assignment subject microeconomics topic good news in argriculture is bad news for vietnam farmers

However, with the complicated climate change situation, the impact of the Covid-19 pandemic and spontaneous planting has affected production, trade and price instability of agricultural

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

BUSINESS SCHOOL DEPARTMENT OF BANKING UEH UNIVERSITY

ASSIGNMENT SUBJECT: MICROECONOMICS

TOPIC: GOOD NEWS IN ARGRICULTURE IS BAD

NEWS FOR VIETNAM FARMERS

Lecturter : Nguyễn Hữu Lộc Class : 22C1ECO50100109 Student : Lé Ngoc Khanh Linh Batch-Class : K48 — FB006

ID : 31221025526

Ho Chi Minh City, December

TABLE OF CONTENT

REASON FOR CHOOSING TOPIC -ò.cẶ cà SỈ nh nên CONTENT

CHAPTER I: THEORETICAL FOUNDATIONS c

3 Method “Three-step analysis of the change of equilibrrum”

2 Obljective

3 Soclal

CHAPTER V: CONCLUSION cà cọ nh nh nh nh nà nh HH uyo

REASON FOR CHOOSING TOPIC

With tropical climate conditions, Vietnam has many advantages in developing agriculture and producing agricultural products, typically having a variety of fruit, good quality for domestic and export markets

Over the past time, with the State's agricultural support policies, and the focus on the development investment of gardeners, Vietnam's fruit market has been constantly expanding and contributing much to the growth of the country's economy

However, with the complicated climate change situation, the impact of the Covid-19 pandemic and spontaneous planting has affected production, trade and price instability of agricultural products in general and fruits in particular, including Thai Jackfruit of the Mekong Delta provinces This requires producers, local governments and the State to have appropriate policies and directions to solve difficult problems in supply and demand and stabilize selling prices

For the above reason, I chose the topic "Understanding the instability of Thai Jackfruit prices in the Mekong Delta provinces in 2021-2022" to find out the causes of instability, and at the same time offer solutions to increase profits for producers in the long term

CONTENT

CHAPTER I: THEORETICAL FOUNDATIONS

1 Supply

1.1 Notion:

Supply is the number of goods or services that a seller puts on the market at different prices

1.2 The law of supply:

Supply increases when prices rise and vice versa

1.3 Factors affecting supply:

- Production technology

- Number of producers

- Input prices of production factors

- Expectations

1.4 Supply Curve:

Change in Supply

Decrease in Supply Increase in

Supply

2 Demand

2.1 Notion:

Demand is the consumer's need and ability to pay for that need

2.2 The law of demand:

Demand decreases when prices rise and vice versa

2.3 Factors affecting demand:

- Consumer income

- Prices and availability of related goods

- Number of consumers

2.4 Demand Curve:

Changes in Demand

Increase in

3 Method “Three-step analysis of the change of equilibrium"

Including:

4 Step 1: Identify events that impact the supply or demand curves, or both

5 Step 2: Watch the supply and demand curves shift left or right

6 Step 3: Use the supply and demand graph to see how the shift affects the new equilibrium price and output levels

CHAPTER II: THE REALITY

1 Domestic

The Mekong Delta is one of the two important fruit-growing regions of our

country with fruits such as durian, orange, and grapefruit, Thanks to the

application of technical advances and intensive investment, yields and fruit yields in the Mekong Delta have increased sharply at home and abroad, bringing great benefits to gardeners

However, climate change, drought, and saltwater intrusion in recent years have

taken a toll on many fruit varieties in the Mekong Delta This leads to local people changing to growing Thai Jackfruit instead of previous crops because it is an easy- to-grow, high-yielding, low-cost crop that tolerates salt relatively well

People grow jackfruit in rice fields in many Mekong Delta situations

Up to now, the area of Thai Jackfruit cultivation in the Mekong Delta has increased to several tens of thousands of hectares, Tien Giang province with more

than 10,000 ha of Thai Jackfruit, Dong Thap, Vinh Long, and Ben Tre Thai

Jackfruit growing area also increased significantly Because local people plant spontaneously without a plan, oversupply causes the refrain of "hit the season,

depreciate" that occurs every year

Outside the country

The largest consumer market is China, where buy Thai Jackfruit at increasingly high prices, causing people to grow more Besides, its products such as dried jackfruit, frozen jackfruit, also brought to the international market But ensuring unstable output causes a lot of anxiety for gardeners when the market fluctuates

Price Fluctuations

According to estimates, the profit of each gardener is about 400-600 million VND /year/ha, higher than the previous crops In the first months of 2021, the price

of Thai Jackfruit in the Mekong Delta provinces was stable from 35,000 to 50,000 VND, depending on the type, but by June the price of it dropped sharply By

September, the price increased rapidly Even during the Covid-19 epidemic, the price of Thai Jackfruit still increased, sometimes up to 60.000 VND/kg

‘Times

In the first half of 2022, the price of jackfruit of Mekong Delta gardeners is still meager when sellers only earn 1/3 of the production costs spent Many gardeners have to pick piles in the garden, or feed cattle, or give to acquaintances

CHAPTER III: REASONS

1 Subjective

1.1 Attractive from profits:

High profit is one of the reasons why local people massively switch to Thai Jackfruit cultivation spontaneously, not according to specific development plans According to statistics, each hectare of jackfruit can earn more than | billion VND /vear, 30 times higher than other agricultural products

Moreover, the state encourages gardeners to "produce according to market signals", so when the price increases, people expand the land area Leading to

"oversupply", traders force prices when output is too much and market risks are not fully anticipated

1.2 The consumption market is not stable:

Jackfruit of the Mekong Delta is served domestically and exported to many countries Because it is a popular crop throughout the provinces and cities of our

country, it is not easy to compete with the domestic market, so the main market that

the people of the Mekong Delta target is still China Therefore, when the Chinese side stops importing or does not import, it will lose a large amount of demand,

precarious prices and gardeners will suffer significant losses in care and production costs

Dried jackfruit is also consumed from Europe to the Middle East, but gardeners lack close links with product consumers and processing plants Many domestic enterprises are afraid to receive jackfruit drying because the price is too high when 15kg of jackfruit produces Ikg of dried jackfruit Along with that is the lack of initiative in finding the market

1.3 Quality:

Currently, Thai Jackfruit has not been identified as the primary fruit tree of the Mekong Delta, so the investment and support for the development of production

of this plant have not been focused, mostly spontaneously, running after the market The market and abroad currently require high product quality, requiring GlobalGAP standards, but businesses cannot meet them Although the area of jackfruit cultivation has increased, there is no specific plan and process on seasonality, soil, and seed selection

Most people grow Thai Jackfruit in a very thick intercropping model, about 2.5m / tree, leading to trees competing for nutrients, light Therefore, many trees produce fruits of poor quality, sold at no price Although this fruit solves the

problem of climate, salinity, but leads to pests and diseases such as borer, fruit rot,

black fiber

When the market appears a lot of supply, producers must focus on investing in improving product quality to compete for a foothold and affirm the value of Vietnamese brands in the international market

1.4 Limitations in the ability to process products:

Jackfruit is a delicious fruit tree with high nutritional value besides eating fresh jackfruit, it can also be processed in many different ways Dried jackfruit is the most popular dish at home and abroad, bringing great benefits, but production costs are still high because agriculture has not been industrialized And export to foreign countries requires preservation, and freezing must be really effective but we are still modest about advanced industries

We don't seem to have asked why China is buying Thai Jackfruit in such quantities and at such a high price?

Organic jackfruit powder sold on Alibaba website

According to research, China buys jackfruit from our country to process into jackfruit flour with many uses: baking, making food for diabetics then exporting

to other major markets at higher prices Every year, many tons of jackfruit have to

be discarded or fed to livestock because they cannot be sold, and people and

businesses cannot find a way to avoid waste

2 Objective

2.1 Shipping Cost:

During the outbreak of the Covid-19 epidemic, to export to foreign markets, manufacturers had to pay a high price to be able to export Thai Jackfruit Not only that, many shipments are refused to import because they do not meet the quality of gardening a significant loss and the people of our country have to make a plan to

"rescue jackfruit”

2.2 Unreasonable harvest time:

According to economist Dr Le Ba Chi Nhan, the increase in the output of

agricultural products in the world has made it difficult for supply to exceed the demand for Vietnamese agricultural products to compete Moreover the time when local people harvest jackfruit in the harvest season of many other fruits both at home and abroad, the source of consumption is sharply reduced

CHAPTER IV: SOLUTIONS

It isn’t easy to find a specific market with stable prices in the long term However,

as a trader, and manufacturing enterprise, we need to find the most useful solutions to reduce the risks that occur in producing and consuming products

1 Farmers

- Itis necessary to participate in skills training courses on how to grow and care for jackfruit trees, research high-yielding jackfruit varieties, refer to planting

methods to improve yield and quality Gardeners need to actively seek markets,

closely linking with consumption places as well as processing enterprises Find ways to process as well as take advantage of Thai Jackfruit to produce other products with jackfruit ingredients such as jackfruit flour, jackfruit dumplings, jackfruit rice paper

2 State and local governments

- Localities need to review the planted jackfruit area, have a specific orientation

to the production area to avoid the risk of waterlogging in the flood season, and determine a reasonable season to avoid pests and diseases causing crop failure

- Direct specialized units to train people on planting techniques, caring for and protecting crops Support people to cultivate, ensure output and solve difficulties

as soon as supply exceeds demand

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- Equip manufacturers and processing enterprises with modern equipment for production

3 Social

- Organizing a large-scale and highly effective “jackfruit rescue” campaign Many people take advantage of the rescue to raise higher prices and sell products of unknown quality Therefore, it is necessary to have an organization verify the quality of products before being sold throughout the country

CHAPTER V: CONCLUSION Our country has favorable natural conditions for cultivating of fruit trees, bringing benefits to both the people and the country However, oversupply and unstable prices make

it difficult for people and the state in the process of production and development It is necessary to learn, analyze the causes and offer practical and quick solutions to limit devaluation and lack of demand Not only fruit but also many other agricultural products are depend on the Chinese market, so finding a market is also an urgent problem to solve The above article gives the current situation, price fluctuations, analyzes the causes and offers a few solutions to limit the problem of jackfruit price instability in the Mekong Delta

thai-28

http://www.saovangmekong.com/index.php/tin-tuc/ LÝ DO CHỌN CHỦ ĐÈ Với điều kiên

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trọng đầu tư phát triển của người làm vườn, thị trường trái cây Việt Nam không ngừng mở

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