Sharing of FMC leaders about "three on-site" measures

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Seafood processing at Sao Ta Foods JSC (Photo from the company)

According to Luc, it is not certain how long the three on-site model will take place, the process of preparing has incurred many costs for businesses.

Luc said that conducting the three on-site model involved reorganizing business activities on a more compact basis, because when building factories there was not any accommodation on the premises. Accommodation when implementing three on-site is the use of space in the factory, warehouse, and office, so there can't be much room and it can't be for a long-term period.

Implementing the three on-site model, enterprises have to rearrange their production lines to suit the new circumstances and prepare for arising situations.

Additionally, for employees to feel secure to stay at enterprises, it is necessary to ensure minimal utilities, even Wi-Fi, so that they can access the internet. To ensure safety, the disease screening of workers must be focused, promoted, and strictly enforced.

When the costs increase sharply, how can the three on-site ensure good profits? The only way is to reduce a certain cost, if possible, especially when raw materials account for a large proportion of the product's cost. For the shrimp processing industry, the solution is to lower the purchase price of raw shrimp during the three on-site period.

The shrimp value chain consists of many links and small chains in each link. The shrimp value chain focuses the most on farming, processing, and supplying to distributors. These important links exist and develop in resonance and are indispensable for each other. Realizing this essential issue, the purpose of the three on-site model will be clear.

Meanwhile, the peak outbreak time was when the West was stocking up and now is the harvest period. Assuming all processing plants must close due to the pandemic, what will happen to shrimp farmers and harvesters? Therefore, Luc said the first purpose of three on-site model for shrimp industry was to offer solutions to share difficulties with farmers. Simultaneously, the number of employees in each enterprise is not low with polarization, a part of workers with more difficult circumstances needs a daily income. Thus, the second goal is that businesses share difficulties with their employees. Thanks to the mutual support, the two sides will understand each other better and stick together in the future.

Another important factor is purchasing partners. Enterprises and partners have sales contracts and partners have a consumption plan. Amid the pandemic, businesses can extend the contract because of force majeure reasons, but it will certainly cause great trouble for their partners. The three on-site model will provide a part of products under contracts, minimizing difficulties for them.

"Conducting the three on-site model in the shrimp industry is to maintain and support the most important links in the shrimp value chain: farmers - workers in processing enterprises – consumers," said Luc.

To offset the cost, processing enterprises must buy raw shrimp at a lower price, as a share from the farmers. Luc said that the three on-site model was not new because shrimp farming enterprises had done this since its establishment. The difference is that the three on-site model at the shrimp farm is for disease prevention for shrimp, not for humans.

It is a challenging time as every unit is in a different situation. Perhaps there will be businesses doing the three on-site model and making good profits, but not much. The vast majority of enterprises will be among the rest and vice versa, especially units operating in the agricultural sector for three purposes of sticking in the chain.

During the pandemic, it is not easy to implement the three on-site model, but businesses must make efforts, not only to show the spirit of sharing and helping the shrimp value chain, but also a measure to ensure their sustainable existence amid this adversity.