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Restructuring rural economy focusing on rice value chains Dang Kim Son IPSARD/MARD.

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Presentation on theme: "Restructuring rural economy focusing on rice value chains Dang Kim Son IPSARD/MARD."— Presentation transcript:

1 Restructuring rural economy focusing on rice value chains Dang Kim Son IPSARD/MARD

2 Main content An overview of the rice sector An introduction of the component on “Restructuring rural economy focusing on rice value chains”

3 Rice sector- key agricultural sub-sector 1 60% rural households growing rice/paddy 2 P a d d y la n d a c c o u n ts fo r 4 0 % o f a gr ic ul t u ra l p r o d u ct io n ar e a 3 Contribute 30% of production value of cultivation sector 4 Ensure national food security 5 Contribute considerably to export turnover

4 Rice production ensures national food security due to surplus production

5 High export turnover from rice rice export turnover accounts for 10% of total export turnover of the agricultural sector

6 Rice production intensively uses natural resources but low efficiency Rice productionCoffee Export turnoverBillion USD Agricultural land usesMillion ha Water usesBillion m Number of farmers Million households9.30.5

7 Rice production overuses fertilizer/pesticides

8 Low efficiency in rice production compared with other crops

9 And lower than that of other countries

10 Decreasing efficiency from rice export

11 Directions for the development of the rice sector At household level: rice/paddy is the main livelihood in areas having advantages in rice production In rural areas: rice production generate income and employment for people At national level: - Ensure food security; - High efficiency in export through high value-added - Sustainable development of rice sector

12 Solutions for rice/paddy commodity development Pilot model and replication Rice value chain developm ent Paddy land conversion

13 Restructuring rural economy focusing on rice value chains

14 Objectives Assessing impacts of paddy land conversion into other crops and FTAs on food security, agriculture, rice/paddy production and paddy farmers’ income Restructuring/Developing the rice value chain, emphasizing on institutional reforms through better cooperation among farmers and linkages between farmers and enterprises Contributing to the development strategy of agriculture and rural areas and the proposal on restructuring the rice sector in Vietnam Overall objective is contributing to the restructuring process of the rural economy through development of the rice sector towards higher added value and sustainability

15 Multi-purposes of paddy land conversion Diversify and increase farmers’ income Create jobs for agricultural and rural labour Reduce the import of inputs such as animal feed and fertilizers Ensure food security and protect environment

16 Rice value chain development Higher value-added Diversify rice products Intensify science & technology application Institutional reform

17 Activities and Outcomes Proposing changes to institutional structure towards higher value added for rice value chain in Dong Thap Developing economic models to assess impacts of policies on paddy land conversion and FTAs - Proposing paddy land policy - Proposing policy for restructuring the rice sector - Proposing paddy land policy - Proposing policy for restructuring the rice sector

18 Thank you


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