Vietnam’s cassava exports recover in first quarter

Hanoi (VNA) - Vietnam 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 percent in volume to 772,000 tonnes and 0.4 percent in value to 257 million USD year-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 USD.

However, the average export price of cassava in the quarter fell by 12 percent to 332.5 USD per tonne.

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

Cassava starch exports reached 509,000 tonnes, earning 200 million USD, down 2 percent in volume and 12 percent in value.

During the quarter, lower supply of cassava chips due to prolonged hot weather and the pandemic pushed up export prices by 16 percent to 217 USD per tonne compared to the same period last year. Meanwhile, the average export price of cassava starch fell by 10 percent to 393 USD 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 of Vietnam's cassava and cassava products, reaching 402,480 tonnes worth about 130.9 million USD. These exports had an increase of 10.6 percent in volume but a plunge of 2.8 percent 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 percent in volume to 7,400 tonnes and by 49.4 percent in value to 3.2 million USD.

Vietnam’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 percent 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, Vietnam's cassava exports reached 2.46 million tonnes, earning 948 million USD. Exports surged by 2.9 percent in volume but fell by 0.2 percent in value compared to 2018./.