Restructuring rural economy focusing on rice value chains

Dang Kim Son IPSARD/MARD

Main content

An overview of the rice sector

An introduction of the component on “Restructuring rural economy focusing on rice value chains”

Rice sector- key agricultural sub-sector

1• 60% rural households growing rice/paddy

2• Paddy land accounts for 40% of agricultural production area

3• Contribute 30% of production value of cultivation sector

4• Ensure national food security

5• Contribute considerably to export turnover

Rice production ensures national food security due to surplus production

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

2014

0

5,000

10,000

15,000

20,000

25,000

30,000

000 tons

Domestic consumption Production

High export turnover from rice

rice export turnover accounts for 10% of total export turnover of the agricultural sector

2000

2002

2004

2006

2008

2010

2012

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

RiceCashewNatural rubberPepperCoffeeM

illi

on U

SD

Rice production intensively uses natural resources but low efficiency

   Rice production Coffee

Export turnover Billion USD 1.3 1.2

Agricultural land uses Million ha 4.2 0.5

Water uses Billion m3 101.4 9.1

Number of farmers

Million households 9.3 0.5

Rice production overuses fertilizer/pesticides

China India Indonesia Thailand Vietnam PhilippinesZhejiang Tamil Nadu West Java Suphan

BuriCan Tho Nueva

Ecija

0

10

20

30

40

50

60

1317

21

36

55

27

% fertilizer & pesticides expenses/ha

Low efficiency in rice production compared with other crops

Rice Tea Coffee0

10,000

20,000

30,000

40,000

Profit (000 VND/ha)

And lower than that of other countries

China India Indonesia Thailand Vietnam PhilippinesZhejiang Tamil

NaduWest Java Suphan

BuriCan Tho Nueva

Ecija

0200400600800

1,0001,2001,4001,6001,800 1633

420

9931128

419

645

Net profit from rice production (USD/ha)

Decreasing efficiency from rice export

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Volume Value

Mil

lion

tons

Mil

lion

USD

Directions for the development of the rice sector

At household level: rice/paddy is

the main livelihood in areas having advantages in rice production

In rural

areas: rice production generate income and

employment for people

At national level:

- Ensure food security;- High

efficiency in export

through high value-added -

Sustainable development of rice sector

Solutions for rice/paddy commodity development

Pilot model and

replication

Rice value chain

development

Paddy land

conversion

Restructuring rural economy focusing on rice value chains

Objectives

Assessing impacts of paddy land conversion into other crops and FTAs on food security, agriculture, rice/paddy production and paddy farmers’ income

Restructuring/Developing the rice value chain, emphasizing on institutional reforms through better cooperation among farmers and linkages between farmers and enterprises

Contributing to the development strategy of agriculture and rural areas 2016-2020 and the proposal on restructuring the rice sector in Vietnam

Overall objective is contributing to the

restructuring process of the rural economy through

development of the rice sector towards higher

added value and sustainability

Multi-purposes of paddy land conversion

Diversify and increase farmers’ income

Create jobs for agricultural and rural labour

Reduce the import of inputs such as animal feed and fertilizers

Ensure food security and protect environment

Rice value chain development

Higher value-added

Diversify rice products

Intensify science &

technology application

Institutional reform

Activities and Outcomes

Proposing changes to

institutional structure towards

higher value added for rice value chain in Dong Thap

Developing economic models to

assess impacts of policies on paddy land conversion and FTAs

- Proposing paddy land policy- Proposing policy for restructuring the rice sector

Thank you