This document discusses Vietnam's billion dollar cassava export industry and its importance for smallholder farmers. It notes that Vietnam has exported $1-1.35 billion annually in cassava starch and dried chips for the past 6 years. Cassava production has rapidly increased across Vietnam in different agroecological zones, driven by expanding domestic and global demand. However, Vietnam's dependence on China as an export market makes its farmers vulnerable to volatility in Chinese agricultural policies and commodity prices.

1. Cassava in Vietnam: A billion dollar export industry that supports
the livelihoods of thousands of smallholder upland farmers
Introduction
• Cassava in Vietnam is grown by smallholders in a wide range of
agro-ecological zones and different market contexts.
• The cassava sector has exported between 1 – 1.35 Billion USD per
year for the last 6 years as either starch and dried chips.
• The global demand for cassava is expected expand as incomes in
the region increase, demand for animal feed increases, biofuel
mandates are implemented and new applications for cassava
starch are developed.
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Valueofcassavaexports(billionUSD)
Value of cassava exports (2009-2017)
Total (USD) China
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CassavaProduction(thousandtons)
Areaofcassavacultivation(thousandha)
Sơn La Province
Area Production
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CassavaProduction(thousandtons)
Areaofcassavacultivation(thousandha)
Đắk Lắk Province
Production Area
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Proportion of cash income by source (Dak Lak)
Cassava Coffee Other crops Livestock Off-farm Income
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Proportion of cash income by source (Son La)
Total Cassava Income Non-Cassava Cropping Income
Total Livestock Income Off-farm Income
A vital cash income source for low income households: whilst cassava is grown by many types of rural households, it is extremely important as a source of cash
income for the poorest households in rural communities – often accounting for more than half of annual cash income for a family.
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USDperMT
Difference between US and China corn
Difference US Gulf Maize CNF China + VAT
Chinese Futures (DCE) US Gulf Maize (FOB)
An important but unstable export market: Vietnam’s cassava exports are dominated by sales of chips and starch to the Chinese market. Around 90 percent of cassava
exports are bound for China. This exposes cassava farmers to volatility in the derived demand and supply for cassava products and substitutes. Changes in agricultural
support and trade policies that impact substitute commodities such as maize can create large variations in the farm gate price of roots that farmers receive. Providing
timely market updates and forecasts to farmers, industry and policy makers can help minimise the risk on investment decisions along the value chain.
Rapid increases in cassava production across different agroecological zones: Driven by increases in demand, the production of cassava has expanded across many
provinces of Vietnam over the past 15 years on both flat land and into steeply sloping lands in the North West. The rapid increases in production have been driven
partially by increases in planted area, but are mainly due to increases in cassava fresh root yield as a result of new varieties and improved soil fertility management.
Weekly root prices for 2016 and 2017 in Dak Lak Province