Cooperation in commodity analysis between IPSARD & ERS From 21 to 30, August 2007, ERS (Economic Research Service) supported IPSARD in conducting field-trips to Red and Mekong River Deltas to study rice commodity and help raising capacity of IPSARD’s specialists in rice commodity analysis Under the cooperation framework between ERS/USDA and IPSARD/MARD, from 21 to 30, August 2007, ERS supported IPSARD in conducting field-trips to Red and Mekong River Deltas to study rice commodity and help raising capacity of IPSARD’s specialists in rice commodity analysis. A visit was conducted to Information Center (AGROINFO) of IPSARD by ERS/USDA delegation in the morning of 20 August, 2007. The two sides exchanged experiences in analyzing rice commodity and writing Agricultural Sector and Rice Commodity Reports for 2007 based on methodologies being applied by America and China and committed to provide in-depth scientific data and information on commodity development for leaders of MARD, IPSARD and others. Based on successful cooperation between the two sides, Dr.John Dyck - Director of SE Asia Emerging Markets Program is considering the provision of upcoming supports to AGROINFO. From 21 to 23, August 2007, ERS/IPSARD specialists will meet with Departments of Agriculture and Rural Development (DARDs), rice businesses, rice associations and rice farmers of Hanoi, Thai Binh and Ha Tay provinces. During 24 - 30, August, 2007, ERS/IPSARD specialists are also expected to be in HCM city and a number of rice growing provinces in the Mekong River Delta (An Giang, Can Tho, Vinh Long). |
Since 2001, although paddy-rice growing area dropped from 168,000 ha in 2001 to 163,000 ha in 2006, rice yield in Thai Binh continues to maintain at 12 tons/ha/year thanks largely to the application of advance science and technology. In 2006, rice yield reached 13 tons/ha and rice output amounted to 1 million tons, equivalent to 750,000 tons of milled rice.
There have been in existence of about 2,000 rice milling and over 5,000 rice processing units in Thai Binh operating mainly at household level to serve the local demand. Every year, more than 400,000 tons of the overall rice output are used for human, livestock production or kept as crop seeds to meet the demand of the province’s 1.8 million people. Some big rice processing enterprises have been established, including companies of Thai Dan, Lam Son and Song Hong (Red River) having respective processing capacities of 27,000, 50-60,000 and 10,000 tons annually. These processing companies are playing a key role in upgrading rice quality to meet the demand of the consumers of the big cities such as Hanoi, Hai Phong and Quang Ninh and the demand for exportation to Taiwan and China markets. According to the Department of Agriculture and Rural Development (DARD) of Thai Binh, rice production for exportation to Taiwan and China is mainly based on the contracts signed between exporting companies and farmers to produce Indica paddy variety (with round shaped kernels) with planting area varied between 100 to 150 ha/year. The exportation, though at modest level is considered a new step reflecting active integration into global market by Thai Binh’s food companies in the context where scale of commercial rice production for exportation in the Red River Delta as the whole is still limited.
In 2005, with modern production and processing line, Thai Dan Food Jointstock Company reached a deal with its Taiwan counterpart on producing sticky rice. The August of 2007 marked the forth successive contract signed by the company with farmers to produce sticky rice for Taiwan through the assistance of Dong Tan Agricultural Service Cooperative of Dong Hung district. The 2007 rice season returned with a good harvest obtaining 100-150 seeds per ear, a productivity of 200kg/sao (one sao = 360m2) and a production of some 60 tons/year. Raw paddy was well milled, polished and screened to become high quality 5% broken rice to meet export standards of Taiwan. The company also signed contracts for exporting 10,000 tons of semi-processed rice to Taiwan through Hai Phong port.
Thai Dan Food Jointstock Company – Dong Hung district, Thai Binh province In 1989, Thai Dan Food Jointstock Company, earlier called Cau Nguyen Rice Milling Factory, was selected by MARD to be developed into a high quality factory through financial support of Demark government. In 2000, the scheme was completed and the factory came into operation. Thai Dan company was built with a closed processing line comprising with two smaller factories: the drying factory equipped with Silo storage facility having a capacity of 3000-3500 tons and a drying facility having a capacity of 120 tons/day at a humidity of 14-14,5; and a rice processing factory with a capacity of 27,000 tons/year equipped with color and kernel separation facilities producing high quality 5% broken rice for exportation. Source: AGROINFO |
However, the company is facing a number of difficulties, which include insufficient inputs, scattered rice cultivation lands, low rice reserve capacity and fund shortages… In the last two years (2006-2007), rice was harvested at time when Vietnam had completed signing contracts for exportation based on yearly targets and thus no exportation was proceeded. Since Vietnam has become an official member of WTO, Vietnam’s rice started accessing to Taiwan market. The successful implementation of the model producing rice for exportation by Thai Dan company can be considered as a market research activity helping to gain confidence from customers. To further extend rice exporting market to Taiwan, Thai Binh has developed a vertical cooperation model linking together rice producers rice processor and market. To do this, supports of local authorities are needed to help projecting rice production locations and developing policies to motivate exportation of high quality sticky rice.
According to the leaders of Thai Binh’s DARD, the province in 2007 has completed specifying areas producing high quality rice (with two crops per year) covering a total land area of 44,000 ha with the output estimated at 253.000 tons, mostly in districts of Tien Hai (11,000 ha) and Dong Hung (10,000 ha). To start with high quality rice production, in 2008, Thai Binh province will select 1-3 communes (800-1,000ha) in Tien Hai and 1-3 communes (600-700 ha) in Dong Hung to involve in rice production.
Overview of rice production in Thai Binh province
Thai Binh province is located in the Red River Delta bearing humid and tropical climate with a temperature ranging at 22-23C0. Two paddy crops are planted in a year: the Spring-Winter lasting from January 20 to June 15 and the Summer-Autumn lasting from 21 June to September 30. Land area: 1,536 km2 Population: 1.8 million (2006). Population density: 1000 persons/km2. 90% of the province’s population live in rural area. Agricultural land: 103,700 ha; annual crop land: 91,424 ha Agricultural land per capita: 500m2 Agricultural GDP accounts for 50% of the total provincial GDP Area of paddy land was 168,000 ha in 2001 and 163,000 ha in 2007. Paddy yield averages at 12.3 tons/ha and in 2007 reached 13 tons/ha. Food production: 1 million tons/year. Laborers leaving the province to work elsewhere: 150,000 persons (an increase of 20% in 2007 comparing to 2006). Agricultural labor cost: 50,000 VND/1 s o (360m2) on average. Mechanization: 90% in land preparation; 100% in rice milling and threshing About 7,500 rice processing units have been established Big rice enterprises include: - Song Hong (Red River) Food Company, which is a member of North Food General Company
- Thai Dan Food Jointstock Company
- Lam Son Food Jointstock Company
- Thai Binh Crop Seed Company
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