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Sunday, June 23, 2024

Awakening internal strength for a fully-fledged value chain

By Hai Yen

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Marking the 15th year of its establishment, IDI has set up its firm foothold on the global market in terms of tra fish processing and export. Traditional product lines such as fish fillet, whole fish, sliced fish and shredded fish among others have made the IDI brand widely known in 150 countries and regions around the world.

Heightening the profile of the Mekong Delta specialty

In 2007, International Development and Investment Corporation (IDI – a subsidiary of Sao Mai Group) first joined the tra fish processing and exporting sector with solid steps. Since then, the reputation of the company has been asserted in major markets due to the successful brand positioning with a suitable price strategy and standard product quality.

Alongside the company’s establishment was the associated farming area model initiated by the company that has been successfully implemented during the development journey of IDI. The classic philosophy of “businesses require partners” is deepened by IDI with a very unique vision. The market has often seen the fluctuating price of raw tra fish as the supply and demand are not aligned, while no authorities have made successful intervention. However, at any time, “satellites” of the company can still “live well and live happily” from the synergy that has been established since day one.

Taking care of every fish meal

During 2017 – 2019, few people learned that IDI had to spend about VND700 billion covering the gap between the market price and the fixed price stated in the contract with farmers. At that time, the market price of tra fish was only VND17,000-18,000 a kilogram, but in the contract signed with the farmers, the price was set at VND25,000 per kilogram. The company accepted suffering losses in order to keep its reputation.

Cherishing each product

Most recently, in mid-2021, the Covid pandemic spread violently, forcing southern provinces to implement social distancing according to Directives 15 and 16 of the Prime Minister. At that time, the flow of goods in the economy was disrupted. Farming households were on fire because no seafood businesses dared to buy their fish as they were also stuck. To deal with the situation, IDI strongly consumed a large amount of tra fish for households which were not in the contract at the most suitable price.

By applying the “on-the-spot” guidelines for workers working in Sao Mai industrial zone, the company promptly purchased thousands of tons of cheap tra fish to have a huge stockpile. Later, when the Covid pandemic was put under control, IDI enjoyed the advantage of having the fish at low prices, and dominated many major markets such as the United States, China and Europe.

Awakening internal strength for fully-fledged value chain

IDI owned an associated farming area spanning more than 350 hectares, with the total output of about 85,500 tons of raw fish per year, providing 90% of raw materials needed for its two seafood processing factories. At present, the company is developing the third seafood processing factory with modern equipment made in Europe with a capacity of 500 tons of materials per day.

Ready for the voyage

While marching into the global market, the company has also attended to the domestic market with derivative products from tra fish, including seasoning powder, cooking oil, fish sauce, collagen, and other items from fish internal organs, fins, scales, etc., which have all been turned out by IDI with high added value. Over the years, this sub-sector has contributed huge profits to the company.

According to the latest survey of the Market Research Board, over 60% of Vietnamese households use at least one product from IDI. The market for 100% fish-based spices continues to be deeply exploited, especially the nutrition source for children, cosmetics, and pharmaceutical products to enhance health and beauty for women.

The aquatic food segment is also facilitated in the context the pandemic is now under control. The strong recovery of the livestock industry is a catalyst for Sao Mai Superfeed to maintain positive growth.

Sao Mai Superfeed – A smart choice for seafood households.

Last but not least, IDI has shown a clear goal to participate in new segments such as packaging products and pursued a publicity strategy on the world market. In the future, the company will also expand its ecosystem to other areas such as real estate. Although it is the difficult time at present, it will be the key segment that continues to increase the spending proportion of many consumers for services and products of the company.

From farm to fork, the Vietnamese tra fish have generated optimal profits owing to outstanding technologies applied by IDI. The chain circle is gradually closing from the decisive idea of the leader.

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