Southern region strengthens farm product consumption

The southern region has strengthened promotion activities in a bid to raise demand and build supply connections to expand their agricultural product sales and revenues.

The Dong Nai Province Trade Promotion Center, for example, is coordinating with districts and communes to complete procedures in order to bring clean agricultural products to Dau Giay - the largest farm produce and food wholesale market. Tran Van Vinh, deputy chairman of the Dong Nai People’s Committee, said agencies must conduct surveys regarding supply and demand for farm products in order to avoid a surplus that will result in price reduction.

According to statistics on Long An Province’s agricultural sector, farmers annually produce over 180,000 tonnes of vegetables, 300,000 tonnes of fruits, 72,000 tonnes of various kinds of meat and 160 million of eggs. However almost all farm products are consumed through traders at low selling prices. Therefore, the Long An Department of Industry and Trade has strengthened promotion and connection activities to seek output of local agricultural products through supermarkets and wholesale markets.

Although consumption of agricultural products through commercial contracts is low, initial results have been promising. Some 10 contracts were signed between businesses and cooperatives in Long An Province in 2016. For example, the Long Tri Cooperative in Long An Province’s Chau Thanh District is doing quite well in selling dragon fruit via large supermarkets and about 60 retail stores in Ho Chi Minh City and neighboring provinces.

Dong Thap Province has also effectively implemented demand-supply connection activities. Phan Kim Sa, deputy director of the Dong Thap Department of Industry and Trade, said the department has promoted links between businesses, cooperatives, supermarkets and other distribution channels to strengthen consumption of agricultural products.

For example, the Saigon Co.op supermarket chain currently sells rice and noodles with revenues of about VND8 billion a month, while the Tu Son Supermarket sells processed agricultural products with an averageaverage revenue of more than VND200 million a month. Other distribution channels like BigC, Metro, Lotte, Aeon, Maximart, Vinafood Mart and Vinmart also consume a large volume of local agricultural products.

The Dong Thap Department of Industry and Trade has also provided support for businesses to conduct market surveys in northern provinces and in the central city of Da Nang. Based on these surveys, some businesses and cooperatives have signed agreements and memorandums of understanding for consumption of agricultural products.

According to the Hau Giang Department of Industry and Trade, the province has organized regular trade promotion activities to strengthen consumption of local farm products since the beginning of the year, such as a forum on Vietnam’s export promotion, trade promotion fair for Hau Giang small and medium-sized enterprises, Ho Chi Minh City’s second exhibition of agricultural seeds and the Industry and Trade Fair held in Kon Tum Province in the Central Highlands.