Enterprises increase purchases, province orients towards sustainable development

(GLO)- At this time, farmers in localities in the province, especially in the Eastern region, are entering the main cassava harvest season for the 2025 Winter-Spring crop. The purchase price is at an average level and not as high as in 2023, but still enough for people to cover production costs.

Following Typhoon No. 13, processing plants in the province also stepped up their cassava procurement, helping to alleviate the pressure on farmers to sell their produce.

Raw noodles are imported to the processing plant. Photo: Trong Loi

According to the Sub-Department of Crop Production and Plant Protection (Department of Agriculture and Environment), this year, the entire province has more than 85,000 hectares of land planted with cassava, of which the eastern region accounts for about 9,000 hectares. Cassava harvesting takes place from November this year until March next year. The average yield throughout the province is 21.6 tons/ha, investment costs are about 25 million VND/ha, and profits range from 20-25 million VND/ha/crop.

Despite falling prices, farmers are still making a profit, but they worry about uncertainty.

In Van Canh commune, Mr. Nguyen Duc Tho planted 25 hectares of KM94 cassava, and has harvested over 20 hectares. He said that this year the weather was favorable, and the yield reached about 22 tons/ha. However, the purchase price is only 2,000-2,100 VND/kg (cassava with less than 30% starch content), much lower than the 3,300 VND/kg at the beginning of last year's season.

"This year's prices aren't too low, but they're not high either. Farmers aren't losing money, but the profit is negligible. It's not like 2023 when cassava prices rose to nearly 4,000 VND/kg," Mr. Tho shared.

Ms. Ha Thi Nhu Nguyet, from the same commune, cultivates 5 hectares of cassava, yielding over 20 tons per hectare. She sells it for 2,300 VND/kg (30% starch content), a decrease of 400 VND/kg compared to the same period last year.

"Farmers are still making a small profit, but if prices continue to fall like this, it will be difficult to stabilize production," Ms. Nguyet said with some concern.

The factory increased its purchases to support farmers in overcoming difficulties.

Nguyen Liem One-Member Limited Company (factory located in Van Canh commune) is purchasing cassava starch at a price of 2,300-2,500 VND/kg for cassava starch with a 30% starch content. The company imports 400-500 tons daily.

Mr. Mai Dinh Chuong, Deputy Director in charge of raw material areas, said: "The price is relatively stable in the current context of a sharp decline in the starch market. We are purchasing at a price 200-250 VND/kg higher than other establishments to support farmers."

However, Mr. Chuong also frankly stated: The current price of cassava starch is about 500-700 VND/kg lower than the same period in 2024 because the price of starch exported to China is only 8,500-8,700 VND/kg, while Laos sells fresh cassava starch for only 1,500 VND/kg. With a processing ratio of 3 kg of fresh cassava starch per 1 kg of starch, domestic factories are almost forced to "bear losses" to maintain operations.

Locals transport noodles to the Nguyen Liem One-Member Limited Liability Company's factory to sell. Photo: Trong Loi

In Vinh Quang commune, Nhiet Dong Tam Vinh Thanh Cassava Starch Company Limited is purchasing cassava starch with a starch content of 30% at a price of 2,000-2,200 VND/kg, while also providing a maximum transportation subsidy of 120 VND/kg for remote areas.

Mr. Tran Minh Thuong, Deputy Director of the company, said: “The export market is difficult and heavily dependent on China. Domestic production is not large, while Gia Lai alone has 9 processing plants. Competition is very fierce.”

Towards the sustainable development of cassava raw material areas.

In 2024, the whole country had 517,700 hectares of cassava, with Gia Lai accounting for nearly 17% of the national production with 86,621 hectares, yielding 1.82 million tons. In 2025, the area is expected to decrease slightly to 85,420 hectares due to structural changes. Currently, the province has 9 cassava starch factories with a capacity of 1,800 tons of finished product per day, contributing to job creation and poverty reduction in 113 communes and wards with raw material areas. However, the cassava industry still faces many challenges: fragmented production, limited application of science and technology, lack of high-yield varieties, and especially the widespread cassava mosaic virus disease since 2018, for which there is no specific cure.

Currently, Nhiet Dong Tam Vinh Thanh Cassava Starch Company Limited imports an average of 400-500 tons of fresh cassava starch to its factory. Photo: Trong Loi

The cassava industry in Gia Lai is entering a phase requiring significant restructuring for stable and long-term development. Vice Chairman of the Provincial People's Committee, Duong Mah Tiep, emphasized that the province encourages the concentrated development of cassava cultivation in areas that meet the requirements for applying scientific and technological advancements and mechanization in production, aiming to improve productivity and quality. At the same time, cassava should only be grown in areas suitable for intensive cultivation; all cassava cultivation on steep slopes on deforested land should be converted to reforestation or other more suitable crops with higher economic efficiency.

The province will also focus on building a sustainable cassava raw material area, linking production with processing and consumption in a complete value chain. By 2030, Gia Lai aims to maintain and stably develop a cassava raw material area of ​​approximately 80,000 hectares, with a production of over 2 million tons of fresh tubers, striving to improve quality and meet the requirements of the export market.

According to Mr. Tiep, the province continues to encourage economic entities to invest in building new or upgrading existing factories for processing cassava products (starch, ethanol, MSG, etc.). At the same time, it encourages the development of businesses processing confectionery, glucose syrup, instant noodles, animal feed, etc., using cassava and cassava starch as raw materials, in order to diversify output and increase the value of the product chain. Priority is given to using new and advanced technologies in cassava processing to improve quality, maximize the use of by-products, and protect the environment.

One of the key tasks is to build a strong production linkage system between businesses and farmers, especially in the areas of disease-free seed production, mosaic disease-resistant seeds, and the formation of large-scale seed production zones in each locality.

Following Typhoon No. 13, people are speeding up the harvesting of cassava for the 2025 Winter-Spring crop. Photo: Trong Loi

Mr. Tiep also requested increased mechanization and the application of science and technology in planting, harvesting, and processing to improve land use efficiency and people's income. Along with this, he called for the development of a brand and geographical indication for the province's cassava products, meeting quality standards, designs, and specifications for both domestic and international markets. These solutions will create a foundation for the local cassava industry to develop in a modern and sustainable manner, ensuring a harmonious balance of interests between farmers, businesses, and the locality.

Source: https://baogialai.com.vn/doanh-nghiep-tang-thu-mua-tinh-dinh-huong-phat-trien-ben-vung-post572277.html