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  • Seasonal information and recommendations for purchasing and importing raw materials for the 2019 season

    Mar 19th, 2019

    In the morning of March 15, 2019 in the city. Ho Chi Minh, Vietnam Cashew Association (VINACAS) organized a Conference on cashew purchasing for the 2019 season. Mr. Pham Van Cong - Chairman of VINACAS chaired the Conference. Attending the meeting were the members of the Standing Committee, members of the Executive Board of VINACAS and representatives of over 70 cashew processing and trading enterprises in Vietnam. Information about buying and selling high and buy and buy products with high quality in 2019

    After a discussion, serious, lively and frank exchange at the Conference, VINACAS Chairman summarized the opinions of the delegates and concluded as follows:

    1. Time Recently, it is reported that: this year's crop of Vietnam and Cambodia is poor; Due to the weather, Africa has lost its seasons, leading to a reduction in world cashew production. This information is not correct. According to the actual assessment of enterprises that are directly purchasing, trading and processing large cashew, there are many experiences to participate in this Conference; as well as assessments of domestic and foreign experts at the International Conference of Conferences organized by VINACAS in Ho Chi Minh City. Hue in March 2019, then:

    The crop of Vietnam and Cambodia is normal; Some parts of Africa may be affected by climate but what is widely cultivated in Africa should not take the situation in some areas to say Africa lost its seasons. It is expected that the total output of the world is nearly 4 million tons, an increase of 300,000 - 400,000 tons compared to 2018. Therefore, the amount of raw cashew supplies to the market will not be lacking. In the long term: As the area and production of cashew nuts in Africa increase rapidly while the processing capacity is low and the development is slow, it will not significantly affect the quantity of raw cashew supplied to the world and Vietnam market. And although processing in Africa is low cost, it is not competitive with Vietnamese cashew nuts.

    2. Recently, some Vietnamese enterprises have broken VINACAS's policy, and the agreement of VINACAS with the association of some countries (especially the agreement signed with CEPCI - India): signed contract and payment of deposit at the rate of 15% or more (if paid in the form of mixture of TTR / DP). Some exporters of raw cashew nuts require 100% payment instead of allowing 2% retention, after being verified by Vinacontrol / Cafecontrol, it is just enough to pay off. VINACAS recommends: signing is such a disadvantage and potential risks.

    3. In order to contribute to market stabilization, risk reduction for both cashew industry and enterprises: for enterprises that do not implement the policies of Vinacas, intentionally buying dumping and disturbing the market, Vinacas will consider to publish on their "groups" and internal media; At the same time, warn the bank to take note when lending to perform the contract.

    4. The market of cashew workers has not been active recently because importers do not stockpile much; Some people wait for the price to go down; Some people wait for market stability with a new price level. However, the demand for cashew in the world is not decreasing but increasing slightly. Therefore, from balancing the demand for cashew and supply of raw cashew, it is normal to process cashew nuts of the world in general and Vietnam in particular. Vietnamese producers and traders need to be alert so that they do not suffer from false information, causing losses to their operations.

    5. Quality of raw cashew is something that businesses need to pay special attention to; mixing old cashew nuts, poor quality into new ones is possible and it is very difficult to control all from farmers' purchasing stage to the circulation and storage process. Therefore, when signing a business contract, it should:

    - Choose a large, reputable partner to minimize risks; If there are quality problems, they also cooperate to handle with a sense of responsibility, not to remove their hands.

    - Agreement with partners and write in clear and detailed contracts on quality.

    - Select an independent quality control unit capable of inspecting goods.

    6. Last time, Vinacas Reconciliation Council received many applications for handling disputes in raw cashew purchase and sale contracts. However, the settlement is very difficult because the enterprises are not close to contracts, with their disadvantages. VINACAS has warned about this issue (attached documents). VINACAS notes enterprises: when negotiating and signing contracts, it is necessary to ensure the Fairness principle of rights and responsibilities in each clause.

    7. Many businesses reflect: The Plant Quarantine Agency has requested to conduct a sample inspection of all imported raw cashew shipments originating from Africa at the port, instead of allowing to be taken back to their warehouses. business as before. This makes it difficult and generates a lot of costs and time of the business; will cause congestion at the port when entering the peak of the processing; will seriously affect the production and business plan of the whole industry in 2019.

    This issue of Vinacas has issued Official Letter 08/2019 / CV-HHD on January 15, 2019 to the Department of Plant Protection - MARD Village and Region II Plant Quarantine Branch. Immediately after the conference, Vinacas continued to send documents to 2 agencies above to remove the cashew industry.

    Mr. Pham Van Cong - VINACAS Chairman, on behalf of the Standing Committee - VINACAS Executive Board, called on businesses in the Vietnamese cashew industry: Solidarity, alertness to master the situation; endeavor to have an effective business year, all elements in the value chain of Win-win industry, contributing to the sustainable development of Vietnam's cashew industry.