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Export markets for cassava and cassava products in Vietnam

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Export markets for cassava and cassava products in Vietnam

For about 10 years now, in Vietnam cassava from a secondary food crops, industrial crops become important, with acreage, yield and production increased rapidly. Cassava is grown in North Central region, South-Eastern and Central Highlands provinces of Kon Tum, Gia Lai, Dak Lak and Dak Nong.

 The total area of the country's cassava crop reached 560,000 hectares in 2012 with total production of fresh cassava roots reach about 9.5 million tons. Products exported include cassava starch, cassava chips and cassava processing alcohol. With over 100 large-capacity factory and hundreds of manual processing, most concentrated in Tay Ninh province, industrial starch processing for starch production of 1 million tons / year.

 

Exports of cassava and cassava products

Cassava and cassava products as exports grew hot in recent years, after the demand for imports of cassava from the Chinese market and Taiwan surged. Vietnam is the world's second largest exporter of cassava and cassava products, after Thailand. The cassava products has joined the commodity exports over $ 1 billion / year. According to the General Administration of Customs, in 2012, Vietnam has exported over 4.2 million tons of cassava kinds worth $ 1.35 billion, an increase of over 57% and almost 41% in value with 2011. In 2012, the volume of cassava and cassava products exports reached a record, in which the main import markets are increasing rapidly: China rose 65.1% in volume and 66.6% respectively Treatment; South Korea increased by 11.4% in volume and 5% in value; Philippines increased by 30.9% in volume and 77.8% in value. Particularly Malaysia a decline in both volume and value with a corresponding decrease of 20% and 16% .In the first 8 months of 2013, Vietnam has exported 3.2 million tonnes of cassava products of all kinds, earning 757 million, down 28% in volume and 22.33% in value compared with the same period in 2012. China remains the largest export market, accounting for nearly 86% of export products of Vietnam cassava, with 1.9 million tonnes worth $ 646 million, down 31.2% in volume and 24.43% in value compared with the same period of 2012. Korea was second in imports from Vietnam cassava products with 180,200 tons, worth $ 48.8 million, up 54.6% in volume and 60% in value. Philippines ranks third, importing 50,300 tonnes worth 17.6 million, up 60% in volume and 30% in value over the same period last year. These are two import markets strongest growth compared to other markets.

In addition to cassava production in the country, Vietnam is also buying more fresh cassava from Cambodia to starch. However, according to the Cambodian Ministry of Commerce, in the first 8 months of this year, the country exported 288 300 tonnes of dried cassava and fresh, worth USD 15.2 million, down 56% from 34.5 million USD in the same period last year. Both in 2012, Cambodia exported 722,250 tons of dried cassava and fresh, worth $ 38 million, primarily to markets in Thailand, Vietnam, South Korea and China. Prices of raw cassava increases with the processing plant operating rates dropped sharply increased depreciation caused starch prices continued to increase shipments. As of the end of the month 6/2013, the price of tapioca starch factory rose to 10,000 VND / kg. Price starch Thailand's exports increased continuously in recent years has led to the export price of Vietnam starch increased, though the amount purchased does not spike. According to the General Department of Customs, the export prices of cassava starch 6/2013 last month delivered by sea reached 505-510 USD / ton FOB Ho Chi Minh City, a 3% increase compared to last month and up 20% 5/2013 compared with the end of 12/2012. According to the China border trade, last month 6/2013 starch price is 3,100 yuan / ton DAF Tan Thanh border gate, Lang Son, by the end of May 5/2013 prices and increased 7% compared to last month price 12/2012 .

Cassava consumption of the domestic industry

Manufacturing feed According to the General Statistics Office, in the first 6 months of 2013, the livestock sector, poultry flock decrease in both output and prices. The production value of the sector grew by only 1%, lower than the 6.9% growth in the same period of 2012 and 4.7% by 2011. The aquaculture sector, production value only Growth of 1.8%, down from 6.8% growth in the same period last year, due to the biggest two fish and frozen shrimp are subject adverse impact on the export market.

Raising livestock, poultry and aquaculture difficulties have a strong impact on production and consumption of livestock feed and push up inventory levels in the manufacturing base feed use ingredients are cassava and cassava pulp. In the first 6 months of 2013, production of animal feed rose only 0.4% over the same period of 2012. In the first 5 months of 2013, this index increased 0.6%, while inventory levels feed still up 9.8% animal. The demand for cassava and cassava pulp slow due for livestock feed and Aquatic sell slow, the feed mill to reduce production should reduce demand for raw materials, while new crop is approaching .

 Manufacturing alcohol

Vietnam currently has six ethanol plants completed construction and will have some more preparation plant construction, to serve the route E5 biofuel use from the end of 2014 and E10 from 2016 , according to Decision No. 53/2012 / QD-TTg of the Prime Minister. However, due to lack of funds and rising prices of raw cassava, while using E5 roadmap to end 2014 to implement, so the ethanol production plant almost closed.

Currently only the Dung Quat oil refinery of Vietnam Oil and Gas Group (PVN) and Factory Tung Lam also produces ethanol but does not run at full capacity. These plants have alcohol products sold in domestic and export, but now must operate in moderation. Korea, Philippines, Taiwan, Singapore, Thailand, Malaysia, Indonesia is the potential market for Vietnam's export alcohol. According to the General Department of Customs, the first 5 months 2013, Vietnam has exported $ 45 million worth of alcohol, up 22% compared to the same period in 2012. Of these, the largest is the Korean market to reach 15 million USD and the Philippines reached $ 13 million.

To solve the difficulty, the ethanol business had supported the proposal of the State capital, and cassava export tariffs to curb sales to China, for production of cassava for ethanol production in the country with price reasonable raw material. However, because many of cassava planting, ensure the consumption of cassava farmers, so MOIT said that can not export tax applied immediately but should have a specific agenda. From mid-October is the time of harvest cassava in Thailand massively. In Vietnam, this year's forecast harvest cassava southeastern start harvesting from early November and Highland will begin harvest in early June 12. However, current Quy Nhon port, a port The main export products of Vietnam, the last day of absence to get the goods train. Inventories of cassava in Vietnam are under pressure due to domestic demand as well as export contracts are low, while new crops are coming with high production forecasts, besides the supply of cassava from Thailand and Indonesia also very large.

The slowing of demand in China has led many alcohol factory closed in this country, some remaining capacity reduction, should demand of Chinese cassava fell sharply, while demand cassava to produce ethanol demand in Korea will not increase, should consume cassava products generally will not fluctuate much.

According to the Vietnam Association of cassava, the production of cassava and cassava starch processing industry as the current standard, if Vietnam is expanding its market to European countries, the United States, exports of cassava and products Cassava could reach $ 2 billion / year in the coming years. However, before the situation consumes cassava products worldwide decline and demand for raw materials for ethanol production in Vietnam in the coming time will increase, the likelihood of exports of cassava and cassava products reach $ 2 billion mark is a goal not easily achieved.

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