Sunday, September 15 2019

VietNamNews

Cashew industry seeks way out of current troubles

Update: August, 19/2019 - 09:30

A farmer harvests cashew nuts in the southern province of Bình Phước. Raw cashew prices and demand are expected to increase in the fourth quarter of this year. — VNA/VNS Photo Dương Chí Tưởng

HCM CITY — The Việt Nam Cashew Association (Vinacas) held a conference to review the industry’s performance in the first seven months and identify solutions to the problems plaguing it.

Phạm Văn Công, chairman of Vinacas, said the industry has been facing a lot of difficulties since last year.

This year, it exported nearly 245,000 tonnes, an increase of 10.8 per cent year-on-year, but with global prices down by an average of nearly 22 per cent, revenues were down 14 per cent at US$1.8 billion, he said.

Trương Sỹ Bá, CEO of Tân Long Group, a large agricultural enterprise, said domestic supply only meets 20 per cent of the industry’s raw cashew demand and the rest has to be imported.

Last month, his company bought 215,000 tonnes from three African countries, including 176,000 tonnes from Tanzania, and this is expected to ease the concern about a shortage of raw materials this year, he said.

According to Vinacas experts, raw cashew prices and demand are expected to increase in the fourth quarter of this year, especially in the US.

Vinacas sought the Ministry of Trade and Industry’s support for companies to acquire machinery, equipment, technologies and facilities to improve productivity and ensure food safety and quality.

It also urged the ministry to continue with its Cashew of Việt Nam programme to provide market information and packaging design.

It wanted the Ministry of Agriculture and Rural Development to support a programme to review and develop cashew-growing areas in neighbouring countries such as Cambodia and Laos to take advantage of their land resources to create a sustainable source of raw materials for the industry. — VNS

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