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    Oct 29th, 2015

    However, this sector frequent shortages of raw materials for processing for export resulted in heavy dependence on imports of raw materials (NK), especially from Africa. The production capacity in the country can only meet 30% demand of cashew processing industry.

    Estimated that each year, this sector has to import (NK) about 500000-600000 tons of crude (of which at least 50-60% from Africa). Particularly in the first 6 months of 2015, imports of crude for processing have reached 414,000 tons worth $ 527 million, up 73.2% in volume and 2-fold increase in value over the same period of 2014.

    Meanwhile, crude imports have lower quality domestic thing, so many risks on product quality is inevitable. On the other hand, this year, as supplies of crude from Africa limited due to crop failure condition plus the price of crude rose sharply, leaving many struggling businesses manage NK source of raw cashew nuts.

    1 in 3 countries with acreage and yields the highest thing in the world, Vietnam currently has 450,000 hectares that are grown mostly concentrated mainly in the southeastern provinces such as Binh Phuoc, Ba Ria - Vung Tau, Dong Nai and Tay Nguyen region.

    The development of raw material areas in the country are extremely difficult. The planted area is increasingly reduced, in the period from 2005 - 2014, an area of 122 200 hectares that has been reduced due to plant things people have higher incomes. The processing enterprises focused how many export products, increasing business profits rather than sit back and focus on the development of sustainable materials and the lack of links with the producers because the scale is too small Retail.

    In addition, over 75% of the garden is the same old thing, extensive, yet to be renovated ... causing difficulties in the investment to increase productivity. Meanwhile, according to industry planning articles of MARD, 2020, the area under cultivation of 300,000 hectares stabilize the country, the average yield of 1.5 tons / ha. In growing areas of focus of key areas of over 2 tons / ha; cashew output of about 400,000 tons.

    There are approximately 265 establishments with a capacity of processing 1.2 million tons of processed nuts / year. Of which only 30 now meets the standards such as HACCP, ISO 9001, ISO 1400, ISO 2200 ... Up to 119 establishments, enterprises - equivalent to 45%, does not ensure food safety (being classified C). Most processors unpublished conformity under National Technical Regulations QCVN 01-08: 2009 / BNNPTNT: Background processing - Conditions for ensuring food safety. The processing units of small capacity remains a major constituent. In it, there are processing facilities in small scale household labor 5-7, so no investment in machinery, equipment and uniform, almost handmade. This puts our country's cashew industry challenges in the future.

    This sector is also facing another problem is there are too many exporters thing led to unfair competition, uneven quality. In 2014 there were 345 cashew export companies, but including only 73% turnover of less than $ 5 million.

    Products Vietnam's cashew exports over 50 countries and is not dependent on any public market. In particular, the United States, China and the Netherlands remain the third largest export market conditions of Vietnam, accounting for 39.98%, respectively, 13.12% and 10.89% of total export value.

    At present, products of Vietnam's export conditions in some markets like the US has a tariff of 0%. Although not affected by tariff barriers, but individual consumer market is mainly developed countries. Therefore, the requirements on food hygiene and safety and forced businesses must meet to be able to enter and stand in these markets. With 45% of the base rate, now does not guarantee food safety above will make this sector face difficulties in the future. Show The FDA (food and Drug Administration US Food) through Vietnam are surveyed multiple processors that export to the US market in the provinces of Binh Phuoc, Dong Nai, Ba Ria-Vung Tau Province ... If these facilities do not meet the requirements, it will be difficult to penetrate deeper into this market.

    Vietnam Cashew Association (Vinacas), said that the cashew processing enterprises, value-added products such as cashew roasted cashew nuts salted, seasoned honey ... sold to the domestic market only accounts for 6% and the remaining 94% of which export is cashew packaging. According to MARD, the domestic market with high purchasing power but is not now adequate attention.

    The reason is explained that Vietnam area fell sharply in the years of high rubber prices to the highest annual output reached only 400,000 tons, while demand Processing Results 1 - 1.2 million tons.

    The heavy dependence on imported raw materials to make goods for export enterprises producing high costs, competitiveness and low added value. This weakness will become a disadvantage when Vietnam participate in TPP.

    Intensification, applied science and technology to improve productivity, quality and production efficiency is one of the concerns of the industry today.

    Vice Chairman of the Vietnam Cashew Association Dang Hoang Giang said: Ministry of Agriculture and Rural Development has approved support association 1 billion for the project extension renovation orchard grafting. In the meantime, the association has hired an independent expert assessment of project results and implementation of improvement of transplantation. Accordingly, Binh Phuoc has 40 points and split 20 points in Dong Nai and Ba Ria - Vung Tau 10 points, 10 points Binh Thuan and Lam Dong 20 points.

    Show MARD is developing branding scheme Article Vietnam. According to MARD, Vietnam's cashew nut quality and delicious taste in the world, but a long time, we only focus on exporting products packaged cashew nuts Vietnam and no brand. Therefore, the Ministry has plans to build a brand for cashews, thereby enhancing the value of export commodities.

    This project will focus on issues such as branding that nation, build a geographical indication for local conditions cashew key. Most importantly, business support branding for their products. There is such a thing new to help the industry solve "too dependent" on exports of cashew packaging today.

    While the demand for grain is growing strong worldwide, especially the US and European countries, the production of all kinds of cashew nuts counterweight as almond, hazelnut, pistachio, walnut .. . have decreased due to climate change. My customers are very interested in the quality of imports and the traceability of goods. Americans are expected to invest in a factory in Vietnam to focus sources to meet rigorous standards of the organization to protect the interests of consumers FDA.

    Source: Voice of the Farmer OL