Many countries have stopped exporting food and food, thinking it opens up opportunities for Vietnamese agricultural products, but in fact, some of our key export items such as rice, coffee, pepper, etc. are decreasing in price.
Worth mentioning, in the domestic market, domestic agricultural products are also under great pressure before a large amount of goods from Cambodia pour in such as rice, pepper, rubber…
Great competitive pressure
According to a report by the Food and Agriculture Organization of the United Nations (FAO), the world food price index (FFPI) in May 2022 averaged 157.4 points, down 0.9 points (0.6%) from the previous month. there. This is the second consecutive month that this index has decreased, although it still increased 29.2 points (22.8%) compared to May 2021. Particularly, the cereal and meat price index increased.
| Cambodian fragrant rice costs 25,000 VND/kg and is sold throughout the markets in Ho Chi Minh City and the Mekong Delta – Chi Nhan |
Contrary to the world market, domestic rice prices in the first week of June decreased simultaneously. Statistics of the Vietnam Food Association (VFA) show that the average reduction is from 20 to 50 VND/kg depending on the type of all products, except for rice bran, which increased by 21 VND/kg and was at a record high level. continent 8,800 VND/kg. However, the export price of Vietnamese rice is still maintained at $423/ton for 5% broken rice. Rice of the same grade of Thailand traded at 447 USD/ton, down about 10 USD/ton compared to the end of May. Meanwhile, Pakistani rice increased slightly by 5 USD to 378 USD/ton.
Many other agricultural products of Vietnam, such as coffee, pepper, and cashew nuts, also dropped in price despite a decrease in output and an increase in input costs. In which, Vietnam’s coffee products in May 2022 exported about 142,000 tons, export turnover was about 325 million USD, down 9.6% in volume and 10.5% in value compared to the previous month. Vietnam’s cashew products are also at risk of losing the throne in many markets such as France and China.
Vietnam’s cashew nut market share in China’s total imports decreased from 96.5% in the first four months of 2021 to 82.1% in the same period this year. According to the World Trade Center (ITP), Vietnam’s cashew nut market share competitors come from Myanmar, India, Ivory Coast, etc. In particular, the price of rice for export has been increasing a few months ago, but recently there is a sign. cooling effect. Experienced rice exporters in the Mekong Delta analyze: Regarding demand, one of the major markets is China, which has not yet actively traded again due to the “Zero Covid” policy. In terms of supply, India recently announced that it will not limit food exports, including rice. Indian rice products are very competitively priced and some African countries have switched to buying Indian rice. Both supply and demand are affected by unfavorable factors, so not only Vietnam but also Thai rice prices are affected. Thai rice prices increased sharply in May thanks to winning contracts from Middle Eastern countries. But at this time, the contracts have been completed along with the reopening of India, which has caused an abundant supply, which has dragged down the price of Thai rice. Vietnam is no exception.
| It is important that high export agricultural products be reallocated to farmers or not?
Responding to the question of National Assembly delegate Pham Thi Minh Hue, “Vietnamese goods still account for a high proportion in the distribution structure of domestic enterprises. Vietnamese agricultural products go abroad at high prices, while domestic prices are still low. Therefore, farmers’ income has not been improved. What is the Minister’s solution?” On the afternoon of 7.6, Minister of Agriculture and Rural Development Le Minh Hoan said: We often ask the question of lychee exports to Japan for a few hundred thousand a kilogram, mangoes to the US are so expensive, but why do traders and businesses buy them from farmers? so low? In fact, to export agricultural products, transportation and logistics costs are very high, so farmers should not be too eager. It is important that the high export prices of agricultural products are reallocated to farmers compared to domestic sales. |
According to the Ministry of Agriculture and Rural Development, the total export turnover of agricultural products in the first 5 months of 2022 is estimated at about 23.2 billion USD, up nearly 17%. This group of industries had a trade surplus of more than 5 billion USD, 3 times higher than the same period in 2021. Some products had higher export value than the same period last year, such as coffee with nearly 2 billion USD, up 54%; rubber reached over 1 billion USD, up 12%; pepper about 476 million USD, up 26%; cassava and cassava products reached 636 million USD, up 20%; pangasius reached about 1.2 billion USD, up 91%; shrimp reached over $1.9 billion, up 43%… However, there were also commodities with a decrease in export value such as tea reaching $70 million, down 6.5%; vegetable and fruit products reached about 1.5 billion USD, down 13.6%; cashew nuts reached over 1.2 billion USD, down 3%.
The domestic market is flooded with foreign goods
Exports under competitive pressure have not really prospered. Food and food prices in the domestic market are also under upward pressure from the price of petrol, fertilizer, and supplies… but the selling price has not increased sharply. For rice, the quietness of the market in the first months of this year also has a special factor that is the source of rice imported from Cambodia. According to the Vietnam Trade Office in Cambodia, in the first 4 months of 2022, Cambodia exported about 1.9 million tons of rice of all kinds, earning 516 million USD. Of these, Cambodia exported more than 1.6 million tons across the border with Vietnam, earning 376 million USD.
A rice production and trading enterprise in the Mekong Delta said: Rice trade between Vietnam and Cambodia has been normal for many years. The enterprise mainly imports rice for milling and processing for export and domestic consumption, the output of 1.6 million tons of rice from Cambodia is equivalent to about 1 million tons of finished rice. Many types of Cambodian rice are still popular in Vietnam’s domestic market because of their good quality. “Under normal conditions, this rice import helps businesses supplement supply and diversify products. Maintaining this trade also contributes to strengthening cross-border food security. However, with the quietness of the market like the first months of this year, it is also a big pressure on output. In relation to Vietnam’s rice exports in the first 4 months of the year, over 2 million tons, up 4.4%, the amount of 1.6 million tons of rice imported from Cambodia is a large number,” said a rice exporter in Vietnam. Mekong Delta acknowledged.
In addition to rice, Cambodia’s pepper exports to Vietnam also increased sharply. Cambodia exported over 3,800 tons of pepper in the first four months of 2022, marking an increase of 79% over the same period last year. Vietnam is the largest buyer of Cambodia’s pepper with an output of about 3,500 tons, equivalent to 92%. This year’s pepper hit the season, the output increased by more than 20,000 tons, reducing the price. Imported fruits and agricultural products flooding into Vietnam at low prices also make the price of Vietnamese goods subject to fierce competition.
In the context of excess supply, the Ministry of Agriculture and Rural Development said that it is promoting bilateral and multilateral cooperation activities, opening the market. Management units have focused on negotiating and promoting the export of passion fruit and pomelo to Australia; rambutan, custard apple, custard apple, cassava chips, sugar, milk to Thailand; lemon, grapefruit to New Zealand; Bird’s nest, feather products, fish meal to China. In addition, the Ministry also signed a note to the General Administration of Customs of China to check and remove obstacles to exporting cassava, vegetables (chili and dragon fruit), cashew nuts to this market; focus on guiding localities, production and business establishments to strictly observe regulations on quality management and food safety; develop safe food supply chains, promote supervision, and issue codes of growing areas and farming areas…
Source of Thanh Nien Newspaper
