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Article 6

October 11, 2014, 7:52 pm
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Prospects and challenges for litchi,longan exports to US

 
The good news the US Department of Agriculture (USDA) has approved the import of Vietnamese litchi and longan into the US market effective on October 6 has been reverberating throughout the agriculture industry.
Though the ruling represents a tremendous opportunity for Vietnam fruit exporters it could be bittersweet, as it is alloyed with huge challenges posed by the demanding food safety and hygiene requirements of the US market.
In the context that Vietnam is seeking to expand outlets for agricultural products, its litchi and longan able to find deeper inroads into a vast 320 million people market will open up a major opportunity for Vietnamese farmers and businesses but also pose significant challenges. 
An interview granted to a Washington-based VOV correspondent by Dao Tran Nhan, Trade Minister Counselor and Vietnam Trade Office Chief Representative in the US provides insight into prospects and  difficulties for litchi and longan exports to the US.
Following are the key excerpts from the interview: 
Reporter:The US permission for Vietnamese litchi and longan exports is good news. Whether we have a chance to compete or not when US farmers themselves can also grow these kinds of fruit and our businesses is a separate question?
Mr. Nhan:  The recent decision made by the USDA really bodes well for Vietnamese litchi and longan exports as a result of the country’s efforts to ship four kinds of fruit- dragon fruit, rambutan, litchi and longan to the highly potential market.
 
Trade Minister Counselor and Vietnam Trade Office Chief Representative in the US Dao Tran Nhan.
In the US, litchi and longan are grown primarily in Florida and Hawaii and in a small part of California, with a total output of around 500- 800 tons of litchi per year. The US imports litchi and longan principally from Taiwan, China, Israel, Mexico and Thailand. 
The USDA estimates that Vietnam exports approximately 600 tons of litchi and 1,200 tons of longan to the US per annum accounting for 17% and 69% of the market share here, respectively. 
Florida and Hawaii growing litchi and longan prevents Vietnamese businesses from exporting the two kinds of fruit to the two states in order to protect local consumers. 
The longan season in the US lasts from July to August and litchi season from May to July.  They are mainly sold in New York and Los Angeles, where the Asian community is rather crowded. 
According to estimates, American-grown longan is wholesales for about US$1.66/ pound (roughly 450g), while imported longan in the US is priced at US$0.82/pound, constituting 49% of production price in the US market. 
Reporter: What is the disadvantage of the country’s litchi and longan exports to the US market? 
Mr. Nhan: Litchi and longan products imported into the US must be labelled confirming irradiated parasiticides. This puts imported products at a disadvantage since American consumers do not want to eat irradiated products for fear of affecting their health. 
Therefore, the stamped irradiation certification may put Vietnamese litchi and longan in a fix to compete with other products grown in the US. 
The USDA also requires Vietnam to make a zoning plan for growing areas and provide related codes for its monitoring. Vietnamese firms that have growing area codes are qualified for exports of litchi and longan to the US.
Thus, mandatory irradiation regulations and coded growing areas are the two major obstacles for Vietnamese businesses. 
Additionally, the US requires food and beverage exporters to register production facility and their representatives in the country.
Reporter:As you said above, litchi and longan grown in the US are not required irradiation to kill parasites, why so? 
Mr. Nhan: The reason is that Americans believe their local products are not infected with pests and the country is well equipped to deal with an epidemic, should it occur. Consequently, local farmers don’t need to use pesticides nor have their products irradiated. 
Not only litchi and longan imported from Vietnam but from other countries like Thailand, China, Israel, and Mexico also have to comply with the rigid requirement. 
For health reasons, consumers think that if they eat a lot of fruit uncontrolled for food safety, it may cause cancer or other diseases due to the negative impacts of radiation.
In fact, the radiation level of imported litchi and longan is completely within the permissible limits and has absolutely no negative effect on human health.
Reporter:One of the most notable regulations of the US on litchi and longan imports from Vietnam is the very rigorous standards on residues of pesticides. But during the planting process, it is imperative to use pesticides to protect crops, so on what points should Vietnamese farmers and businesses pay more attention to this issue?
Mr. Nhan:  Antibiotic residues, as well as pesticides on imported fresh fruit is calculated by the US based on a proportion of billion unit not million unit. Therefore, enterprises must ensure their export goods to the demanding market are free from antibiotic residues or pesticides and if having, they are only within the US permissible limits.
The US also warns Vietnamese businesses to use pesticides adopted by the Food and Drug Administration (FDA). 
Reporter: So far four kinds of Vietnamese fruit have been imported into the US while the country still has lots of delicious and valuable fruit.  What plans   will the Vietnam Trade Office and other relevant agencies work out to boost exports of these products to the demanding market? 
Mr. Nhan: TheVietnam Trade Office in collaboration with the Ministry of Agriculture and Rural Development (MARD) has urged the US to consider granting permits for Vietnamese litchi and longan and two more types of fruit- mango and star apple. If getting approval from the US, Vietnam will have six types of fruit available in this market. 
With a population of up to 317.5 million, mostly from the Asian community, the giant market shows growing demand and prices for tropical fruit.
Litchi, longan, dragon fruit and rambutan are also a favourite of Americans. 
Currently, Vietnamese rambutan and dragon fruit are widely sold in the US, from normal to high-class supermarkets. With the sound relations between the two countries, the US is more likely to allow Vietnamese mango and star apple enter its market in the not so distant future. 
Reporter: Thank you very much.
VOV
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