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On July 31, 2022, Southern Food Corporation held a conference to review production and business activities in the first 6 months of the year and implement tasks for the last 6 months of 2022.
1. The situation of food production in the country and the world
In the country
Regarding the progress of sowing, according to the report of the Department of Agriculture of the Mekong Delta provinces, by the end of June 2022, the winter-spring crop has been completely harvested with an estimated output of 10.9 million tons. The summer-autumn crop has harvested 260,000 hectares, which is expected to focus on July and August 2022.
In terms of seed structure, in the summer-autumn crop 2022, the yield of the main sown rice varieties OM18, DT8, OM5451 increased over the same period, while the variety IR50404, DS1 decreased over the same period.
Regarding price fluctuations, in the Winter-Spring crop, rice prices fluctuated quite complicatedly, increasing and decreasing in many short waves. Specifically, at the beginning of the season, the price of OM18/DT8 rice was at 6,100 – 6,200 VND/kg and then dropped to the lowest level of 5,600 – 5,700 VND/kg, equivalent to the price of finished rice from 10,200 to 10,300 VND/kg and fluctuated to the lowest level of 9,700 – 9,800 VND/kg in mid-March. In particular, the price of by-products fluctuated very high, the price of bran increased over 8,500 VND/kg.
Entering the early days of June, after peaking at 10,600 VND/kg in the morning trade, prices started to fall at 10,050 – 10,100 VND/kg so far in the winter-spring rice crop. As for the summer-autumn rice crop, it is at 9,700-9,800 VND/kg. The price of by-products is at a record high: bran 8,900 VND/kg, rice husk 2,200 VND/kg, etc.
In the World
According to the forecast of the US Department of Agriculture (USDA), global rice production in 2022 will reach 513.67 million tons, up 0.86% compared to 2021. Global rice consumption in 2022 will reach 514.4 million tons, up 2.2% from 2021, mainly in India. Because this country is expected to provide food for the Government’s food security programs to offset wheat. Global rice stocks reached 187.3 million tons, down 0.4% compared to 2021.
Global rice trade in 2022 is forecast to reach 52.87 million tonnes due to increased exports from Myanmar and Brazil. The global rice import market fell by nearly 3 million tons, mainly due to a sharp drop in Indian stocks as large quantities of rice were released to the domestic market.
2. Overview of production and business results in the first 6 months of 2022
In terms of the main items purchased, in the first 6 months of 2022, the purchased items of rice, gasoline and Honda vehicles all nearly reached and exceeded the plan. Regarding the sales target for the rice industry in the first 6 months of 2022, the volume of rice sold is 252,554 tons, and the quantity being delivered and not yet delivered is 86,614 tons.
Regarding the flour business, in the first 6 months of 2022, the sales volume of this product has reached the profit plan, the gross profit/revenue ratio is 14.7%. In the field of processed food business, the operation situation has gradually stabilized and brought high efficiency. The unit is always interested in improving product quality in order to better meet the tastes of consumers, bringing a high competitive advantage compared to similar products in the market.
Regarding the business situation of services at the port, despite being affected by the Covid-19 epidemic and the impact of the Russia-Ukraine war, the Corporation has exploited 7 new customers and exploited goods of containers through the port for cargo handling, an increase of 3 times over the same period.
In particular, thanks to the efforts of all officials and employees, Southern Food Corporation has completed its key goals, obtained positive results in the fields of business, production, and was honored to receive the flag of emulation and commendation for excellent units in 2021.
Being honored to receive the emulation flag is a great encouragement for all employees of the Southern Food Corporation to continue to fulfill their tasks well and achieve new successes in the next period.
3. Product and market development plan in the last 6 months of 2022
Firstly, continue to maintain stability in traditional markets and customers. Monitor supply and demand levels in order to forecast the demand of markets, timely orient plans for purchasing, create legitimacy, and take advantage of opportunities when import demand in other countries increases.
Second, strengthen marketing to make the most of new markets and commercial customers. At the same time, developing the domestic market on the basis of expanding relationships, understanding the needs of customers to meet the quantity and quality of products at competitive prices. For trading activities, continue to improve competitiveness. In particular, special attention is paid to supply activities for external enterprises. At the same time, strengthen the search for partners and customers to maximize the capacity of warehouse, yard and port services.
Third, allocate research activities to increase flour production, improve production lines to improve working efficiency and boost production capacity in the last 6 months of the year. Regarding the management structure, continue to promote the centralized management model in finance, business, investment and asset exploitation management to bring into full play the resources of the Corporation, and promote the management and operation of products other than rice to improve revenue and efficiency.
In the context that 2022 continues to be a year of many difficulties and challenges due to the impact of the Covid-19 epidemic, the energy crisis in Europe, the Russia-Ukraine war, broken supply chains, raw material prices, input data increases rapidly, purchasing power is weak due to inflation. But with the close direction of the Board of Directors, and the consensus of the entire staff, it is hoped that the Corporation will reach the planned level in the last 6 months of 2022.