In mid-May, India, the world’s second-largest grain producer, announced a ban on wheat exports as part of measures to control rising domestic prices amid fears that production could be hit by a scorching heat wave. The price of wheat surged in international markets, leading to an acceleration in grain prices, as in March the government of Ukraine, one of the world’s leading grain exporters, banned the export of wheat, d oats and many commodities important to the global food supply
Also in March, the Russian Prime Minister signed a decree on March 14 banning the export of white and raw sugar until August 31 and prohibiting the export of wheat, rye, barley and corn to the neighboring states of the Eurasian Economic Union. Something else that has also caught the attention of many countries is Indonesia’s decision to ban all exports of crude palm oil and cooking oil at the end of April. Although this ban only lasted more than three weeks, it also had an impact on countries that buy large quantities of palm oil from Indonesia.
Southeast Asia’s food and food market continued to falter on May 23, when Malaysia banned chicken exports as the country faced supply shortages and soaring prices. Malaysia’s ban on chicken exports has raised concerns in Singapore, which relies heavily on food supplies from Malaysia.
According to statistics from the global credit rating company Fitch Solutions, after the outbreak of the Russian-Ukrainian war, around 30 countries implemented measures to limit food exports. This has disrupted the global food supply chain, causing the prices of many commodities to skyrocket. Fitch Solutions also warned that agricultural protectionism is at its highest level since the 2007-08 food price crisis.
According to the United Nations, world food prices have risen by more than 70% since mid-2020 and are on the verge of an all-time high after Russia launched a special military operation in Ukraine, blocking bottlenecks bottlenecks in the export of many essential products and the supply chain. disturbances. From May 18 to 23, the UN held 3 meetings on world food security, alerting to the risk of food insecurity through real figures. On May 23, the United Nations General Assembly adopted a resolution on “global food insecurity” without a vote.
In the above context, Vietnam, with many advantages in agriculture, is assessed as playing an important role in the food supply of the world. Ambassador Dang Hoang Giang, head of Vietnam’s permanent delegation to the UN, said that by applying innovative and sustainable agricultural models, Vietnam hopes to become an innovative food hub in the region. In this spirit, Vietnam will continue to make meaningful contributions to joint efforts to address global food security challenges.
Rice is one of the commodities that are assessed as having many opportunities to accelerate exports in the near future. Mr. Pham Thai Binh, General Manager of Trung An High-tech Agriculture Company, said that rice cannot replace wheat immediately, but in the current context, Vietnam will have a huge opportunity for rice export as it ranks among the top ten rice exporters. By the end of the year and until 2023, the demand for rice will increase in many countries around the world. Vietnamese rice definitely competes with rice from other exporting powerhouses like Thailand.
According to data from the Ministry of Agriculture and Rural Development, rice exports in the first four months of the year reached about 2.05 million tons, representing a total export value of more than $1 billion, up 4.4% in volume. The price of Vietnamese rice remains higher than that of some traditional rice exporting countries such as India, Pakistan and Myanmar. In May, Vietnam’s rice exports to some key markets maintained good growth momentum. Specifically, in the first days of June, the export price of rice continued to increase by $10 to $15 per ton compared to May.
Along with rice, seafood is also a commodity that companies promote to supply the global market. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), seafood exports slowed in May, but its revenue still hit $1 billion.
In addition, seafood export turnover has maintained a high level for three consecutive months at $1 billion and more than $1 billion, bringing the total export turnover of the sector in the first five months of the year to $4.6 billion, up 42% from the same period last year. year. Faced with many dietary fluctuations in some parts of the world, Vietnamese seafood products have the opportunity to thrive again.
Market expert Pangasius of VASEP Ta Ha said inflation in Europe is at an all-time high, threatening to weaken economies’ process of recovering production. after the Covid-19 pandemic. With food prices in Europe expected to rise to unprecedented levels, this is an opportunity for pangasius companies to re-enter this market after many years of stagnation.
Additionally, EU and US sanctions against Russian pollack – which is a serious competitor to pangasius – have also significantly reduced the supply of whitefish in this region. This is a good opportunity for Vietnamese pangasius enterprises to promote frozen pangasius exports to EU.