Vietnamese cassava prices will increase sharply at the end of 2021

Vietnam is experiencing a severe shortage of cassava chips in its cassava starch processing factories, leading to a significant increase in the price of cassava and raw cassava materials. The Vietnam Cassava Association forecasts a sharp increase in cassava prices by the end of 2021, reaching a record high. This shortage is due to a decrease in the supply of tapioca and a priority of Chinese factories to use cassava chips for grinding. Meanwhile, Thailand, a competitor of Vietnamese cassava in the Chinese market, is struggling with a domestic cassava production shortage for ethanol production and is compensating for the shortage by buying raw cassava from Cambodia and Laos. In the first 15 days of February 2021, Vietnam's cassava exports decreased sharply compared to January 2021, likely due to the Tet holiday and the third Covid-19 epidemic in 13 provinces. Nonetheless, Vietnam's cassava starch exports to China reached 2.04 million tons, worth $ 820.15 million, and dried cassava chip exports reached 496.59 thousand tons.