Vietnamese cassava faces difficulties as China reduces imports

In the first 10 months of 2024, cassava and cassava products were exported to nearly 2.1 million tons, with a turnover of 948.7 million USD, down 13.8% in volume and 7.7% in value compared to the same period.

According to the Ministry of Agriculture and Rural Development, cassava and cassava products were exported to 150,000 tons in October 2024, bringing in 69.5 million USD. In the first 10 months of 2024, the total export volume of cassava and cassava products reached nearly 2.1 million tons, with a turnover of 948.7 million USD, down 13.8% in volume and 7.7% in value compared to the same period in 2023.

The average export price of cassava and cassava products in the first 10 months of 2024 is estimated at 459 USD/ton, up 7.1% over the same period in 2023. China is the main consumer market for cassava and cassava products exported from Vietnam, accounting for 91.3% of the market share, down 9.2% in volume and down 0.2% in value compared to the same period in 2023.

The demand for cassava chips in the Chinese market continues to decline and has lasted from 2023 to present. According to the China Customs, in 2023, China imported more than 5.61 million tons of cassava chips, worth 1.55 billion USD, down 21% in volume and 24% in value compared to 2022. Since the beginning of the year, China has continued to sharply reduce its imports of cassava chips. In the first 8 months of 2024, China imported 1.89 million tons of cassava chips, worth 482 million USD, down 60% in volume and 63% in value compared to the same period in 2023. Thailand, Vietnam, Laos, Cambodia and Nigeria are the 5 markets supplying cassava chips to China. China's imports of cassava chips from Thailand, Vietnam and Nigeria continued to decline sharply, while imports from Laos and Cambodia increased compared to the same period in 2023.

In the first 8 months of 2024, although it was still the second largest supplier of cassava chips to China, Vietnam's cassava chips exported to China only reached 308,000 tons, worth 79 million USD, down 47% in volume and 49% in value compared to the same period in 2023.

Sliced ​​iron decreased sharply, cassava starch continued to increase.

While cassava chips are facing difficulties, the demand for cassava starch in the Chinese market continued to increase. Specifically, in the first 8 months of 2024, China imported 2.43 million tons of cassava starch, worth 1.27 billion USD, up 27% in volume and 36% in value compared to the same period in 2023; In particular, Thailand is the largest cassava starch supplier to China with 1.13 million tons worth 617.41 million USD, up 7% in volume and 14% in value compared to the same period in 2023.

Vietnam is the second largest cassava starch supplier to China, reaching 930,000 tons, worth 457 million USD, up 54% in volume and 67% in value compared to the same period in 2023. Vietnam's cassava starch market share in the first 8 months of 2024 accounted for 38% of China's total cassava starch imports, higher than the 32% in the same period in 2023.

However, in the past 2 months, China's demand for cassava starch imports has decreased sharply, affecting Vietnam's cassava prices. The cassava starch prices offered to major Chinese ports are all low, causing the price of Vietnamese cassava starch to decrease.

Specifically, in the first days of November 2024, the export price of cassava starch offered by Vietnamese factories was at 460-480 USD/ton (FOB) at Ho Chi Minh City port, down 20 USD/ton compared to early October. The export price of cassava starch through Lang Son and Mong Cai border gates also fluctuated at 3,400-3,520 CNY/ton, down 1,000 CNY/ton.

According to the Ministry of Agriculture and Rural Development, there are currently over 140 cassava starch processing factories nationwide, with a total design capacity of 13.4 million tons of fresh tubers/year, and a total actual capacity of 9.3 million tons/year.

To support the cassava industry, in 2024, the Ministry of Agriculture and Rural Development approved the Project "Sustainable development of the cassava industry to 2030, with a vision to 2050". The target by 2030 is that the country's fresh cassava output will reach about 11.5 - 12.5 million tons; of which, the output of fresh cassava used for deep processing of some products (starch, ethanol, MSG) accounts for about 85%; the cassava growing area using quality standard varieties will reach 40-50%; the cassava growing area applying sustainable farming processes will reach 50%. By 2030, the export turnover of cassava and cassava products will reach 1.8 - 2.0 billion USD.