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  • Cashew exports to the EU towards $ 1 billion

    Jun 2nd, 2017

    As reported by the Vietnam Cashew Association (Vinacas), in 2016 Vietnam cashew exports over $ 3 billion, including about $ 2.85 billion in cashew nut exports, the remaining cashew products. This is the eleventh consecutive year that Vietnam's cashew nut industry has maintained its leading position in cashew nut exports, continuing to maintain a market share of over 50%.The European Union (EU) is Vietnam's second largest trading partner. In 2016, Vietnam's cashew nut exports to the EU market reached over 94,000 tons, with export turnover of nearly $ 766 million, accounting for nearly 27% of Vietnam's export market share.

    By the end of the first quarter 2017, Vietnam exported 55,739 tons of cashew kernel, of which, the EU market was 29,252 tons (accounting for over 52%). According to experts, the EU is a big, strategic market, indispensable for Vietnam's cashew production and export business, especially in the context of the Vietnam-EU free trade agreement. (EVFTA) will be effective in the coming time.

    Potential but difficult market

    Although cashew exports to the EU market have been increasing steadily, the EU-Mutrap project expert Pham Minh Tri said that the challenge for exporters is the food safety standard. EU is quite high. The companies also face the risk of not meeting the EU origin purely because Vietnam is importing raw materials from Africa (Ivory Coast, Nigeria, Ghana). Besides, the past time, there are still some phenomenon of shipment to the EU has a pest status, impurities affecting the prestige of DN ...

    Cao Thuc Uy, Director of Cao Phat Co., Ltd, said that the EU is a difficult market, requiring enterprises to have all the standard certificates such as BRC , FSSC 22000, ISO 22000 ... but slow payment."In the export process, eleven million cashew nuts were also deducted. At the same time, at least 3 or 4 customers come to the factory to inspect "each and every one, every product one by one" even though the company has got BRC certification. "Although the market is hard, but according to Mr. Uy, the EU market has much more developed. In this market, eating habits are very large, many Europeans eat nuts to reduce obesity.

    According to Vinacas, Europe's output and market share increased over the years from more than 64,000 tons (22.52%) in 2014 to more than 94,000 tons (27%) in 2016. In particular, The Netherlands and Germany are the main trading centers of the kernel, the gateway to the EU.

    The key is quality and prestige

    Ta Quang Huyen, General Director of Hoang Son I Co., Ltd (Binh Phuoc), a big exporter in the industry, said that it is important for exporters to export their products. Into the EU fastidious market is to ensure food safety and hygiene. Accordingly, enterprises need to meet the standards such as ISO 22000, FSSC 22000, BRC ... In addition, enterprises need to maintain prestige, timely delivery under the contract as well as meet the orders that partners love. bridge. "When meeting the above requirements, European enterprises are willing to pay a higher price than the normal price," said Huyen.

    Along with that, Dang Hoang Giang, Secretary General of Vinacas, said that in order to increase the export of cashew nuts to the EU market, enterprises need to thoroughly understand information and partners through political, social and professional organizations. Businesses such as overseas trade offices in Vietnam; Understand local culture and behavior in negotiating with EU businesses. Promoting image recognition, promoting products by approaching trade promotion opportunities such as trade fairs, exhibitions, trade fairs ... Enterprises must create trust, reputation in trade and actively treat Solve problems when they arise.In July, Vinacas will introduce national trade promotion activities in the European market in the Netherlands, Germany and Belgium.

    According to Nguyen Duc Thanh, Chairman of Vinacas, the current trend of consumers in the world is to use organic (organic) and organic prices are 60% higher than normal. Domestic enterprises should aim to produce clean organic products. To do so, enterprises must have raw material areas, so enterprises should actively cooperate with farmers to build material areas.