Cassava output during the 2017-2018 crop saw a dramatic decline of 569,100 tonnes. (Photo: cafef.vn)Hanoi (VNA) – Cassava exports in the first seven months of the year reached1.6 million tonnes with a value of 580 million USD, a year-on-year decline of24 percent in volume but a surge of 12.5 percent in value, according to theMinistry of Agriculture and Rural Development.
China remained the largest importer of Vietnamese cassava, accounting for 87percent of total exports.
Cassava output during the 2017-2018 crop saw a dramatic decline of 569,100tonnes from the previous crop to 10.34 million tonnes.
Also, cassava-growing areas have shrunk in recent years as cassava materialprices were not as high as expected. Particularly in 2015 and 2016, cassavafarmers were in dire straits, and decided to uproot cassavas due to a markeddrop in cassava material price, which stood at only 1,200 VND per kilogramme.
However, low stockpiles of cassava in this crop pushed the price to 2,500 -2,700 VND per kilogramme. Many cassava starch producing factories in Vietnam facematerial shortages and only operate when they have cassava supply.
In June, cassava starch export price hit a record high with average FOB exportprice of 530-535 USD per tonne. However, the Vietnamese exporters decided todecrease the value to 500 USD per tonne a month later to compete with Thaicassava, which was sold at 470-480 USD per tonne.
According to the Vietnam Cassava Association, from the beginning of August, theprice of cassava starch has been falling due to less purchases from China,which was said to be triggered by the US-China trade war, and stockpile priceadjustment from Vietnamese plants.
There are some 150,000 tonnes of cassava slices in stock. The cassava slicemarket is expected to be more vibrant when ethanol and chemical firms in Chinaincrease their capacity.
However, China has a large amount of corn stock, which will be used for ethanolproduction. Thus, cassava export to China is unlikely to increase in the secondhalf of this year.-VNA
VNA
