In 4 months, fruit and vegetable exports earned more than 1.8 billion USD but still faced inherent risks

High export growth still worries about quality

According to estimates by the Ministry of Agriculture and Rural Development, the export turnover of fruits and vegetables in April 2024 is estimated at 520 million USD, an increase of 33.9% over the same period in 2023. In the first 4 months, the export turnover of this industry brought in 1.804 billion USD, an increase of 32.1% over the same period.

Fruit and vegetable exports earn over 1.8 billion USD in 4 months of 2024

Fruit and vegetable exports were favorable throughout the previous year and the growth momentum continued in the first four months of 2024. Export orders increased strongly, so in the first quarter of 2024, the fruit and vegetable industry earned 1.3 billion USD. This is the first time that fruit and vegetable export turnover reached over 1 billion USD in the first quarter.

Notably, durian is still the major contributor to fruit and vegetable export turnover. Last year alone, this fruit contributed more than 2.2 billion USD to the industry's total export revenue of over 5.6 billion USD.

Fruit and vegetable exports to major markets in the first 4 months of 2024 all grew positively. Leading in export value was the Chinese market, reaching 759.4 million USD, up 32.4% over the same period in 2023; followed by the Korean market reaching 74.6 million USD, up 59.3%; the United States reaching 67.7 million USD, up 33.9%; Thailand reaching 47.6 million USD, up 112%...

Besides the positive information about the export figures of vegetables and fruits, the quality of exported fruits is a big problem for this billion-dollar export industry. The story of durian prices increasing but the problem of durian being cut unripe for export continues to recur in the Japanese market.

According to a Vietnamese durian importer in Japan, in early March 2024, this company signed a contract to buy 6 tons of peeled frozen durian from a company in Lam Dong province. When the goods were exported, this company had to liquidate and destroy nearly 2.5 tons. Japanese retail partners reported that the durian was bland, had a sour taste, and some boxes had black mold on them...

Previously, the company had signed a contract with a partner in Vietnam to buy fresh fruit of type B to be frozen. Normally, this product has a minimum sweetness index (brix) of 26%, but when checking the returned goods, it was discovered that the durian segments only reached 13 - 19% brix.

The problem for businesses is not only financial loss but also the reputation of the business with Japanese retailers when the products are not of good quality and must be recalled completely.

The problem of durian being cut too young has been happening recently, affecting the reputation and image of Vietnamese fruit.

While durian has been criticized for its quality by importers in the Japanese market, Vietnamese chili peppers have been subject to increased inspections in Korea and Taiwan (China). Specifically, according to the Vietnam Trade Office in Korea, the Trade Office has received a letter from the Korean Ministry of Food and Drug Safety (MFDS) notifying the re-designation of imported foods that must be inspected when entering Korea.

Accordingly, in order to raise awareness of food safety responsibilities of importers and ensure the safety of imported food consumers, MFDS announced that it will extend the inspection order under Article 22 (Inspection Order) of the “Special Act on Imported Food Safety Control” and the “Regulations on Inspection Orders for Imported Food”…

Prior to terminating the inspection order, MFDS decided to re-designate certain food items for inspection after much deliberation and review due to high nonconformity rates or potential for harm.

For products imported from Vietnam, the food items to be tested are hot peppers (Cayenne, Capsicum, Chili Pepper, Red Pepper, Tabasco). Test items: 7 pesticides (Diniconazole, Tolfenpyrad, Tricyclazole, Permethrin, Dimethoate, Isoprothiolane, Metominostrobin).

MFDS will extend the inspection order from March 31, 2023 to March 30, 2025 (instead of March 30, 2024) due to imported foods that continuously fail to comply with standards and specifications. The list of food items subject to inspection is posted on the MFDS website (http://www.mfds.go.kr) in accordance with Article 3 of the “Regulations on Inspection Orders for Imported Foods”…

In addition, Korean individuals or business entities intending to import food under inspection orders must submit test reports issued by MFDS-approved laboratories when making import declarations.

Similarly, the Vietnam Economic and Cultural Office in Taipei also announced that Taiwan (China) has increased supervision of imported chili and chili products.

Compliance with market regulations - the key to Vietnamese fruits and vegetables going far

According to experts, most markets are currently tightening the quality of imported agricultural products. Although the export market for fruits and vegetables is still quite large, sustainable exports require Vietnam's fruit and vegetable products to further improve their quality.

"We recommend that people try to maintain quality. If we have quality, we don't have to worry about not having a place to sell," Mr. Dang Phuc Nguyen - General Secretary of the Vietnam Fruit and Vegetable Association - emphasized.

In 2024, many comments were made with the figure of fruit and vegetable exports reaching 6 - 6.5 billion USD. This is completely reasonable when the negative impact of El NiNo has been and is reducing the global supply of fruits and vegetables. This will be an opportunity for Vietnam if it has quality products and conquers demanding markets.

However, the opportunity comes with compliance with market requirements. Accordingly, along with building and managing good growing areas to create raw material areas that meet sustainable export standards and harvest control, timely updating of technical requirements from importers will help Vietnamese agricultural products penetrate into major markets.

Mr. Ngo Xuan Nam - Deputy Director of the Vietnam SPS Office - said that businesses and gardeners must comply with regulations on food safety measures and animal and plant disease safety. If we do not understand these regulations and violate them, we will immediately be warned by the market.

Demand in the largest fruit and vegetable export market, China, remains high. Vietnam is still negotiating with China to have more products officially exported to this market. At the same time, businesses continue to promote exports to major markets such as the US, EU, Australia, Korea, etc.

Returning to durian, it is expected that in 2024, exports will grow even more because the code for growing areas and durian packaging facilities may be granted by the General Department of Customs of China. Mr. Nguyen Dinh Tung - General Director of Vina T&T Company - said that the market demand for this fruit is very large. However, the recently discovered export shipments of young, rotten durian, although accounting for a small proportion, have a negative impact, adversely affecting the image and quality of Vietnamese durian. The problem is how to have a standard process for state management agencies to control quality. This process needs to solve the problem of young cut durian that has been happening in the recent past.

According to the Southern Fruit Institute under the Vietnam Academy of Agricultural Sciences (Ministry of Agriculture and Rural Development), if in 2016, the whole country had only 33,400 hectares of durian, in 2022 there were more than 112,000 hectares. In 2023, the durian growing area will continue to expand and reach about 127,000 hectares.

In the past 2 years, many localities have accelerated the expansion of durian growing areas. The whole country has now exceeded the set target of about 50,000 hectares of durian (The Project on Developing Key Fruit Trees to 2025 and 2030 according to Decision No. 4085/QD-BNN-TT dated October 27, 2022 of the Minister of Agriculture and Rural Development oriented durian development to 2030 at about 65,000-75,000 hectares). This is what makes many people worry that the supply - demand and price of durian will become complicated.

Source: https://congthuong.vn/4-thang-xuat-khau-rau-qua-thu-ve-hon-18-ty-usd-nhung-van-doi-dien-voi-rui-ro-co-huu-317603.html