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  • Solving the problem of raw materials for cashew processing industry

    Jul 11th, 2017

    Due to unseasonal rainfall, the output of 2016-2017 is lower than that of the previous crop. Therefore, it is expected that by October 2017, the cashew industry will import 500,000 tons of raw material for processing and complete the plan to export 360,000 tons of cashew nut in 2017 of the whole industry.According to statistics of the General Department of Vietnam Customs, in the first 6 months of 2017, the output of cashew nuts was 165,000 tons, valued at over 1.617 billion USD, increasing 2.3% in volume and 27% In terms of value over the same period in 2016, the average export price of human WW320 reached $ 11 / kg, up $ 1 / kg.

    According to Nguyen Duc Thanh, Chairman of Vietnam Cashew Association (Vinacas), in the first 6 months of 2008, domestic raw materials were not enough to meet the processing needs. 400,000 tons of high quality ingredients from Africa, Ivory Coast.Thanks to that, the number of exporters in the first 6 months of 2017 will meet the market demand in the context of scarce raw materials.However, due to climate change, unnatural rainfall has reduced the output of cashew nut in Vietnam, raw material shortage has to fall into the situation of importing raw materials at high prices and selling prices do not increase, making Corporate profits are not as high as expected.

    According to Ta Quang Huyen , General Director of Hoang Son 1 Limited Liability Company (Binh Phuoc), due to increasing demand for cashew kernel of the world market, the company's cashew nut exports during the first 6 months This year is very convenient.In the first six months of the year, the company exported 4,300 tons of cashew nut processed to the US and European markets ... at nearly $ 40 million, up 10% in volume and value over the same period in 2016.To ensure the production plan, the company has imported 35,000 tons of raw materials from Ivory Coast to cope with the shortage of raw materials in the country, and stocks of raw materials for processing exports for the whole year.

    Vietnam's cashew processing and export sector has set a world record for 11 years in cashew exports. According to the forecast of the Vietnam Cashewnut Industry Association, in 2017, Vietnam cashew nut industry will export USD 3.3 billion, with the output of 360,000 tons of cashew nuts of various kinds, to set the world record for 12 consecutive years. Export thing.Up to now, cashew export sector has achieved 45% of the year target. Thus, the rest, the industry has to sprint to achieve.According to forecasts, the domestic cashew crop still has a harvest to serve the processing plants, export at the end of the year. However, this output is not much, not meet the quantity that the industry set.

    Therefore, in the last 6 months of 2017, the whole industry will have to import 500,000 tons of raw cashew, along with raw materials prepared in advance in early 2017, to meet the signed contracts.Thai Nguyen Huu Chi , member of the Vietnam Cashew Association, Technical Consultant for production and processing for cashew business, nowadays the world market of cashew is tend to increase. Moreover, the World Rooted Grain Council has also signed a contract to supply raw materials to the Vietnamese cashew industry by October 2018, possibly reducing the price of raw materials to facilitate processing factories in the country.

    However, because raw material for processing, export is scarce, the price of raw materials in the country will not decrease but tends to increase, raw material of low quality will also increase in price than before. Especially between October and December 2017. Therefore, there will be many plants that will reduce their processing capacity and some small plants will have to close.According to the Vietnam Cashew Association, at the end of June 2017, 100,000 tons of imported raw materials had to "wait" at the port because of no traffic.

    Ta Quang Huyen , General Director of Hoang Son 1 Co., Ltd., said that this case occurs frequently, but not so as to affect the processing capacity and export of enterprises. For large enterprises, they have been preparing for the beginning of the year so that the processing factories do not interrupt production. For small businesses, there is not enough raw material reserves to wait for this material.The raw material problem for Vietnam's cashew processing industry has not been solved so far, with almost two thirds of its raw materials dependent on the volume of imports.

    Nguyen Duc Thanh, Chairman of the Vietnam Cashew Association, emphasized that the cashew industry still has many prospects for market, export as well as value added, so to solve the material problem, For processing plants, to avoid production disruption, the cashew industry needs a new set of seedlings, harvested several times a year, high productivity to help farmers avoid the phenomenon of unseasonal rainfall, climate change. And to cope with the disease on the cashew. Thus, the new industry is expected to escape the vicious cycle of raw materials, dependence abroad.


    Source: Vietnam + / VNA