The Russian boycott of agricultural products from the European Union was a hard blow to the export of fruits and vegetables. After the sanctions were imposed, several agricultural councils, including Vietnam, went looking for new markets. Successfully, as now the entry for Dutch pears has been made possible, according to Arie Veldhuizen of agricultural council Vietnam and Thailand.
Russia was a very important market for the Dutch agricultural sector. In 2013 the Dutch agricultural sector was still exporting to Russia for a value of 600 million euro, but after economic sanctions were imposed on Russia by the EU in the summer of 2014, a counter-ban against the European agricultural sector followed in August of that same year. Especially the export of the Dutch fruit and vegetable sector and the meat sector immediately got into trouble.
The Netherlands immediately responded. Several agricultural and horticultural sectors took steps, with support of the Dutch government, to limit the surplus and damage as much as possible, by, among other things, immediately looking for new markets.
Opportunities shown
In Hanoi, Vietnam and Bangkok, Thailand, the economic team got to work. With the help of desk research and external information, a quick scan was made showing the opportunities for the Dutch fruit and vegetable sector within a week.
With a population of 90 million, rising incomes and high consumer awareness, Vietnam appeared to be an interesting market for Dutch apples and pears. Especially because Vietnam cannot yet manage to produce the wanted quality and amount. Vietnam is still dependent on import to provide in its need for fruits and vegetables.
Imported fruits and vegetables mainly come from China and Thailand. But those countries cannot offer the wanted quality and, more importantly, safety of the products, and countries such as the Netherlands can offer that. The themes of food safety and food quality is also becoming more important on the Vietnamese agenda.
Immediately in the autumn of 2014 negotiations started between the Dutch and Vietnamese authorities on the access for Dutch apples and pears. At the same time came the realisation that demand from the market could help to realise faster access. So parallel to the negotiations, the team of ambassadors were also talking to market parties. This lead to a successful Vietnamese trade mission to the Netherlands where the first contacts between suppliers and buyers were made.
Shortly after that the Vietnamese authorities came to the Netherlands to check whether the Dutch fruit companies met the strict selection requirements. The Dutch sector passed the test with flying colours. In November 2015 the Vietnamese government gave permission to import, and on 2 March the first container of Dutch Conference pears from Fruitmasters in Geldermalsen arrived in Ho Chi Minh City, as the first country to receive products under the new regulations. The negotiations with Thailand about market access for apples are also in full swing.
Only the beginning
We are assuming that this is only the beginning, because the export of fresh Dutch products is only one per cent of demand now. The Netherlands is one of the countries that can export products of plant origin to Vietnam. That makes negotiating with Vietnam about extending the list much easier.
However, relationships need to be maintained for that. The agricultural cluster of Dutch embassies in Hanoi and Bangkok is doing everything to facilitate the entrance processes in good cooperation. But we can also help Dutch business with the steps to join the right Vietnamese and Thai market parties. These companies are capable of importing fresh products and distributing them via cold storage facilities and retail networks.
We can offer changes of regulations, business-partner scans and incoming and exiting missions to facilitate the promotion of high-quality products of the Dutch agricultural sector in Vietnam and Thailand. A good cooperation between government and business is possible and can definitely add value for the Dutch economy. We are proud of the result we have already achieved, in any case.