Cassava starch is difficult to sell, and factories in Nghe An province have large inventories.
The difficult market for cassava starch has led to a surplus and significant inventory buildup at several cassava starch processing factories and facilities in Nghe An province.
Surveys conducted in Thanh Chuong and Nghia Dan districts show that the price of cassava tubers purchased from farmers by processing plants remains at 2,200-2,300 VND/kg. While the price of cassava tubers is relatively stable, the market for cassava starch in Nghe An is facing difficulties in finding buyers.
Mr. Thai Van Long, representative of Nghia Long Cassava Starch Factory in Nghia Dan district, said: "Since the beginning of October 2024, cassava starch products have been difficult to sell. The factory has implemented a price reduction policy, lowering the price from 12 million VND/ton to only 9 million VND/ton, but the Chinese market is buying very limitedly. Currently, the factory has over 2,000 tons of cassava starch in storage."
Currently, Nghia Dan district has 4 cassava starch processing factories and facilities, with approximately over 4,000 tons of cassava starch in stock.
To cope with the difficult situation, some cassava processing plants in Nghe An province are still actively seeking domestic markets for their products.
At the cassava starch processing facility in Nghia Duc commune, Nghia Dan district, there is currently an inventory of over 250 tons of cassava starch. A representative from the facility stated that due to a lack of demand, the processing capacity of 40 tons of cassava tubers per day has been reduced to only 15 tons per day to retain workers.
The Thanh Chuong Cassava Starch Processing Plant is also facing a similar situation. Mr. Tran Quoc Hoan, Director of the Thanh Chuong Cassava Starch Plant, said: From the beginning of October 2024 until now, the plant has an inventory of over 2,100 tons of cassava starch, and is waiting for the Chinese market to resume consumption. Despite the difficulties in sales, the plant is still trying to purchase cassava from over 3,000 hectares of land in Thanh Chuong and Do Luong districts... to prevent cassava from being stockpiled or spoiled.
Some factories are exploring rather novel consumption avenues. For example, the Hoa Son cassava starch factory in Anh Son district has invested in advanced processing technology over the years, processing over 10,000 tons of cassava starch into liquid glucose, exporting it to markets in Taiwan, the US, South Africa, Australia, etc., or selling it to foreign companies based in Vietnam for processing into various food products and confectionery.
Due to the low price of cassava starch, factories are operating at a reduced capacity, leading to the inability to harvest cassava in some areas of Nghe An province. Ms. Tran Thi Tinh from Nghia Loc commune, Nghia Dan district, said: "Every year at this time, cassava tubers are easy to sell, but now, because the factory is buying less, I can't harvest and sell my 4 sao (approximately 0.4 hectares) of cassava that is ready for harvest."
According to experts, to effectively develop cassava raw material areas in Nghe An and ensure stable consumption, it is necessary to invest in applying deep processing technologies to diversify products, such as modified starch, glucose, maltodextrin, alcohol, lysine, and the production of dried cassava chips, etc. At the same time, diversifying markets and reducing dependence on a single market is crucial to prevent difficulties in selling products and high inventory levels.
