The agricultural sector is witnessing a significant shift as it strives to invest in deep processing technology to enhance the value of agricultural products and address the persistent issue of “bumper harvests, falling prices.” This strategic move is not only opening up new markets but also bringing substantial benefits to local communities.
In the Central Highlands province of Lam Dong, the Hoa Le Clean Dragon Fruit Cooperative stands as a testament to this transformation. Established in 2017, the cooperative has grown from a modest group of 18 official members to include 34 associate members, all focused on producing and trading dragon fruit products. Through deep processing, the cooperative has diversified its product range to include dragon fruit spirits, wine, mineral water, juice concentrate, flour-based cakes, and essential oils. This expansion has seen its working capital soar from an initial 900 million VND to 2.5 billion VND.
Do Thanh Hiep, Director of the Hoa Le Clean Dragon Fruit Cooperative, revealed that the cooperative currently boasts nine dragon fruit products certified with a 3-star OCOP rating. To further stabilize and expand production, the cooperative is strengthening partnerships and broadening its market reach. The goal is to increase dragon fruit output to between 8,000 and 12,000 tonnes per year and to recruit more members to expand the certified cultivation area. This expansion is aimed at meeting the stringent requirements of demanding markets such as the European Union, the Republic of Korea, and Japan.
The cooperative’s investment in modern pre-processing facilities, cold storage, machinery, and synchronized production processes meeting GlobalGAP and VietGAP standards has paid off. Its dragon fruit products are now favored by customers on e-commerce platforms, and it has secured supply contracts with other cooperatives and export-import companies. This success story underscores the potential of deep processing in adding value to agricultural products and opening up new market opportunities.
Similarly, the Hung Lo Rice Noodle Cooperative in Van Phu Ward, Phu Tho Province, has leveraged technology to enhance its product value. By applying science and technology, the cooperative’s rice noodles have penetrated supermarket chains, restaurants, and distribution networks nationwide. With an average daily sale of 3–4 tonnes of finished rice noodles, the cooperative has also made inroads into international markets, exporting to Japan and Taiwan. The cooperative’s investment in new technological machinery has not only boosted its product lines but also created jobs for low-income households in the area.
However, the path to agricultural export growth is not without challenges. The Ministry of Agriculture and Environment reports that while the total agricultural, forestry, and fishery export turnover reached 33.84 billion USD in the first half of the year, up 15.5% compared to the same period last year, this growth remains unstable due to global geopolitical fluctuations. To mitigate these risks, the ministry advises each export sector to develop adaptable production and business plans, while also exploring new markets.
In response to these challenges, the agricultural sector is promoting the transfer, application, and innovation of technology for businesses, cooperatives, and households. This push towards clean, organic, and high-tech production has led to the development of valuable crops and processed agricultural products that deliver clear economic benefits and meet market demands.
The Hoa Le Clean Dragon Fruit Cooperative, for instance, is stepping up its production chain towards deep processing, increasing training, and providing technology and technical transfer support to its members. This strategic approach aims to improve quality, preserve agricultural products longer, and reduce input costs to maintain competitive pricing. By actively expanding into markets in Japan, the Republic of Korea, and Southeast Asia, the cooperative hopes to reduce risks in exports and establish a robust production strategy adapted to global competition.
These developments highlight the transformative potential of deep processing technology in the agricultural sector. By investing in technology and innovation, cooperatives and enterprises can access wider markets, achieve higher product value, and bring greater benefits to local communities. This strategic shift is not only addressing the issue of falling prices but also paving the way for a more sustainable and competitive agricultural sector.