Improving Value of Vietnamese Cashew

Improving Value of Vietnamese Cashew

In 2013, cashew exports brought in a fortune, earning US$1.7 billion. In the context of economic turmoil, global import demand and consumption of agricultural products generally declined, but export of Vietnamese cashew nuts still achieved steady growth. Furthermore, cashew industry is accelerating its restructuring, transforming from planting into processing.

Expanding market

According to the Ministry of Industry and Trade, cashew export in 2013 reached 261,000 tonnes, increased 17.9 percent in quantity and 12.0 percent in turnover. Average export price of cashew in 2013 was US$6,305 per tonne, increased 31.9 percent compared to that in 2012. Including cashew oil and other cashew processing products, in 2013, cashew export turnover was about US$1.8 to 1.9 billion. Statistics from 2009 to 2013 revealed that, excluding decreasing export in 2012, cashew export as well as cashew price generally reached gradually higher than previous years.

According to statistics, cashew export mostly focuses on American and Canadian markets with total export value of US$600 million. In Asian markets, Vietnam exports to China about 52,200 tonnes with turnover of US$300 million, and to India and Thailand. For Europe, cashew export possesses huge potential. Up to now, Vietnam exports cashew products to 11 markets in this region, in which the amount to the Netherlands reached the peak with 23,400 tonnes and turnover of US$160.3 million (reducing 3.4 percent in volume and 9.4 percent in turnover compared to that in 2012); to the UK and Russia maintained following positions, with growth in volume of 14.2 percent and 10.0 percent, respectively, compared to that in 2012.

This year, export target of cashew products is about US$2 million. Enterprises in this sector have carefully considered importing African raw materials and supplying it to all over the world.

Improving added value

Previously, some farmers still cut down cashew plants and replaced them with industrial crops, long-term fruit plants with higher value, which caused a decrease in cashew areas. Moreover, most current cashew plants areas is exhausted and in scattered locations, causing difficulties for enterprises to purchase. Under this circumstance, cashew industry takes the lead in restructuring, particularly changing from planting to processing, bringing higher value for cashew products. According to the calculation of the Ministry of Industry and Trade, ten years ago, enterprises only imported about 20 – 30 percent from abroad, and remaining 70 – 80 percent of that came from domestic raw material, but now they have to import nearly 50 percent of total cashew volume for processing to export.

In the coming time, enterprises in this sector have to become more active in advertising, marketing the products to potential markets. Many enterprises have to associate with each other to purchase materials and improve competitiveness. Furthermore, they try to avoid the situation of cashew processing manufacturers building up spontaneously, resulting in unfair competition and negatively impacting the prestige of the whole sector.

Huong Ly

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