Vietnam’s Cassava Exports in the First 10 Months of 2024
In the first 10 months of 2024, Vietnam’s cassava and cassava products exports reached over 2.09 million tons with a value exceeding USD 955 million, marking a 12.7% decrease in volume and a 7% decrease in value compared to the same period in 2023. This highlights the challenges facing Vietnam’s cassava industry.
Significant Growth in October 2024
October 2024 showed positive growth, with over 176,000 tons of cassava exported, valued at more than USD 76 million, representing a 45.7% increase in volume and a 34% increase in value compared to September. Notably, cassava exports surged 239% in volume and 208% in value compared to the previous month, reaching over 24,000 tons, valued at over USD 6 million.
Key Export Markets
- China remains the largest importer with over 1.93 million tons, valued at more than USD 873 million, a 11.6% drop in volume and a 6% decline in value. However, the average price increased by 6% to USD 452/ton.
- Taiwan (China) ranks second with over 40,000 tons, valued at USD 22 million, up 2.5% in volume and 8% in value. The average price was USD 542/ton, a 6% increase.
- South Korea is the third-largest market with over 37,000 tons, valued at USD 11.8 million, a sharp 61% decrease in volume and 66% drop in value. The average price stood at USD 316/ton, down 14%.
Cassava Processing Industry Overview
Vietnam has over 140 cassava starch processing plants with a total designed capacity of 13.4 million tons of fresh cassava/year, but actual capacity reaches only 9.3 million tons/year. Over the past five years, cassava export revenue has consistently exceeded USD 1 billion, ranking second in the world after Thailand.
Low Stock Levels and Price Pressure
In the 2023-2024 season, the amount of dried cassava stored by businesses was estimated at just 60% of the 2022-2023 level. While production volumes have increased at factories since October, the price of cassava raw materials has decreased due to slow cassava starch exports. As of early November, cassava raw material prices in the Central and Central Highlands regions ranged from 1,900-2,300 VND/kg, down by 100 VND/kg from early October.
Decline in Cassava Starch Prices
The demand for cassava starch from China has significantly decreased in recent months. Export prices of cassava starch to major ports and border gates have fallen to USD 460-480/ton (FOB) at Ho Chi Minh City port and 3,400-3,520 CNY/ton at Lang Son and Mong Cai border gates.
Outlook for 2024-2025
According to the Vietnam Cassava Association, the 2024-2025 dried cassava market is expected to continue facing declining prices and demand. As a result, some businesses with leftover stock from the 2023-2024 season are being forced to sell at a loss to free up capital for the new season.
In conclusion, Vietnam’s cassava export industry in 2024 is encountering significant challenges, as demand from key markets weakens and prices are under pressure. This situation calls for flexible export strategies and efficient production management from businesses.
Source: Bao Moi
Written bykflv.vn
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