Vietnamese cashew nuts face competitive pressure from Africa
Vietnam's cashew industry rose to number 1 in the world thanks to mastering technology. But Vietnamese technology is also helping African cashews compete with Vietnamese cashews.
According to the latest plan of Vinacas, Vietnam's cashew export turnover in 2023 will reach about 3.05 billion USD.
According to the Vietnam Cashew Association (Vinacas), in 2023, the total cashew growing area in the country will reach about 320,000 hectares, down 2,300 hectares compared to 2022. However, the output is expected to reach 345,000 tons, an increase of 3,300 tons. The average yield reached 1.15 tons/ha, an increase of 30 kg/ha.
In the first 6 months of the year, Vietnam imported about 1.44 million tons of raw cashew, worth about 1.8 billion USD, up 19.79% in volume and 5.16% in value. Currently, the amount of raw materials of enterprises is basically enough for production until the end of this year and the first quarter of 2024.
Also in the first half of 2023, enterprises exported more than 279,000 tons of cashew nuts of all kinds, export turnover reached about 1.6 billion USD, up 9.49% in volume and 7.65% in value.
Thus, despite many difficulties and challenges, cashew kernel continues to be one of the key export agricultural products, maintaining positive growth and belonging to the group of products with export turnover of billion USD in the past year. The first 6 months of 2023 of Vietnam.
Comments on the cashew market and some nuts (almonds, pistachios, walnuts, macadamia ...) in competition with cashew, according to Vinacas, in the period of 2023-2024, global consumption of nuts has slow trend. However, the yield and yield of most nuts are generally stable.
From now until the end of the year, Vinacas believes that the grain industry will continue to face many difficulties, mostly from objective reasons, such as: Lower raw material prices; the conflict between in Ukraine; Inflation remained high along with tight monetary policies of other countries… making purchasing power in key markets low.
Vinacas offers two scenarios for the industry in the second half of the year and the first quarter of 2024. In a favorable scenario, stimulating demand and accelerating consumption will help reduce inventories in major consuming markets including the US and Europe, thereby pushing up purchasing demand at the end of the year.
In addition, the strengthening of quality control of key markets will make it difficult for low-priced, poor-quality finished products to access these markets. Thereby, contributing to stabilizing the price and quality of Vietnam's export cashew kernels.
In the unfavorable case when the world economy continues to be difficult, cashew nut is not an essential commodity, so consumer demand will continue to decrease. This makes importers in the markets will not rush to buy kernels until there is an increase in demand again.
According to the latest plan of Vinacas, if the price of raw cashews continues to be stable and tends to decrease further from now until the end of the year and early 2024, Vietnam's cashew export turnover in 2023 will reach about 3.05. billion USD (down 50 million USD compared to the previously set plan).
Based on the current situation and forecast for the coming time, Vinacas proposes a number of solutions.
Firstly, with the current market and forecast for the coming time, Vinacas suggested the ministries and functional agencies to consider and promulgate appropriate import mechanisms and policies to ensure fairness. Vinacas has sent a written request to take appropriate and urgent measures to prevent the increase of cashew kernel imports to Vietnam, ...
Secondly, it is suggested that ministries, branches and local authorities create the most favorable conditions for cashew businesses, especially in terms of bank credit, tax and customs policies.
Third, Vinacas believes that Vietnam has many advantages to export cashew products, such as competitive price of cashew kernels, good quality and large consumption market. To promote cashew exports, it is necessary to focus on finding new markets, improving product quality and building a Vietnamese cashew brand.
In addition, on promoting Vietnamese cashew products to consumers in key markets such as EVFTA and CCTPP, the Ministry of Industry and Trade is requested to support the industry's domestic and international trade promotion programs. from now until the end of the year and the beginning of 2024.
Fourth, request the Ministry of Industry and Trade to have industrial promotion programs, support enterprises to invest, improve technology and equipment, digital transformation, upgrade processing facilities in accordance with international standards such as BRC, Smeta , HCCP,…
Fifth, request the Prime Minister to direct relevant ministries and sectors and overseas Vietnamese trade representatives to continue supporting businesses in the cashew, pepper and related spice industries that are deceived by foreign partners. island recently. Support businesses cheated by partners in Italy to recover deposits for shipping lines, …
Sixth, request the Plant Protection Department - Ministry of Agriculture and Rural Development to support definitively handling the problem of electronic phytosanitary certificates (e-Phyto) of Ivory Coast and other countries; direct the regional Quarantine Sub-Departments to increase human resources to support enterprises in the process of sampling and inspecting goods at the warehouse instead of at the port during weekdays and weekends, contributing to the quick release of goods at the port.
Seventh, it is proposed that the Ministry of Agriculture and Rural Development continue to support the research and development of specialized technical standards and regulations for cashew nuts and cashew by-products; suggested that the SPS Vietnam Office continue to coordinate with the authorities to support cashew businesses in implementing new regulations on food safety control of the foreign market, especially the foreign market. China, EU, and US schools.
Eighthly, it is proposed that the Ministry of Agriculture and Rural Development organize a survey, assessment, and stable and long-term planning of cashew growing areas. In difficult conditions to increase the area, propose solutions for cooperation and development of raw material areas in Cambodia and Southern Laos.
Ninth, it is proposed that the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, the Ministry of Foreign Affairs and Vietnamese diplomatic and trade agencies abroad strengthen information on markets, customers, consumption trends and trade risks. trade in foreign markets and support businesses in the cashew industry when facing difficulties.
Manh Hung
Source: Government Electronic Newspaper
