Price of agricultural products tends to rise

From early this year so far, the price of many types of export agricultural products has trended to increase whereby in the first month this year, Vietnam’s export turnover for agricultural products reached $1.6 billion, up 13.35% against January 2010, Ministry of Agriculture and Rural Development reported.

Representative from Vietnam Coffee Cocoa Association said that the domestic coffee price jumped to 40,000 dong per kilogram, increasing over 1,000 dong/kg against before Tet holiday while the Robusta coffee price in London climbed up to $2,200 per ton. As forecasted, the Robusta coffee price for export may bounce to $2,500 per ton. In January, the country exported 100,000 tons of coffee valued at $175 million, down over 30% in quantity but up 13.2% in value from last January.

The ministry predicted in 2011, Vietnam’s export turnover for coffee may reached over $2 billion (it was $1.763 billion in 2010).

After Tet holiday, the price of rubber also continued to increase. The domestic export rubber price exceeded the threshold of 100 million dong per tone, nearly two fold increase against the same period last year. In January 2011 alone, the country exported 70,000 tons of rubber, earning $250 million, up 28.8% in quantity and 82.8% in value year on year. As forecasted, the rubber price will continued to be at high level till May 2011. With this satisfactory forecast, in 2011, Vietnam’s export turnover for rubber may reach up to $3 billion (it was $2.3 billion in 2010).

The country’s export turnover of rice in January fetched $200 million, rising 2% year on year. The floor export price of rice was raised to $520 per ton for 5% broken rice and $490 per ton for 25% broken rice in January 2011 by Vietnam Food Association. From March 1, 2011, enterprises will start to stockpile about one million ton of rice. The buying price must comply with the market price (currently it is 5,400-5,600 dong/kg).

Similarly, the price of many Vietnam’s key export agricultural products such as pepper, cashew, and seafood also trended to increase.

At present, the export price of tra catfish reaches a record of 24,000 dong/kg. Nguyen Huu Dung, vice chair of Vietnam Association of Seafood Exporter and Processor (Vasep) forecasted the tra catfish price may be up to 25,000 dong per kilogram and the country’s export turnover of seafood products this year may reach about $5.5 billion (it was $5 billion in 2010).

The ministry also said that in January, Vietnam exported 7,000 tons of pepper worth $33 million, down 7% in quantity but up over 40% in value year on year. Due to the limit of supply, the pepper price would still increase in coming months.

Also in January, the country exported 15,000 tons of cashew, earning $98n million, a year on year rise of 14.3% in quantity and 38.3% in value.

In 2011, there will be nine agricultural and aquatic products to be included in the group of Vietnam’s key export items.

Tags: Vietnam Agricultural Products