Critical Linkage Between Farmers and Exporters to Promote Sustainable Rice Export
Published on: January 12, 2024.
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VIETNAM, January 11 – HÀ NỘI — Việt Nam’s rice export industry had a successful year in 2023, but there are still some challenges that need to be addressed in order to ensure its sustainable growth. One key aspect that needs improvement is the link between farmers and exporters, as this will help develop large-scale high-quality paddy fields for rice export.
According to statistics from the Ministry of Agriculture and Rural Development, Việt Nam exported 8.29 million tonnes of rice in 2023, bringing in a value of $4.78 billion. This represents a 16.7% increase in volume and a 38.4% increase in value compared to 2022. These figures are the highest since 1989, when rice export first began in Việt Nam.
Lê Thanh Tùng, Deputy Director of the ministry’s Department of Crop Production, highlighted that the global rice market faced supply shortages in 2023, which posed a risk to global food security. There were also concerns about a potential ban on rice exports from Việt Nam, similar to what happened in 2008 and 2021. However, appropriate solutions were implemented to take advantage of market opportunities while ensuring food security and increasing farmers’ income.
Phạm Thái Bình, Chairman of Trung An High-Tech Farming Joint Stock Company, pointed out that Việt Nam’s rice export had favorable market conditions in 2023 due to increasing global demand and limited supply. The ban on rice exports by India also led to record-high rice prices in the global market. Việt Nam was able to capitalize on this situation because of its focus on improving rice quality and yield, despite a decrease in cultivation area.
On average, Việt Nam produces 43-35 million tonnes of paddy per year, which is equivalent to 26-28 million tonnes of rice. However, there were some unsustainable factors exposed during the record-breaking rice export. The weak linkage between farmers and exporters was one of the main reasons for this. Many exporters incurred losses and even went bankrupt due to the unpredictable rise in rice prices, while farmers benefited from good harvests and prices.
To address this issue, it is crucial to enhance the linkage between farmers and exporters. However, high costs and the need for a large volume of cash to purchase rice during the harvest season pose challenges for enterprises. The government’s support policies are essential in overcoming these obstacles.
Provinces like Đồng Tháp and Long An have seen limited cultivation areas under the linkage between farmers and enterprises. This scattered production makes it difficult to apply advanced farming techniques and promote the transition to low emission. To ensure sustainable export, it is essential to establish linkages and produce according to market demands.
The government has already initiated a project for the sustainable development of one million hectares of high-quality and low-emission rice cultivation in the Mekong Delta by 2030. This project encourages linkages and high-quality production. However, more support policies, especially in terms of credit, are needed to incentivize all parties involved.
Experts in agriculture, such as Võ Tòng Xuân, emphasize the benefits of the linkage between farmers and exporters, including quality assurance, price stability, and brand establishment for rice. This linkage also promotes the reorganization of Việt Nam’s rice value chain.
In conclusion, Việt Nam’s rice export industry had a successful year in 2023. However, in order to ensure its sustainable growth, it is crucial to enhance the link between farmers and exporters. This will help develop large-scale high-quality paddy fields and address the challenges facing the industry. With the government’s support and the implementation of appropriate policies, Việt Nam can continue to thrive as a major player in the global rice market.
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