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TON DUC THANG UNIVERSITY DEPARTMENT OF BUSINESS ADMINISTRATION ESSAY MICROECONOMICS Lecture or Tutor name: Mrs.Nguyen Quynh Huong Group 1: Why and how to rescue Dragon fruit in Vietnam, use supply and demand theory and market structure TPHCM, …/…/2023 Group: Class: Semester: I Academic year: 2023-2024 Lecturer: Nguyen Quynh Huong Submission date: 26/5/2023 FOR EXAMINERS ONLY Grade (in number): ……………… Grade (in words): ……………… Examiner (Signature & Fullname) ……………… Examiner (Signature & Fullname) ……………… Student ID Nguyễn Thiều Tấn Lộc 721D0056 Bùi Thị Tuyết Nhi 721D0027 Trần Hồng Thái Hiên 722I0009 Phan Đình Võ 721D0065 Number Student’s name Nguyễn Thiều Tấn Lộc Assign tasks Role Leader Member Student’s full name Rate Signature No Leader 100% Bùi Thị Tuyết Nhi Trần Hồng Thái Hiên Phan Đình Võ Researcher 100% Designer 100% Data Analysis 100% GROUP MEETING MINUTES TIMES 1/ Participants: Leader Nguyễn Thiều Tấn Lộc STT Member First and last name Student ID Absent Present Bùi Thị Tuyết Nhi 721D0027 ∙ Trần Hoàng Thái Hiên 722I0009 ∙ Phan Đình Võ 721D0065 ∙ 2/ Time and place: -Time: 9:30 am -Place: Library 3/ Content: +Division of work and discussion of content: researcher,data analysis,…etc 4/ Requirements for each member: Complete assigned tasks and support each other in the process of working THANK YOU First of all, with the deepest and most sincere affection, allow our group to express our gratitude to Lecturer Huong for facilitating support and helping the group during their study and research on this topic.With the deepest gratitude, I would like to express my deep gratitude to Mrs Huong who is imparting valuable cultural capital to us during the past study period Thanks to her advice and education, my research topic can be completed well Given the limited time and experience of a practitioner, this report cannot avoid shortcomings Our group is looking forward to receiving her advice and contribution of ideas so that I can supplement and improve my awareness, helping me to better practice in the future Thank you sincerely! FEEDBACK OF LECTURE Ho Chi Minh, date…………………… Counterargument lecturer Name and sign Document continues below Discover more from: microeconomic Đại học Tôn Đức Thắng 42 documents Go to course Kinh te vi mo word - kinh te vi mo microeconomic 100% (3) Ktvm Điện - phân tích thị 28 trường điện microeconomic 100% (3) Ktvm trắc nghiệm 26 multiple choice microeconomic 78% (23) Macro Topic 1.2 The Production Possibilities… microeconomic Macroeconomics Questions TO Students microeconomic 28 100% (2) 100% (1) QUY LUẬT, TỪ NHỮNG THAY ĐỔI VỀ LƯỢNG… microeconomic TABLE OF CONTENTS: Catalog FEEDBACK OF LECTURE TABLE OF CONTENTS: INTRODUCTION .7 CHAPTER 1: OVERVIEW MARKET OVERVIEW OF VIETNAM PLANTS / WATERPROOF: OVERVIEW OF THE PLANTS/WATER WATERPROOF MARKET IN THE LAST YEARS:8 PRODUCTION SITUATION OF LENGTH: .9 I Demand 16 DEFINE 16 EXPORT MARKET 17 PERSONAL DEMAND AND MARKET DEMAND 24 QUANTITY DEMANDED: 24 RULES OF DEMAND: .24 FACTORS AFFECTING DEMAND: 24 Curve 26 II SUPPLY: 27 PERSONAL SUPPLY AND MARKET SUPPLY: 27 QUANTITY SUPPLIED .27 LAW OF SUPPLY: .27 NON-PRICE DETERMINANTS OF SUPPLY 27 CHAP2 28 DEMAND OF DRAGON FRUIT 28 III THE SUPPLY OF DRAGON FRUIT .34 CHAPTER 39 I SOLUTION TO RESCUE DRAGON FRUIT IN VIETNAM 39 II WHY AND SOLUTIONS FOR DRAGON FRUIT VIETNAM 41 III CONCLUSION 45 IV REFERENCES 45 71% (7) INTRODUCTION Reasons for choosing the topic The reason for choosing the topic of rescuing dragon fruit in Vietnam is because many farmers are having difficulty in the consumption of dragon fruit One person thought and came up with the idea of trying dragon fruit rice paper, noodles and noodles According to reports, Vietnamese fruits such as dragon fruit are often subject to price drops due to oversupply and lack of demand Vietnam has the largest dragon fruit production area as well as volume in Asia and leads the world in exports of dragon fruit However, 80% of the dragon fruits produced in Vietnam are exported to China, while 99% of dragon fruits in the Chinese market are imported from Vietnam The demand for Vietnamese dragon fruit is high in the Chinese market mainly due to its sizable production and high economic importance To solve this problem, we can look for new consumer markets or increase product promotion to attract consumers We can also consider developing processed products from dragon fruit and to create added value for the product Therefore, our group chose the topic: "Why and how to rescue dragon fruit in Vietnam, use the theory of supply and demand and market structure to discuss?" To find out the market of dragon fruit in Vietnam and at the same time offer product defects to propose solutions From there contribute to overcome and help the product continue to maintain its position in the competitive market CHAPTER 1: OVERVIEW MARKET OVERVIEW OF VIETNAM PLANTS / WATERPROOF: The market of dragon fruit in Vietnam is firmly established in the market of billions of people The price of Vietnamese red flesh dragon fruit sold at supermarkets is much higher than that of Chinese dragon fruit, but it is still popular with consumers in your country However, the export of vegetables and fruits to China decreased by more than 25%, causing many key fruits such as dragon fruit, jackfruit, to plunge During the Covid-19 epidemic season, many farmers have difficulty in consuming and dragon fruit However, in some supermarkets in Vietnam, the amount of dragon fruit sold increased from 2.5 to 3.5 times compared to normal days OVERVIEW OF THE PLANTS/WATER WATERPROOF MARKET IN THE LAST YEARS: At some supermarkets in Vietnam, the amount of dragon fruit sold has increased by 2.5 - 3.5 times compared to normal days According to Investment Newspaper1, in the past months, vegetables and fruits exported to China only reached 261.2 million USD, down 25.8% over the same period in 2021, mainly due to the decrease in exports of dragon fruit - products with high export value to this market According to the Vietnamnet newspaper, more than months are still complete: dragon fruit have 1,000-2,000 VND/kg Agricultural vehicles exported to China have been stuck at border gates for months Up to now, this situation has not ended, https://vinut.vn/top-8-trai-cay-viet-nam-xuat-khau-nhieu-nhat/ 32 Vinut dragon fruit juice is one of the favorite products in many international markets https://danviet.vn/trong-thanh-long-o-long-an-cam-canh-ban-khong-ai-mua-nong-dan-lo-sac-gachbam-bung-nho-bo-20220409142923826.htm 1.4 CONSUMER EXPECTATIONS AND NUMBER OF CONSUMERS: 33 According to a survey by Emotions360, which surveyed 18,670 consumers across eight countries around the world, 88% of consumers have heard of dragon fruit and 56% have tasted it In terms of consumer perceptions, dragon fruit triggers associations with adjectives like bold, exotic, exciting, impressive and fun In Europe, although the dragon fruit is relatively new and is not widely advertised, still the market is very promising and attracting more and more consumers Healthconscious consumers are increasingly demanding dragon fruit, especially in the United States III THE SUPPLY OF DRAGON FRUIT 1.PRICE OF INPUT MATERIALS: 1.1 VARIETIES: Dragon fruit in Vietnam has three varieties: round fruit, long fruit, rambutan fruit (small fruit) Fruit form depends on ecological conditions, especially light mode and care mode Vietnamese dragon fruit is a type of dragon fruit with white flesh, purebred by cloning by cuttings There are two varieties of red flesh and yellow flesh, currently planted and monitored, the growth power of the two newly imported varieties is weaker The red and yellow varieties have smaller fruits and thicker skins -Golden shell dragon fruit seedlings are priced at 20 000 VND/tree 1.2 FERTILIZER: Roots are an extremely important part of plants in general and dragon fruit in particular They are responsible for taking nutrients from the soil or from fertilizers to grow plants, helping dragon fruit trees grow big The more nutrients absorbed, the sooner the plant can be harvested Therefore, recently a lot of farmers are interested in adding root fertilizer for plants in their garden So what kind of fertilizer is appropriate and highly effective on dragon fruit? Take a look below: -Inorganic phosphate fertilizers stimulate dragon fruit roots to thrive Reference price: the retail price of Super phosphate ranges from 10,000 VND to 15,000 VND/kg - Fertilizer containing Humix stimulates the development of dragon fruit roots -NAA-containing fertilizer - root stimulant for dragon fruit trees - NPK compound fertilizer contains a lot of phosphorus to support dragon fruit roots to grow strongly 34 TECHNOLOGY: Shipping by cold storage usually keeps flavor and freshness for about 10-15 days However, with good post-harvest handling and a combination of measures such as soaking in Natacoat and packaging in GreenMAP bags, it can be preserved for more than 45 days How to this is described in detail below Determine maturity and time of harvest Fruit weight increased rapidly until the fruit began to turn from green to completely red (30 days) After that, the fruit weight increased slowly and steadily The fruit begins to change color on the 25th day after blooming, the red color on the rind develops very quickly and on the 30th day, the fruit has a uniform red color From 30-32 days after blooming, fruit can be stored for about weeks (at 10oC, 90-95% humidity) Prepare harvesting equipment Before harvesting dragon fruit, it is necessary to prepare all the tools as follows: bag, lining paper and fruit storage Tools are fully prepared for harvesting sharp, sharp fruits, cleaned and carefully preserved; After cutting, they are stored in plastic baskets, kept in the cool, preliminarily classified and immediately transported to the packing warehouse as soon as possible, not leave for a long time in the garden Equipment, containers or materials that come into direct contact with dragon fruit must be made from materials that not contaminate the product; must be sure and clean before use, stored separately, isolated from storage of chemicals, fertilizers and additives and take measures to limit the risk of pollution Harvest Stop spraying pesticides and growth stimulants 7-10 days before harvest Should be harvested in about 30 - 34 days after blooming for the best quality fruit and longer preservation The best time to harvest is in the early morning or cool afternoon, avoiding direct sunlight, which increases the temperature in the fruit, causing dehydration, affecting the quality and storage time 35 Preliminary treatment Cleaning of fruit skin: wash with clean water (avoid crosscontamination) Treatment of fungicides and preservatives: soak in Natacoat solution (10% Natamycin) diluted 3,000-5,000 times for minutes Let dry naturally or with thermal wind Preserve Stored at 12-14oC will keep dragon fruit fresh for 15-20 days The shelf life of dragon fruit can be increased by packing in GreenMAP bags In fact, when applying the above preservation solution (in combination with GreenMAP bags), dragon fruit can be well preserved for more than 45 days (used to be exported by sea to Canada, brought to supermarkets for consumption) ) 36 Exporters can also use additional solutions such as ethylene absorber packages, desiccant packs to extend the storage time, depending on each case Or you can use the Purfresh device mounted on the container, which continuously produces ozone to create an antibacterial, anti-fungal, and ethylene-reducing environment at the same time, which can extend the storage time up to 50-60 days Products used in the preservation solution: Natacoat is an anti-fungal product that effectively inhibits the growth of yeasts and molds for post-harvest fruits in low doses Immersing fresh produce in Natacoat diluent will form a wax-like film on the fruit, which not only prolongs resistance to fungus but also prevents dehydration during post-harvest handling GreenMAP bags wrap vegetables in an air barrier material, in which the gas environment is adjusted to inhibit the respiratory process to help vegetables stay fresh longer and still ensure nutrients GreenMAP bags are made from LDPE plastic combined with some inorganic additives such as silica, zeolite, bentonite which are completely non-toxic to human health EXPECTED: In the difficult context, Dragon fruit to catch domestic consumer demand to recover after the epidemic => strengthen distribution channels, expand the farm system and develop new products => increase supply According to an article on Vietnamnet, Vietnamese dragon fruit is rated stars in Australia In addition, new varieties of dragon fruit are expected to reach consumers in 2021 In two days, August 30-31, 2021, the Ministry of Industry and Trade (Trade Promotion Agency, Vietnam Trade Offices abroad) ) with the cooperation of the Departments of Industry and Trade of Long An and Binh Thuan provinces, held an online conference on trading Vietnamese dragon fruit with potential export markets in 2021 The major dragon fruit suppliers of the world are: • Asia: Vietnam, Thailand, Taiwan, Sri Lanka … 37 • Middle East: Israel • America: Mexico, Colombia, Ecuador, Guatemala In Central America, Nicaragua produces red dragon fruit for export to the USA, Canada, Europe and Japan Guatemala, El Salvador, Honduras, Costa Rica produce dragon fruit on a small scale, in the garden Colombian is the leading yellow dragon fruit supplier Ecuador produces both yellow and red dragon fruit Israel is also known as a dragon fruit supplier for European countries Overview of export and import of dragon fruits in the world Vietnam is currently the largest dragon fruit supplier in the world, accounting for the highest share in Asia, Europe and sometimes in the United States Thailand and Israel are the second and third largest suppliers in the European market In the United States, Mexico and Central and South America are the biggest competitors of Asian dragon fruit suppliers due to geographical advantages Vietnam dragon fruit has long been a trademark of Asian Americans Thailand, Malaysia … are trying to find market share in this market In Asia, Vietnam is a leading supplier to the Chinese market, but other markets such as ASEAN and Hong Kong have been increasingly competitive from countries such as Taiwan, Thailand, and Malaysia 38 CHAPTER I SOLUTION TO RESCUE DRAGON FRUIT IN VIETNAM Accordingly, the types of agricultural products that need to be "rescued" such as dragon fruits, have become the raw materials to create different types of vermicelli, cakes The use of dragon fruits to produce cakes has become a trend that is responded to by businesses and individuals recently in Vietnam DRAGON FRUIT BREAD The COVID-19 broke out earlier this year, causing significant damage to Vietnam's agricultural sector Many types of agricultural products were left in large quantities and could not be sold because export was delayed The selling price of these agricultural products also dropped dramatically The bread uses raw materials like dragon fruit Attracting customers by its quality, the breads are popular with many people for their delicious and unique flavor 39 PIZZA DRAGON FRUIT Some products such as pizza, rice vermicelli are being implemented by many businesses to contribute to the consumption of agricultural products affected by COVID-19 The free products are easy to use, with a natural flavor However, for making a pizza, the maker needs to be concerned about the amount of water to make it tasty 40 https://vietnamtimes.thoidai.com.vn/amazing-food-from-rescuing-farm-products-in-vietnam18116.html II WHY AND SOLUTIONS FOR DRAGON FRUIT VIETNAM “GET THE SPECIAL DISCOUNT” Vietnam is a country with a developed agriculture, but in recent years the phenomenon of "good harvest - devaluation" has continuously occurred, causing farmers to fall into misery many times “Good harvest” was originally the production goal of farmers, but now it seems to have become a fear because: - Demand for agricultural products is inelastic, which means that the consumption of agricultural products is relatively stable, less dependent on the price of agricultural products However, traditional agricultural production depends on objective factors such as weather, epidemics, etc., which are highly seasonal, as well as local - Agricultural products are usually fresh products, difficult to preserve and are harvested at the same time Due to the basic characteristics of demand and supply of agricultural products, the market for agricultural products is highly competitive and often occurs the phenomenon of "Good harvest - devaluation" 41 As shown in Figure 1, when the initial equilibrium is E1 with the equilibrium price P1 and the equilibrium output at Q1, the total income is TR1 = P1 x Q1 When the supply of agricultural products increases due to a good harvest, the new equilibrium is E2 with the new equilibrium price P2 and the new equilibrium quantity Q2 Income is now TR2 = P2 x Q2 which is less than it was before, because falling prices make the decreasing effect of price outweigh the increasing effect of quantity - In the current conditions, the agricultural product market is affected by many new factors through analysis of supply and demand factors, specifically: + On the demand side, consumers are increasingly demanding products with high quality, ensuring food safety and hygiene, better preserved, better packaging and labels… Especially, in the international market , countries place strict economic and technical barriers to protect consumers, as well as domestic producers 42 + On the supply side, new achievements of science and technology are more widely used in agricultural production New varieties of plants and animals are more adaptable to natural conditions, and new production methods are applied in production to limit the negative impacts of nature such as high-tech agricultural forms widely applied That makes the supply of agricultural products increase significantly Therefore, the situation of "good harvest" has become more and more common.- The last reason is that farmers have their main income from trading agricultural products, they cannot store agricultural products (even easy-to-preserve agricultural products such as rice, ) and then wait until the price increases before selling, because if so, they will not have the funds to start the next crop Because of the above reasons, even if the "season is good", farmers still cannot be happy UNSALABLE In the market, buyers often want to buy cheap, sellers often want to sell expensive However, there are still cases where the price is determined at a very low level, but still "spoiled", the goods cannot be sold because: - Demand for agricultural products is inelastic demand, consumption is relatively stable, less dependent on price Demand is stable but supply is constantly increasing, making supply many times more than demand Therefore, even if the price decreases when the quantity supplied decreases, it will not be significant - Agricultural products are usually fresh foods, difficult to preserve for a long time Therefore, even if the price is low, many consumers not dare to buy too much - The price is low but the quality is not high The cheap price has only one product, not diverse, affecting purchasing power -In addition to the reason that supply exceeds demand when in season, consumers no longer prioritize cheap prices but only trust safe, clear-origin, branded products 3/ SOLUTION The scale of agricultural production needs to be expanded instead of a small scale model, creating goods produced on a large scale and with high value Focus more on the quality of agricultural products, application of science - technology - techniques in 43 production, application of management science in agriculture, rational use of biological products so that the product meets the best requirements requirements of the domestic and export output markets - Enterprises and farmers work closely together or cooperate with each other to have stable output for agricultural products - To promote the role of the State in investment, support agriculture, encourage and implement projects to support farmers to develop towards large-scale production, quality and high value It is necessary to issue appropriate policies, give more specific orientations to remove farmers' difficulties, and create favorable conditions for farmers to feel secure in production - In order to reduce losses for farmers, create fairness, it is necessary to improve the legal value to ensure benefits against market fluctuations by self-determining the price of their products growers early, prices are stable, avoid causing damage to sellers as well as buyers for timely consumption and not being pressured by traders when the harvest season comes - Farmers need to have more understanding of the market, self-advocacy to adapt to the times, not produce according to emotions, whatever you like, follow the majority but need to focus more on profit, calculation carefully calculate the costs for production stages, capital and costs for agricultural materials 4.STANDARDIZATION : Strengthening the management of dragon fruit, growing area based on the approved plan The production of dragon fruit must be oriented in accordance to GAP standards To carry out synchronously from the production to processing stages under the provisions of the Law on Food Safety 5.PRODUCT DIVERSIFICATION : Research and develop new plant varieties Producing processed foods Promoting trade activities 44 III CONCLUSION According to the research, the responsibility to rescue dragon fruit lies not only with the agricultural industry but also with other industries To so, it is necessary to invest in facilities for better preservation and storage of agricultural products It is equally important to invest in the skill development of the agricultural extension centers and ensure that banks lend capital at reasonable interest rates High-interest rates can deter farmers from borrowing capital and businesses from investing in the agricultural industry, which is already fraught with many risks The risks associated with agricultural production are many, including unpredictable weather patterns and fluctuations in the market Therefore, it is vital for the government to formulate policies that encourage different sectors to cooperate in building and maintaining sustainable agricultural practices Lastly, it is essential to acknowledge that rescuing dragon fruit is not a permanent solution but a short-term measure Instead, a concerted effort is needed to transform the agricultural economy in general and the dragon fruit industry in particular By working together with a long-term vision and policy, we can ensure the sustainable and prosperous growth of the agricultural sector for years to come IV REFERENCES https://www.prnewswire.com/news-releases/firmenich-announces-dragon-fruit-as-2023-flavor-of-theyear-301694790.html https://www.mordorintelligence.com/industry-reports/dragon-fruit-market 45 https://vietnamnet.vn/hon-3-thang-tac-van-hoan-tac-dua-hau-thanh-long-con-1000-2000-dongkg820157.html https://tuoitre.vn/luong-thanh-long-dua-hau-ban-tai-cac-sieu-thi-tang-3-10-lan20200212150723498.htm https://baodautu.vn/vi-thanh-long-dua-hau-ma-rau-qua-xuat-khau-sang-trung-quoc-giam-gan-26d162190.html https://vietnamnet.vn/hon-3-thang-tac-van-hoan-tac-dua-hau-thanh-long-con-1000-2000-dongkg820157.html https://vietrade.gov.vn/tin-tuc/4161/tinh-hinh-san-xuat-va-xuat-khau-thanh-long-nam-2019 https://vtv.vn/kinh-te/xuat-khau-thanh-long-giam-3-nam-lien-tiep-20230320141644081.htm https://hvnclc.vn/he-lo-thong-tin-xuat-khau-11-loai-trai-cay-gia-tri-cao-nam-2021/ http://techport.vn/72/giai-phap-bao-quan-trai-thanh-long-91898.html https://vietnamnet.vn/thanh-long-viet-nam-duoc-danh-gia-chat-luong-5-sao-tai-australia-778251.html https://dragonfruit.net.vn/news/185-world-s-dragon-fruit-suppliers-and-demand.html https://vnmedia.vn/kinh-te/202109/qua-thanh-long-viet-nam-duoc-xuat-khau-sang-nhieu-thi-truonglon-8013237/ https://vietnamtimes.thoidai.com.vn/amazing-food-from-rescuing-farm-products-in-vietnam18116.html 46
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