Cassava export: budge but not durable

After a period of being unsettled by not signing export contracts with Chinese traders, these days in Xining, the gate of cassava for export to China has increased again from 5-7 vehicles / day. In Quy Nhon, the inventory tends to cater for purchase of export demand ...
Pressure has dropped ...

Current inventory cassava in Quy Nhon around 50000-60000 tonnes, of which the largest unit holding from 10000-15000 tonnes in stock. Price cassava exports to China have been signed by the unit cost about 240-245 USD / t FOB, up 20-25% over last month. This collector demand for export commodities has increased since the beginning of August until now, partly reduce inventory pressures to units exporting cassava.

Before that, according to the Vietnam Association of Cassava, 6.2014 by the end of the month, the total inventory of cassava approximately 300,000 tons. Specifically, Quy Nhon area and Highlands to less than 200,000 tons, Ho Chi Minh City to less than 100,000 tons and northern regions around 20000-30000 tonnes. Inventory situation also occurs with starch, about 150,000 tons.

The main cause of this situation is due to the business deals do not agree to the new orders with Chinese traders. We can say that our country's cassava depend mainly Chinese market to market this "problem" is now exporting cassava distressed.

Other markets such as the European Union (EU), Japan, Korea, Russia ... often difficult, requiring high quality and strict safety indicators should food products and cassava starch 's cassava exports have not been many.

No sustainable ...

Cassava exports to China despite moving back but the business is not sustainable assessment. According to the Vietnam Association of Cassava, due to the world economic crisis and the stagnation of the ethanol industry in China, the ethanol plant here has closed nearly 70%, a reduction of remaining capacity demand for cassava is therefore significantly reduced.

Meanwhile, the supply of cassava from Thailand is very good, the price of exports to China now only less than 245 USD / tonne FOB. Towards Indonesia, the new crop is forecast to increase dramatically as well. This year, Indonesia plans export 70000-100000 tons of cassava (previous season only about 30,000 tons). These countries are competing very strongly with Vietnam in exporting cassava to China.

October is the time between the start-point mark for the massive harvesting cassava in Thailand, followed by the first half of November south eastern region began our harvest. December Highlands will begin on cassava crop and crop forecasts will have a pretty good harvest. Therefore, in order to export cassava from now until the end of the year is still a difficult problem.

According to Pham Vu Ha - Secretary General of Vietnam Association of Cassava, cassava industry identify, China remains the largest market demand, the need to maintain. However, for sustainable export cassava, manioc Vietnam Association of State has proposed to continue with the export promotion programs, including cassava products into the Chinese market to stabilize agricultural export markets Vietnam businesses.

In addition, policies should be in capital, financial incentives to lower interest rates for businesses cassava starch production in the material investment, investment processing system environment, improve product quality cassava towards other markets demanding ...

According to a national report evaluating the export potential of the Ministry of Industry and Trade, the list of commodities with high export potential, cassava is ranked first. In 2012, the export value of cassava and cassava products reached $ 1.37 billion, while in 2013 reached $ 1.1 billion. 6 months of this year, Vietnam has exported 1.760 million tons of cassava and cassava products, down 14% compared to the same period last year and down 35% compared to 2012.