liem shared.
From the date of setting up an office in early 2024 until now, Ben Luc cooperative has directly exported 8 to 10 containers of lemons to the Dubai wholesale market each month, each container containing 24 tons of lemons. According to Mr. Tran Duy Thuan – Director of the Cooperative, although in recent times, market fluctuations and the war situation in the Middle East have made import and export activities difficult, especially logistics transportation… but the Cooperative Always be proactive. Negotiating directly with customers from the Middle East, output and prices are always stable.
“If there is no war, demand from the Middle East is one of the very important markets for the cooperative’s lemons. Because this market accounts for 70-80% of Ben Luc’s lemon export output. Goods are exported and imported into Dubai and then spread to the countries of Oman and Qatar… consumption is still mainly concentrated in Dubai,” Mr. Thuan said.
Open potential markets
Currently, the area of Vietnamese lemons is mainly concentrated in Long An, with more than 11,300 hectares, of which the largest is in Ben Luc district with more than 7,100 hectares, over 5,000 hectares are producing fruit. The remaining lemon area is concentrated in Thanh Hoa, Thu Thua, Duc Hue districts… The price of lemons with seeds at this time is 19,000 VND/kg and seedless lemons are 11,000-14,000 VND/kg.
According to Mr. Le Van Nam, Head of the Department of Agriculture and Rural Development of Ben Luc district, in the first 6 months of 2024, lemon production in Ben Luc is estimated to reach 36,000 tons. State agencies are continuing to support businesses and cooperatives in the area in guiding farmer households and cooperatives to produce lemons in an organic direction, ensuring food safety and effective consumption linkages.
The most difficult thing for lemon trees and other crops right now is not the output but the complicated situation of climate change and drought and salinity…
In Ben Luc area, there are about 780 hectares of lemons affected by saline drought. Regulating the amount of irrigation water at night is one of the effective solutions to maintain lemon production for markets.
“Having understood the El Nino phenomenon in 2023 – 2024 in advance, the locality also proactively issued plans, thereby also promoting propaganda for farmers to proactively store water for economical irrigation during the drought and salty season. Then apply general measures such as applying organic fertilizer 2-3 months in advance, then agree to keep grass around the base, do not weed around the lemon base to retain moisture…”, Mr. Le Van Nam said.
According to Ms. Dinh Thi Phuong Khanh, Deputy Director of Long An Department of Agriculture and Rural Development, by 2025 lemon trees will be identified as one of four crops that will bring a breakthrough to the province’s agricultural sector. Up to this point, Long An lemon raw material area has formed 3,000 hectares of high-tech production with 165.5 hectares of VietGAP and 220 hectares of GlobalGAP. Of which, Long An has 41 growing area codes and 31 packaging codes.
Lemon farmers are gradually trained in professional production to build raw material areas that not only serve the domestic market, China, but also demanding markets such as the EU, UK, Russia, New Zealand, and Hanoi. Lan and Middle East… Farmers and cooperatives proactively linking their presence in wholesale markets outside Vietnam are highly encouraged and supported by local authorities. Long An province has also repeatedly connected and sought support from overseas commercial counselors and the Ministry of Industry and Trade to help agricultural trade activities run smoothly and in accordance with regulations.
“The commercial counselors are committed to supporting Long An businesses when opening representative offices abroad. The province also continues to be a bridge for businesses to receive support and support from counselors. Especially getting legal advice, as well as having the support of many other conditions to ensure operations in accordance with the laws of Vietnam and other countries,” Ms. Dinh Thi Phuong Khanh added.
Long An has gradually asserted its lemon product brand in demanding markets. The industry, trade and agriculture sector of Long An province is promoting market forecasting activities, linking with businesses, and trade promotion to expand consumption, increase the value of agricultural products as well as always create new motivation for Farmers and businesses invest more effectively in production and export.