Cassava starch exports to China skyrocket
doyen1988 8-09-2020, 14:53

Since the beginning of the year until the end of August, Vietnam's exports of cassava and cassava products stood at an estimated 1.78 million tonnes with a value of US$619 million, an annual rise of 15.6% in volume and 3.5% in value.

According to the Department of Agro-Processing and Market Development under the Ministry of Agriculture and Rural Development, the average export price of cassava and cassava products during the eight-month period was recorded at US$347.4 per tonne, a drop of 10.4% from the corresponding period last year.

China remained a major export market for the country during the reviewed period with total export output reaching 1.44 million tonnes, equivalent to US$496 million, representing a rise of 18.8% in volume and 4.8% in value on-year.

Most notably, Vietnamese cassava starch exports to China recorded a rebound, with export volume in July reaching 164,000 tonnes with a value of US$64 million.

Furthermore, Chinese demand for cassava starch through the towns of Lang Son and Mong Cai in the northern province of Quang Ninh witnessed a sharp increase following the end of June. Indeed, the price of cassava starch exports remained high at US$390 per tonne due to the rise in price of input materials coupled with a low inventory due to the end of the crop.

The average export price of cassava chips throughout the entirety of July reached US$214 per tonne, down 7% from June, but marking an annual rise of 8%. Currently, the northern neighbour’s demand for local cassava chips through the nation’s northern border is recording a sharp upswing, although the Vietnamese side is out of stock.

In the short term, the export price of cassava chips and cassava starch is anticipated to remain high, although when the supply decreases in the context of some cassava growing provinces being infected with leaf mosaic disease, it could threaten cassava productivity moving into 2021.