rice production - trading - marketing & current situation
DESCRIPTION
marketing rice by Dr.Ho Cao VietTRANSCRIPT
Rice production – trading – marketing
& current issues
Ho Cao Viet (PhD)
Institute of Agricultural Sciences for Southern Vietnam (IAS)
Department of Economics & Agricultural Development
Production & Consumption
Production
Consumption
Source: USDA, 2013
Unit: thousand metric ton
3.9 million hectares
World rice trade
Source: USDA, 2013
Unit: thousand metric ton
Rice price in the world (2002-2013)
Source: USDA, 2013
Rice exportation to in 2013 (Jan-Nov)
Country Amount (Ton) Value(USD)
Taiwan 13.083 5,915
Indonesia 112.807 66,023
Philippines 353.069 155,678
Hong Kong-China 141.549 79,947
China 1.764.968 732,281
Malaysia 347.964 176,338
Singapore 280.464 126,238
Algeria 83.249 34,920
Cost d’Ivoire 436.858 177,277
Angola 102.096 41,828
Ghana 299.699 141,392
Other 1.386.903 600,576
Total 5.322.709 2,338,413
Current issues • Cost of production: very high (1,500
USD/ha/crop; # 300 USD/ton of paddy with yield of 5 tons/ha; 160-200 USD/ton in 2010)
• Low comparative advantage in term of cost price in comparison to Thailand, India, Pakistan, Cambodia
• Natural environment impacts due to chemical overuse (35% of costs)
Current issues
• Marketing & trading: – no strategy of brand name for Vietnamese
rice – focus on low-price market low added value– logistic system: very inconvenient– high volume of exportation, low benefit
farmer get loss– vertical coordination (farmer – middleman –
trader – exporter): very weak– State-owned food company control over the
market ineffective marketing strategy
Big gap of price
Source: USDA, 2013
Marketing channel
Farmers
Local collectors
Miller
Traders
Retailers
Wholesalers
Exporter
Ver
tical
coo
rdin
atio
n
Logistics
Source: Ho Cao Viet, 2011.
Current issues
• Processing: – Size of miller: small-medium (1.5 ton/hour)– 91% of millers (capacity) are small-medium
size– State-owned millers dominate processing
channel unfair competition– Private millers: lack of market information &
market research; shortage of capital for warehouse investment and stockade; backward technology; less support from government.
Current issues
• Production: – Farm size: small-scale (0.3 ha/family)– Mechanization: slowly, difficult to expand– Labor force: seasonal shortage high wage– Horizontal coordination (farmer-farmer): low
bargaining power selling price is very fluctuation
– Input materials price: inflate year by year (>100% in 10 years) high cost
– Climate change: loss 30% arable land in 2050– Processing product from rice
Structure of production costs, 2010-2011
Source: Ho Cao Viet, 2011.
Variety
Pesticides
Fertilizers
Labor-machine
Fuels
Depreciation& interest
Average of 3 rice crops
Structure of production costs by season
Variety
Pesticides
Fertilizers
Labor-machine
Fuels
Depreciation& interest
Variety
Pesticides
Fertilizers
Labor-machine
Fuels
Depreciation& interest
Variety
Pesticides
Fertilizers
Labor-machine
Fuels
Depreciation& interest
Source: Ho Cao Viet, 2011.
Summer-autumn 2010 Summer-autumn 2011
Winter-spring 2010-2011
Biến động chi phí phân bón, 2010-2011 Cost of fertilizers by province
Source: Ho Cao Viet, 2011.
Tỷ lệ chi phí phân bón, 2010-2011 Proportion of fertilizers cost by province
Source: Ho Cao Viet, 2011.
Chi phí các loại phân bón chủ yếu, 2010-2011 Cost on types of fertilizers by province
Source: Ho Cao Viet, 2011.
Biến động chi phí thuốc BVTV, 2010-2011 Cost of pesticides by province
Source: Ho Cao Viet, 2011.
Chi phí lao động & máy móc, 2010-2011 Cost of labor & hired machines by
province
Source: Ho Cao Viet, 2011.
Biến động tổng chi phí, 2010-2011 Total cost of rice production by province
Source: Ho Cao Viet, 2011.
Biến động giá thành, 2010-2011
Nguồn: Số liệu điều tra 2010-2011.
Giá thành 1
Giá thành 2
Unit price
Source: Ho Cao Viet, 2011.
Unit price 1 (calculate cost of family labour)
Unit price 2 (without cost of family labour)
Biến động giá bán lúa, 2010-2011
Nguồn: Số liệu điều tra 2010-2011.
Wet paddy
Dried paddy
Selling price
Source: Ho Cao Viet, 2011.
Biến động doanh thu & lợi nhuận, 2010-2011
Nguồn: Số liệu điều tra 2010-2011.
Doanh thu
Lợi nhuận
Gross income & profit
Net profit
Gross income
Source: Ho Cao Viet, 2011.
Rice varieties
• Coastal plain region: ST3, MTL233, MTL250 & Jasmine 85 meet standard of rice exportation because of high quality (compared to IR64 & as well as Khao Dawk Mali 105).
• Flood plain region: OMCS2000, OM2717, OM2705 are high tolerant to diseases and high quality of rice, high yield (compared to IR64). OM3536 is a fragrant variety.
• Plain of reed region: OMCS2000, VNĐ95-20 & Jasmine85 are tolerant to acidity, high quality & yield, adapted to Summer-autumn and Winter-spring crops. OM3536 is a potential variety for acid-sulfate soil to diversify rice material for exportation.
Source: Rice project KC06, 2011
Opportunity for cooperation
• Market studies and marketing for rice, coffee, catfish…
• Branding name for exported agricultural products: rice, shrimp, catfish, coffee
• Logistic systems improvement & investment (processing equipments, warehouses…)
Our information
• Please contact:– Dr. Ho Cao Viet (head of department)– Phone: +84 908442120– Email: [email protected] – Address: 121 Nguyen Binh Khiem Street, District 1,
Ho Chi Minh City, Vietnam
Thank you !