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Tuesday, June 25, 2024

Fruit, vegetable, rice, coffee exports seen flourishing in H2

The Saigon Times

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HCMC – Promising prospects have been forecast for fruit, vegetables, rice, and coffee exports in the second half of the year, while pepper, cashew, seafood and forestry products may see the opposite.

The Steering Committee for Agricultural Market Development at the Ministry of Agriculture and Rural Development has released a report outlining the expected performance of key agricultural products in the second half.

In the first half, fruit exports surged by a staggering 64.2% in value compared to the same period last year at US$2.75 billion. China emerged as the main market, accounting for 63.5% of the total export and having a growth rate of over 80%.

The outlook for fruit and vegetable exports remains promising for the next six months. To capitalize on this growth, businesses have been advised to prioritize quality, enhance designs, improve packaging, and ensure traceability to meet international standards and regulations.

Rice exports have also soared, with volume and value reaching 4.27 million tons and US$2.3 billion respectively in the first half. This reflects a 22.2% rise in volume and 34.7% in value compared to the same period last year. The average rice export price rose by 10.2% year-on-year to US$539 per ton.

While the ministry expects a potential fall in rice exports due to the depletion of the winter-spring harvest, the sector is still expected to improve, albeit at a slower pace, as other Asian rice-producing nations face lower yields due to the El Nino phenomenon. This is likely to fuel demand and rice prices on the global market.

In the January-June period, coffee exports slid by 3.1% year-on-year, but the value of exports increased by 2.3% to US$2.39 billion. The ministry predicted that coffee exports will continue to face challenges with decreasing volume due to shrinking cultivation areas, but export prices are forecast to rise.

As for cashew exports, the first half of the year saw a promising 7.7% year-on-year increase in value at US$1.62 billion. However, challenges will lie ahead in the second half, including decreased consumption and rising processing costs, making it difficult to raise cashew nut prices due to the slow recovery of major markets.

Vietnam’s pepper exports declined by 11% in the first half of 2023, amounting to US$498 million compared to the previous year. The challenges for pepper exports persist due to slow recovery in major markets, and the surplus from the previous year has led importers to reduce their purchases from Vietnam.

Meanwhile, the recovery of seafood exports is expected to slow down, and the forestry sector faces an uphill battle in the second half of the year.

Seafood exports in the first half of 2023 declined by 27.4% versus the same period in 2022 at US$4.13 billion. The global seafood market is projected to recover slowly, impacting Vietnam’s seafood exports, particularly shrimp.

Forestry product shipments plummeted by 28.8% in the first half at US$6.01 billion. The sector is seen encountering further difficulties as major markets are cutting spending to control inflation, leading to low demand, especially in the U.S. market.

The EU’s implementation of new regulations on deforestation and wood products adds to the challenges faced by Vietnam’s forestry exports.

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