Agriculture goods hot commodities

April 23, 2007

Agriculture goods hot commodities

The Ministry of Trade forecasts that prices of some agricultural and
forestry exports will continue to rise this year due to shortages in the
world market.

This is a positive sign for Vietnamese traders and producers since they
will be able to increase their exports more easily, say ministry
officials. Some 50% of forestry and farm products are currently sold as
exports.

The Minister of Agriculture and Rural Development, Cao Duc Phat,
commended that there is a positive outlook for the agriculture export
industry thanks to the strong growth it posted last year.

Ministry officials expect the turnover from these exports will grow to
US $7.5 billion, an increase of 5.8% compared to 2006.

The market will likely fluctuate but key products like rice, coffee,
rubber, pepper and wood will remain strong, says Minister Phat.

The ministry predicts rice will be one of the most sought-after products
on the world market because its price is increasing along with demand.

According to the UN Food and Agriculture Organisation, the supply of
rice will not meet the world's needs due to crop diseases affecting many
countries that typically export this product. Vietnamese farmers can
fill this void because they reduced their export numbers last year and
grew types of rice that are resistant to disease.

The ministry reports Mekong Delta provinces have successfully planted a
rice strain that can also repel brown-hoppers, an insect that has
plagued these crops in the past.

In addition, Mekong Delta authorities have implemented a programme to
plant 1 million tonnes of high quality rice for export in seven provinces.

Representatives from the Vietnam Rice Association say domestic
enterprises have already signed contracts to export 1.6 million tonnes
of rice in 2007 and are on target to meet the country's plan to export
4.5 million tonnes of rice this year.

One of the bigger deals inked was Vietnam's contract to sell 474,000
tonnes of rice to the Philippines.

Vietnam will give priority in exporting rice to its main rice trading
partners like the Philippines, Indonesia, Malaysia, Cuba and Japan, said
officials.

This year, there are also positive signs for Vietnamese producers as the
coffee export market shows a rise in the price of beans. According to
the International Coffee Organisation, coffee prices in the world market
have already increased in the first quarter of this year. (VNA)

http://www.nhandan.com.vn/english/business/230407/business_a.htm