Mr. Nguyen Quoc Toan, Director of the Digital Transformation and Agricultural Statistics Center, said that in Jan 2023, the average export price of cassava and cassava products was 392.6 USD/ton. This figure is up 0.1% compared to Dec 2022 and down 8.8% compared to Jan 2022. Regarding sliced cassava, the average export price is 256.8 USD/ton, down 0.3% compared to Dec 2022 and 4.2% compared to Jan 2022.
In Feb 2023, the export price of cassava increased sharply. In particular, the export price of sliced cassava to China in Feb 2023 reached about 280 USD/ton FOB – Quy Nhon, up 20 USD/ton compared to the end of Jan 2023. The price of sliced cassava exported to Korea is 310 USD/ton (FOB, Quy Nhon port), up 20 USD/ton compared to the end of Dec 2022.
“Currently, Vietnamese factories are offering cassava starch at 455-485USD/ton FOB – Ho Chi Minh City port, up 10-30 USD/ton compared to the end of Jan 2023”.
Mr. Nguyen Quoc Toan, Director of the Digital Transformation and Agricultural Statistics Center.
Cassava export prices are on the rise.
According to the Vietnam Cassava Association, at this time, the amount of cassava starch traded has shown a positive signal. Because Chinese customers have a demand for production when the Government opened the door after the Covid-19 pandemic. The amount of cassava starch traded through border gates with China increased due to faster import procedures on the Chinese side.
According to the report of the Vietnam Cassava Association, from Feb 2023 to now, increased purchasing power from China makes the price of raw cassava increase in many provinces and cities. Currently, the price of fresh cassava fluctuates between 3,150-3,250 VND/kg, up by 100 VND/kg compared to the end of Jan 2023.
Vietnam now has 528,000 ha of cassava. In the whole country, there are 27 provinces with cassava starch processing factories and about 120 industrial-scale cassava starch processing factories with a total designed capacity of 11.3 million tons of fresh cassava per year.
About 26% of the establishments are closely linked to the raw material area. The export of cassava and cassava products accounts for about 70% of the country’s total cassava harvest. Vietnam is the third-largest exporter of cassava and cassava products in the world after Thailand and Cambodia and ranks second after Thailand in terms of export turnover.
Referring to the weaknesses of the cassava industry, the Vietnam Cassava Association pointed out that: Vietnam’s consumption of cassava and cassava products has many intermediaries while national competition is low due to the high logistics costs of Vietnam. Currently, we are facing fierce competition in export markets from Thailand, Cambodia, and Laos.
In addition, according to most of the cassava starch processing technology being used in Vietnam, all starch after grinding will be soaked in water and then filtered many times. There are not many deep-processing factories. Therefore, it is recommended that cassava processing factories invest in new technology to process cassava starch by using a centrifuge system to separate the starch from the cassava instead of natural sedimentation.
Mr. Nghiem Minh Tien, Permanent Vice Chairman of the Vietnam Cassava Association, warned that: “With more than 94% of cassava exported to China, it is a risk to the market. Therefore, to avoid “putting eggs in a basket”, diversifying products and markets in the coming time is a must.
“The Ministry of Agriculture and Rural Development and the Vietnam Cassava Association are working to improve the quality of cassava exported to other markets, especially the potential EU market,” Mr. Tien said, adding that the goal is to develop the scale of deep processing and processing of products after starch to diversify products, then can diversify the market.
“Some of the Association’s members have already taken their products to countries other than China such as Belarus, Russia, Japan, Taiwan, Indonesia, the Philippines, the Middle East, and Africa through taking advantage of free trade agreements. This is an experience for localities and businesses to research to develop and diversify cassava products”, Mr. Tien emphasized./.