Mixed feelings for Vietnamese cashew, dragon fruit exporters January 25, 2016

Mixed feelings for Vietnamese cashew, dragon fruit exporters January 25, 2016 Although the output of Vietnamese cashews has been improving in markets such as Japan and the U.S., companies are still anxious over large export contracts, as they fear that there will not be enough product to meet demand. For dragon fruit exporters, the market is expanding, but unhealthy competition amongst exporters is affecting the ability to meet orders.The Hoang Son I Limited Company in the southern province of Binh Phuoc signed a cashew export contract up to May this year, according to Ta Quang Huyen, director of the company."The world market is consuming Vietnamese cashews with export prices rising from VND72,800 per kilogramme to VND78,400 per kilogramme," Huyen told the Phap Luat Thanh Pho Ho Chi Minh (HCM City Law) newspaper.However, large export contracts make enterprises worried."The company does not dare to sign contracts with large volumes because we are worried that there will be not enough raw cashews to meet the signed orders," Huyen said.Huyen said the domestic raw cashews could supply only 30 percent of the demand for export processing. Responding to this issue, Nguyen Duc Thanh, chairman of the Vietnam Cashew Association (Vinacas), said Vietnam could process about 1.3 million tonnes of cashews each year, however, the country could supply only 500,000 tonnes, with the rest imported from Africa and Cambodia.Meanwhile, the export of dragon fruit in the beginning months of this year has also been smooth, according to Tran Ngoc Hiep, director of the Hoang Hau Dragon Fruit Farm Co, Ltd.Besides the key market of China, the company expanded its exports to the US, Japan, Europe and Southeast Asia.Export prices to China are around VND22,400 per kilogramme, said Hiep."However, the difficulty of the sector is the unhealthy competitiveness among traders, which means exporters do not have stable goods to meet the orders of foreign partners," he added. (1 Vietnamese Dong =0.000045 US Dollar) Source: vietnamnews.vn