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  • Cashew Industry conditions and challenges-Vietnam

    Jul 2nd, 2015

    Of the 256 enterprises that processing facilities, up to 119 establishments, enterprises - equivalent to 45%, does not ensure food safety (rated Class C). This puts our country's cashew industry challenges in the future. On 2/7, HCMC, MARD has organized a conference to promote production and consumption of things. Here, the Department of Agro-forestry, aquaculture and salt, said that the Vietnam's cashew nuts are still accepted countries.

    However, in the context of global economic integration, market cashew consumption mainly in developed countries, where the requirements of food hygiene and safety and increasing, and with 45% base rate, Business does not guarantee food safety above will cause difficulties this sector in the future.

    According to the Department of Agro-forestry, aquaculture and salt, among 265 establishments, cashew processing enterprises at present, only 30 enterprises achieved the standards such as HACCP, ISO 9001, ISO 1400, ISO 2200 ... In that , with many small production facility scale with 5-7 household labor, and often not investment in machinery and equipment should not guarantee food safety.

    This is an alarming figure for the domestic industry. Not only are there too many establishments, enterprise class C, this sector is also facing another problem is that too many cashew exporters.

    According to the Department of Agro-forestry, aquaculture and salt production, every year, the number of exporters that have increased. 2014, 345 export enterprises but in this number, as many as 73% with exports less than 5 million. From there, create unfair competition, product quality export uneven, causing damage for the whole industry.

    Article worry of Department of Agro-forestry, aquaculture and salt production as a basis if considered on domestic market share and exports of Vietnam cashew years. According to the Vietnam Cashew Association, the cashew processing enterprises, value-added products such as cashew kernels roasted salted, seasoned honey ... sold to the domestic market only accounts for 6% and the rest 94 % of cashew kernels exported are packaged.

    Statistics from the Ministry of Agriculture and Rural Development said that in the first 6 months, Vietnam has exported 150,000 tons of people of all kinds, worth nearly $ 1.1 billion revenue, up 14% in volume and value increased by 28%. But in the long term, according to the MARD, due to its heavy dependence on export markets, while domestic market with high purchasing power has not been business due attention should once troubled market exports will affect the production and business activities of enterprises. About 3 years ago, this sector was battered when export markets in trouble is a concrete evidence.

    Branding articles - Better late than never

    Show MARD is developing branding scheme Article Vietnam. According to the ministry, Vietnam is the largest cashew exporter in the world since 2006, the Vietnam Cashew quality and delicious taste in the world, but a long time, we only focus on exporting products that Human packaging and Vietnam Cashew no brand. Therefore, the Ministry plans to "daring" to build brands for cashew, to thereby enhance the value of exported commodities.

    This project will focus on issues such as branding that nation, build a geographical indication for local growing conditions that key. And most importantly, all of the above is to support brand-building business for their products. There is such a thing new to help the industry solve "too dependent" on individual export packing today.

    When asked about this issue, a number of businesses and farmers that attended the workshop have expressed sympathy and said that the branding Vietnam thing is just being mentioned is a bit late though late but still than not.