Agricultural product exporters seek to expand the domestic market

Friday - 23/09/2022 07:19

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In recent years, the export of agricultural products has faced many difficulties. Many key agricultural export products of the province decreased sharply in output. Accordingly, many enterprises producing and exporting agricultural products and livestock products are more focused on the local market, which is home market.

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Dong Nai's agricultural export products participate in promoting and marketing products at the Provincial Fruit Honoring Festival 2022 held in Long Khanh City. Photo: Phan Anh

However, the journey of returning or expanding the domestic market is determined by enterprises need a long-term and methodical investment, not a temporary solution when exporting is having problems.

Back to the home yard

Information from the Department of Industry and Trade, in the first 7 months of 2022, cashew nut export turnover reached USD 153 million, down 21.2% over the same period last year. The export situation of many vegetables, fruits and processed agricultural products also decreased significantly. According to the Vietnam Cashew Association (Vinacas), in the first months of the year, the cashew nut export situation faced many difficulties due to the effects of the destination markets when inflation was high in many major economies around the world. In addition, high shipping rates, tension between Russia and Ukraine, effects of the Covid-19 epidemic, etc. have also affected the export of this agricultural product in recent years.

According to some establishments and enterprises processing and exporting agricultural products, this is an opportunity to promote the consumption channel of the domestic market. Mr. Bui Thanh Van, Director of Van Phat Co., Ltd. (Tay Hoa Commune, Trang Bom District) commented that in no period has agricultural product exporters faced difficulties like now because of a sharp drop in export orders. But even when there are orders, businesses are still more worried than happy because there are many risks of losing capital due to many reasons that goods are stuck at border gates, transportation costs are too high to eat up all profits of manufacturing enterprises. According to Mr. Van: "Currently, the enterprise is trying to promote the local consumption channel, which is the domestic market. Although this return is not easy because in the past, businesses only focused on the export market, so that domestic consumers are familiar with the new brand among so many products to choose from, it is not an everyday thing. However, businesses accept investment because the local market has become a lifeline in the current difficult export period."

With the same opinion, Ms. Nguyen Thi Lien, owner of Nha Yen business household, shared that the unit chose to start a business right after the Covid-19 epidemic as a spice product, wood-roasted cashew nuts to supply to the domestic market. The establishment follows meticulous craftsmanship, attaches importance to quality and cares about packaging and brands because it wants to approach the high-end segment serving high-income consumers in the country. Currently, the unit is promoting online sales channels and is well received by consumers.

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Cashew kernel peeler processing facility for export market in Long Giao commune, Cam My district. Photo: Phan Anh

Need methodical investment

According to many enterprises producing agricultural products, the competitive pressure in the domestic market is also very great with enterprises in the industry and with products imported from other countries. For small-scale establishments and businesses, it is even more difficult to find a foothold in the home yard with no shortage of big men who have been identified by consumers.

Ms. Nguyen Thi Phuong Uyen, representative of Thinh Tin Dat Co., Ltd (Xuan Dinh commune, Xuan Loc district) said: "It is not easy to bring goods into modern supermarket systems and retail channels because of the there are many big men. Accordingly, the company is trying to find customers right at invests in its factory, from retail customers to stores, grocery stores, etc. The company is also promoting its online channel, not only trying to find agents distribution but also individual customers orders ready to meet.

Talking about the plan to develop the domestic market, Mr. Truong A Vung, Director of Toan Thang Import-Export Trading Co., Ltd (Cam My district) pointed out that Vietnamese people are very fond of durian products that are seasonal fruit. The domestic market's potential for frozen durian consumption is still very large. According to Mr. Truong A Vung: "The enterprise is planning to invest in more cold storage systems to have a source of frozen durians supplied all year round, not just seasonally like today. Enterprises participating in making OCOP products are also the first steps in the journey to build quality reputation for domestic consumers to trust and choose"

Answering questions in front of the National Assembly, Minister of Agriculture and Rural Development Le Minh Hoan once shared: "There is a business association in the industry that told me that our country is rich, our middle class is large, ready to buy high-priced agricultural products. So where is the market of 100 million people in Vietnam? The problem is to reorganize the domestic agricultural product market. If you want to build a brand of agricultural products abroad, you need to build a domestic brand. Consumer confidence in domestic agricultural products is the foundation for exporting agricultural products to the world"

Author: Phan Anh