Bumper year for cash crops

The global market has turned favourable for Vietnamese exporters of products like rubber, seafood, coffee, cashew and pepper, analysts said.

Rubber prices are expected to remain high since demand is forecast to be 11.15 million tonnes against a supply of 10.95 million tonnes, according to the World Rubber Association.

Export prices have risen since the beginning of this year, reaching VND100 million (US$4,800) a tonne.

Dinh Van Tien, head of the Viet Nam Rubber Group’s import-export division, said his company had already signed contracts to export 50 per cent of this year’s output.

The Group exported 80,000 tonnes of rubber in January and 40,000 tonnes this month.

Viet Nam should take full advantage of the opportunity at the beginning of the year when Chinese traders usually import huge volumes of Vietnamese rubber to produce motorbike and car tyres, the analysts said.

The price of rubber exported to China through the Mong Cai border has reached a record RMB32,600 ($4,444) per tonne.

Exports of aquatic produce are also expected to do well since Viet Nam has expanded its market, selling to 162 countries.

The Viet Nam Coffee Cocoa Association expects coffee exports to top $2 billion if international prices continue to remain at $2,000 a tonne.

Do Ha Nam, deputy chairman of the association, said the coffee market would be volatile this year due to the threat of droughts in major coffee-growing countries like Brazil, Columbia, Indonesia and even Viet Nam.

If supply was hit as a result, prices would go up, he said.

Viet Nam exported 100,000 tonnes of coffee in January while firms have signed deals for exports through May at $2,070- 2,080 per tonne.

Nguyen Duc Thanh, deputy chairman of the Viet Nam Cashew Association, said international prices were running high.

Cashew exports this year are expected to fetch $1.4 billion, $300 million more than last year.

Pepper is another of Viet Nam’s major agricultural products that is selling at a high price globally — of around $4,600 per tonne. — VNS