Rice export: What to do to conquer the difficult market?

Linking raw material development areas helps to ensure stable growth in Vietnam's rice exports.

Production needs to meet stringent standards.

The positive signs in rice exports during the first quarter are partly attributed to rice exporting businesses taking advantage of opportunities from Free Trade Agreements (FTAs); Vietnamese rice is increasingly penetrating demanding markets. These factors further affirm the improving quality of Vietnamese rice.

According to information from the Import-Export Department ( Ministry of Industry and Trade ), by the end of the first quarter of 2024, rice exports reached over 2.18 million tons, equivalent to 1.43 billion USD, with an average price of 653.9 USD/ton. Compared to the same period last year, this represents an increase of 17.6% in volume, 45.5% in value, and 23.6% in price.

In the first quarter of 2024, rice exports continued to dominate key markets with high demand. The Philippines remained Vietnam's largest rice importer, accounting for 46.4% of total volume and 45.5% of total export value; Indonesia ranked second, with a sharp increase of 199.7% in volume and 308.8% in value; and Malaysia saw a 28.8% increase in volume and a 60.6% increase in value.

Export prices for rice to all three markets increased sharply, with prices to Indonesia rising by 36.4% and to Malaysia by 24.7%. Not only did production, export value, and prices increase, but Vietnam also increased exports of high-value rice varieties that meet market demands.

According to the Import-Export Department (Ministry of Industry and Trade), rice exporters have taken good advantage of market opportunities from FTAs. The market structure is gradually shifting positively towards diversification; in addition to traditional markets such as China, the Philippines, and Africa, it has also expanded to "demanding" markets such as Europe... with high value.

In addition, traders have also taken advantage of the challenges posed by the global food trade market to become alternative suppliers in many potential markets such as the US, Canada, and Chile.

Commenting on the rice export landscape, Mr. Le Thanh Tung - Deputy Director of the Department of Crop Production ( Ministry of Agriculture and Rural Development ) said that the structure of rice varieties and exports in Vietnam has over 80% high-quality, specialty varieties that meet the requirements of export businesses.

According to Mr. Tung, Vietnam's rice production is not only focused on export but also on national food security. Currently, rice production in the Mekong Delta is concentrating on sustainable farming practices adapted to climate change, producing according to standards to meet the stringent requirements of both domestic and export markets.

The deeper the integration, the more attention must be paid to meeting the requirements and standards of import markets. "In demanding markets, the standards they set are very strict, so it is necessary to organize production to meet these requirements," Mr. Tung said.

Promoting the development of rice brands.

According to some rice exporting businesses, Europe is a demanding market, and in recent times, exporting companies have had to make tremendous efforts to gain entry into this market.

According to a leader of a rice company, the current export price of their rice to 13 European countries is $980 per ton. While this is a relatively good price, entering this market is not easy. The company has gone through many ups and downs, and without focusing on fundamental factors such as branding, technology, human resources, and linkages within the rice value chain, it would be difficult for the business to establish itself in a demanding European market.

This business also pointed out that, in order to create a supply chain, strong involvement from local authorities and businesses is essential to open up raw material areas and receive local support. If the entire rice value chain is interconnected and works together step by step, a raw material area will certainly be formed.

According to Mr. Bui Ba Bong, Chairman of the Vietnam Rice Industry Association, the recent achievements in rice exports have affirmed the brand and reputation of Vietnamese rice, as localities have planned concentrated production areas to stabilize quality and target export markets.

To enhance the image and standing of Vietnamese rice, the expert suggested that ministries and agencies should actively support businesses and associations in promoting the image of Vietnamese rice to develop domestic and international markets. In addition, businesses need to focus on developing raw material areas to meet quality standards and market demands.

"Regarding raw material areas, local authorities play a decisive role. If local authorities take action, businesses and cooperatives will be able to link up with farmers. When farmers cooperate, there will be stable and high-quality raw material areas that meet the standards of businesses. If farmers don't cooperate, there won't be stable and long-term raw material areas," Mr. Bong emphasized.

According to the Ministry of Agriculture and Rural Development, the majority of commercial rice exports are concentrated in the Mekong Delta region. The total amount of commercial rice for export in 2024 from the Mekong Delta provinces is estimated at approximately 7.6 million tons. This includes about 3.2 million tons of high-quality rice; 2.5 million tons of fragrant and specialty rice; 1.15 million tons of medium-quality rice; and 0.75 million tons of glutinous rice. Deputy Minister of Agriculture and Rural Development Tran Thanh Nam forecasts that Vietnam's paddy rice production this year will reach approximately 43 million tons, equivalent to about 20 million tons of milled rice. This quantity of rice will meet domestic consumption needs, ensure food security, and serve export demands.

According to Dai Doan Ket newspaper

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