Rice Exports 2013: Limiting Contract Termination from China
In 2012, Vietnam's rice exports reached 7.72 million tons, the highest level ever. Expectedly, 2013 will continue to export about 7.5-7.6 million tons of rice
On January 7, in Ho Chi Minh City, the Vietnam Food Association (VFA) held a conference "Summing up rice exports in 2012 and export orientation in 2013". According to VFA, Vietnam's rice export for the first time reached a record 7.72 million tonnes. Rice output also peaked at 43.7 million tonnes, 1.3 million tonnes higher than in 2011.
Increase both quantity and quality
With positive results in 2012, exporters (businesses) are excited. By the end of quarter I / 2012, the country exported only 400,000 tons, down more than 40% over the same period in 2011. However, the next quarter, export output continued to rise, especially now In December, Vietnam exported more than 650,000 tonnes.
Truong Thanh Phong, Chairman of VFA, affirmed that this is the highest level of exports, mainly due to the timely consumption of commodity rice, stable prices of rice in the country ... simultaneously. The rice export management has been more reasonable, the enterprises promote active, flexible ...
According to VFA, the quality of Vietnam rice has also changed, the rate of premium rice has accounted for 46% and up 79% over 2011; Medium and low grade rice fell sharply to 35% and 32% lower than last year. Percentage of aromatic rice has increased, accounting for 7.57% and up 21.8% compared to 2011 ...
According to the Ministry of Agriculture and Rural Development (MARD), in 2013, the amount of commodity rice is about 7.6 million tons, not including inventory in 2012, so exports are expected to be around 7.5 - 7.6 million tons, low more than exports in 2012. It is expected that the maximum output will be based on the ability to balance and market demand.
Specifically, in the first quarter of 2013 will export about 1.4 million tons. To achieve this, in addition to consolidating traditional markets, businesses need to strengthen and expand the market as well as new customers.
Limitation of contract termination from China
The biggest concern of the VFA is the rice export to China. In 2012, China is the emerging market, leading the country's rice importers with output of more than 2 million tons. However, last year, the country also canceled most contracts, up to 600,000 tons, causing difficulties for domestic enterprises. In 2013, China is forecast to remain a strong importer with quotas allocated for 2.66 million tonnes of long grain rice and 2.66 million tonnes of short / medium grain rice.
VFA noted that when exporting to China, the minimum contract termination status should be minimized. "Be careful in commodity standards, delivery time, clear contracts ... Special attention should be paid when preparing the documents because it is very easy for the partner to use" technology "causing great damage" - Phong advised.
VFA noted that in the first quarter of 2013, only China's main contract (other markets were less in this quarter), so businesses need to have a flexible plan to deal successfully; At the same time promoting promotion to emerging markets in West Africa ...
Mr. Nguyen Van Tien, General Director of An Giang Import Export Joint Stock Company (Angimex), said after a period of temporary suspension of rice imports Vietnam, recently Japan has re-entered. Japan's standards are strict but not difficult to implement. They have increased from almost 400 indicators to 593 indicators, but if you know how to organize stable areas, control of pesticide residue will be good.
Temporary storage of 1.5 million tons
According to VFA, in 2012, the rate of contract rice export will fall sharply (from nearly 48% in 2011 to 20% in 2012), creating a radical change in the structure of the rice export market. . Expected 2013 is still a difficult year for export, so enterprises must be more active.
Truong Thanh Phong said that he is waiting for concrete guidance from the Government on the increase of buying rice for temporary storage in 2013 to 1.5 million tons (in 2012, buying 1 million tons for temporary storage) and will Immediately in the beginning of this quarter to timely buy rice for farmers. Especially, at the request of the Government and other ministries, the rice price is not less than 5,000 VND / kg ...