Many businesses said it was difficult to complete orders and suffered losses when durian prices were inflated, with many farmers canceling deposits to sell to brokers at higher prices.
The above information was reflected by many businesses and cooperatives at the online forum "Identifying the current situation of linking consumption and export of Vietnamese durian" on the morning of September 11.
Mr. Le Anh Trung, Director of Foreign Affairs of Van Hoa Investment and Development Company Limited, a unit with a packaging facility system in Dak Lak of up to 30,000 m2, with an operating capacity of about 100,000 tons per year, said he had to compensate for losses because durian prices were "inflated" and farmers broke their contracts.
Mr. Trung cited that a month before the durian season, the growing areas had been linked with businesses in advance, but farmers still broke their contracts because brokers and drivers offered higher prices.
"If businesses sign a purchase contract with farmers at 60,000-80,000 VND per kilogram, many temporary establishments are willing to pay 90,000 VND, even 100,000 VND, causing farmers to break their contracts," said Mr. Trung.
According to Mr. Trung, this makes it difficult for the company to complete orders for partners, having to compensate for losses after each export shipment. With this situation, the more the company works, the more it will lose. Maintaining commitments with partners is seriously affected. Therefore, in the future, the company will not be able to purchase products for farmers as committed.
Mr. Le Anh Trung, Director of External Relations of Van Hoa Investment and Development Company Limited at the forum on the morning of September 11. Photo: Minh Hau
In the same situation, Mr. Nguyen Huu Chien - Director of Tan Lap Dong Agricultural Service Cooperative, Krong Buk district, Dak Lak province, said that he is cooperating with 2 export enterprises but is also affected when traders and brokers flock to the gardens to close and stake, causing distraction for farmers.
"The competition for buying and selling happens regularly. Enterprises quote prices to farmers in the morning, and in the afternoon, the trading establishments increase the prices by two more. They even try to tease farmers to break the connection. This shows that domestic enterprises are 'fighting' and losing at home," said Mr. Chien.
In addition, he said there is an alarming situation where the growing areas of cooperatives are all given codes by China, but when traders and transit agencies purchase, they use other growing area codes for packaging.
"If this situation continues, the shipments will not meet Chinese regulations and discredit Vietnamese exports, even risking losing the billion-people market," he warned.
Therefore, Mr. Chien suggested that the authorities strictly control and monitor the issuance and management of growing area codes. To end the situation of "buying and selling competition", he said that cooperatives and enterprises need to cooperate more closely. At the same time, the management agency also needs to develop sanctions to deter businesses and units that disrupt the market.
In response to the businesses' complaints, Mr. Ngo Xuan Nam, Deputy Director of the National Information and Enquiry Point on Hygiene, Epidemiology and Animal and Plant Quarantine (SPS Vietnam) said that the Plant Protection Department is also reviewing and requesting localities to withdraw and temporarily suspend the export of codes for growing areas and durian packaging facilities that violate quarantine.
According to him, when an incident occurs, the Chinese side will trace the origin back to the place registered and licensed by the competent authorities. Therefore, Mr. Nam suggested that businesses need to learn and strictly comply with the contents of the protocol, to avoid affecting the brand, reputation and sustainability of the durian industry chain.
The Minister spoke at the forum on the morning of September 11. Photo: Minh Hau
Hoping to untie the knot of "buying and selling, and breaking stakes", Minister of Agriculture and Rural Development Le Minh Hoan said that the business community, durian growers, and state management agencies need to work together more closely to prevent durian from falling into tragedy.
According to Mr. Hoan, agriculture is still fragmented, small-scale, and spontaneous, so local authorities, businesses, and associations must participate from the beginning with farmers so that people have full information to adjust production. Parties in the chain must abandon the thinking: "farmers think seasonally, businesses think commercially, and governments think termly". Businesses must build the foundation with farmers from the time they plant seedlings, not wait until the fruit is ripe on the tree, which is out of control.
The Minister emphasized that it is time for Vietnam to combine tightening state management with local specialized management. Tightening at the local level does not mean that the Ministry shirks its responsibility because the durian industry is the image of Vietnam's agriculture.
The Minister also said that, up to now, the new growing area code has only been encouraged, so in the future it will be mandatory. Everything must be in accordance with standards and regulations, there will be no more spontaneous situations.
Local authorities must be the closest to businesses, cooperatives, and production households; bring them into a common space, organize them together to communicate, inform, and unify production according to market requirements. From there, authorities can zone off planting areas for management, and guide people to avoid risks in production, according to the Minister.
Ms. Nguyen Thi Mai Hien, Deputy Director of the Legal Department (Ministry of Agriculture and Rural Development) said that regarding regulations on handling administrative violations in the agricultural sector, there are 2 Decrees: Decree 31 of 2016 and Decree 31 of 2023 on handling administrative violations in the process of crop production and trading...
In addition, it is necessary to comply with the regulations in Decree 115 and 124 on handling administrative violations in the field of food safety...
In case traders incite people to break contracts or break deposits, they will be handled based on the terms of the contract or according to civil and economic laws.
Thi Ha
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