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VietNamNews

Cassava exports recover in Q1

Update: April, 08/2020 - 16:09

 

Việt Nam's cassava chip exports were estimated at 263,000 tonnes, earning $57 million in the first quarter of this year. Photo congthuong.vn

HÀ NỘI – Việt Nam achieved cassava export growth in both volume and value in the first quarter of this year despite experiencing difficulties, according to the Ministry of Agriculture and Rural Development (MARD).

Cassava exports in the first quarter rose by 14 per cent in volume to 772,000 tonnes and 0.4 per cent in value to US$257 million on-year, the MARD’s Department of Agro-product Processing and Market Development said. Of which, exports reached 335,000 tonnes in March, earning $113 million.

However, the average export price of cassava in the quarter fell by 12 per to $332 per tonne.

In terms of product structure during the first three months, cassava chip exports were estimated at 263,000 tonnes, earning $57 million, up 70 per cent in volume and 96 per cent in value over the same period last year.

Cassava starch exports reached 509,000 tonnes, earning $200 million, down 2 per cent in volume and 12 per cent in value.

During the quarter, lower supply of cassava chips due to prolonged hot weather and the pandemic pushed up export prices by 16 per cent to $217 per tonne compared to the same period last year. Meanwhile, the average export price of cassava starch fell by 10 per cent to $393 per tonne.

The Ministry of Industry and Trade’s Import and Export Department said the cassava export growth in the first quarter was mainly due to growth to mainland China. Besides that, businesses also promoted exports to Malaysia, Taiwan and Japan.

According to the General Department of Customs, in the first two months this year, China was the largest export market for Việt Nam's cassava and cassava products, reaching 402,480 tonnes worth about $130.9 million. These exports had an increase of 10.6 per cent in volume but a plunge of 2.8 per cent in value over the same period last year.

Meanwhile, the nation saw strong growth in both volume and value of cassava exports to Malaysia in the first quarter. Exports were up by 48.5 per cent in volume to 7,400 tonnes and by 49.4 per cent in value to $3.2 million.

Việt Nam’s cassava export price is expected to increase due to lower supply on the domestic market as hot weather, disease and the pandemic take hold. Meanwhile, output of this product in Thailand, which is the largest exporter of cassava to China so far this year, is expected to decrease by 20 per cent compared to 2019.

On the other hand, according to MARD, China would have increased demand for cassava to promote ethanol production after the pandemic and animal feed for pigs. China has faced a shortage of pork due to African swine fever.

However, the export of cassava starch via the border gates is likely to slow because China is prioritising imports of fruit and other essential foods.

In 2019, Việt Nam's cassava exports reached 2.46 million tonnes, earning $948 million. Exports surged by 2.9 per cent in volume but fell by 0.2 per cent in value compared to 2018. VNS

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