March 30, 2012

Vietnam sees Q1 agricultural exports to reach US$5.9 billion

In the first quarter of this year, Vietnam's agricultural exports are forecast to reach nearly US$5.9 billion, which is on par with the same period last year, according to Minister of Agriculture and Rural Development Cao Duc Phat.

The minister said the export values of major traditional Vietnamese agro items posted US$3.2 billion, a decline of 14%. Fishery products stood at US$1.2 billion, up 9%, and forestry products reached nearly US$922 million, an on-year increase of 6%.

Demand for rice greatly declined in the first quarter, despite the decreasing competitive pressure from major rice exporter Thailand due to a policy that ensures Vietnamese farmers a high purchase price. However, Vietnam must compete against other rice exporters like India, Myanmar and Pakistan that sell at a lower price.

The total rice exports in the first quarter reached 1.3 million tonnes, a turnover of US$681 million, down 32% in quantity and 29.5% in value over the same period last year.

Indonesia remains the largest rice importer, accounting for one-third of the volume and value of Vietnamese exports. The remarkable growth in rice exports since early this year includes Hong Kong, mainland China and Taiwan. Vietnamese fragrant rice has gradually taken consumers confidence of these importers with a growth rate between two and four times over the same period last year.

Vietnam's rubber exports are also in a dismal situation due to the global decline in rubber prices. Additionally, the major consumption market of Vietnamese rubber is China, which now has a large inventory. As a result, rubber massively increased in volume by 40%, but export value declined nearly 10% over the same period last year.

The Euro zone debt crisis may be one reason that coffee consumption decreased in the EU market. Domestic coffee exporters have therefore enhanced their exports to new markets with remarkable growth recorded in Indonesia (nine times), Algeria and Mexico (four times). The total coffee exports reached 504,000 tonnes worth US$1 billion, down nearly 12% in quantity and 14.3% in value.

Though the largest importer, tea exports to Pakistan have also seen a decline of two-thirds over the same period last year. The total tea export in the first three months reached 29,000 tonnes with a turnover of US$41 million.

Cashew exports saw high growth, with the country exporting 31,000 tonnes at US$222 million with 6.6% increase in volume and 8.5% in turnover.

Despite the difficulties encountered in the EU market, seafood exports have seen a substantial growth compared to other farm products. Besides the decline of the EU, including a drop of 22% in Germany over the same period last year, Vietnamese fishery products have sold well in Japan, South Korea and Mexico. However, MARD has warned exporters of the biggest concerns relating to food safety and hygiene.