It's difficult to make a profit.
Currently, the majority of cassava raw materials supplied to processing plants in the province are imported from Cambodia. While there is some domestic supply, it is not substantial, and farmers in the province are expected to begin harvesting in about two months.
At the Xa Mat International Border Gate area in Tan Bien district, numerous trucks carrying thousands of tons of cassava and dried cassava slices are arriving at warehouses every day. Cassava traders share that the price of cassava has never been as low as it is now.
Fresh cassava is purchased by processing plants at prices ranging from 1,900 VND/kg to 2,000 VND/kg for cassava with 30 points; the fewer points a cassava has, the lower the purchase price. The current price of dried cassava slices is around 3,600 VND/kg. Each year, the price of fresh cassava fluctuates around 3,000 VND/kg, but this year it has plummeted. If this price continues, cassava farmers will find it difficult to make a profit after harvest.
A cassava farmer in Phuoc Ninh commune, Duong Minh Chau district, shared that with the current cassava prices, farmers who don't rent land can break even, but those who rent land are certain to lose money. Not only are those who rent land to grow cassava worried, but traders who buy young cassava (newly planted cassava) are also facing a similar situation.
A cassava starch processing business owner in Duong Minh Chau district said that with the current low prices, those who rent land to grow cassava only cover the cost of cultivation, and are losing money on land rent. Traders who buy young cassava also suffer losses. This business owner hopes that in the next few months, the price of cassava will increase so that farmers can avoid losses this season.
We need to diversify our export markets.
According to Mr. Nguyen Dinh Xuan, Director of the Department of Agriculture and Environment, there are many reasons leading to the situation where cassava prices have hit rock bottom in the past 10 years. The main reason is that China has reduced imports of cassava chips. Currently, corn prices are low, and processing plants in China are increasing their use of corn to replace cassava chips, leading to a sharp decrease in demand for cassava chips.
In the first eight months of 2024, China imported 1.89 million tons of cassava chips, a 60% decrease compared to the same period in 2023. Due to the impact of the economic downturn and production shifts, the slowdown in the Chinese economy and the trend of relocating factories to ASEAN countries have reduced the demand for cassava imports from Vietnam.
Given the current situation of low cassava prices, Mr. Nguyen Dinh Xuan recommended solutions for cassava growers, including diversifying export markets, reducing dependence on the Chinese market by seeking and expanding to other markets, taking advantage of tariff preferences from free trade agreements; and linking the value chain by strengthening connections between farmers and processing businesses to ensure stable output, increase product value, and minimize price risks.
In addition, consider switching to other crops with higher economic value or those that better suit current market demand to minimize financial risks.
Farmers are applying sustainable farming techniques such as using cassava varieties resistant to cassava mosaic disease, employing high-tech intensive farming methods, and selecting disease-resistant varieties to improve yield and product quality.
Furthermore, applying technological advancements in farming, such as intercropping with legumes, using slow-release fertilizers, and increasing the use of organic fertilizers, can help reduce production costs and increase economic efficiency. Farmers need to closely monitor market developments and coordinate closely with relevant authorities to make sound production and consumption decisions in the current context.
Tan Hung
Source: https://baotayninh.vn/gia-khoai-mi-tut-day--a187753.html
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