Abundant raw material area
Gia Lai owns an agricultural production land area of nearly 850,000 hectares, favorable for the development of key industrial crops with high economic value. In 2024, coffee output will reach about 312,050 tons of beans, of which about 240,000 tons will be exported, the remaining output will mainly serve 86 coffee production and processing facilities with a total capacity of 11,800 tons/year, the coffee powder processing rate will reach 23.4%. Rubber output will be about 78,590 tons of latex, serving 15 rubber production and processing facilities with a total capacity of 88,000 tons/year. Noodle output will be about 1.6 million tons of fresh noodles, the rate of processing cassava starch from raw cassava sources in the province will reach 55.42%. Sugarcane output is over a million tons of sugarcane serving 2 refined sugar processing factories, the rate of refined sugar processing from sugarcane raw materials is 100%. Cashew output is about 34,800 tons, the processing rate is 100%. In addition to raw cashew nuts in the province, domestic production units also import raw materials from Africa for processing...
In the 2024-2025 period, many new processing factories will be invested and upgraded, typically: Thanh Thanh Cong Gia Lai One Member Co., Ltd. will increase the capacity of the sugar factory from 6,000 tons of sugarcane/year to 8,000 tons of sugarcane/year; Animal feed processing factory - Dien Hong Gia Lai Joint Stock Company (capacity of 15,000 tons/year), Stone processing factory (capacity of 25,000 m3 ), Tien Tuong unburnt bricks (capacity of 3 million bricks/year). Along with that, fruit juice factories will also operate stably, promote capacity, contributing to enriching the structure of processed industrial products of the province.
Mr. Nguyen Hoang Phuoc - Deputy Director of An Khe Sugar Factory - said: In the 2024-2025 crushing season, the factory will purchase nearly 2.1 million tons of sugarcane, with sugar production reaching 244,483 tons of all types (RE, RS, brown sugar). According to the 2025-2026 crushing season plan, the factory plans to purchase about 2.4 million tons of sugarcane; expected to contribute about 250 billion VND to the budget. With the development orientation, the company continues to invest capital, invest in applying science and technology to mechanize sugarcane cultivation, care and fertilize sugarcane, so sugarcane productivity increases; encourages the conversion of ineffective crops to sugarcane; in the production season to purchase sugarcane according to the market price of sugar... "Along with promoting sugarcane pressing capacity, the Company plans to build an Ethanol Factory to utilize the sugar factory's molasses to produce alcohol; increase the capacity of the Biomass Power Plant from 95 MW to 135 MW. With the sugarcane-sugar-electricity industrial cluster, when put into operation, it will handle all the sugarcane for farmers in time, reduce post-harvest sugarcane losses, regenerate sugarcane roots well, help maintain stable and sustainable efficiency for sugarcane growers; contribute over 500 billion VND to the budget" - Mr. Phuoc informed.
From the perspective of industry management, Mr. Pham Van Binh - Director of the Department of Industry and Trade - assessed: With the potential advantages of raw material areas, the province has formed factories processing agricultural products, creating a close connection between industry and agriculture, between localities and creating a driving force for sustainable development.
This is also an advantage to reduce the cost of transporting raw materials, increasing profits for the province's key products. The initial formation of industrial clusters has created a space for factories to operate; the technical infrastructure of industrial clusters has received investment attention. From there, effectively exploiting the advantages in the region, creating many different products, diverse in design, quality and increasingly deeply processed to increase the added value of exported agricultural products.
Long road with many challenges
Mr. Phan Van Khac - Deputy Director of Gia Lai Cassava Starch Factory - said: In the situation of very low raw material prices, the selling price of products is decreasing more and more, the products are in stock and slow consumption, leading to cassava growers not making a profit, so they have switched to other crops, causing the area to become increasingly narrow, and the raw materials for the next crop cannot be met. In addition, the dependence on the Chinese market (accounting for more than 90% of the cassava sold) causes many difficulties, making the Vietnamese cassava market unable to develop. Logistics costs account for a high proportion of export prices, leading to difficulty in competing with Thai flour products.
According to Mr. Khac, to stabilize raw material areas and develop consumer markets, businesses need to coordinate in building and developing sustainable raw material areas in a concentrated and gradually mechanized direction (machines for planting and harvesting fresh cassava); strengthen research, application and transfer to farmers varieties with high yield and starch content, good resistance to pests and diseases, short growing time, suitable for inter-cropping to provide raw materials for processing plants to operate at maximum capacity.
At the same time, invest in research and development of modern processing technology to reduce production costs and create value-added products such as cassava starch products. Research to fully utilize cassava starch production waste such as mud, silk husks to make biofertilizers, recover the starch in the pulp... This will help the product have the opportunity to expand and access the European, American, Halal markets...
Despite its many advantages, Gia Lai's processing industry is still facing many challenges such as low mechanization in agriculture, causing high raw material costs, reducing product competitiveness. Supporting industries and agricultural and forestry processing industries are developing unsustainably, value chain linkages are not many, and deep processing is limited. For example, although rubber has a large output, the products are only crepe and latex, not creating high-value consumer products. Processing enterprises are mostly small and medium-sized, with limited capital and average technology, while access to credit still has many barriers. Skilled labor accounts for a very small proportion of the labor structure, and training is not uniform, not meeting the requirements of high-quality human resources for modern processing plants. Infrastructure issues, inter-regional traffic connections, slow implementation of the industrial park-cluster system, lack of land and capital for land clearance are major barriers. Investment attraction, especially in key industries such as coffee, rubber and pepper, is still low compared to the potential.
To achieve the industrial growth target of 10.9%, contributing to achieving a gross domestic product (GRDP) growth rate of 8.06%, the Department of Industry and Trade has grasped the business situation of enterprises and developed production plans for each major industrial product. In 2025, strive for an estimated refined sugar output of 350,000 tons (an increase of 6.22% compared to 2024); fruit juice products are estimated at 40,000 tons (2.21 times higher than in 2024); tapioca starch output is estimated at 245,000 tons (an increase of 23.29% compared to 2024); MDF products are estimated at 45,000 m3 (an increase of 31.1% compared to 2024); biofertilizers are estimated at 40,000 tons (an increase of 4.1% compared to 2024); Milk processing is estimated at 42.3 million liters (up 3.3% compared to 2024)...
According to the Director of the Department of Industry and Trade, the province's key industry is deep processing of agricultural products with local raw materials, so the industry continues to orientate the development of deep processing of the province's key agricultural products, which currently have a low deep processing rate, such as pepper, coffee, rubber, forestry products and fruit products...
To achieve the industrial growth target, Gia Lai needs to synchronously solve the factors of completing the infrastructure of industrial parks and clusters, prioritizing the attraction of projects for deep processing of key products; increasing the application of mechanization and high technology in agricultural production; closely linking farmers-enterprises-government to stabilize raw material areas; focusing on training skilled workers, developing processing human resources; having specific investment incentive policies, preferential credit mechanisms for processing enterprises; enhancing trade promotion, expanding markets, gradually forming separate brands for Gia Lai's processed products.
Source: https://baogialai.com.vn/nen-tang-tang-truong-tu-the-manh-dia-phuong-post329953.html
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