As global demand increases for
cashew, Việt Nam, the world’s largest exporter of the nut, could grab an
even bigger market share by improving quality, a conference heard in Đà
Nẵng yesterday.
Ranjeet Wallia, president and CEO
of Chi Commodities Handlers Inc, said global demand is up 53 per cent since
2010 and cashew is now the second most consumed tree nut.
"The US buys more than 30
per cent of Việt Nam’s exports, mainly for snacking and making cereal,
energy bars, milk and healthy foods."
Joseph Lang, managing director of
Kenkko House, one of Europe’s largest dealers of nuts and dried fruits, said:
“The growth of the cashew market in Europe over the last three years has been
tremendous with Europe now representing around 25 per cent of cashew exports from
Việt Nam and having growth by well over a third over the period.”
Demand is expected to continue
increasing because consumers are more aware of the nut’s nutritional value,
according to Lang.
Cashew currently has a tighter
supply scenario and has consequently seen price rise.
The recent increase in price is
likely to worry buyers, including retailers and food processors.
Lang said: “Of course, a higher
price will encourage us to aim to grow and supply more to our markets, but this
too represents a threat. If we supply more, we run the risk of over supply,
particularly as buyers seek cheaper alternatives and this could impact our
profits badly.”
It was about getting the balance
right between supply and demand and ensuring the product can command a high
price not simply because it is in short supply but because it is of consistent,
reliable and high quality, he said.
“Consumers are becoming more and
more demanding about transparency. They want to know where their foods come
from, what’s in it and how it has been produced.
“That means we need to be more
transparent, provide greater information and show evidence that our product is
not infested, is of high quality, comes from a reliable and sustainable source
of supply and generally satisfies the expectations of today’s well informed
customer.”
Doãn Thị Thu Thủy,
deputy head of the Việt Nam Trade Promotion Agency (Vietrade), said while
exports of many other agricultural products faced difficulties, it had been
smooth sailing for cashew.
Việt Nam currently accounts
for half of the world’s cashew exports, and has been the leading exporter for
the last 10 years.
Its cashew products are exported
to 80 countries and territories, with the US, Europe, and China being the main
markets.
According to the Ministry of
Industry and Trade, Việt Nam exported 290,000 tonnes worth US$ 2.32
billion in the first 10 month of this year, a year-on-year increase of 5.5 per
cent in volume and 16.4 per cent in value.
The full year’s exports are
expected to reach a record $3 billion, with kernel accounting for $2.8 billion.
Raw cashew imported
"But the Vietnamese cashew
industry faces high risk due to its massive reliance on imported raw materials,
which also makes it hard for processors and exporters to control quality or
food safety and hygiene," Nguyễn Đức Thanh, chairman of
the Việt Nam Cashew Association (Vinacas), said.
Demand for raw nut imports
doubled in 2013-16, he said.
He quoted quality checking
company Vinacontrol as saying the quality of raw cashew imported from Africa
had been lower this year compared to last, affecting Vietnamese exporters.
Trade disputes also increased
significantly this year, he said.
This was due to raw cashew prices
fluctuating sharply at the beginning of the harvest season ($1,350 per tonne in
March) and the end of the season ($1,750 in September), which meant those who
signed contracts to sell at the start of the season were unable to fulfil them.
"Some Vietnamese importers
have been guilty of failing to study the market or their partners, and not
being diligent while negotiating and signing contracts," he said.
Companies need to have a strategy
to develop raw material sources, and be more careful about importing raw nuts,
he said.
The association would work with
African countries to persuade them to refuse export quotas to firms not
fulfilling their contracts with Vietnamese firms, he said.
The association listed
specifications for raw cashew nuts and displayed samples of purchase contracts.
Việt Nam and African
countries like Ivory Coast and Nigeria discussed ways to boost co-operation in
cashew trade.
The two-day Việt Nam Golden
Cashew Rendezvous is being organised by Vinacas and Vietrade.
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