According to the latest survey, more than 80% of experts and businesses assess that the fibc industry will continue to grow better in 2022.
It is expected that in 2022, there are still many opportunities to export rice and the quality of Vietnamese rice is favored by consumers in many countries and the high world demand. Therefore, using FIBC bags to serve rice export demand has increased significantly.
Rice is the main agricultural product of Vietnam's export and economic development
Experts estimate that there are still a lot of opportunities to grow the export of many Vietnamese goods, including rice. In recent years, rice is the main agricultural product of Vietnam to foreign countries.
The rice prices today in the Mekong Delta provinces continue to go sideways. It is forecasted that rice exports will be busier when the Philippine market opens quotas at the end of May. In the world market, the selling price of Vietnamese rice for export is stable compared to the beginning of the week. Specifically, the price of 100% broken rice is 360 USD/ton.
Moreover, the price of 5% broken rice is 415 USD/ton; the price of 25% broken rice is 395 USD/ton, and the price of Jasmine rice was stable at 513 – 517 USD/ton. This price level has been stable for more than 2 weeks now, creating an advantage for rice exports in the context that the world food supply is affected by climate change. Furthermore, the Covid-19 epidemic and the conflict between Russia and Ukraine have not been resolved.
Big bags of rice - the solution to increasing rice exports
Jumbo bags of rice are flexible bags suitable for bulk container shipping. PP and PE are used as the main raw materials for production. It is suitable for long-distance transportation or sea transportation.
The product has its anti-fouling, radiation-resistant strength as well as its excellent performance in moisture-proof function. It is an ideal product for the agricultural industry with the characteristics of 5-5.7 times increase in safety factor, high durability, and easy handling. The coated bulk bag is designed with an extra layer of polyethylene.
Big opportunities for the fibc industry to grow in 2022
The consumption market of many groups of big bags rice is favorable. This helps the revenue of many businesses to grow high. However, the price volatility of input materials, and the increase in costs incurred due to the Covid-19 epidemic caused the profit margin to narrow, and the proportion of enterprises with revenue growth was higher than the profit growth group.
However, there are some businesses that still have strong growth in revenue and profit due to 3 main factors: Firstly, having the advantage of being proactive in input materials, self-supplying most of the raw materials for the jumbo bags production, making the gross profit margin of these enterprises higher than others in the fibc industry.
Some businesses with technology producing packaging from PP resins have abundant domestic supply. Moreover, their raw material costs are less affected by price fluctuations of jumbo bags on the world market. Besides, many enterprises have good management strategies, import in large quantities, therefore, the import costs are relatively good.
The business performance of packaging enterprises under the impact of the Covid-19 pandemic shows a colorful picture in the business situation of enterprises. Hopefully the article shares about the Big opportunities for the fibc industry to grow in 2022 help you get an overview about this promising industry. If you want to buy quality jumbo bags, please contact EPP at hotline +84986 002 888 for advice and quotations.