This morning, the Ministry of Industry and Trade and the VINACAS jointly organized the 13th Vietnam International Cashew Conference in 2024 in the Central Province of Quang Binh with the participation of more than 350 delegates from 40 countries around the world and 10 organizations such as the International Nut and Dried Council (INC), China Nut Association (CNA), Ivory Coast Cotton and Cashew Council (CCA), African Cashew Alliance (ACA) along with cashew industry organizations of Cambodia, Senegal, Benin, Guinea.
VINACAS wanted to hear professional analysis and evaluation from international organizations, cashew associations, economic experts and businessmen that also proposed solutions and initiatives to reshape the global cashew supply chain. Accordingly, the readjustment of the value chain will help the cashew industry in Vietnam and the world develop stably in the coming time.
The conference aims to connect large raw cashew processors and suppliers from African countries and Cambodia with roasting businesses, distributors, and retailers from large cashew consuming markets in Europe. America, China.
Speaking at the conference, VINACAS Chairman Pham Van Cong emphasized that this is an opportunity for all parties to reshape the supply chain and global value chain of the cashew industry in the post-Covid-19 era while the conflict between Russia and Ukraine, the war between Israel and Hamas have had a huge impact on the economies and societies of other countries. Inflation, rising production and business costs, the decline in consumption have caused significant challenges to the global cashew supply chain, including Vietnam.
According to Mr. Cong, in 2023 Vietnam's cashew industry will set a record by exporting over 645,300 tons of cashew kernels of all kinds. But this record number poses a great threat to the Vietnamese cashew industry and is also a risk to the global cashew industry.
The strong growth of Vietnam's cashew processing industry has led to intense competition in the purchase and sales of raw cashews, affecting the domestic cashew industry. Specifically, the price of cashew kernels dropped sharply, while the price of raw cashew nuts was very high at the beginning of the season and decreased at the end of the season, but still could not balance the selling price; therefore, many businesses have suffered big losses.
The hot growth in raw cashew area and output in some African countries and Cambodia shows no signs of stopping, while the processing industry in these countries is still modest. Some countries have large cashew output but are applying deep protection policies to raw cashew nuts. For example, the present regulation of the minimum selling price and the regulations on collecting export taxes and many types of fees led to high prices of raw cashew nuts. Businesses have beaten off cut-throat competition causing purchasing power to decrease and selling prices to decrease.
If businesses continue their competition, a score of processors in Vietnam and the world's cashew industry are at risk of bankruptcy. With a market share of nearly 80 percent of the world's cashew kernel exports and consumption of nearly 65 percent of output. world raw cashew nuts, the collapse of Vietnam's cashew processing industry will lead to unpredictable consequences for the world cashew industry and disruption of the supply of cashew kernels. In particular, countries that grow cashews and export raw cashews will not buy many cashews from Vietnam anymore, said Mr. Pham Van Cong.
Therefore, at today’s Vietnam International Cashew Conference, VINACAS wanted international organizations, cashew associations of countries, experts, and businessmen to propose solutions for reshaping the global cashew supply chain. Accordingly, the adjustment of the cashew value chain will help the cashew industry in Vietnam and the world develop stably in the coming time.
The International Cashew Conference was organized to promote the product brand Vietnamese cashews, exports, and consumption as well as reinforce sustainable, long-term relationships between businesses and cashew associations in Vietnam and the world.
