Wheat shortages bode well for Vietnamese rice

Jul 6th at 16:02
06-07-2022 16:02:32+07:00

Wheat shortages bode well for Vietnamese rice

The disruption of global wheat supply caused by the Russian military operations in Ukraine has left importers no choice but to seek substitution for the grains in rice-exporting countries, boding well for Vietnamese rice.

 

Vietnamese rice has been increasing steadily in price in recent months, surpassing Thai rice and leaving many other countries’ rice far behind.

Vietnamese high-quality varieties of rice rose by US$10-15 per tonne in June, with common white rice reaching $430-440 per tonne, Jasmine rice $540-550 per tonne and Number 5451 white rice $480-490 per tonne.

In the first five months, rice exports hit 2.77 million tonnes, up 6.6 per cent year-on-year, raking in $1.35 billion. Of which, the volume of rice exported to leading trade partners rose considerably.

Specifically, the figures to Africa went up by 76 per cent, to Philippines by 34.6 per cent and to Malaysia by 19 per cent.

The rising demand for Vietnamese rice can be observed not only in traditional markets, but also in high-end markets, including Germany, Sweden and Poland.

By early June, the Department of Crop Production has granted 149 certificates to eight rice exporters, allowing over 15,100 tonnes of rice to enter the European market.

"Room for Vietnamese rice exports is still ample as global food security has been threatened by the military operations," said Nguyen Dang Nghia, an agricultural expert.

However, some other experts think that it is too early to celebrate the optimistic outlook as many importers have begun to look elsewhere for cheaper rice amid the rising price of Vietnamese varieties.

Numerous African firms are considering switching to Indian rice for lower prices and lower transport costs despite its inferior quality to Vietnamese rice.

"Indian rice has considerable advantages over Vietnamese rice in terms of price since the latter has moved from the low-end to high-end segment," said Pham Thai Binh, general director of the Trung An High-tech Farming JSC.

Binh also said that mounting fertiliser prices had been eroding rice producers' profits to the extent that many suffered losses when they exported via CIF mode of transport.

That meant these producers could not keep prices low to retain foreign customers. Market switching, as a result, seems on the horizon.

Given the situation, Pham Van Co, marketing manager at the VRICED LTD, underscored Vietnamese fragrant rice as a highly competitive rice variety in the international market.

He urged rice producers to raise the bar on fragrant rice to gain ground in high-end markets. He also recommended firms invest more in their trademarks to create room for prices to rise.

A rice variety with a well-known trademark could be sold at a price 10-20 per cent higher than an identical one with an unknown trademark.

Phung Duc Tien, Deputy Minister of Agriculture and Rural Development, shared this view.

He said the ministry would introduce more favourable policies to help firms promote their trademarks and establish robust supply chains of Vietnamese rice.

"We aim for a modern and sustainable rice industry that produces high-quality rice varieties meeting SRP, VietGAP, GlobalGAP and many other quality standards," he added. 

bizhub



NEWS SAME CATEGORY

Rising petrol prices contribute US$385 million to state budget revenue

The Government is looking at measures to curb the rising trend of petrol prices on the domestic market, which is placing a huge burden on the economy.

Vietnamese Gov’t further cut taxes on petrol products

Once approved by the National Assembly, the cut will take effect on August 1.

China starts importing Vietnam passion fruit

Passion fruit is among Vietnam’s top 10 fruits with the highest export earnings.

Lemongrass farmers benefitting from rising prices

Lemongrass farmers in Tien Giang Province’s Tan Phu Dong District have gained huge profits thanks to a surge in crop prices.

Tra fish exports to UK soar six-fold

Viet Nam’s tra fish export increased by 83.2 per cent in the first half of this year, the highest growth rate among fishery products, the latest data by the Vietnam...

Tra fish exports to UK soar six-fold

Viet Nam’s tra fish export increased by 83.2 per cent in the first half of this year, the highest growth rate among fishery products, the latest data by the Vietnam...

Some 30 tons of fresh lychee sold at Vietnamese Goods Week in Japan

The Japanese retailer sells Vietnamese agricultural products in some 350 of the group's stores and supermarkets across Japan and on its websites from July 1 to 3.

Vietnamese lychees hit the market in over 30 countries

To avoid complete dependence on China, Vietnamese lychee farmers used this year’s harvest as an opportunity to expand their footprint across the globe by exporting...

Vietnamese fish sauce industry seeks ways to expand abroad

The Vietnamese fish sauce industry needs to improve food hygiene and safety and diversify products to expand exports.

Dairy sector milks trade agreements for greater opportunities

Thanks to steady development, future prospects remain upbeat for the Vietnamese dairy sector. Tran Van Trung, chairman of the Vietnam Dairy Association, talked...

Commodity prices


MOST READ


Back To Top