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  • Vietnam:Cashew and paradox import raw materials for processing

    Sep 24th, 2017

    As the world's largest exporter of cashew kernels, Vietnam annually imports over 1 million of the 1.4 million tonnes of raw cashew nut used for processing. Therefore, when the raw material market fluctuates, enterprises must incur such expenses as contract cancellation, late delivery, poor quality of raw materials, especially food hygiene and safety.In 2016, Vietnam exported 347,000 tonnes of cashew nuts, 2.84 billion dollars, up 5.6% in volume and 18.4% in value compared to 2015. In this year, cashew production reached About 3 million tons, Vietnam has imported more than 1.1 million tons of raw cashew to export processing.

    The industry has much more

    In the first eight months of 2017, cashew nut exports were estimated at 223,000 tonnes and USD2.2 billion, down 1.1% in volume but up 24.9% in value over the same period last year. Exports in the first 7 months of 2017 reached USD 9,842.5 per ton, up 27.2% over the same period.According to the Vietnam Cashew Association (Vinacas), in 2017, the industry strives to achieve export turnover of $ 3 billion, an increase of $ 160 million compared to 2016. However, due to abnormal weather conditions, 300,000 tons and output for processing in 2017 is expected to be 250,000 tons. Thus, to meet the export target of $ 3 billion in 2017, imported materials will increase by 200,000 tonnes compared to 2016.

    According to Nguyen Duc Thanh, chairman of Vinacas, most of Vietnam's cashew import markets have strict requirements on quality, food hygiene and safety. Besides investing in quality raw materials in the country, imported raw material must also pay attention to quality equally.

    Therefore, in parallel with increasing import volume for export processing, in order to develop stably and sustainably, the industry should pay attention to restoring and increasing the area of ​​cashew cultivation in the country.Mr. Do Ha Nam, Chairman of the Board of Directors, General Director of Intimex Group, said that cashew processing technology in Vietnam is the world leader and cashew nut also exceeds cashew nut exporters. very good. Therefore, businesses need to promote the import of raw materials for export processing to increase the value of products. This is the advantage and the trend is continuing, the high price of raw materials is a good opportunity for farmers to grow back area.

    Build and develop a specialized farming area

    In 1996, Vietnam imported raw cashew from Africa and by 2016, Vietnam surpassed India as the world's largest cashew nut exporter and has maintained its position so far.

    Currently, the brand of Vietnam people have been used by consumers in more than 100 countries and territories, the output is always stable. However, the increasing demand of the market makes enterprises depend too much on imported raw materials while domestic raw materials do not increase but tend to decrease. In the face of this challenge, especially to exploit the advantage of an international brand name, businesses are forced to pass to secure the No. 1 global market.

    To solve the problem of raw materials, not only enterprises but need the help of the State. By the end of 2016, the country has 300,000 ha of cashewnut, mainly in Binh Phuoc, Dong Nai and Ba Ria - Vung Tau. The issue is that the agricultural sector should pay more attention to the area of ​​cashewnut development is stable, because compared with the output output is quite uncertain, the price of cashew is always stable.

    Previously, the purchase price of about 10-12 thousand VND / kg of raw cashew nuts, but now has increased from 35 to 40 thousand per kg, three times higher than before. The industry needs to grow at 1 million tons of material per year, thus ensuring long-term and sustainable production. Previously, cashew industry accounted for about 700,000 tons of products per year, now only about 300 thousand tons per year.

    Therefore, it is necessary to study the development of high yielding cashew varieties and the construction of specialized areas. If Vietnam continues to import raw materials for processing, the net profit from export will not be high because it is processing.

    "The policy of the State is to focus on building specialized cashew areas suitable for cashew trees in order to have stable and sustainable products. If you let the people spontaneously "now grow apricot trees down the price cut back," then the first person to suffer the first is the farmer. Products will not be stable, "said Nam.

    Nguyen Huyen


    Source: VNEconomy