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.  

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.  

If you need more information, please contact with Pham Hoang Ngan – phamhoangngan@agro.gov.vn.

Hoang Ngan  (www.agro.gov.vn )

(Information Center (AGROINFO), Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD), August 2007