Report of Department of Agricultural Economy – Ministry of Planning and Investment in June 24th 2012.
The agriculture, forestry and fishery sector recorded good results in the first six months of 2012 as compared to the same period last year. The production value of the agriculture, forestry and fishery sector in the first six months of 2012 (at 1994 constant prices) was estimated at VND110,248.89 billion, up 3.76% over the same period last year; of which agriculture reached VND79,581.25 billion, up 3.01%, forestry VND3,784 billion, up 5.69% and fishery VND26,883.64 billion, up 5.77%.
1. Agriculture
Cultivation
As of mid June 2012, the country basically harvested winter-spring crops and started sowing summer-autumn crops. Results are as follows:
Winter-spring rice
According to the preliminary report of localities, the winter-spring rice cultivation area in 2012 across the country is 3,124.2 thousand hectares, an increase of 27.4 thousand ha (+0.9%); the rice productivity is estimated at 64.8 quintals/ha, an increase of 1 quintal/ha (+1.5%); the yield reaches 20.26 million tons, an increase of 477.8 thousand tons (+2.4%) as compared to the 2011 winter spring crop, which is mainly attributable to increase in area and productivity in southern provinces.
Northern provinces cultivated 1,157.7 thousand ha of winter-spring rice, an increase of 6,200 ha (+0.5%), mainly in mountainous areas; the productivity was 62.3 quintals/ha, down 0.5 quintal/ha (-0.8%) due to several reasons: (i) the early cultivated area experienced prolonged freezing cold at the time of sowing; (ii) Many major rice areas were affected by prolonged heat during the tillering period; (iii) Pests and diseases arose in many localities. The yield of the region was estimated at 7,213.3 thousand tons, down 19.9 thousand tons (-0.3%) and the rice yield in Red River Delta provinces decreased 53.4 thousand tons.
In Southern provinces, total winter-spring rice yield of Southern provinces was estimated at 13,042,7 thousand tons, up 497 thousand tons as compared to the last winter spring crop due to increased planted area (+21.2 thousand ha) and productivity (+1.8 quintal/ha). In the important rice granary of Mekong Delta Region, the rice cultivation area increased 12.8 thousand hectares (+ 0.8%); the productivity reached 68.6 quintals/ha, an increase of 1.7 quintal/ha (+ 2.5%), which led the region’s rice yield to hit more than 10.8 million tons, an increase of 350.9 thousand tons (+2.5%). Some provinces recorded higher rice yields as compared to the previous crop include Long An (+110.5 thousand tons); Tra Vinh (+73 thousand tons); Kien Giang (+66.2 thousand tons); and Bac Lieu (+ 40.8 thousand tons).
Summer-autumn rice
Along with the harvesting of winter-spring crops, as of mid-June, localities in the country sowed 1,905.4 thousand ha of summer autumn rice, equivalent to 94.4% of the same period last year, of which Mekong Delta provinces sowed 1,653.7 thousand ha, equaling 100.7% of the same period last year due to early rain (An Giang 232 thousand hectares, equal to 100.8% of the same period last year; Kien Giang 268 thousand ha, equivalent to 7.4%). Most of the early cultivated area is in the tillering and flowering stage, 168 thousand ha of early summer-autumn rice have been harvested. However, there has been early rain, which will affect the productivity of the area, which is in the tillering and harvesting phase. Epidemics have strongly occurred on rice fields.
Other crops
By mid-June, the yield of some major crops decreased due to reduced cultivation area of the2011-2012 winter crop. The yield of corn hit 2,276.3 thousand tons, down 2.8%; the yield of peanut was 350.1 thousand tons, down 2.2% and that soybean reached 81.5 thousand tons, down 47.3%, of which Hanoi saw a decrease of 30.9 thousand tons while Thai Binh, Ha Nam and Ninh Binh recorded a drop of 11.5 thousand tons, 9.8 thousand tons and 6.4 thousand tons, respectively. The yield of vegetables reached 7,925.8 thousand tons, an increase of 4.2%. The yield of sweet potato hit 848.36 thousand tons, rising 42.7 thousand tons (+5.3%) mainly due to the increased sweet potato cultivation area in Vinh Long Province (the cultivation area increased 1,800 ha, while the yield of sweet potato added 87.8 thousand tons).
As of June 15, the cultivation progress of other annual crops is as follows: the cultivation area of corn reached 657 thousand hectares, equivalent to 81.7%; Potato 98.3 thousand ha, equal to 86%; Soybean 60.8 thousand ha, equaling 49.6%; Info 174.3 thousand ha, equaling 90.3%; Vegetables and beans 606.4 thousand hectares, equivalent to 101.7% over the same period.
Perennials
The yield of a number of perennials in the first six months of 2012 was pretty good as compared to the same period last year. The yield of rubber hit 277.6 thousand tons, an increase of 6.3% as compared to the same period last year due to significantly increased rubber planting area; Cashew and pepper trees have been completely harvested. The yield of cashew and pepper was estimated at 313.8 thousand tons and 104.1 thousand, up 0.9% and 3.1%, respectively, due to favorable weather conditions on the one hand and due to the fact that high prices in 2011 made people to give more care and investment. Bud tea output reached 388.1 thousand tons, up 2.2% due to reduced productivity on barren tea fields (Lam Dong, Ha Giang and Bac Kan).
The yield of some fruit trees increased largely, including durian (+16%), mangos teen (+89%), green dragon (+18%) and litchi (+15%). However, the yield of some other plants fell, including pineapple (equivalent to 96% of the same period last year), longan (75%), litchi (82.9%) and rambutan (95.4%).
Livestock
As of April 1, 2012, the country had 2.7 million buffalos, down 5.1% from the same period last year and 5.3 million oxen, down 7% as compared to the same period in 2011. The number of dairy cows totaled 158.4 thousand, representing an increase of 0.9% due to less disease and stable milk prices and the fact that farmers have made earnings and a large number of enterprises have largely invested in the dairy industry that uses high technology associated with product processing and distribution.
The livestock husbandry survey showed that as of April 1, 2012, the country had 26.7 million pigs, an increase of 1.5% as compared to the same period in 2011. Pig breeding in the first six months of 2012 faced many difficulties and challenges due to diseases, prices and the use of banned substances in animal husbandry. According to the Department of Animal Health, in the first six months of 2012, the blue ear pig disease occurred in 125 communes, wards and towns of 28 districts of 12 provinces. The total number of infected pigs was 33.8 thousand, 2.2 times higher and 21.7 thousand pigs were culled, 1.5 times higher than the first months in 2011. What concerns is that the epidemic continues to spread in many provinces and cities. In addition to the impact caused by the disease, authorities have found that in some provinces, raisers are using banned lean-meat additives, which has threatened consumers and made them to boycott pork and caused pork prices to drop. The biggest worry now is that farmers are refusing to recover their herds as pork prices remain too low.
The country’s poultry herd in the first six months of 2012 developed relatively well as the avian flu epidemic has been controlled. According to the livestock husbandry survey, as of April 1, 2012, the poultry herd totaled 310.7 million, up 5.8% as compared to the same period in 2011. However, the poultry raising industry has been encountering a number of difficulties such as: the price of poultry and eggs strongly decreased while the price of food items rose, which has made raisers suffer from losses and it is now in the sunny season, which may cause potential disease outbreaks among domestic fowls.
Total meat production in the first six months of 2012 was estimated at 2.6 million tons, up 5.7% as compared to the same period in 2011. Of the sum, the volume of buffalo meat reached 50.4 thousand tons, up 3.7%; beef 174.8 thousand tons, down 1.5%; pork 1.9 million tons, up 4.8%; poultry 439.3 thousand tons, up 13.7%; poultry eggs 4.1 million, up 4.6%. Milk production reached 2.0 million tons, up 14.24% as compared with the same period in 2011.
2. Forestry
In 2012, afforestation projects have been implemented in a slow manner in some localities due to funding difficulties. Besides, prolonged cold hit north and central provinces in the early months of the year, followed by hot and dry weather in almost all regions, which partially affected the progress of afforestation. However, rain started at the end of the second quarter, which facilitated production. The quantity of forest products exploited in the months increased over the same period last year, particularly the firewood production increased due to higher demand for raw materials for production and consumption, while the price of timber products on the market kept stable, which ensured profitability for producers.
Key indicators in the first six months of the year are as follows: the concentratedly planted area totaled 53,800 ha, up 4.5% over the same period in 2011; The attended area reached 362,800 ha, equivalent to 92.2% of the same period last year; the localized natural forest area was 931,000 ha, equivalent to that of the same period last year; the number of scatteredly planted trees reached 108.7 million, up 0.6%. The production of timber gained 2,248.8 thousand m3, up 12%. Some provinces and cities recorded high and increased volume of timber, including: Thai Nguyen 62.2 thousand m3, up 139%; Lam Dong 102 thousand m3, up 53%; Quang Ngai 160 thousand m3, up 45%; Yen Bai 155 thousand m2, up 38.4%; Quang Tri 50 thousand m3, up 28% and. Phu Tho 143 thousand m3, up 20.6%. Firewood production was 14.6 million ste, up 2.8%.
Deforestation: Due to the hot and dry weather in the first months of the year, forest fires occurred in many localities, especially in the Northwest, the Central Highlands and the Mekong Delta Region, including serious fires. Some remote areas recorded illegal logging and exploitation of forests and unplanned cultivation. Overall, in first six months, the damaged forest area was 2,211 ha, an increase of 44% over the same period in 2011. The fired area reached 1,168 ha, up 139.5% while the destroyed area was 593 ha, equivalent to 69.1% over the same period in 2011.
3. Fishery
The total fishing production was estimated at 2,649.2 thousand tons, up 5.4%, of which there were 2,047 thousand tons of fish, up 5.1% and 237.8 thousand tons of shrimp, rising 6.2%, of which:
- Aquaculture production was estimated to reach 1,387 thousand tons, an increase of 6.8%, of which there were 1,110,300 tons of fish, up 6.5%; 169,600 tons of shrimp, up 7%; and 107,000 tons of other aquatic products, up 9.5%. The aquaculture area was estimated at 970.5 thousand ha, approximately equivalent to the same period last year, of which the fish breeding area reached 306 ha, up 0.3% while the shrimp farming area totaled 616 thousand hectares.
+ Catfish farming is not yet stable and both farmers and processing enterprises are facing difficulties. The biggest obstacle is the lack of capital for production activities. In addition, bad news about the bankruptcy of a few catfish exporters has made banks to increasingly tighten their credit policies for seafood processors and exporters. The country’s catfish production was estimated at 60 thousand tons, representing a year on year increase of 9% as farmers expanded their farming area from the beginning of the year when prices were high. Many localities recorded increased Tra fish production (Dong Thap 21.8%; Ben Tre 57.6%; 13% Tho, Vinh Long, 5.6% and Tra Vinh 97%). However, some localities saw decreased Tra fish production (An Giang 8%, Kien Giang 40% and Soc Trang 37%).
+ Shrimp farming witnessed good development, raw shrimp prices have been stable at a high level, the infected farming area has been disinfected and farmers have returned to planned shrimp farming regions. The quality of breeding shrimp has been strictly controlled and breeding shrimp is released as scheduled and pests are well prevented and controlled even though early rain has made shrimp be infected with environmental diseases on a large scale but up to now, most of the infected area has been controlled. Black tiger shrimp production reached about 110 thousand tons, up 6.5% while white leg shrimp output totaled 47 thousand tons, up 27%.
+ The raising of fish and other aquatic species saw strong growth: Farmers continued investing in and expanding the farming area of tilapia, sea bass and goby in lagoons, dams and rice fields; red fish, grouper, cobia, geoduck clam, undulated surf clam and oyster have farmed on a larger scale in sea waters; Fish farming in fish cages increased, mainly red fish, goby and snakehead fish in the Mekong River Delta Region.
- Catching production in the first six months was estimated at 1,262 thousand tons, up 4% as compared to the same period last year, of which sea catching gained 1,186 thousand tons, up 4.7%. Fishing production in the first six months of the year increased significantly due to relatively favorable sea weather and abundance of marine species such as anchovy, scad, rudder fish, hair fish, tuna and Indian mackerel fish in fishing grounds. In addition, fishermen focused on exploiting high-value species such as mackerel, pomfret... so most fishing trips are profitable. Particularly, tuna production increased significantly as people apply new fishing methods: Phu Yen and Binh Dinh recorded a tuna production of 9,600 tons and 5,100 tons, up 85% and 36%, respectively.
4. Natural disasters and diseases
- The blue ear disease (PRRS) in pigs: As of June 22nd, 2012, eight provinces, including Bac Lieu, Bac Ninh, Dong Nai, Quang Ninh, Lang Son, Dien Bien, Hanoi and Binh Duong, have still confirmed outbreaks of the blue-ear pig disease, which has yet passed the 21-day period required to be free from the disease.
- The avian influenza and the FMD: No province has confirmed outbreaks of the avian influenza and foot and mouth disease, which has yet passed the 21-day period required to be free from the disease./.
Ministry of Planning and Investment