Agricultural export businesses must comply with EU's maximum residue level regulations

DNHN - By February 2025, the EU will have new regulations affecting many important agricultural products from Vietnam, including coffee, pepper, rice, durian, banana, mango, and vegetables like onion, garlic, and chili.

According to the Vietnam National Notification Authority and Enquiry Point for Sanitary and Phytosanitary Measures (SPS Vietnam), starting from February 2025, the European Union (EU) will implement several new regulations on Maximum Residue Levels (MRL) for many important agricultural products from Vietnam, including coffee, pepper, rice, durian, banana, mango, and vegetables like onion, garlic, and chili. These are key export products for Vietnam to the EU market and have made significant contributions to the nation's export turnover over the years.

Recently, China has raised its quality standards for goods, especially rice. High-end rice like fragrant rice, sticky rice, or ST24 requires strict quality and packaging standards. Meanwhile, for the medium-grade rice segment, Chinese importers prioritize low-priced goods, such as broken rice, for processing. However, Vietnamese businesses face difficulties in competing with international rivals because China's demand focuses on low-priced goods.

According to the Vietnam Trade Office in China, China’s rice import quota has not changed much in recent years. Currently, only 21 Vietnamese companies are allowed to export rice to China out of about 200 licensed enterprises. Rice from China often has high quality and very attractive packaging, which makes it difficult for Vietnamese businesses to compete.

Similarly, regarding pepper, the Vietnam Pepper and Spice Association (VPSA) said that domestic pepper prices in China are lower than imported goods. China's economy is growing slower than expected, spending demand has decreased, and existing stockpiles are sufficient, leading to a sharp decline in pepper imports from Vietnam. VPSA predicts that demand for pepper imports from China is unlikely to improve in the second half of the year.

These changes are not only a challenge for export businesses but also significantly impact farmers and domestic production units. Stricter regulations from the EU require businesses to invest more in technology and production processes to meet these high standards, leading to increased production costs, which may reduce profit margins for export businesses.

Dr. Nguyễn Thị Thu Trang, Director of the WTO and Integration Center (VCCI), recommended that Vietnam should quickly adapt and improve product quality to meet the new EU requirements. This requires close cooperation between businesses, farmers, and relevant agencies in improving production processes, quality control, and ensuring compliance with food safety regulations.

Dr. Lê Thanh Hòa, Director of the SPS Vietnam Office, also noted that although Vietnamese businesses have gradually become accustomed to the EU's stringent requirements and have prepared to overcome technical barriers, the EU pays special attention to food safety and does not accept products with pesticide residues. Therefore, businesses need to focus on testing and controlling pesticide residues before exporting to the EU to avoid having their goods detected and either destroyed or returned.

P.V