Cassava export: budge but not durable

After a period of unsettled due to be signed export orders with Chinese traders, these days in Xining, the gate cassava for export to China have rebounded from 5-7 units / day. In Quy Nhon, warehouses tend to cater for purchase of export demand ...
Pressure dropped ...

Current inventory of cassava in Quy Nhon around 50000-60000 tonnes, of which the largest unit holding from 10,000 to 15,000 tons in stock. The price of cassava chips exported to China has been signed by the unit price of about 240-245 / tonne FOB, up 20-25% over last month. This collector demand for export commodities has increased since the beginning of August so far, partly to reduce inventory pressures to units exporting cassava.

Earlier, 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, the area of Quy Nhon and Highland less than 200,000 tons, Ho Chi Minh City was 100,000 tons and the northern region around 20000-30000 tonnes. Inventory status also happens to starch, about 150,000 tons.

Main cause of this situation is by now no agreement was traded for new orders with Chinese traders. We can say that our country's cassava is dependent mainly Chinese market so when the market "problem" is now exporting cassava distressed.

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

Not sustainable ...

Cassava exports to China despite the move 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 reduced number of remaining capacity demand for cassava, which is also strong.

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

The middle of October marked the starting point for a massive harvest of cassava in Thailand, followed by the first half of November southeastern area of harvest have also started. December Highlands will begin on cassava and services is expected to have a pretty case harvest. Therefore, to export cassava from now until the end of the year is still a difficult problem.

According to Pham Vu Ha - Secretary General of the Association Vietnam Cassava, cassava sector to identify, China is still a large market demand, the need to maintain. However, to export sustainable cassava, cassava Vietnam Association of State proposed to continue with the export promotion programs, including cassava into the Chinese market to stabilize agricultural export markets Vietnam businesses.

In addition, policies should be in capital and financial incentives to lower interest rates to businesses producing starch in raw material areas of investment, investment processing system environment, improve the quality of products cassava products towards other choosy markets ...

According to a national report evaluating the export potential of the Ministry of Industry and Trade, in 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, and US $ 1.1 billion in 2013. 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.