FRUIT & VEGETABLE INDUSTRY REPORT 2017

Transcription

1 FRUIT & VEGETABLE INDUSTRY REPORT 2017

2 CONTENTS I. Global Fruits and Vegetables market size.3 II. Factors affecting Vietnam s Fruits & Vegetables Industry 8 III. Production scale of Vietnam s Fruit & Vegetable Industry.21 IV. Domestic consumption of Vietnam s Fruit & Vegetable...31 V. Exports & Imports of Vietnam s Fruit & Vegetable..42 VI. Prospects for Vietnam s Fruits & Vegetables Industry 47 VII. Top companies within the industry.51 VIII. Appendices....56

3 Global value chain of the Fruits & Vegetables Industry 1. Global value chain INPUTS PRODUCTION FOR EXPORTS PACKAGING & STORAGE PROCESSING DISTRIBUTING & MARKETING Seeds Fertilizer Farms: Fruits and vegetables fir processing Processing companies Dry Super markets Agrochemicals Agricultural equipments Irrigation equipments Farms: Fruits and vegetables for instant consumption Small farms Medium & large farms Residuals Exporters Packaging (selection, packaging, cutting, labeling...) Cold storage Freeze Preserve Juice Food service Import & Retail Small retailers Major Exporters & Importers Farms Packaging (selection, packaging, cutting, labeling...) Cold storage Research & Development Source: GVCC, VietnamCredit VIETNAM FRUITS & VEGETABLES INDUSTRY REPORT

4 Million USD The commercial value of global Fruits and Vegetables (HS 07, 08 và 20) Global fruits & vegetables import markets Mỹ USA Germany Đức USA Anh France Pháp Netherlands Hà Lan 3% 3% 3% Top 10 fruit types by global export volume, % 4% 7% 6% 9% 22% 6% 12% Tomatoes Cà chua Bell Ớt ngọt peppers và ớt cay Cucumbers Dưa chuột và dưa leo Onions Hành Cabbage Cải bắp Garlic Tỏi Asparagus Măng tây Lettuce Rau diếp Cauliflower Súp lơ Global fruits & vegetable export markets USA Mỹ Trung ChinaQuốc Tây Spain Ban Nha Netherlands Hà Lan Mexico Source: Robobank, ITC, VietnamCredit VIETNAM FRUITS & VEGETABLES INDUSTRY REPORT

5 Nghìn đồng Nghìn đồng Vietnamese people spend nearly 50% of their monthly expenses on food 2. Social factors Income per capita of Vietnam is quite modest. In 2016, Vietnam's per capita income was over VND3 million per month, which is only VND1 million higher than that in % of the population are living in rural areas and per capita income in 2016 in this area was just VND2.4 million, which is lower than the average. Average per capita expense of Vietnam has not increased significantly over the years. In 2016, it only increase by 15.6% over People are gradually reducing their spending to increase their savings. In 2016, Vietnamese people spend nearly 50% of their monthly expenses on food Monthly income per capita Average per capita expense per month 8,000 7,000 8,000 7,000 Thành Urbanthị Nông Ruralthôn CẢ Country NƯỚCaverage 6,000 6,000 5,000 5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1, Source: GOS, VietnamCredit Urban Thành thị Nông Ruralthôn CẢ Country NƯỚCaverage Tổng Total chi For Chi food, ăn Tổng Total chi expense tiêu uống, drinks.. hút expense tiêu For Chi food, ăn drinks.. uống, hút Tổng Total chi For Chi food, ăn Tổng Total chi expense tiêu uống, drinks.. hút expense tiêu For Chi food, ăn uống, drinks.. hút VIETNAM FRUITS & VEGETABLES INDUSTRY REPORT

6 CONTENTS I. Global Fruits and Vegetables market size...3 II. III. IV. Factors affecting Vietnam s Fruits & Vegetables Industry 9 Production scale of Vietnam s Fruit & Vegetable Industry Area and output Vegetables production Fruits production Post-harvest losses..31 Domestic consumption of Vietnam s Fruit & Vegetable..32 V. Exports & Imports of Vietnam s Fruit & Vegetable..43 VI. VII. VIII. Prospects for Vietnam s Fruits & Vegetables Industry 48 Top companies within the industry.51 Appendices... 56

7 1. Area and Production There has been an increase in the areas of cash crops and fruit trees in recent years In 2017, the area of vegetable cultivation reached thousand hectares, which is an increase of 29.5 thousand hectares in comparison with 2016 and equal to 103.2%. The area of vegetable cultivation in the Northern Vietnam ranges from 45.14% to 46.02%, which is always smaller than that of Southern Vietnam. The area of fruit trees cultivation in 2017 reached thousand hectares - an increase of 52.5 thousand hectares and 6% against Vietnam s fruit & vegetable cultivation area Area Diện (thousand tích (nghìn hectares) ha) Area Diện (thousand tích (nghìn hectares) ha) Area Diện (thousand tích (nghìn hectares) ha) Vegetable production in 2017 reached 16.5 million tons, increasing thousand tons against 2016, equivalent to 103.5%. Fruit production in 2017 increase sharply due to the expansion in cultivation area of some fruit trees. Despite the fact that the total production of fruit and vegetable is 26.5 million tons per year, only 9% of which are processed. Processing and marketing are still weaknesses of Vietnam's agricultural sector Vietnam s fruit & vegetable production Sản Production lượng (million (triệu tấn) tons) Sản Production lượng (triệu (million tấn) tons) Sản Production lượng (million (triệu tấn) tons) Veg Rau Quả Fruit Rau Veg Quả Fruit Source Ministry of Agriculture and Rural Development, VietnamCredit NAM FRUITS & VEGETABLES INDUSTRY REPORT

8 The cultivation area of safe vegetables (SV) in Hanoi is still modest, which cannot meet the demands of the local people. There is still a lot of room in the market for safe and organic vegetables in Ho Chi Minh City. 2. Vegetable production HANOI HANOI Area: 29,047 ha (5,100 ha of SV) Productivity: over 20 tonnnes/ha/crop (an increase of 17.6% over 2009). Production: 400 thousand tons/year (25% of consumer demand) (There are 3-5 crops per year in nylon netting vegetable growing area, which leads to an increase of VND600 million in revenue for a hectare/year. In Yen Vien, Gia Lam District, the annual revenue from vegetables is VND2 billion. In general, safety vegetable cultivation brings about more values than traditional cultivation of vegetable (10-20%).) HO CHI MINH CITY Area: 15,800 ha of SV (an increase of 18.94% over 2011, reaching 105% against the plan) Productivity: 25 tons/ha 224 ha VietGAP vegetable 40 ha organic vegetable Production: 375,000 tons/year (an increase of 33.79% over 2011). 448 ha VietGAP vegetable 94 organic vegetable production models HO CHI MINH CITY (Generally, the area of vegetable grown under the VietGAP standard has increased by more than 95% compared to the period Yield of leaf vegetables increased by %... contributing to increasing the income of farmers from 5 to7 million VND / ha... Thus, there is still a lot of room in the market for safe and organic vegetables.) VIETNAM FRUITS & VEGETABLES INDUSTRY REPORT

9 There are 9 main fruit trees, accounting for 62% of revenue and 87.4% of production LONGAN - Area: ha - Production: tons ORANGE - Area: ha - Production: tons PINEAPPLE - Area: ha - Production: tons MANGO - Area: ha - Production: tons POMELO - Area: ha - Production: tons LYCHEE - Area: ha - Production: tons BANANA - Area: ha - Production: tons DRAGON FRUIT - Area: ha - Production: tons 9 RAMBUTAN - Area: ha - Production: tons Source: Department of Horticulture, VietnamCredit BÁO CÁO NGÀNH vegetables & QUẢ

10 Million USD Million USD Hanoi, Ho Chi Minh City and Lam Dong are the biggest manufacturers and consumers of vegetables Vietnam has developed a chain of 280 safe agricultural production models in 35 provinces. Products from these models have had foothold in the market with higher selling prices than other products. Hanoi s population of 7.6 million in 2017 consumed more than 4,200 tons of food/day (of which 2,500 tons is vegetable). However, only 125 vegetable processors and traders meet the food safety requirements. Ho Chi Minh City's vegetable production only meets 40% of the demand of local people. Importers must cooperate with different production regions and other countries to ensure the stability of the source of goods. Normally, only major importers have good product sources with competitive prices. Products of these importers are distributed in supermarket systems like Co.opmart, Lottemart, Satrafoods, Vinmart or Metro. 1,600 1,400 1,200 1, Source: ITC, VietnamCredit Import value of vegetables and fruits of Vietnam Vegetables Rau Fruits Quả Chế Products phẩm from từ vegetables Rau & Quả and fruit VIETNAM FRUITS & VEGETABLES INDUSTRY REPORT Export markets of vegetables & fruits for Vietnam Bờ Côte Biển d'ivoire Ngà Campuchia orangesbo Thái Thailand Lan Trung China Quốc Indonesia dia Data updated in 12/

11 Producers Vietnam s vegetable and fruit market has fluctuated over the years, which causes a lot of difficulties for farmers 3. Distribution system Short distribution channels: Producers Consumers Producers Retailers - Consumers Small scale production. Seasonal vegetable production. Long distribution channesl (3 intermediaries or more): Large scale production or far from consumption market. Traditional channel: no contracts. Modern channel (shops, super market, malls): contract based supplies with some other certifications (VietGAP, GlobalGAP, Organic standards ) Major vegetable and fruit distribution channels invietnam Retailers Wholesalers Retailers Intermediaries Wholesalers Retailers Collectors Wholesalers Retailers Supermarkets/Stores Processors Exporters Consumers Source: Fruit & Vegetable Research Institute, VietnamCredit VIETNAM FRUITS & VEGETABLES INDUSTRY REPORT

12 70% of vegetables sold in supermarkets in Hanoi originate from Hanoi 3. Distribution channels HA NOI Only 52% of vegetable demands of Hanoi inhabitants are met, therefore, vegetables from bordering provinces are mobilized to fulfill the demand of this big city. 80% of fruit in the wholesale markets in Hanoi are of unknown origin. There are more than 10 wholesale companies, 464 stores & retail stalls in Hanoi that are trading fruits. Features of vegetables sold in supermarkets in Hanoi Vegetables sold in different channels in Hanoi Amount (tons/day) Structure (%) Wholesale markets % Retail markets % Street vendors 1,330 42% Safe vegetable stores 95 3% Supermarkets 95 3% Directly to consumers % Directly to restaurants 158 5% Total consumed amount 3, % Source: Fruit & Vegetable Research Institute, VietnamCredit Big supermarkets Average supermarkets Small supermarkets Big C Metro Intimex Fivimart Unimart Rosa Seasonal vegetables Of the main crops and not main crops Of the main crops Number of types Number of suppliers Average amount sold/day (time) Types of products Unprocessed and preliminarily processed Unprocessed,preliminarily processed and processed Unprocessed Product forms Wrapped, packed Wrapped, packed VIETNAM FRUITS & VEGETABLES INDUSTRY REPORT

13 Cooperatives producing clean and safe agricultural produce are facing difficulties in finding outlets because of complicated procedures when they want to enter supermarkets 3. Distribution channels HO CHI MINH CITY Vegetable and fruit distribution channels in Mekong Delta Retailers 3% 35% 5% 85-90% Domestic consumers Farmers/ Cooperatives Small traders 30% 80% Wholesalers 70-75% Retailers/Supermarket 50% Big traders 5-10% 2% Export 7% 5% Companies Source: IPSARD VIETNAM FRUITS & VEGETABLES INDUSTRY REPORT

14 Tỷ USD Vietnam is ranked 14 th in the global top agricultural exporters list 1. Commercial value of vegetables and fruits Vegetables & fruits are key agricultural products as its export value is USDD3.5 million (42% higher than 2016), which is much higher than rice export value. This sector accounts for 20% of agricultural product exports, increasing 300% against This proves that Vietnam is going the right way when focusing on developing vegetables and fruits instead of rice. Export structure of agricultural products in 2011 and % 1% 6% 20% Hàng Vegetables Rau quả & Fruits 5% 5% 7% 1% Cashew Hạt điều 11% 13% Coffee Cà phê 24% Rice Gạo 20% Rubber Cao su 20% Hạt Peppercorn tiêu 15% 27% Cassava Sắn & các and sản cassava phẩm products từ sắn Tea Chè 19% Export values of Vietnam vegetables and fruits Importers of Vietnam s vegetables and fruits Giá Export trị values xuất khẩu Cán Trade cân balance thương mại 1.8% 2.4% 2.9%3.6% Hà Netherlands Lan 13.5% Hàn KoreaQuốc Mỹ USA Nhật Japan Bản Trung China Quốc 75.7% Khác Others Source: General Department of Customs, VietnamCredit VIETNAM FRUITS & VEGETABLES INDUSTRY REPORT

15 Formerly, Vietnam only exported processed fruits. However, in 5 recent years, fresh fruits have been prefered. 3. Fruit export Fruit export value reached USD2.5 billion (increasing 13.6% aganinst 2016), of which dragon fruit stayed on top of the list with 50% of total fruit export value. Exported fruits account for only 10% of Vietnam s total fruit production. Many markets like America, Japan, Korea, Australia, Newzealand, which have high standards for imported fruits have imported Vietnam s fruits. At the end of 2017, the USA imported milk fruit from Vietnam for the first time. Tropical fruits and seasonal fruits are Vietnam s strengths. Currently, Vietnam has 29 types of fruit for exports FRUIT EXPORT TURNOVER Unit: billion USD Source: General Department of Customs, VietnamCredit VIETNAM FRUITS & VEGETABLES INDUSTRY REPORT

16 MỤC LỤC I. Global Fruits and Vegetables market size...3 II. III. Factors affecting Vietnam s Fruits & Vegetables Industry 9 Production scale of Vietnam s Fruit & Vegetable Industry.22 IV. Domestic consumption of Vietnam s Fruit & Vegetable..32 V. Exports & Imports of Vietnam s Fruit & Vegetable..43 VI. VII. VIII. Prospects for Vietnam s Fruits & Vegetables Industry 48 Top companies within the industry Appendices

17 No Name Area (ha) 1 Thai Nguyen AZAHT 300 LIST OF AGRICULTURAL ZONES APPLYING HIGH TECHNOLOGY (AZAHT), PLANNED TO (VEGETABLES & FRUITS) Location Fields Period Pho Yen and Phu Binh Districts, Thai Nguyen Province - Cultivation (vegetables, flowers, mushrooms, tea, forest trees) 2 Quang Ninh AZAHT 106 Dong Trieu District, Quang Ninh Province - Cultivation (seedlings, flowers, mushrooms, fruit trees, ornamental plants, forest trees) Preservation and processing of agricultural products. 3 Thanh flowers AZAHT 200 Tho Xuan District, Thanh Hoa Province - Cultivation (vegetables, flowers, sugar cane, forest trees) - Preservation and processing of agricultural products Khanh flowers AZAHT 65.9 Cam Lam District, Khanh Hoa Province - Cultivation (seedlings and products from rice, corns, vegetables, flowers, sugar cane, cashew, mangoes) Lam Dong AZAHT 221 Lac Duong District, Lam Dong Province - Cultivation (vegetables, high-quality flowers, temperate fruit trees, corns, coffee, pepper, tea, medicinal plants, forest trees) Phu Yen AZAHT 460 Phu Hoa District, Phu Yen Province - Cultivation (vegetables, flowers, rice, sugar cane, special fruit trees, forest trees); Ho Chi Minh City AZAHT 88.2 Cu Chi District, Ho Chi Minh City - Cultivation (seedlings and products from vegetables, flowers and fruits); Binh Duong AZAHT 412 Phu Giao District, Binh Duong Province - Cultivation (vegetables, flowers, mushrooms, coffee, rubber, pepper, cashew, sugar cane, medicinal plants) Hau Giang AZAHT 415 Long My District, Hau Giang Province - Cultivation (vegetables, flowers, special rice, special fruit trees, fertilizer, edible mushrooms and medicinal mushrooms) Can Tho AZAHT 244 Co Do District, Can Tho City - Cultivation (vegetables, flowers, high-quality rice, special fruit trees) Hanoi AZAHT 96.6 Dong Anh District, Hanoi City - Cultivation (vegetables, flowers, ornamental plants); Lao Cai AZAHT 200 Sa Pa District, Lao Cai Province - Cultivation (seedlings and products fromtea, vegetables, flowers, temperate fruit trees, medicinal plants) Phu Tho AZAHT 300 Phu Tho Town, Phu Tho Province - Cultivation (seedlings and products from high-quality rice, mushrooms, vegetables, flowers, tea, fruit trees) Son La AZAHT 200 Moc Chau District, Son La Province - Cultivation (vegetables, flowers, tea, temperate fruit trees) Nam Dinh AZAHT 200 Y Yen District, Nam Dinh Province - Cultivation (seedlings and products from vegetables, flowers, rice seedlings and high-quality rice) Cultivation (vegetables, flowers, mushrooms, fruit trees) 16 Hai Phong AZAHT 200 An Lao District, Hai Phong City - Bioproducts; Nghe An AZAHT 200 Nghia Dan District, Nghe An Province - Cultivation (seedlings and products fromvegetables, flowers, peanuts, oranges, grapefruit, plants for animal feed) Ha Tinh AZAHT 140 Can Loc District, Ha Tinh Province - Cultivation (seedlings and products from vegetables, flowers, mushrooms, fruit trees) Quang Ngai AZAHT 190 Binh Son District, Quang Ngai Province - Cultivation (vegetables, flowers, mushrooms); Dak Nong AZAHT 120 Gia Nghia Town, Dak Nong Province - Cultivation (seedlings and products fromflowers, vegetables, edible mushrooms, medicinal mushrooms, fruit trees, coffee, pepper, macca) 2030 Xuyen Moc District, Ba Ria - Vung Tau - Cultivation (seedlings of vegetables, flowers, ornamental plants, special fruit trees, special rice, pepper, cocoa, 21 Ba Ria Vung Tau AZAHT Province forest trees, medicinal plants) Source: Compiled by VietnamCredit 22 Tien Giang AZAHT 200 Chau Thanh District, Tien Giang Province - Cultivation (fruit trees, vegetables, flowers, ornamental plants) Production of fertilizers, medicines and bioproducts for agricultural production. 2020

18 MỤC LỤC I. Global Fruits and Vegetables market size...3 II. III. Factors affecting Vietnam s Fruits & Vegetables Industry 9 Production scale of Vietnam s Fruit & Vegetable Industry.22 IV. Domestic consumption of Vietnam s Fruit & Vegetable..32 V. Exports & Imports of Vietnam s Fruit & Vegetable..43 VI. Prospects for Vietnam s Fruits & Vegetables Industry 48 VII. Top companies within the industry An Giang Fruit-Vegetables & Foodstuff JSC..! 2. Vegetexco Vietnam JSC...! 3. Corporation Food Processing Export Nam Dinh...! VIII. Appendices... 56

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