Though the consumption rate appears lower than estimated, excessive interest is guaranteed thanks to a large amount of produce. Despite an unstable gas supply, PVCFC’s factory is running its production constantly and safely with average wattage of 110%. Besides, the non-appearance of by-product cost and the evenness of exchange rate help minimize the production cost.
Such accomplishment is a staple of the corporation’s dedication as the economic situation is tumbling due to drought and soil salinity in the Mekong Delta, alongside with the unpredictability of COVID-19.
There has been an unprecedented occurrence of soil salinity leading to a sudden upsurge of saltiness in soil. In the Mekong Delta which is PVCFC’s target market, 300000 ha of land has been adversely affected. This contributes to a substantial decrease in the consumption rate, merely 15%-20%. As there is a deficiency of land for cultivation, there has been a gradual transition from agriculture to aquaculture.
With the advent of COVID-19, exportation to many countries, especially China, grinds to a halt. A considerable fall in the price of produce has stripped farmers to their bare minimum, challenging the course of debt collecting proceeded by distributors.
Exposed to such problems, PVCFC has been making an attempt to improve management, economize, make use of technological advances and innovate in order to optimize the course of production.
Having made a household name in some areas, PVCFC is taking advantage of regions that appear unspoiled by soil salinity and cooperating with agriculture managing corporations to assist growers in overcoming the dive in acidity of soil.
PVCFC was working in collaboration with heads of farming I Soc Trang to genetically modify rice, ensure the efficiency of fertilizer, keep record of levels of soil saltiness, propose an optimal period of time for precipitation. At first, such cooperation has proved effective, changing a rather outdated perception of farming and making farmers more resourceful in confrontation with climate change.
In the outbreak of COVID-19, while conforming to the guidelines given by the government, PVCFC has made several resolutions to address the issue. Digital marketing is being put under way via a myriad of social media, particularly the company’s Facebook page. There has been online communication with other firms within the field so that an expert panel conducting researches on rather production and commercialization or market forecast is likely to form.
Moreover, PVCFC is taking cost-cutting measures, matching the human resource with the ever-changing situation, having a thorough supervision on every operation to meet the demand of every quarter as well as year.
PVCFC has always been making progress in its campaign of consolidation. The company has just signed a MOU with Vietfarm to dabble in microbiological compost and diversify its products. This proves compatible with the non-stop development of technology and visualizes agriculture in the foreseeable future.
It is forecast that fertilizer businesses similar to PVCFC will by all means enjoy numerous fruits. The exportation of rice rose by 27% in quantity and 32,6% in value in the first 2 years of 2020, with the price of exports rising by 10% compared to that of the same period and topping the past 12 months. On account of a growing need for sustenance in combat with COVID-19, the larger amount of rice produced means the larger amount of fertilizer consumed. In addition, chances are that the production cost will fall remarkably following a downward trend of oil price. All of these lend more credence to investors believing in the company’s auspiciousness in 2020.