|"Global output is forecast to increase by 10-15 per cent this year to around three million tonnes of raw nut thanks to favourable weather conditions," Nguyen Minh Hoa, director of BIMICO, a processor based in Tay Ninh Province, said. — Photo fica
HCM CITY (VNS) — Viet Nam is expected to face difficulties in exporting cashew products since global supply has increased, a seminar in HCM City heard last Saturday.
"Global output is forecast to increase by 10-15 per cent this year to around three million tonnes of raw nut thanks to favourable weather conditions," Nguyen Minh Hoa, director of BIMICO, a processor based in Tay Ninh Province, said.
In Viet Nam it would increase by 15-20 per cent to 500,000-550,000 tonnes, he told the seminar organised by the Viet Nam Cashew Association (Vinacas) and the Agricultural Economic Reporters' Club.
According to the Ministry of Industry and Trade, exporters shipped 51,000 tonnes of processed cashew for US$319 million in the first quarter, a year-on-year increase of 19.1 per cent in volume and 21.6 per cent in value.
But exports would begin to slow down until June, Hoa said.
The US and EU, major markets both, have not imported much this year and so for at least two more months, they would have high demand, he said.
Ta Quang Nguyen, director of Hoang Son 1 Co, Ltd in Binh Phuoc Province, said in the first quarter China had high demand for Vietnamese cashew, but this is likely to dry up this quarter due to a depreciation of the Chinese yuan, higher transportation costs, and other reasons.
The cashew harvest season has ended in the south-eastern region, and the association urged its members to buy out the raw nuts from farmers by the end of this month.
As for import of raw cashew for processing for export, Nguyen Duc Thanh, Vinacas chairman, said firms should carefully consider prices and timing to avoid risks since processed-cashew prices are lower than last year.
The association unveiled a Viet Nam cashew value programme that targets raising the value of exports, promoting consumption both in the domestic and foreign markets, and build brands for the country's cashew products.
For the programme, to be implemented from this year through 2020, the association will co-operate with the HCM City Nutrition Centre to research and assess the nutritional benefits of cashew, Dang Hoang Giang, Vinacas deputy chairman, said.
It will collaborate with the Global Cashew Council and its nutritional research programme to promote the nutritional aspects of Vietnamese cashew globally.
The VND20 billion ($947,000) programme will build national cashew brands, register trademark to protect Vietnamese cashew products in key markets like the US, China, and EU, and develop new products suitable for local tastes, Giang said.
Despite being the world's largest cashew exporter and having quality products, Viet Nam is unable to get higher export prices than for lower-quality products due to lack of marketing and brands, he said.
The programme is expected to improve the situation and enable stable development of the local industry, he added. — VNS