Global fertiliser prices on the rise

Fertiliser prices have increased following the appreciation of the US dollar against the Vietnamese dong as well as higher prices on the global market

Fertiliser prices have increased following the appreciation of the US dollar against the Vietnamese dong as well as higher prices on the global market, spurred by high demand in many countries like India.

Le Quoc Phong, director of Binh Dien Fertiliser Company, said there were limited supplies and a shortage of reserves on the global market.

Vietnam had had to import a large volume of fertiliser every year to satisfy local demand since its local production met only one-third of consumption, Phong said.

A kilo of DAP fertiliser has risen to VND11,200 ($0.57), compared to VND11,000 earlier this month and VND10,600 in August.

Similarly, the price of a kilo of urea fertiliser increased from VND6,200 ($0.3) in August to 6,250 VND in earlier this month to VND6,350 currently.

China is currently the biggest supplier of fertilisers to Vietnam, accounting for nearly 45 percent of the country's total imports, followed by Russia, the Republic of Korea and the Philippines.

In April, Chinese authorities raised the fertiliser export tariff from 35 percent to 135 percent.

The Vietnamese Government recently issued a circular calling for an increase of the fertiliser import duty from 5 percent to 6.5 percent. This pushed up prices of fertilisers, experts have said.

Most farmers are worried about the higher prices, which will add to their production costs.

More than 318,600ha under the autumn-winter rice crop in the Mekong Delta region are in the growing stage, which are in dire need of fertilisers.

To stabilise the fertiliser market and help farmers feel more secure about production, experts have urged the Government to adopt new policies.

Local fertiliser producers should restructure their distribution network and regularly check selling prices to prevent agents from raising prices freely.

Currently, the Government did not have incentive policies for enterprises to import fertiliser to keep in reserve. Fertiliser prices, thus, depended on the fluctuation on the world market, Phong said.

Fertiliser reserves were like a double-edged sword, he added. They worked well when prices increased, but when they dropped, businesses had to sell at market prices and losses were unavoidable.

The Government, he said, should create measures to ensure security for businesses and others who participate in price-stabilisation programmes. Soft loans and support when prices drop should be included, he said.

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Global fertiliser prices on the rise

Fertiliser prices have increased following the appreciation of the US
dollar against the Vietnamese dong as well as higher prices on the
global market, spurred by high demand in many countries like India.

Le Quoc Phong, director of Binh Dien Fertiliser Company, said there were
limited supplies and a shortage of reserves on the global market.

Vietnam had had to import a large volume of fertiliser every year to
satisfy local demand since its local production met only one-third of
consumption, Phong said.

A kilo of DAP fertiliser
has risen to 11,200 VND (0.57 USD), compared to 11,000 VND earlier this
month and 10,600 VND in August.

Similarly, the price
of a kilo of urea fertiliser increased from 6,200 VND (0.3 USD) in
August to 6,250 VND in earlier this month to 6,350 VND currently.

China is currently the biggest supplier of fertilisers to Vietnam,
accounting for nearly 45 percent of the country's total imports,
followed by Russia, the Republic of Korea and the Philippines.

In April, Chinese authorities raised the fertiliser export tariff from 35 percent to 135 percent.

The Vietnamese Government recently issued a circular calling for an
increase of the fertiliser import duty from 5 percent to 6.5 percent.
This pushed up prices of fertilisers, experts have said.

Most farmers are worried about the higher prices, which will add to their production costs.

More than 318,600ha under the autumn-winter rice crop in the Mekong
Delta region are in the growing stage, which are in dire need of
fertilisers.

To stabilise the fertiliser market and
help farmers feel more secure about production, experts have urged the
Government to adopt new policies.

Local fertiliser
producers should restructure their distribution network and regularly
check selling prices to prevent agents from raising prices freely.

Currently, the Government did not have incentive policies for
enterprises to import fertiliser to keep in reserve. Fertiliser prices,
thus, depended on the fluctuation on the world market, Phong said.

Fertiliser reserves were like a double-edged sword, he added. They
worked well when prices increased, but when they dropped, businesses had
to sell at market prices and losses were unavoidable.

The Government, he said, should create measures to ensure security for
businesses and others who participate in price-stabilisation
programmes. Soft loans and support when prices drop should be included,
he said./.

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Global fertiliser prices rise

HCM CITY — Fertiliser prices have increased following the appreciation of the US dollar against the Vietnamese dong as well as higher prices on the global market, spurred by high demand in many countries like India.

Le Quoc Phong, director of Binh Dien Fertiliser Company, said there were limited supplies and a shortage of reserves on the global market.

Viet Nam had had to import a large volume of fertiliser every year to satisfy local demand since its local production met only one-third of consumption, Phong said.

A kilo of DAP fertiliser has risen to VND11,200 (US$0.57), compared to VND11,000 earlier this month and VND10,600 in August.

Similarly, the price of a kilo of urea fertiliser increased from VND6,200 ($0.3) in August to VND6,250 in earlier this month to VND6,350 currently.

China is currently the biggest supplier of fertilisers to Viet Nam, accounting for nearly 45 per cent of the country's total imports, followed by Russia, South Korea and the Philippines.

In April, Chinese authorities raised the fertiliser export tariff from 35 per cent to 135 per cent.

The Vietnamese Government recently issued a circular calling for an increase of the fertiliser import duty from 5 per cent to 6.5 per cent. This pushed up prices of fertilisers, experts have said.

Most farmers are worried about the higher prices, which will add to their production costs.

More than 318,600ha under the autumn-winter rice crop in the Mekong Delta region are in the growing stage, which are in dire need of fertilisers.

To stabilise the fertiliser market and help farmers feel more secure about production, experts have urged the Government to adopt new policies.

Local fertiliser producers should restructure their distribution network and regularly check selling prices to prevent agents from raising prices freely.

Currently, the Government did not have incentive policies for enterprises to import fertiliser to keep in reserve. Fertiliser prices, thus, depended on the fluctuation on the world market, Phong said.

Fertiliser reserves were like a double-edged sword, he added. They worked well when prices increased, but when they dropped, businesses had to sell at market prices and losses were unavoidable.

The Government, he said, should create measures to ensure security for businesses and others who participate in price-stabilisation programmes. Soft loans and support when prices drop should be included, he said. — VNS

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Higher quality lifts tea exports in July

Thirty four Vietnamese provinces cultivate tea over 131,500 ha with a yield of about 6.5 ton per hectare

Vietnam exported 10,000 tons of tea last month, earning export revenue of US$14 million, according to the Vietnam Tea Association.

With the money earned in July, total tea export turnover in the first seven months of the year stood at $91 million, a year-on-year increase of 6 percent, the association said.

The association attributed the increase to higher tea prices compared with last year, when tea was strongly affected by the world recession.

The association added that thanks to higher quality and better hygiene, Vietnamese tea was fetching higher prices on the world market.

Russia recently became the largest importer of Vietnamese tea. Other markets included Pakistan , Taiwan , China and Afghanistan .

Although the price of Vietnamese tea this year is higher than last year thanks to improved quality, it still remains low compared to rival products.

In the last decade, the price of domestically produced tea has not significantly increased.

In 1998, the price of Vietnamese tea stood at $1.52 per kilo, while prices abroad averaged about $2.01 per kilo.

In 2009, while tea prices on transaction floors on the world market climbed to $2.43 kilo, Vietnamese tea fell in price to $1.23 per kilo.

"This situation is caused by unhealthy competition among domestic companies," said Doan Anh Tuan, chairman of the association.

"Many companies produce and export low-quality tea, which has strongly affected the prestige of the national tea industry," he added.

Manufacturers have not invested in developing technology and cultivation practices.

"Vietnamese tea is cheaper than that of other countries because it has not caught up with changing global tastes," said Nguyen Thu Hang, representative of Estate Agencies, a regular Vietnamese tea industry customer.

"Another reason for the poor prices is the lack of an identifiable global trademark," she said.

Hang also affirmed that her company would be ready to import Vietnamese tea at higher prices if manufacturers could ensure hygiene and better quality.

Thirty four Vietnamese provinces currently cultivate tea over 131,500 ha with a yield of about 6.5 ton per hectare.

 

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Higher quality lifts tea exports in July

Vietnam exported 10,000 tonnes of tea last month, earning export
revenue of 14 million USD, according to the Vietnam Tea Association.

With the money earned in July, total tea export turnover in the first
seven months of the year stood at 91 million USD, a year-on-year
increase of 6 percent, the association said.

The
association attributed the increase to higher tea prices compared with
last year, when tea was strongly affected by the world recession.

The association added that thanks to higher quality and better
hygiene, Vietnamese tea was fetching higher prices on the world market.

Russia recently became the largest importer of
Vietnamese tea. Other markets included Pakistan , Taiwan , China
and Afghanistan .

Although the price of
Vietnamese tea this year is higher than last year thanks to improved
quality, it still remains low compared to rival products.

In the last decade, the price of domestically produced tea has not significantly increased.

In 1998, the price of Vietnamese tea stood at 1.52 USD per kilo, while prices abroad averaged about 2.01 USD per kilo.

In 2009, while tea prices on transaction floors on the world market
climbed to 2.43 USD kilo, Vietnamese tea fell in price to 1.23 USD per
kilo.

"This situation is caused by unhealthy
competition among domestic companies," said Doan Anh Tuan, chairman of
the association.

"Many companies produce and export
low-quality tea, which has strongly affected the prestige of the
national tea industry," he added.

Manufacturers have not invested in developing technology and cultivation practices.

"Vietnamese tea is cheaper than that of other countries because it has
not caught up with changing global tastes," said Nguyen Thu Hang,
representative of Estate Agencies, a regular Vietnamese tea industry
customer.

"Another reason for the poor prices is the lack of an identifiable global trademark," she said.

Hang also affirmed that her company would be ready to import
Vietnamese tea at higher prices if manufacturers could ensure hygiene
and better quality.

Thirty four Vietnamese provinces currently cultivate tea over 131,500 ha with a yield of about 6.5 tonne per hectare./.

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