PM approves $2bn credit support package for agriculture
Prime Minister Nguyen Xuan Phuc has backed a credit support package of VND50 trillion ($2.2 billion) to develop the country’s agriculture sector.
The package would provide support to high-tech agriculture and feature favorable lending mechanisms, the PM told the Building Vietnam’s Agriculture and Industry conference held by the Vietnam Young Entrepreneurs’ Association (DAA) in Ho Chi Minh City on December 18.
He said his ambition is to build a modern agriculture sector that puts Vietnam among the group of leading agricultural countries. “Vietnam targets to become a center in the supply of high-tech agricultural products and have an important position in global value chains,” he said.
“The State Bank of Vietnam should provide a credit package worth from VND50 trillion ($2.2 billion) to VND60 trillion ($2.6 billion) with favorable lending procedures,” he went on. “Several commercial banks should also take part in the initiative to improve credit quality and prevent malfeasance.”
He also suggested Vietnam establish technical barriers under WTO regulations to protect domestic goods. He called for more support for producers of materials serving agriculture, improvements to the operation of cooperatives, and encouragement to self-employed individuals in rural areas to shift business models.
Mr. Truong GiaBinh, Chairman of the FPT Group and the DAA, called for the development of high-tech agricultural complexes. “This will contribute to changes in agriculture from low added-value and growth into an outstanding sector,” he said.
According to figures from the Ministry of Agriculture and Rural Development, export turnover in the agricultural, forestry and fisheries sector reached $2.69 billion in November, bringing the total value in the first eleven months to $29.1 billion, an increase of 5.9 per cent year-on-year.
The value of agricultural exports was estimated at $13.7 billion, up 7.2 per cent year-on-year, seafood $6.4 billion, up 6.9 per cent, and forest products $6.5 billion, up 0.8 per cent.
A recent World Bank report stated that Vietnam’s agriculture sector is now at a turning point. It faces growing domestic competition from cities, industry, and services for labor, land and water. Rising labor costs are beginning to inhibit the sector’s ability to compete globally as a low-cost producer of bulk undifferentiated commodities.
Going forward, Vietnam’s agricultural sector needs to generate “more from less”. That is, it must generate more economic value and farmer and consumer welfare, while using less natural and human capital and less harmful intermediate inputs. According to the report, the Vietnamese Government has played a major role in agricultural development but it will need to lead less and at the same time facilitate more to transform the country’s agriculture and agro-food system.
For example, the government could undertake less direct investment in agriculture while focusing more on facilitating a more active agricultural land market, supporting rural infrastructure, reducing the transaction costs on farmers and agro-enterprises, and revitalizing the country’s agricultural innovation system.
Source: http://vneconomictimes.com.vn/article/business/
Central Policy: livestock and poultry subsidies 144.2 billion yuan!
On December 21, Xi Jinping presided over the 14th meeting of the Central Leading Group for Finance and Economy, and stressed that it should proceed from resolving outstanding issues of common concern to the people and promotes the building of a well-off society in an all-round way.At the meeting, "135" plan to determine the 165 major project progresses, an accurate grasp of the realization of building a well-off connotation. These include: the Ministry of Agriculture on livestock and poultry waste disposal and recycling.
Speed up the livestock and poultry waste disposal and resource-based, market-oriented operation of the policy to biogas and natural gas as the main processing direction to the nearest local for rural energy and agricultural organic fertilizer as the main direction of use.
The utilization of agricultural waste is an important part of rural environmental governance. It is estimated that:
The annual output of livestock and poultry manure is 3.8 billion tons, and the comprehensive utilization rate is less than 60%.
The annual out-of-life pigs out of about 60 million head, focused on the proportion of professional harmless treatment is not high;
Annual production of straw nearly 900 million tons, about 200 million tons of unutilized;
The use of plastic sheeting each year more than 200 million tons, season recovery rate of less than 2/3
The plan for 2020 are follow as: the pilot county-scale farms supporting the construction of sewage treatment facilities, the proportion of about 80%; Livestock and poultry manure basic resource utilization; Disease and death of livestock and poultry basically harmless treatment; Straw comprehensive utilization rate of 85% or more; Season of plastic sheeting recycling and comprehensive utilization rate of 80% or more;Effective Recycling of Waste Pesticide Packaging.
In 2016, the central government allocated a total of 144.2 billion yuan to subsidize the agricultural support and protection subsidies, and supported the protection of cultivated land fertility and moderate scale management.
The China - Australian FTA great benefits from lobster town
Robe where is a small town in South Australia is called lobster town by ethnic Chinese. There are 1400 ton lobsters cached per year and 90% were exported to China.
The mayor of Robe, Peter Leslie said:”With the China-Australia Free Trade Agreement, the business between China and Robe is becoming more and more intense. Robe is welcoming to Chinese investors and tourists and hopes to usher in more development opportunities.
According to the China-Australia Free Trade Agreement, the tariff of all seafood from AU will be zero on 1st Jan 2019. On that time, the prices of Australian seafood will be cheaper.
The Minister for Trade and Investment, Steven Ciobo said on 19th, China-Australia FTA has produced the expected results.
The China-AustraliaFTA gives Australian exporters a lot of advantages, especially in the food and services sector, where Australia has seen tremendous business opportunities.
According to Australian statistics, the first three quarters of 2016, a variety of Australian products exported to China due to the tariff cuts.
The past year, Australian grape exported to China increased six-fold, reaching 120 million Australian dollars (1 Australian dollar about 5.1 yuan). Medication exported to China increased 90% to $ 523 million.Over the same period, milk exported to China increased 80% to 127 million Australian dollars; bottled wine exported to China grew 40% to 3.09 billion Australian dollars; Fresh navel orange exported to China increased 55% to 51 million Australian dollars; Cheese exported to China grew 28% to 33 million Australian dollars.
On 1st 2017, according to the China-Australia FTA, the two countries will start a third round of tariff reduction.This means that the tariff of Australia's wine, drugs, nuts, ice cream, seafood will a half lower than the major competitors of France, the United States and Canada.And the import tariff of tuna, Arctic shrimp, cranberry and other characteristics will be canceled.
In addition to trade, investment got benefit from China-Australia FTA.Under the China-Australia FTA, the Australian Government's raised the threshold for the exemption of private investment in China which is from A $ 248 million to about A $ 1 billion. This means that many small and medium Chinese investors no longer needed to face cumbersome review process.
The data from Chinese Embassy in Australia shows that the first three quarters of this year, China directly invested year on year growth 73.3% and more than 10 large-scale projects was more than 10 billion Australian dollars.
The Professor Hans Hendricksch of the University of Sydney said that the Sino-Australian FTA had a strong psychological effect and makes investors more at ease, more confidence.
Speaking of confidence, the farmer Bernard Wright wanted to speak. His family has an 800-hectare farm near Canberra, holding 2,200 Merino sheep and more than 200 beef cattle. Over the past year, 75 percent of Merino wool was exported to China.
Wright family have a big confidence in the Chinese market. His son has begun to grow grapes in the farm and will be expected their wine to China after two or three years.
http://www.zgsc123.com/show-109-143800-1.html
Vietnam to export processed chicken to Japan for the first time
- is the leading broiler meat importer though the provisional figure for the annual total in 2016 was little changed from the quantity purchased back in 2015, and is at a similar level to that anticipated for the next decade. Particularly, 2016 Outlook Post projects Japan’s record high 2015 broiler meat consumption (2.245 million MT) to hold steady at around 2.44 million MT in 2016 (Global Agriculture Information Network).
According to The Poultry Site, Asia is not a major exporting region with total shipments currently amounting to around one million tons a year. There are only two significant exporters – Thailand and China. In 2015, roughly half of Japan's imports are prepared (cooked or semi-cooked) chicken mainly from Thailand and China (GAIN). However, Japanese importers also look to diversify their supply sources and shorten delivery times. Therefore, it is possible that Viet Nam will play more important roles in the future besides its current opportunities with ASEAN and the Middle East.
Indeed, in 2017, Vietnam will be able to export processed chicken for the first time, initially to Japan, after receiving the green light from the government and the Department of Animal Health as well as overseas investors. Vietnam's Ministry of Agriculture and Rural Development (MARD) has approved the surveillance plan for processing chicken for exports. The first company to participate in this project is Koyu&Unitek Ltd, which is completing the construction of its poultry processing plant that complies with Japanese standards. “We appreciated MARD's timely issuance of the surveillance plan for processing chicken for exports,” said James HieuNhon Khuu, Koyu&Unitek Director General.
Under the deal, the Dong Nai-based poultry company will monthly export about 300 tons of chicken breasts to Japan, according to the SaiGonGiai phong (Liberated Saigon) newspaper. The Dong Nai Animal Husbandry and Veterinary Branch said Koyu&Unitek’s Japan shipments are likely to help more local company to enter the choosy market of about 100 million people.
The majority of chicken products used for export is made-to-order products that are processed or prepared by heat (such as grilling, steaming, and boiling) and are usually puffed or seasoned (with salt, Japanese sauce, etc.) As Japanese buyers are known for their strict quality controls, industry sources said the move could be seen a seal of approval for Vietnamese chicken, stoking its potential to penetrate other Asian markets in 2018.
Vietnamese animal husbandry industry has supplied between 500,000 and 700,000 tonnes of meat and 8 billion eggs per year but only salted duck eggs have been exported to Hong Kong and Singapore and the remaining was consumed in the domestic market, the ministry said. Nguyễn Xuân Dương, deputy director of the Animal Husbandry Department, said that since 2015, with regard to the export of animal husbandry products, the industry had developed a plan to establish a safe region without diseases for poultry and cattle, for a certification of food safety from the veterinary department and meet regulations of the World Organization for Animal Health that would help boost the export of meat to other countries (VER). To reach the target, the ministry has issued a plan to supervise production chains to process export quality chicken.
By 2017, the local enterprises which want to export processed chicken must complete the procedures to send to the relevant offices of countries that have made a demand for Việt Nam’s poultry products, according to the ministry. It said that they should also submit the proposal to the ministry’s Animal Husbandry Department and other relevant offices. They must actively have market research, find trade partners, and ensure to fulfill the requirements on the production of chicken of importing countries.
Despite the fact that the volatile weather may inflate poultry mortality and feed costs resulting in the uncertain chicken outputs, chicken meat is cheap and its demand is relatively insensitive to the economic situation. Therefore, demand is expected to rise further. On average, the global poultry demand has grown 2-3% y-o-y in the last 5 years. MARD expects that after Japan, Việt Nam could export chicken to Hong Kong, Singapore, Malaysia, Myanmar and South Korea from 2018.
Source: http://www.vietrade.gov.vn/
High-tech agricultural production is the need: experts
A conference on building high-tech agriculture in Viet Nam, organised by the Digital Agriculture Association (DAA), will be held in HCM City on Sunday.
At the conference, delegates will be hearing about successful experiences in high-tech applications in agriculture and build the value chain through the presentations of businesses, such as Seafood Co., Central Seafood Company, Hung Nhon JSC and Huy Long An-My Binh limited company.
These companies are pioneers in the application of advanced technology with production and management by shifting from traditional farming methods to agricultural enterprises to obtain high efficiency in poultry breeding and fruit growing for export purposes.
Central Seafood Company, in particular, has met the standard for high-tech business.
At present, the company has six shrimps breeding farms equipped with US technology, capable of breeding10-12 billion shrimps per year. The company can sell 1,000 tonnes of shrimp annually.
The event will also be an opportunity for the government, ministries and relevant agencies to hear opinions and proposals from businesses to implement timely support policies by working towards a new model of agriculture production.
Based on the foundation of high-tech applications in manufacturing and integration of value chain, DAA has proposed high-tech complexes. The complexes will consist of large-scale agricultural production, where businesses will closely work together to achieve production targets with high-yield and high-quality products, which are competitive both in domestic and international markets.
Nguyen Thi Lan Huong, vice president and general secretary of DAA Vietnam, said one of the most important tasks in the process of industrialisation and modernisation was to industrialise and modernise rural agriculture. Application of advanced technology should be promoted to meet standards of national and international activities in agricultural production. In addition, promoting people and businesses to create a high-tech agricultural production value chain was aimed at ensuring a healthy and prosperous life for the people and providing safe and clean food.
World Bank’s Vietnam Development Report 2016, “Transforming Vietnamese Agriculture: Gaining More from Less,” launched in September, details the challenges and opportunities facing the sector.
To remain competitive in the international market, the report said Viet Nam needed to improve supply, quality and food safety with added value. It outlines an agenda of short and longer-term strengthening of public and market institutions which will be needed to achieve the ambitious goals for Viet Nam’s agriculture and overall food system.
OusmaneDione, World Bank country director for Viet Nam, said, “’Business as usual’ is no longer an option for the sector. Growth has slowed down; it is vulnerable to climate hazards and leaves a large environment footprint. Change will help overcome these challenges, ensure the future of agricultural growth and better meet the expectations and aspirations of the people of Viet Nam.”
The report offers various policy recommendations to address the challenges. The government can deploy an effective combination of improved regulations, better incentives and streamlined services to stimulate and push for greener agriculture and a more effective food safety and consumer protection system.
It can help with policy instruments to better manage agriculture-related risks, as well as create and maintain a favourable enabling environment for agribusiness.
In a more flexible, market-driven and knowledge-based agriculture system, reducing direct state involvement will make modernisation of the Vietnamese agro-food system smoother.
Large scale fields developed in northern region
Northern provinces have built 895 large scale fields on more than 42,300ha for the Summer-Autumn crop, an increase of about 2,700ha year-on-year, according to the Department of Cultivation under the Ministry of Agriculture and Rural Development.
Head of the Department Nguyen Hong Son said that after years of work, localities have gained experience to generate the best results.
Along with rice, the model has also been applied for corn and vegetables.
Businesses also participated in the production chain in localities such as Thanh Hoa, Thai Binh, Hanoi and Hai Duong, raising the efficiency of cultivation and rice production. The model has enhanced links between farmers and businesses and showed its sustainability.
Many cities and provinces have set up Steering Committees and devised policies to support the model, including Thai Binh, Nam Dinh, Nghe An, Ha Tinh and Hanoi.
Aside from applying advanced technology and research in agriculture, the provinces have also looked to mechanisation to lower production costs and increase productivity.
Source: http://english.vietnamnet.vn/fms/
Vietnam's rice exports drop to record low
Vietnam's rice exports have sharply fallen to a seven-year record low because of weak abilities, according to a new report by the Ministry of Agriculture and Rural Development.
Vietnam's rice exports have sharply fallen
As of November, Vietnam exported 4.5 million tonnes of rice with a turnover of USD2bn, a decrease by 26% and 22% respectively compared to the same period last year.
According to the General Department of Customs, rice exports are losing out to other agriculture products such as coffee, vegetables and aqua products.
The evaluation report from the Ministry of Agriculture and Rural Development showed that the 4.5 million tonnes of rice exported so far this year is the lowest figure since 2009. Most export firms couldn't meet their goals. Vietnam will also be unlikely to meet the goal to export 5.7 million tonnes of rice this year, which is already lower than the 6.5 million tonnes exported last year.
Average monthly export output has reached 409,000 tonnes and Vietnam is exporting less near the end of the year. The output for September, October and November was 300,000-320,000 tonnes.
In addition, Vietnam is losing its key markets. Rice export to China in 11 months reached 1.6 million tonnes with turnover of USD700m, a decrease by 400,000 tonnes and USD120m respectively than last year.
Exports to the Philippines totalled 350,000 tonnes with turnover of USD150m, a fall of 600,000 tonnes and USD300m.
The Vietnam Food Association said many countries had tightened management on import-export activities. China had tightened grip on unofficial imports. Meanwhile, Vietnam is losing its price advantages in Philippines, Indonesia and Ghana to Thailand, India and Cambodia.
Pro. Vo Tong Xuan from Can Tho University, said, "We need to completely reform the rice sector as it is fluctuating because of climate change. Vietnam needs to improve productivity, rice quality and distribution networks to compete in the global market."
According to Pham Chi Lan, member of the Advisory Group of the Vietnam National Assembly’s Economic Commission, Vietnam has advantages with electronic, aqua and agriculture products exports. But the competitive abilities of the aqua and agriculture sectors are weak.
There are huge amounts of Vietnamese rice exported under foreign brands, or unnamed or unlabelled. Most of the rice was exported to aid poor people or was stockpiled. Few local brands are able to compete in the retail market.
Local firms are also facing tough competition at home from imported rice, especially from Thailand.
Source: http://english.vietnamnet.vn/fms/business/169585/vietnam-s-rice-exports-drop-to-record-low.html
China and Norway free trade resume. Salmon market share in China, let us wait and see.
On 19th December, Norwegian Foreign Minister Brund visited China and issued a statement on the normalization of bilateral relations. The bilateral free trade is back on track.
The Chinese market is developing at an unprecedented rate. Norwegian fishery companies are also sparing no effort to develop the Chinese market, but in 2010, the Norwegian Nobel Committee disregarded Chinese law, the Peace Prize was awarded to Liu Xiaobowho sentenced to imprisonment by the Chinese judicial authorities for violating Chinese law. This behavior led to tensions in Sino-Norwegian relations, bilateral trade has also been affected.
At present, the Norwegian government made a profound reflection on the past mistakes, and sincerity, thus easing the relationship between the two sides. Since then, the domestic aquatic market may see more delicious from Norway.
At present, the main aquatic product is salmon. On October this year, Norway has exported 200 million tons of seafood, exports of 1.149 billion US dollars, compared with same period last year, exports decreased by 9%, exports increased by 16%. Including salmon exports 80 tons, exports of 600 million US dollars, exports fell 8% over the same period last year, and exports grew 23%.
The latest average price of Norwegian salmon is 73-75 kroons / kg, due to the upcoming New Year will be prices. The Sino-Norwegian free trade backs to normal, which greatly encourages the Norwegian salmon and other aquatic products into the Chinese consumer market. However, according to the current form, the price of Norwegian salmon may not decrease significantly until the end of the first quarter of next year, and then there may be a turnaround, and Norway will also face competition from other major salmon producers. Market share, let us wait and see.
http://www.zgsc123.com/show-109-143579-1.html
Ministry of Agriculture: 19 kinds of veterinary drugs need to buy by prescription
According to 《The veterinary drug management regulations》 and 《The veterinary prescription drugs and non-prescription drugs management approach》, The Ministry of Agriculture organized 《The veterinary prescription drug varieties directory (second batch)》and are hereby promulgated and implemented on 28thDecember 2016. The Veterinary drug manufacturers need to add the "veterinary prescription drugs" logo and print new labels and instructions. Veterinary drug manufacturers can continue to use the original labels and instructions until June 30, 2017. The veterinary drugs using original labels and instructions can be sold until the expiry date.
http://www.caaa.cn/show/newsarticle.php?ID=381967&type=caaa
2016 dairy industry suffered heavy losses and will be reorganized
This year is an unusual year for dairy.
The leading dairy enterprises suffered heavy losses, the upstream breeding enterprises got more than 50% loss,The performance of infant formula milk business appeared decline, loss and other phenomena in the high inventory pressure.With the milk powder New Deal "registration" in-depth implementation, the domestic milk market will usher in a new restructuring.
How to survive the in the competition of milk prices? It will have to face the problem of milk prices.The domestic dairy industry of competition will be heating up.Rising milk prices brings positive to the farming enterprises,it will increase the cost of dairy processing enterprises. Cross-border purchase, imports of large packets of milk and liquid milk are still full of the domestic market, The overall dairy industry in general 2017 is expected better than 2016, but difficulties still exist, and infant formula industry with the industry reshuffle intensified will usher in the turning point.
More than 50% loss upstream dairy farming
By the international milk prices in the doldrums, the domestic "milk left" continued the first two years of downturn-like in the impact of China's dairy farming industry in 2016.As we all know, in 2013, the "milk shortage" background for dairy farmers had a good year, but from 2014, Chinese raw milk prices was leading to large losses of domestic dairy farming enterprises, To this end, the dairy industry is got on the "high-risk" industry list of bank.
Source：http://news.xinhuanet.com/food/2016-12/21/c_1120156737.htm
HCMC gears towards high-tech agriculture with $114 million plan
It's a big price to ask for a sector that has previously failed to attract major investment.
Ho Chi Minh City is calling for investment in a high-tech agricultural development program that is expected to cost VND2,6 trillion ($114 million) as the city aims to boost its agricultural output.
Authorities are hoping to draw 53 percent of the investment from the state budget and 47 percent from the private sector for the five-year plan.
In the first year, the city plans to spend VND2,1 trillion ($92 million) on building a high-tech agricultural zone and a biotechnology center, in addition to staff training.
The city will send staff overseas to countries with developed agriculture sectors such as Israel, the Netherlands, the U.S., Japan, Thailand and South Korea for short and long-term training. This part of the project is expected to cost VND28.5 billion ($1.2 million).
The city expects agricultural products cultivated using hi-tech methods to account for at least 60 percent of the southern hub's total agricultural output value by 2020.
Under the plan, up to 50 to 60 percent of farmers and 70 to 80 percent of enterprises are expected to adopt new cultivation techniques and post-harvest technology, along with mechanized and automated livestock breeding and waste treatment methods.
HCMC has already completed the first phase of a high-tech agricultural zone with an 88-hectare park in Pham Van Coi Commune, Cu Chi District.
The city is aiming to expand the area to 570 hectares by 2020 while offering preferential policies to attract investors to the zone’s new facilities.
State leaders and experts have been calling for the application of science and technology in agriculture to tackle low quality, productivity and efficiency to steady the unstable sector, which relies heavily on the Chinese market.
At the same time, the sector is facing the impacts of climate change, especially saltwater intrusion and landslides that have led to the loss of farmland.
Development experts said moving towards a high-tech growth model will improve productivity, quality and competitiveness.
Vietnam’s agriculture sector is dictated by natural conditions and there is a lack of cooperation between local producers as well as the infrastructure to develop, especially in urban areas.
Current investment in science and technology research is VND25,000 (around $1.1) per hectare on average, according to reports from the Ministry of Agriculture. This figure is far lower than other regional countries, highlighting the need for more policies to encourage cooperation models to develop value chains that link production, processing and ultimately sales.
Vietnam's agricultural sector also appears unappealing to foreign investors with the proportion of investment in agriculture remaining modest, though it has increased over the last few years. Data from the Foreign Investment Department show that only 1 percent of foreign funds pouring into the country go towards cultivating its agriculture sector.
As of September this year, there were 518 FDI projects involved in the field, accounting for just 2.4 percent of the total number of projects. Each agricultural project costs $6.7 million on average, while the average investment capital for FDI projects stands at $14.7 million.
Last year, one percent of total FDI was spent on agriculture, up 0.4 percent against 2012.
Source: http://e.vnexpress.net/news/business/hcmc-gears-towards-high-tech-agriculture-with-114-mln-plan-3504480.html