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Cashew nut processing for export |
Over the course of nine months, 456,000 tons of cashew nuts were exported, valued at $2.6 billion, up 19.6 percent in quantity and 14.3 percent in value compared to the same period last year.
In the afternoon of October 10, the Vietnam Cashew Association (VINACAS) collaborated with the Agricultural Economics Journalists Club to disseminate information to the press. During this event, Mr. Pham Van Cong, Chairman of VINACAS, highlighted favorable developments in key markets, especially the US market. The elevation of the bilateral relationship to a comprehensive strategic partnership has bolstered the confidence and motivation of businesses in both countries.
Accordingly, the export of cashew nuts has recorded double-digit growth, establishing it as an agricultural product with an export turnover exceeding $2 billion over the past time. Over the course of nine months, 456,000 tons of cashew nuts were exported, valued at $2.6 billion, up 19.6 percent in quantity and 14.3 percent in value compared to the same period last year. With the upcoming months being the peak of exports, the cashew industry's target of reaching $3.2 billion in 2023 appears achievable.
According to Mr. Pham Van Cong, cashew nuts have evolved from a high-end snack to an essential commodity for consumers in developed countries, especially within the G7 group of nations, one of the key export markets for Vietnamese cashew nuts. Meanwhile, in India, cashew nuts are a staple vegetarian food consumed on a daily basis.
Nonetheless, it is crucial to recognize that the recent drop in cashew nut prices is part of a worldwide market pattern. What is of particular concern, however, is that Vietnamese cashew nut prices have experienced a more significant decrease compared to those of India. This situation may be attributed to the regulations set forth by two industry associations, NDFTA (Nuts and Dried Fruit Trade Association of the United Kingdom) and AFI (American Food Industries of the US), as well as various other prominent customers who have issued warnings regarding food safety matters such as live pests and pesticide residues.
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Food safety has become a matter of survival for the Vietnamese cashew processing industry amid intense competition in the global cashew nut market. |
Mr. Bach Khanh Nhut, Permanent Vice Chairman of VINCAS, notes that customer complaints can have several underlying causes. The year-end corresponds to a period of concentrated storms, especially in the Southern provinces, creating favorable conditions for insect infestations. With the year-end being the peak trading season characterized by increased orders and production volume, many businesses may grapple with challenges due to inadequate staffing and equipment, resulting in insufficient oversight. This is a matter of individual business awareness, but when such incidents occur, they can tarnish the reputation of the cashew processing industry in Vietnam.
The association's representative asserts that VINACAS, as an industry association, can only provide recommendations. All member businesses have signed commitments, and most violations occur among non-member enterprises. Therefore, there is a crucial need for coordinated efforts between the industry and local authorities to address these issues collectively. Food safety has become a matter of survival for the Vietnamese cashew processing industry amid intense competition in the global cashew nut market.
According to Mr. Bach Khanh Nhut, customers have said that prolonged incidents will erode confidence in the quality of Vietnamese cashew nuts. Restoring trust will require a considerable amount of time. Therefore, timely coordination is essential to rectify and address issues related to safeguarding and rebuilding trust, as well as the overall reputation of the cashew industry in Vietnam.
Mr. Dang Hoang Giang, General Secretary of VINACAS, has informed that the Standing Committee of VINACAS has been urgently preparing for a trade promotion delegation to Japan. This coincides with the time that the Vietnamese Trade Office in Japan collaborates with the Vietnamese Business Association in Japan to host the "Vietnam - Japan Business Day" in commemoration of the 50th anniversary of diplomatic relations between Vietnam and Japan on November 2, 2023. The Vietnamese Trade Office in Japan has extended an invitation and supported VINACAS to organize a seminar titled "Vietnam - Japan Cashew Trade" in Tokyo and Osaka on the afternoon of November 6, 2023.
