[NEWS] - Export of cassava and cassava products continues to grow

In October 2023, Vietnam’s export of cassava and cassava products continued to grow, export prices increased sharply to the highest level since the beginning of 2023 until now.

The price of cassava and cassava products for export increased sharply

The Import-Export Department (Ministry of Industry and Trade) cited statistics from the General Department of Customs as saying that in October 2023, Vietnam exported 268.37 thousand tons of cassava and products from cassava, worth 136.49 million USD, up 2.1% in volume and 11.1% in value compared to September 2023, up 12.6% in volume and up 33% in value compared to October 2022.

In the first 10 months of 2023, the export of cassava and cassava products will reach over 2.39 million tons, worth 1.02 billion USD, down 6.4% in volume and 8.8% in value compared to the previous year—the same period in 2022.

In October 2023, the price of cassava and cassava products for export increased sharply from the beginning of 2023 until now. Accordingly, the average export price of cassava and cassava products is at 508.6 USD/ton, up 8.8% compared to September 2023 and up 18.1% compared to October 2022.

In October 2023, China is still Vietnam’s largest export market for cassava and cassava products, accounting for 90.01% in volume and 91.49% in value of total cassava and cassava exports. The country’s cassava products reached 241.55 thousand tons, worth 124.88 million USD, down 4.7% in volume, but up 6.2% in value compared to September 2023; Compared to October 2022, it increased by 16.6% in volume and 40.2% in value.

The average export price of cassava and cassava products to China is at 517 USD/ton, up 11.5% compared to September 2023 and up 20.2% compared to October 2022. In the first 10 months of 2023, Vietnam exported 2.18 million tons of cassava, and cassava products to China, worth 929.57 million USD, down 6.2% in volume and 9.3% in value prices compared to the same period in 2022.

In the first 10 months of 2023, although the amount of cassava exported decreased, the export of cassava and cassava products to some markets still grew well in both quantity and value compared to the same period in 2022 such as Taiwan, Malaysia, Japan... However, these markets only account for a small proportion of the country’s cassava exports.

It is expected that the supply of cassava chips when entering the upcoming December production season will decrease

According to the Vietnam Cassava Association, in early October 2023, the price of fresh cassava in the Northern provinces was stable compared to the end of last month, currently the purchasing price fluctuates at 2,400 - 2,450 VND/kg. In the Central provinces, the price of fresh cassava is purchased at 2,400 - 2,600 VND/kg. The price of fresh cassava purchased in Kon Tum fluctuates at 2,900 - 3,100 VND/kg. The price of cassava starch and cassava chips for export is also stable compared to the end of last month.

Currently, Vietnamese factories are offering cassava starch at prices ranging from 535-550 USD/ton FOB in Ho Chi Minh City port. The price of cassava starch delivered in Mong Cai and Lang Son fluctuates at 4,100 - 4,350 CNY/ton. Meanwhile, the export price of iron slices to the Chinese market is about 295 USD/ton FOB Quy Nhon; The export price to the Korean market is about 335 USD/ton FOB Quy Nhon.

According to an announcement from China, the country will apply the policy of importing border residents from November 1, 2023. Accordingly, goods that are not processed locally such as cassava flour, dried tea leaves, cashew nuts, and other dry goods will not be subject to direct customs clearance regulations "including imported vehicles, "All vehicles exported" as recently, but restored the regulation of 8,000 yuan per person/day/vehicle. Accordingly, the pick-up fee at the border gate area on the Chinese side increased by about 100 yuan/ton for loading and unloading costs, transit vehicles, taxes, and other fees.

This year, prolonged heavy rains in the Southeast provinces and Cambodia have caused the quality of harvested cassava to be poorer than usual. It is expected that the supply of cassava chips when entering the upcoming December production season will decrease, due to the forecast that the source of fresh cassava roots will decrease sharply.

In the 2023/24 crop year, units trading in this product may have to increase imports of cassava chips from Laos and Cambodia to Vietnam to meet the needs of domestic animal feed factories, as well as for export.

In Phu Yen, the Phu Yen Department of Agriculture and Rural Development said that in the 2023/24 crop year, farmers in the province have currently harvested 2,998/26,256 hectares of cassava, with an estimated yield of 21 tons/ha. Cassava has been the main crop grown for many years by farmers in Song Hinh, Dong Xuan, Son Hoa, Tuy An, and Tay Hoa districts...

In Thanh Hoa, cassava is one of the three main crops of the province, only after rice and corn. Currently, in Thanh Hoa province there are 5 cassava starch processing factories, with a scale of 600 tons of products/day, according to which the raw material demand for production requires 250,000-300,000 tons of fresh cassava tubers.

This can be considered a stable purchasing market, helping cassava growers feel secure in production. Each year in the province there are nearly 14,000 hectares of cassava, with a total output of about 200,000 tons as raw materials to serve cassava starch processing factories in the province.

Export is one of the fields with a lot of expectations but also a lot of competition. For small and medium-sized enterprises that still have many difficulties in connecting with foreign businesses and exporting their products, Indochina Holding plays the role of a bridge to help domestic businesses connect with foreign countries. businesses in developed countries, we will accompany and bring their products to developed countries around the world.

Hoang Yen (Collection source)