Enterprises exporting agricultural products overcome difficulties

​Exports of agricultural products, especially processed fruit products, have plummeted due to the impact of the epidemic, and inflation is spreading globally. Not only domestic consumers but also in many countries around the world are now changing their consumption trends towards cutting spending.

Processing fresh fruit at an enterprise in Long Khanh City. Photo: Phan Anh

When the consumption market of processed agricultural products, especially products made from fruits, cashew nuts, etc., which are not in the group of essential goods, declined sharply; many manufacturing enterprises accept to reduce profits to compete with good prices and try to open more niche markets to maintain and stabilize production activities.

Production halted

In the past few months, the export of processed agricultural products has faced many difficulties. Even the traditionally easy market, China, is not easy to find customers. In particular, at one time, many enterprises exported agricultural products in general, especially processed fruit products, cashew kernels to Russia, the large market of Vietnam faced many difficulties, production stagnated because of the shipment through this market has been suspended.

Mr. Bui Thanh Van, Director of Van Phat Company Limited, Tay Hoa Commune, Trang Bom District said that exporting frozen vegetables, fruits, vegetable products and dried fruits has never been as difficult as it is now. Production input costs increase by 20-30% while output products are difficult to consume because both domestic consumers and foreign markets prioritize spending on essential items. Even the easy-going capital market of China presents many risks today. Mr. Van said: “Once, an enterprise exported 3 containers of dried fruit to China, the goods were left in stock at the border of the two countries for more than 3 months before being exported, the enterprise spent hundreds of millions of VND in warehousing. Passing the border gate, the importer used the excuse that the product would last for a long time, fearing that the quality would be affected, both reducing the price and not paying immediately, making it even more difficult for businesses."

With the same concern, Mr. Nguyen The Hung, Director of Hung Phat Trading and Production Co., Ltd. Dried Jackfruit, Binh Loc Commune, Long Khanh City said that, in the past few months, the enterprise's dried fruit export activity was severely reduced because the big market is China, the partners also only placed small orders. In other markets like Russia, Korea, etc. it's almost hard to find new customers, orders from regular customers also dropped sharply.

According to the opinions of some enterprises producing and exporting fruit and processed agricultural products in the province, after a series of events such as epidemics, conflicts between Russia and Ukraine and inflation in the world, the world market is increasing and spreading, the consumption trend of the world market has changed greatly. Specifically, consumers in many countries change their habits, becoming more and more tight in spending. They prioritize essential items such as food, non-essential food lines such as processed fruits, cashew kernels, etc., are no longer as attractive as before.

Find every market opportunity

 Although the overall situation in the processed fruit market is still difficult, there are many signs that the situation is getting better. According to a number of enterprises exporting agricultural products to Russia, after many months of stagnation, exports to this market are on the rebound. Faced with a difficult export situation, many businesses, which only focus on making export orders, are interested in promoting more consumption channels in the domestic market. After the Covid-19 epidemic, the domestic tourism industry is on the recovery, especially in the current period when it is at the peak of summer tourism, some processing enterprises seize this opportunity to promote local consumption channels for their customers to serve the needs of eating and drinking, as gifts for domestic and foreign tourists.

Mr. Bui Thanh Van said that for small businesses, the domestic market is not easy to expand because there are many big brands that have been recognized by consumers. In addition, large supermarket chains all have their own brands, so it is not easy for small businesses to enter these consumption channels, often accepting processed goods. Currently, businesses are shifting to focus on bringing goods to resting areas to serve the tourists. In addition, businesses are also interested in bringing goods to the countryside, to traditional markets, small stores, etc.

In addition, many businesses are making efforts to expand export markets, returning to Asian markets to access niche markets such as Cambodia, Thailand, etc. maintain production to have a source of wages for labor and buy all fresh fruit for farmers who are having difficulty in output, not set profit targets as before. Enterprises are negotiating with partners in some new markets such as Malaysia, Thailand, Cambodia, etc. with the expectation of more consumption channels.