How to upgrade the rice exports ?

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The rice export in first10 months of 2016 has dropped sharply in both volume and quality

Return does not mean unsafe

Recently, information on return of many rice shipments exported to the US market has caused a lot of concerns. With an official response to this problem, Mr. Hoang Trung – Director of Plant Protection Department (Ministry of Agriculture and Rural Development) said that: According to the statistics of the national phytosanitary system, lately, there have been 29 rice shipments returned by the US, in which most shipments have been returned as a result of a breach of packaging or signed contracts of exporters. Only 6 of 29 shipments have been returned due to containing pesticide residues. However, this does not mean of rice exported to the US is unsafe. Because the US has not regulated a permitted maximum residue level of some plant protection substances, if they detect pesticide residues, even small or large, the imported goods will be returned immediately.

“ To solve this problem”, Deputy Minister of Agriculture and Rural Development, Mr. Tran Thanh Nam led a delegations to the US and got positive feedback. Particularly, the US has agreed to assist Vietnam to develop regulations on the maximum residue level of some primary plant protection substances in rice. At present, the Plant Protection Department is collaborating with some US agencies to deploy those regulations. Some plant protection substances are listed in the regulations for use in Vietnam but not listed in the regulations of the US, the Plant Protection Department will direct farmers to minimize, even not use plant protection substances to prevent the return of exporting goods”. Mr. Trung said.

Mr Trung also recommended that: for the US market in particular and many rice export markets in general, before export, companies should bring the samples to the competent laboratories to test for residues of plant protection substances in rice and whether they will be accepted by the export market.

Talking with a reporter of the Customs News around this matter, agricultural expert, Mr. Vo Tong Xuan said the root cause that makes Vietnam’s rice exports meet obstacles in the high-end and "strict" markets, especially the United States is due to the rice production having a lot of shortcomings. The farmers normally grow many different kinds of rice together. It is remarkable that during rice growing, the farmers often abuse fertilizers causing a lot of pests. The more the pests, the more the use of plant protection products that makes rice quality control more difficult.

“After finishing the harvest, rice is collected by traders and then rice exporters will collect rice from those traders that make exporting rice not only mixed kinds but also raises questions of food safety. Most companies collect miscellaneous materials from traders, even big rice exporters like Vietnam Northern Food Corporation (Vinafood 1) and Vietnam Southern Food Corporation (Vinafood 2)” Expert, Mr. Vo Tong Xuan said.

Making ceaseless efforts

Many people said that the popular “picture” for Vietnam’s rice exports is always on the top of quantity, but mainly export to low-end rice markets with low value, unable to compete with rice from Thailand and Cambodia etc, In order to upgrade its position, even “change its look”, weaknesses on quality should be changed step by step. On this matter, Deputy Director Department of Cultivation, Mr. Nguyen Nhu Cuong further analyzed: In fact, the rice of Thailand and Cambodia is exported in accordance with segments including high-end market and mass market. The most typical is that recently, both countries have attended bidding for rice export to the Philippines.

Regarding the upgrading for Vietnamese rice, the seeking of solutions to proceed deeper into the premium rice markets, according to Mr Cuong, the Government has approved the Vietnamese rice branding program; appointing the Agro-forestry Processing and Salt Industry Department (Ministry of Agriculture and Rural Development) as chair. Currently, branding contents and plans are being encouraged to deploy. Considering research, the Ministry of Science and Technology and the Department of Cultivation have also developed a National Products Program, which focuses on selecting and developing high quality rice seeds such as aromatic rice seeds, and jasmine rice seeds for high-end markets. In this program, especially we have to take account of the implementation of farming technique packages to create high-quality rice seeds, while reducing costs, competing rice of other exporting countries. In the future, the target set is Vietnam may export rice with a price of $US 600-700 thousand per ton. "In addition, the Department of Cultivation has also developed, and approved the rice industry development project. With the overall moves above, we absolutely hope that in the future, Vietnam’s rice production industry may reach sustainable development, especially export will proceed deeper into the high-end market to improve its value, “Mr. Cuong said.

Vietnamese rice export in 2016 forecast to drop Vietnam rice export is estimated to drop to 5 65 million tonnes in 2016 down 14 percent ...

Expert Mr. Vo Tong Xuan has suggested that wanting a sustainable rice production and export industry, besides deploying plans and solutions, for long time, the State should also have appropriate policies and timely recommendations for companies to raise their awareness and reasonable investments for rice production to ensure the quality for all stages such as seeds, the using of fertilizers, plant protection products….to manufacture qualified goods.