These figures indicate a surge of 88.2 percent in volume and 70.1 per cent in value in comparison to the same period last year.
The Import-Export Department under the Ministry of Industry and Trade reported that since the beginning of September to the present, the raw material price of cassava in several provinces has increased slightly due to a fall in the supply source.
Currently, several factories across Tay Ninh province and the central highlands region have entered their new production season for the 2019- 2020 period. Despite this, the raw material source for fresh cassava remains unstable.
Statistics from the General Department of Vietnam Customs show that the average export price of cassava fell 9.6 per cent to US$397.4 per ton during August, against last year’s corresponding period.
Except for the Republic of Korean market, exports of cassava and cassava-based products to foreign markets skyrocketted in August compared to the same period from last year.
Most notably, exports of cassava and cassava-based products to the Chinese market reached 162,460 tons worth US$ 64.78 million in August. These figures represent sharp rises of 117 per cent in volume and 92.2 per cent in value on-year.
This surge in demand for cassava and cassava-based products can be attributed to the low inventories of cassava occurring at enterprises in China, which has served to increase import demand.
The demand from the Chinese market will be boosted further as several food processing plants are set to re-open during September in order to meet the increasing demand for food items in the build up to the Lunar New Year festival.
Furthermore, the export price of cassava starch in Vietnam remains lower than in Thailand, causing many Chinese customers to make purchases of Vietnamese cassava starch.
As of September, the cassava starch market is expected to witness robust growth due to a rise in the domestic supply source of starch coupled with the increased purchasing demand from China.
Due to the ongoing US-China trade tensions, in addition to the devaluation of the Yuan, both Vietnamese and Chinese businesses will become more cautious with regard to transaction activities. As a result, the nation’s export price of cassava starch to China is unlikely to soar in the short term.