Vietnam earned some US$44.52 billion from exports in the first eight months of 2010, of which agricultural exports accounted for 27.4 %, or US$12.8 billion, up 20.1 % on year, including US$1.75 billion in August. Higher global prices pushed up local rates, but farmers feel left out because their profits have not reflected the big gains.
The Ministry of Agriculture and Rural Development reported that high demand supported Vietnamese agricultural exports. Of the US$12.2 billion revenue, export of farming products made up for US$6.5 billion, up 16.6 % year on year, followed by seafood with US$2.95 billion, up 12.9 % and forest products with US$2.28 billion, up 35.8 %.
High prices
Vietnam expects to export 6.5 million tonnes or more of rice, its most important agricultural export, this year. The average rice export price was US$485 per tonne in the first seven months, up 4.8 % from a year ago. Given this price rate with about 5 million tonnes of rice exported in eight months, the country bagged US$2.4 billion from rice export, up 8.2 % in volume and 12.8 % in value.
Unusual weather in many parts on the planet caused higher demand for imported rice. Recently, prices are also affected by the rumour that China is purchasing Vietnamese rice at high prices. As rice export volume is reaching the year’s target, exporters are expected to take mild action from now till the end of the year.
Coffee was traded at US$1,415 per tonne, down 4.6 % from the same period of 2009. Lower prices discouraged farmers and exporters. The country shipped 840,000 tonnes worth US$1.2 billion in the first eight months, down 1.3 % in volume and 4.7 % in value year on year.
In contrast, tea export prices gained in the first eight months. Vietnam exported about 85,000 tonnes valued at US$124 million, up 2.5 % in volume and 14.9 % in value on year. The nation sold 120,000 tonnes of cashew nuts to foreigners for US$656 million in the January - August period, rising 5.2 % in volume and 25 % in value. Pepper export reached 94,000 tonnes worth US$312 million in the eight-month period, sliding 2.9 % in volume but growing 35.1 % in value compared with a year earlier.
Seafood export also had success. Vietnam exported 110,300 tonnes of shrimp worth US$929.2 million in the first seven months, up 15.5 % in volume and 19.9 % in value year on year. Tra and basa catfish export reached 361,000 tonnes valued at US$774 million, up 11.3 % in volume and 5.6 % in value on year due to falling prices.
In general, agricultural products prices rose in the year to date. Rubber made the largest price stride. The high demand caused rubber prices nearly to double from a year earlier, reaching US$2,752 per tonne on average in the first seven months. The Southeast Asian nation shipped 417,000 tonnes worth US$1.15 billion in the eight months, a little change in volume from a year ago but a sharp rise of 89 % in value.
In recent years, wooden furniture export has increased dramatically, especially this year as global economies continued to revive.
Little gain for farmers
Although global market prices leaped, farmers did not earn much. The rice price has soared to VND4,500 - 5,000 per kilo from VND3,200-3,500 per kilo two months ago, however farmers are not happy with the price increases because they now have nothing to sell.
In late June 2010, the price of dried rice dropped sharply to VND3,000-3,200 per kilo because this was harvesting season. At that time, fearing stockpiles, the Government asked the Vietnam Food Association (VFA) to purchase 1 million tonnes of husked rice (equivalent to 2 million tonnes of unhusked rice) from farmers in order to keep prices stable and to ensure profits for farmers. Two months later, the rice price increased by VND1,000 per kilo and now stands at VND4,400 - 4,500 per kilo.
Like rice, the pepper price was very low at VND37,000-38,000 per kilo in February and March 2010, during the peak crop. But the price has soared to VND75,000 - 76,000 per kilo over the last few months. Although the price doubled, farmers now have nothing left to sell.
Coffee growers and exporters have recently been distressed with market developments. Most people sold their coffee at low prices of VND23,000 per kilo to get money for new crops in February. As coffee plants need major investments, farmers will make no profit if prices are not high.
Indeed, farmers have to borrow money from banks to cultivate and they must sell their crops soon to settle debts with banks.
Minh Chau
Vietnamese
