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Many cashew processing plants are in danger of closing

Vietnam:Many cashew processing plants are in danger of closing

05/04/2018

 

Due to the shortage of raw materials in the country as well as the scarcity of imported inputs, many cashew processing factories, especially small cashew processing establishments, are facing the risk of closing or stopping operations in the future. time to come. This is the opinion of Dang Hoang Giang, Vice Chairman of Vietnam Cashew Association (Vinacas) in the exchange on the situation of imported raw materials in 2018 5-4 in Ho Chi Minh City.

 

Giang said that this year, Vietnam's crude output was only 300,000 tonnes, down 100,000 tonnes from the previous forecast of Vinacas. The reason is due to the influence of weather, pests and outbreaks so the productivity of many local cashew gardens fell sharply. The same thing happened with the Cambodian industry - raw material supply to Vietnam in the past years and this year only about 120,000 tons, down 30,000 tons compared with the previous forecast.

 

In addition to the decrease in yield, this rate of recovery of cashew kernel from crude has also decreased. Mr. Giang said that if before, the recovery rate of cashew kernel from 29-30% now only 25-26%. Raw cashew nut imports from Africa are also lower, so the recovery rate of cashews / cashew nut has also decreased, so in previous years, cashew nut yields from African origin (average) is 48-49 pounds (80 pounds), and 45-46 pounds (80 pounds) this year.

 

Thus, the cashew industry in Vietnam is facing the challenge is the lack of raw materials for production and business and the fact that some factories and processing plants to close in the near future is unavoidable.

 

Despite the scarcity of input materials, Jiang said the association still maintains a $ 3.62bn revenue target this year, similar to 2017 without falling. The reason is that businesses forecast this should instead of just export the packaging, many companies put to market increased processing products to increase export value such as honey, The salt, especially organic products.

 

"This year many businesses launched organic cashew and sold 1.5 times more than the same product. This is a good signal for the Vietnamese cashew industry to step by step change production methods to create more organic cashew products for the market, "said Giang.

 

Source:www.vinacas.com.vn/