By securing its raw material sources, Cong Thanh Investment and Development Joint Stock Company can proactively manage its production lines.

Create a competitive advantage.

In the agricultural areas of Phong Dien town, melaleuca, milk thistle, mint, and other plants are grown, creating a lush green landscape. This is the result of many years of systematic investment by Cong Thanh Investment and Development Joint Stock Company. Not only does this raw material area serve the production of essential oils and medicinal herbs, but it is also a strategic step that helps the company "stand on its own two feet."

“We are proactive from planting to extraction and testing. Controlling the entire chain allows the company to maintain consistent product quality, even when market demand fluctuates,” shared Ms. Hoang Thi Ngoc Ly, CEO of Cong Thanh Investment and Development Joint Stock Company. Currently, the company has three factories producing products from tea tree and peppermint essential oils, with a closed-loop production line operating according to strict quality standards.

In addition to self-investment, the company also collaborates with local people to expand raw material areas and transfer standardized planting and harvesting techniques. The unit cooperates with the Department of Science and Technology to implement research and development projects on indigenous medicinal plants, applying technology to production, aiming for products that meet national and international standards.

"Having control over our raw material sources helps us avoid dependence on the market, allowing us to proactively manage both input and output quality. This is the foundation for our business to achieve stable revenue growth and reach export markets," Ms. Ly affirmed.

"Securing your raw material supply is 50% of your competitive advantage," shared Ms. Nguyen Thi Thu Hien, Deputy Director of Hichagol Production, Trade and Service Co., Ltd., with conviction. With this mindset, the company has chosen the path of specializing in red artichoke cultivation as the foundation for sustainable development.

From an initial 200m² of land dedicated to growing red artichokes, the company has expanded its raw material area to tens of hectares, essentially meeting the raw material needs for all current production activities. The company's products, from tea bags, syrups, and jams to natural cosmetics, are all processed from this plant.

Focusing on a single main crop allows businesses to easily control quality from seed selection and cultivation techniques to harvesting time. The red artichoke is grown organically, without the use of chemical pesticides, helping to preserve its color and active ingredients for optimal processing.

"Controlling the raw materials is how we proactively manage the market, define the value of our products, and gradually expand our brand," Ms. Hien emphasized. Currently, the company is proceeding with procedures to establish product standards and gradually expand its market nationwide and internationally.

Activating the value chain

Not just a few exemplary models, many businesses in Hue City are also striving to build and expand raw material areas to serve production. Typical examples include SBC Hoang Gia Co., Ltd., Ana Bird's Nest with concentrated farming areas in Tam Giang Lagoon, and Anna Hue Bird's Nest Production Co., Ltd., all investing in raw material areas to ensure self-sufficiency in production.

The trend of "taking control from the source" is being chosen by many pharmaceutical and functional food businesses to reduce dependence on external raw material markets, especially in the context of fluctuating input prices and quality. This is also a way for businesses to "retain" demanding customers and gradually access high-end markets.

Ms. Ho Nhat Phuong, Director of CBS Hoang Gia Co., Ltd., said: “By growing, extracting, and packaging our own produce, we can control product quality at every stage. This gives us confidence when showcasing our products at international trade fairs, as well as accessing major domestic distributors.”

Acknowledging the efforts of the business community, the authorities in Hue, especially the Department of Science and Technology and the Department of Agriculture and Environment, have proactively organized numerous workshops and training courses to transfer techniques for cultivating, processing, and preserving medicinal herbs and agricultural products. Policies supporting the development of standardized raw material areas, guidance on technology application, and market connections have also been implemented synchronously.

According to representatives from the Department of Science and Technology, the current orientation is to help businesses establish concentrated raw material areas that meet VietGAP standards, thereby creating a closed value chain to serve deep processing and export.

In addition, trade promotion programs, business networking events, and specialized trade fairs also create opportunities for businesses to introduce their products, connect with stable outlets, and expand their markets. "When businesses control their raw material sources, they not only control quality but also establish their own brand, which is crucial in their long-term development strategy," a representative from the Department of Science and Technology stated.

Text and photos: HAI THUAN

Source: https://huengaynay.vn/kinh-te/lam-chu-vung-nguyen-lieu-be-do-cho-phat-trien-ben-vung-154628.html