Cassava export looks to US$2 billion

HCMC – Vietnam’s cassava and tapioca flour have meet international standards and requirements of many choosy markets, and thus with a good strategy, cassava export can hit US$2 billion, according to the Vietnam Cassava Association.

Nguyen Van Lang, chairman of the association, which made its debut in HCMC on Wednesday, said that main importing markets of Vietnam’s cassava products are China, Taiwan and South Korea.

However, with over 100 out of 300 tapioca flour processing plants meeting international standards and if Vietnam expands markets to Europe and the U.S., the export turnover of US$2 billion per year is obtainable.

Currently, Vietnam has 560,000 hectares under cassava cultivation with a total yield of nearly 9.4 million tons per year. In addition to supplying for animal feed plants, cassava is used as materials for six ethanol plants to produce bio-fuel.

Under the bio-ethanol development scheme, Vietnam will need 750 million liters of ethanol in 2015, equivalent to 4.2 million tons of fresh cassava to meet the country’s production and transport demands.

However, due to economic difficulties, some ethanol plants have yet to go into operation while some others are making losses. Therefore, sliced cassava and tapioca flour are mainly exported to Asian markets.

According to Lang, as some ethanol plants have not been operational or just gone into operation, the cassava demand for ethanol production is not high, prompting enterprises to find orders to export cassava. 

Vietnam is currently the second biggest exporter of cassava and products made of cassava after Thailand.

Vietnam exported over 4.2 million tons of cassava and cassava products having a value of US$1.35 billion last year, up over 57% in volume and nearly 41% in value from the previous year.

In this year’s first five-month, Vietnam’s cassava export was 1.88 million tons worth US$587 million, declining by 21% in volume and over 16% in value year-on-year.

According to the General Department of Customs, Vietnam’s three agro-forestry-fishery products having export turnovers exceeding US$1 billion are seafood with nearly US$2 billion, coffee with nearly US$1.4 billion and rice with over US$1.12 billion.

Brighter prospects for cassava

Demand for cassava starch and chips is likely to increase strongly in both local and international markets, auguring a bright future for the domestic cassava industry, experts said yesterday.

Speaking at the first congress of the Viet Nam Cassava Association in HCM City, Nghiem Minh Tien, the association's deputy chairman, said cassava production had increased strongly in Viet Nam over the last 20 years.

"Cassava now is an important source of income for farmers," he said.

The country currently has about 560,000ha under cassava cultivation, mainly in the central, Central Highlands, southeastern and northern mountainous regions.

Cassava yields in several provinces had more than doubled thanks to the planting of new high-yielding varieties and the adoption of more sustainable production practices, Tien said.

Twenty years ago, there were no medium- or large-scale cassava starch factories in the country, but there are nearly 300 cassava processing factories in operation now with capacities ranging from 30 to 300 tonnes a day.

Many factories have invested in the upgrade of their production technology and installed wastewater treatment systems, reducing environmental pollution.

Cassava starch, produced from cassava root, is mainly used as food, but is also a material source for many industries including the pharmaceutical industry.

Viet Nam is now the second largest exporter of cassava products after Thailand, earning US$1.5 billion from shipments last year. China is the biggest importer of Vietnamese cassava, accounting for more than half of the nation's exports.

Demand for cassava starch would continue to increase in the world market, association officials said, adding that the domestic market would also see high demand for the products in the next five years as raw material for food, confectionery, beverages and ethanol producing enterprises.

Although the cassava industry had flourished over recent years, it faced several problems that threatened its sustainable development, the congress heard.

The problems included periodic rushes to plant cassava without planning and a lack of direct links between farmers and enterprises, said Nguyen Van Hoa, deputy general director of the Department of Crop Production.

Besides, "excessive reliance on the China market poses great risks for the country's cassava industry", Hoa said.

Under the Government's development plan for the agricultural industry, by 2020, Viet Nam will have 450,000 ha under cassava cultivation with an output of 11 million tonnes, and relevant agencies and localities will review zoning plans to establish "concentrated cultivation areas" to increase productivity.

Hoa urged enterprises to focus more on diversifying their products as well as export markets.

Many delegates at the congress said the establishment of the Viet Nam Cassava Association this year should help ensure that the development of the cassava industry takes place in a sustainable manner.

Nguyen Van Lang, the association's chairman, said hey would help local firms expand their export markets.

"The association will work to raise cassava export revenues to $2 billion in the next five years," he said.

Enterprises exported nearly 1.88 million tonnes of cassava worth $587 million in the first five months of this year, with mainland China, South Korea and Taiwan being the main importers.

Cassava is now the country's third largest agricultural export commodity after coffee and rice. — VNS