The fight dry cassava

Update: 2/7/2015

Up to 90% of cassava VN exports to China. However, due to over-reliance on the market, many enterprises are partners VN "flip contract" price squeeze. 
The sugar mills in Tay Ninh, Dong Nai as well as the central region recently complained they were "lost" land thousands of hectares of sugarcane planted by farmers to grow cassava (manioc) to sell to businesses (DN) starch and ethanol in water. At the same time, Chinese traders (China) also jumped into the controversy buy. 
Sell tapioca "premature"

Leaders from factory feed said previously, raw wheat into production of animal feed accounts for about 30% -40%, but from the beginning of the year, prices rose too high cassava little row so they have to switch to using alternative materials. Mr Chung Kim, Director of Animal Husbandry Co., Ltd. Processing and forage Kim Long (Binh Duong), Coal: Price cassava ago only 2,000 VND / kg has increased to 4,800 VND / kg is not empty. Mr. Pham Duc Binh, deputy chairman of the Association Feeds VN, said that cassava prices so high, can not be put into animal feed processing units should be switched to use rice bran to lower costs ...

According to the business world, the reason the price is so much higher wheat ethanol plant has been preparing to go into operation in Dong Nai, Binh Phuoc, Binh Dinh, Quang Ngai ... buy noodles demand rising raw material. Not to mention many plant starch, MSG also need a huge amount of raw material for processing wheat. In fact many units are "hungry" just buy the materials by about 50% as demand ... situation becomes more tense due to recent Chinese traders associated with a number of units in water hunt wheat urgently. Previously, dried cassava to meet the dry, good quality, no longer sell new mold present, moldy cassava, cassava fresh (not sliced) and buy them all. Many ethanol plants have been built China's border with VN to facilitate transportation of raw materials.

Due painting purchase goods sold increasingly rare, so traders looking to take the wheat fields to purchase "non" for $ 30 million-40 million / ha, depending on quality, while cassava cultivation if enough day, full-term, cost 60 million-80 million / ha ... 
Watch extorted

As reported by the Association of Chinese starch industry, every year, China needs to 6 million tons of ethanol fuel alcohol, while the raw materials of Chinese noodles in water can only produce about 1.2 million tons. In recent years, the country imports about 5 million tons of cassava / year, mainly from VN and Thailand to cater for 150 manufacturing plants wheat starch ... This is a huge market for cassava VN . At the conference "The development of cassava between VN and China" was held in early September in the city, a representative of the Ministry of Industry and Trade said: Statistics show that more than 90% of cassava production VN be sold to China every year ...

However, in many cassava exporters in the country, so too dependent on this market should have been repeatedly partners "flip contract" price pressure right at the border. They often use "way" push up prices of cassava to entice more people to purchase wheat "hit" jam jam up truck border. Then, some partners seeking to "flip contract" price pressure overload leads to congestion at the border line.

Cargo is not completed due to costly so many cases of domestic enterprises must accept selling cheap. This situation goes on continuously. Last year, there were about 2,150 tons at tapioca starch of some companies bounces goods at the border. Due to heavy price pressure, these companies would not try selling that lasted three or four months to negotiate but had eventually "gave up" ... 
Will compete more aggressively 
Mr. Le Xuan Duong, Director of Center for Export and Trade Promotion Agency (Ministry of Industry and Trade), said in recent years, wheat plants become export prices thanks. Currently many countries looking to buy products and cassava starch wheat to produce bio-ethanol gasoline, alcohol industry, food processing, animal feed, industrial use of chemicals, pharmaceuticals ... Do , the Ministry of Industry and Trade program is included cassava products become commodities exported agricultural staple. 
According to statistics from the Ministry of Agriculture and Rural Development, there are now 500,000 hectares of wheat, the total harvest of about 8.6 million tons per year, of which more than 4 million tons of wheat for export tuber starch or dried cassava. Currently there are 60 processing plants wheat starch industrial scale with a total processing capacity of more than half a million tons per year of starch. Later this year there will be an additional 5 factories processing ethanol from wheat ingredients go into operation very easily lead to material competition between domestic and foreign enterprises.

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