Joy and worry of Vietnamese rice

June 28, 2022

Niềm vui và nỗi lo gạo Việt

Food prices continue to rise

According to the Food and Agriculture Organization of the United Nations (FAO), the world food index in April increased by 30% over the same period last year and 60% compared to 2019, before the Covid-19 pandemic. This is a record increase compared to the two times when the highest food price volatility occurred in 2008 and 2011.

Along with food prices, the world rice price in May also increased, which is the 5th consecutive month of high increase. Many organizations forecast that the world food and food market will continue to increase in price when supply is scarce, and food insecurity is likely in many countries.

In that context, India - a country that has been in the top 3 rice exporters in the world for many years in a row and is the second largest producer of wheat, after China - has announced a ban on exporting this product. this. Indonesia also halted exports of some types of palm oil in an effort to reduce soaring domestic cooking oil prices.

In African countries, many mills running out of wheat have to stop working; Rising food prices force people to find cheaper substitutes for consumer products. The world faces the risk of a food crisis, how does this affect Vietnam?

As an agricultural country, among the top 15 exporting countries of agricultural products in the world, there are many products such as coffee, rice, tea, cashew nuts, seafood... accounting for a large market share and leading high output. world.

In 2021, despite being heavily affected by the pandemic, Vietnam's agricultural exports still reached a turnover of 48.6 billion USD, up 14.9% over the same period last year. The total export turnover of agricultural products nationwide in the first 5 months of 2022 continued to increase by 16.8% over the same period last year; There are 9 products/product groups with export value of over 1 billion USD, including coffee, rice, cashew nut, vegetable and fruit group, pangasius, shrimp.

However, in joy there is worry, which is the "reverse effect" of this situation when we are also having to import many agricultural products for domestic consumption and as raw materials for the animal feed industry. aquaculture, aquaculture and many other food and food processing industries.

The confectionery and food production industries that use a lot of flour, cereals, etc., are under great pressure due to broken supply and high input material prices. For animal feed alone, each year Vietnam has to import more than 22 million tons of raw materials.

The increase in prices of these raw materials on the world market puts pressure on production costs and greatly affects inputs, especially negatively affecting farmers in limited credit conditions. The production input of farmers is also under heavy pressure when fertilizers, agricultural materials, and petroleum increase very high.

Is it important that farmers benefit?

In the face of fluctuations in world market prices and concerns about food insecurity, it is imperative that we ensure an "adaptive" rice economy. Our country's rice industry has moved from the "muddy footprint" of the natural economy, traditional agriculture to the knowledge economy, but needs further acceleration to participate more deeply in the bright industrial value chain. create global.

In general, the rice industry needs to continue to overcome the mindset of heavy input, light output, increase the area, crop, and output of agricultural products, especially if the standards are not met. increasingly strict quality standards according to market segments.

To do that, Vietnamese rice desperately needs new support and resilience from value-added post-rice industries such as consumer foods (edible oil, rice milk, nutritional drinks, etc.), materials and supplies. materials (metal polishing), paints (fire-resistant nano), pharmaceutical industry, cosmetics, feed and aquaculture industries... by investment technology, deep processing and comprehensive digital transformation for the rice industry.

The regional approach, following the technology application chain, promoting innovation and the advantages of the digital economy, the sharing economy is not unfamiliar to farmers and consumers, but "digital rice" needs a chain. value closely links the actors involved in the process in the close relationship of technology, market, and interests.

The goal of solving output for rice seeds and supporting farmers, the most important thing is the enforcement mechanism, solving the cost and benefit problem, especially ensuring real benefits for the beneficiaries. Taking advantage of rising world food prices, it is also necessary to rationalize production and minimize input costs in order to increase profits from the rice industry, bringing practical benefits to farmers.

Taking advantage of rising world food prices, it is also necessary to rationalize production and minimize input costs in order to increase profits from the rice industry, bringing practical benefits to farmers.

Source: Dr. Tran Huu Hiep/ saigondautu.com.vn

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