USDA optimistic about Vietnams rice export

File photo of rice loading onto a ship bound for a foreign market. A U.S. Department of Agriculture (USDA) report has optimistic forecasts about Vietnam’s 2018 rice exports - PHOTO: TL

CAN THO – A U.S. Department of Agriculture (USDA) report has optimistic forecasts about Vietnam’s 2018 rice exports given good consumption prospects in importing markets.

In USDA’s World Markets and Trade report released this month, Vietnam’s rice exports are projected at 6.7 million tons, 200,000 tons higher than the estimate in USDA’s January report.

Compared to last year’s exports of 5.89 million tons as shown by data of the Vietnamese Ministry of Agriculture and Rural Development, USDA forecast Vietnam’s exports would pick up by 0.81 million tons.

The forecast was based on demands of Chinese and Southeast Asian markets.

In particular, as indicated by the report, China is expected to import 5.5 million tons of rice this year, 250,000 tons higher than the January estimate. Meanwhile, statistics of the agriculture ministry revealed that 39.2% of Vietnam’s rice exports were shipped to this market last year.

As for Southeast Asian demand, according to the report, Indonesia will import 800,000 tons, rising by 500,000 tons from the previous projection. Vietnam early this year won a deal to export 141,000 tons of rice to Indonesia.

The Philippines’ 2018 rice imports are forecast to amount to some 1.3 million tons, and Vietnam is also a traditional seller to this market.

According to the Vietnam Food Association (VFA), Asia was Vietnam’s biggest rice importing market with a proportion of 68.41% last year. Notable markets are China (40.02%), the Philippines (9.69%), Malaysia (8.13%), Bangladesh (4.03%) and Indonesia (0.27%).

As reported earlier by the agriculture ministry, Vietnam exported 524,000 tons of rice worth US$249 million last month, up 56.5% in volume and 74.2% in value against last year’s same period.

The February report of USDA also showed that this year’s world rice production would be 484.3 million tons, and consumption 480.8 million tons. Such estimates are 400,000 tons and 900,000 tons lower than January forecasts respectively.