HIGHLIGHTS
- According to most businesses, to maintain the supply chain, they need to be twice as proactive as before to grasp and comply with all local epidemic prevention regulations.
- In order to maintain exports, many businesses often prepare a large number of input materials for production to cope with the disease that may persist for a long time.
FULL ARTICLE
Agricultural export enterprise efforts to maintain the supply chain
In order to have enough materials for 2 durian processing factories in Nha Trang and Ben Tre, Chanh Thu Fruit Import and Export Co, Ltd has just established 2 new branches in Dak Lak. It is worth mentioning that in charge of these two branches are local traders. They represent businesses to purchase products. Previously, cooperatives only knew how to plant, but now have more tasks of harvesting, selecting, and preliminarily processing products. They expect this year to buy about 15,000 tons of durian in Dak Lak for export.
With Vina T&T Group Import-Export Company, they often have to go to the provinces to buy agricultural products. Currently, they always have to proactively work first with the departments of each province to understand the regulations on prevention of the Covid-19 epidemic, and then think about organizing the purchase.
According to most businesses, to maintain the supply chain, they need to be twice as proactive as before to grasp and comply with all local epidemic prevention regulations.
Market diversification to reduce logistics costs
Enterprise collaboration with traders and cooperatives to be more favorable in the purchase of agricultural products. However, it is still difficult to bring agricultural products to the export market.
The increase in sea and air freight rates, an average of 5-7 times higher than before, is directly affecting the activities of businesses.
For example, the price of 1 kg of early-season longan meeting EU export standards is about 70,000 VND/kg, but logistics costs have reached 200,000 VND/kg, which means that the payment for logistics alone is 2.5 times higher than the price product. This explains why many agricultural enterprises are forced to cancel orders to markets that are too far away such as the EU, the US or spend too much on logistics costs and look for new markets, especially Northeast Asian markets like China. China, Japan, Korea.
According to the Ministry of Industry and Trade, in 2 months back, the counseling session consultation online market, because they held, has attracted hundreds of enterprises to participate, and the markets in North Asia, Southeast Asia more business industry towards.
Processing and storing until it is convenient to export goods, avoiding the risk of too high logistics at this time is also the way some businesses take into account.
In order to maintain exports, many businesses shared that they often prepare a large number of input materials for production to cope with the disease that may persist for a long time.
COVID-19 is creating a big challenge for this year’s goal of exporting vegetables and fruits of 4 billion USD. Many agri-businesses have suggested that there should be incentives in terms of capital to purchase agricultural products for the people on the one hand, and on the other hand to set up a processing and storage center for agricultural products to reduce seasonal pressure for both businesses and farmers people.
Hong Dao
FURTHER READING:
“Put on the scale” – Vietnamese agricultural products reaching out to the world
