40% less Chinese chestnuts, price 30% up

Export market demand feeble

"Due to the weather this year, a great reduction of the production of chestnuts has occurred all over China. Up to 40% less Chinese chestnuts are appearing on the market. Compared to the price of 9000 RMB per ton last year, the current market price is up by 30% at 12,000 RMB per ton," says Mr. Ren Yuwei, CEO of Tai'an Xinliyuan.

Price keeps rising

"The sudden upward motion of the market price is caused by the significant reduction of the supply volume on one hand. But on the other hand, it is also the result of the production material for the cultivation of Chinese chestnuts becoming more expensive. The production material had a price of 3 RMB in September. In October it became 4 RMB and continued to rise to 5 RMB in November. Without any doubt, this has also pushed the price further up at the end of the production season.""The production period of Chinese chestnuts starts in June. It ends in September. After that, the harvesting season begins. A large benefit of the chestnuts is that they endure long-term storage very well. A fresh chestnut can be preserved without a problem for a year at -2°C. The export season starts mid-September and lasts until the end of November."

Strong demand on Chinese market

"Because the demand from the Chinese market is rather low, 80% of the chestnuts we produce are sold to the wholesale markets of first-tier and second-tier cities in China such as Shenzhen, Shanghai, Beijing and others. Only the remaining 20% is sold to the Middle East, such as Israel. Even though the demand wasn't very high this year at the Dutch market, it still shows an increase compared to last year. We estimate that the situation will be even better next year. Moreover, compared to other competitors on the foreign market, like the chestnuts from Spain, the superiority of the Chinese chestnuts is rather obvious when it comes to price and quality. Especially Dandong chestnuts, which are rather big, are often preferred by foreign consumers.""Tai'an Xinliyuan was founded in 2008. The company is located in Dandong city and it has adopted a 'factory+farmers+cooperative' model of operations. It integrates production, processing, cold storage and packaging into one unified and modern enterprise with packaging factories and storehouses in Dandong and Tai'an. At present, the yearly production of the Shandong province is 30,000 tons to 50,000 tons of Chinese chestnuts every year. Our cooperative has a production volume of 5000 tons per year."

Source: http://www.freshplaza.com/a

Africa - The difficult problem of the industry in Vietnam

Vietnam now accounts for 50% of world market conditions, but it is dependent on huge imports of raw cashew nuts from Africa, because this area is not actively processed cashews. However, once these countries to master the technology in the future, the market share of Vietnam's cashew-risk threat.

The shine of the industry

According to data from the General Administration of Customs, May 10, 2016, Vietnam exported cashew nuts reached 2.337 billion US dollars, up 16.9% continued over the same period last year. In particular, the US is the largest market accounting for one third, reaching 795 million. Nut commodities are agricultural commodities are rising strongly in recent years, and the exports sector has the 2nd largest after just coffee.

Exports increased, imports also increased more cashews. General Administration of Customs said that after 10 months, Vietnam cashew import 1,378 billion, up 36.8% over the same period last year.

http://cafebiz.cafebizcdn.vn/2016/photo-0-1480405974962.png

In particular, the value of imports from African countries are continuously increasing, up 54% Ivory Coast, Nigeria increased by 69%, Ghana 26% and increased to 124% Guinea. The total value of imports four countries accounted for 71% of imports last 10 months.

For years, African cashews are playing an increasingly important role for the branch of Vietnam. Since 1996, together with the restrictions on exports of raw cashew nuts to foreign countries, Vietnam has begun to import of raw materials from the market to offset the shortage of domestic raw cashew nuts in service sector growth cashew processing industry in Vietnam.

The African countries export large quantities of raw cashew nuts is limited by the processing capacity of cashew nuts. However, in the future, if these countries are homemade cashew nut supply to Vietnam could be affected.

Technology was the African country "snooping"

A few decades ago, only Ivorian cashew to combat erosion and desertification, but now the economic efficiency from cashew clearly shows. African countries in general and in particular the Ivory Coast have big ambitions homemade cashew nuts to be carried away for export, not just exporting raw cashew nuts.

The location is the main raw material of the world, as can a cashew processing, regional countries will produce, homemade, self-export, economic efficiency certainly is improve.

However, the difficulty of the African cashew processing technology in the world is very expensive, while the efficiency is not high, a large proportion of broken grains. The African countries have come to Vietnam, the country's largest exporter thing in the world, and found that cashew processing technology of Vietnam is perfect. Low grain breakage ratio, the proportion of low oil-contaminated grain, and most importantly cost only 1/20 as compared with the water lines in the world.

To own cashew processing technology, Ivory Coast has set up offices in the City with the task of searching for and buying technology partners. But the ambitions of the Ivory Coast faced opposition decided whether Vietnam Cashew Association (Vinacas). Cashew Association has repeatedly spoken out against the sale of technology and want government protection move by not processing technology exports to African countries.

From your position row, the African countries are emerging as formidable opponents of branch of Vietnam and these countries certainly will not stop until the technology ownership they desire. At the International Conference of things by Vinacas held in Da Nang past, representatives of the country once again reaffirmed the desire to develop learning experiences of Vietnam's cashew sector to take apply to Africa.

Location "bosses" of the world's cashews Vietnam in the future might be threatened. Vietnam currently account for 50% of global market conditions. The risk of competition from countries in Africa, a leader Vinacas said that Vietnam needs to quickly change business strategies to fit with the new trend, to Africa remains the partner rather than a rival .

minh Quan

Source: Knowledge Young

2016 Record Crop For Pistachio Growers

The 2016 pistachio crop is the largest in U.S. history, producing more than 900 million pounds, beating the previous record set in 2012 by almost double, according to Richard Matoian, Executive Director of the American Pistachio Growers Association.

A cooler winter last year and a smaller than usual crop in the 2015 season, combined to allow pistachio trees an extended resting period, Matoian said.

"When they have enough chill hours, they wake up and they are ready to go," he said.

Matoian anticipates the record 2016 crop to drive prices of pistachios down, benefitting consumers.

California produces 98 percent of U.S. pistachios, followed by Arizona then New Mexico. After the 2016 record crop, Matoian anticipates Arizonas acreage to double over the next two years.

Pistachio growing season is March through early November, with sales peaking in December. The U.S. is the largest supplier of pistachios in the world, followed by Iran.

U.S. growers export approximately 60-65 percent of its crop each year, primarily to China and the European Union.

Source: http://kjzz.org/

Cashew exports may bring Mozambique tax revenues of US$33 million

The current cashew marketing year in Mozambique could provide a tax revenue of US$33 million resulting from the export of 110,000 tons of raw nuts, said the president of the Association of Cashew Manufacturers (Aicaju).

Mohamed Yunus, who made an upward revision of cashew production in this campaign from 120,000 thousand tons expected by government entities to 150,000 tons, said that of this amount 40,000 tons would remain in Mozambique to supply the industrial units in operation.

The amount of tax revenue mentioned by the President of Aicaju is based on Mozambique applying a surcharge of US$300 for each ton of cashew nut that is exported raw.

In turn, the companies involved in the marketing and export of raw nuts should earn about US$200 million before deducting costs of transport, handling at warehouses and other expenses.

The benchmark price of the nuts currently stands at just over US$4.0 a pound on the international market, while the domestic market price recently hit a record of 90 meticais (US$1.2) per kilo.

The cashew industry in Mozambique collapsed about 20 years ago due to proposals by the World Bank that recommended the liberalisation of export of raw nuts.

Source: http://www.macauhub.com.mo

Big challenge for cashew industry: when partners become rivals

At a speech delivered at an international conference held by the Vietnam Cashew Association (Vinacas) last week in Da Nang City, a representative of the Ivory Coast Cotton & Cashew Council revealed a willingness to follow Vietnam’s model to develop its cashew industry.

Ivory Coast has recognized the high value of cashew and has decided to develop cashew as one of its key economic branches.

The country has set up a representative office in Vietnam, in charge of looking for Vietnamese partners and buying technologies. This was why Vinacas requested the government to take action to prevent export of cashew nut processing technology.

Ivory Coast has also applied policies to encourage domestic and foreign businesses to set up cashew nut processing factories in the country.

Vu Thai Son, director of Long Son Cashew Nut Export Company, said the government of Ivory Coast gives financial support to exporters. Foreign invested enterprises are allowed to collect materials directly from farmers while there is no need to do this through intermediaries.

Meanwhile, some African countries offer $120 for every ton of cashew nut exported. Some Vietnamese companies have set up their offices in Ivory Coast, Nigeria and Ghana to enjoy the preferences.

According to Vinacas, in the first nine months of the year, Vietnam imported 868,000 tons of raw materials, 85 percent of which was from Africa, especially Ivory Coast (41 percent), Nigeria (13 percent) and Ghana (10 percent).

Reform or die

It is estimated that every three kilo of raw materials will give one kilo of cashew nut. W320 cashew nut is offered at $10 per kilo, while the raw material import price is $2.25 per kilo. As such, Vietnamese enterprises can pocket $1-2 for every kilo of products exported.

However, the enterprises now want bigger profits and to get this, they have to sell highly processed products instead of preliminarily processed ones. Bee’s honey or wasabi coated cashew nuts are offered at $20-30 per kilo on ebay and alibaba, which is 2-3 times higher than the price of cashew nuts sold by Vietnam.

Instead of trying to prevent African countries from buying Vietnam’s technologies, Vinacas seems to have a longer-term vision. Vinacas’ chair Nguyen Duc Thanh said it would be better to change the business strategy to adapt to the new circumstances and keep African countries as partners instead of rivals.

Source: http://english.vietnamnet.vn

Tanzania: Don't Discourage Buyers, Says Cashew Board

The Cashewnut Board of Tanzania (CBT) wants the government to eliminate challenges facing cashew nut buyers, warning that ongoing wrangles between farmers and crop buyers on the one hand and Mtwara regional authorities on the other, was unhealthy for business prosperity in the country and could lead to a fall in prices. The CBT concern is being aired in the wake of a plea by the Vietnamese embassy seeking permission for Vietnam cashew nuts traders to transport by road their merchandise from Mtwara to the Dar es Salaam Port.

A Vietnamese company, Starnuts, has failed to transport 3,700 tonnes of cashew nuts because the sea vessels that would ferry the commodity to Dar es Salaam were reportedly booked until January. The government recently directed crop buyers to export their consignments using Mtwara Port so that facility other agencies operating there can collect taxes and fees. But the shortage of marine vessels at the port means cargo would have to wait for long in the godowns, a situation that affects crop buyers' obligations to their customers and financiers. CBT Director General Hassan Jarufu told The Citizen over the weekend that transporting the commodity to the Dar es Salaam Port by road would make cashew nuts business more sustainable. This would expedite the trade cycle as exporters would sell their merchandise overseas faster and repay their loans and come back to buy more crops.

"Under the current situation where thousands of tonnes are still in the warehouses buyers, cannot have the money to purchase cashew nuts in the ongoing auctions," he warned. He said until mid-last week, 107 listed buyers were reported to have bought 141,000 tonnes, but only between 54,000 and 57,000 tonnes have been issued with export permits, meaning that over 90,000 tonnes were yet to be shipped out of Mtwara. According to him, lack of money has left only a few local buyers in the auction centres, accounting for the gradual decrease in prices. This, he adds, is an indicator that prices will be low as the festive season approaches since most foreign buyers would travel home for Christmas and New Year holidays.

"We shouldn't discourage these people; they have brought competition that has enabled the country to register unprecedentedly high prices," he said. Mr Jarufu said the Mtwara Port was incapable of handling this year's big harvests due to its poor infrastructure, what with its inability to dock large ships and having only one weighbridge, among other challenges. "Procedures require that each container is weighed before it is loaded and under the present situation in the Mtwara Port, ships spend many days loading. Also, the port's water levels don't allow large vessels to dock and load cargo at full capacity," he said.

He suggested that the region should tighten security after opening roads for cashew nut transportation by introducing many checkpoints as neighbours in Lindi region have done. Lindi has introduced checkpoints in Mnazi Mmoja, Nangurukuru and Malendego to curb illegal transportation of the highly valued product.

Source:http://allafrica.com

Ten months in cashew exports earned US $ 2.34 billion

According to statistics of the General Administration of Customs, the export volume of cashew nuts 10 months to reach 290 936 tonnes, equivalent to US $ 2.34 billion, up 5.8% in volume and 16.9% in value compared to the same period in 2015. it is expected that the exports of cashew nuts in 2016 reached nearly $ 3 billion, continues to lead the world.

USA, Netherlands and China remained the third biggest market for Vietnam's cashew nuts. Specifically, exports of cashew nuts to the US (reaching 795.4 million USD, accounting for 34%, an increase of 12.5% over the same period); exports to the Netherlands (reaching 315.8 million USD, accounting for 13.5%, an increase of 23%); to China (reaching 332.7 million USD, accounting for 14.2%, 24.4%).

Overall in the first 10 months, exports of cashew nuts to the market most of the positive growth in turnover compared to the same period last year; which increased sharply in some markets such as Pakisstan (+ 197%), India (+ 80.7%), Russia (+ 59%), France (+ 56.6%), and Ukraine (+ 80% ).

In the domestic market, the price of purchasing dried nuts are reaching record highs in recent years. In Binh Phuoc - where the largest cashew production in the country reached 200,000 tons / year, the current supply was exhausted, up to 52,000 VND / kg.

According to Binh Phuoc Cashew Association, the province has more than 210 enterprises and 400 cashew processing facilities with a total capacity of 130,000 tonnes / year, but only 81 287 tonnes of grain were purchased / year, which is only about 65% of production province of crude, the rest must be imported for processing raw materials. High prices in 2016 may affect the overall demand in 2017.

According to forecasts, the price of cashew nuts to dry while still continuing upward trend by rising demand, but supply dwindling, so affected by the weather. Output of articles of Vietnam's 2016 forecast did not increase compared to 2015. In order to ensure supply, the processors can not rely on that source of raw materials locally. Approximately 2/3 of the export of processed cashew annually from imported sources. West Africa accounts for about 46% of global production of crude (2015) and most of the crude produced in this region are processed in India, Vietnam or Brazil.

The first 10 months of 2016, the business has imported 913,000 tons of crude, worth $ 1.4 billion, up 17% in volume and 39% in value compared to the same period of 2015. The forecast this year, Vietnam Men may import 1 million tons of rolled material (if the import quota from Cambodia), accounting for 65% of domestic processing conditions. He was rated as industry turnover brings "billions"; however, quantities imported as above, this sector is one of the sectors with the supply and demand of raw materials most serious imbalances.

Preliminary statistics on the export of cashew GDC first 10 months of 2016

Unit: USD

Market	10T / 2016	10T / 2015	+/- (%) 10T / 2016 yoy
Total turnover	2337035600	1998673971	+16.93
USA	795 395 792	707 363 814	+12.45
China	332 740 382	267 402 548	+24.43
Netherlands	315 758 533	256 823 498	+22.95
Brother	105 584 366	86,035,109	+22.72
Australia	102 718 034	102 245 534	+0.46
Virtue	83,085,321	56,471,424	+47.13
Canada	75,368,763	72,119,451	+4.51
Thailand	52,679,503	57,235,562	-7.96
Israel	33,093,758	22,127,841	+49.56
Italia	30,003,061	25,123,661	+19.42
Fall	28,313,524	17,798,975	+59.07
India	23,319,248	12,906,335	+80.68
France	23,167,335	14,792,749	+56.61
United Arab Emirates	22,198,042	23,759,340	-6.57
Japan	21,063,504	22,769,421	-7.49
New Zealand	18,047,752	16,905,553	+6.76
Spain	16,828,803	17,492,183	-3.79
Taiwan	16,780,524	18,987,015	-11.62
Hong Kong	14,875,624	12,639,165	+17.69
South Africa	8609997	10,192,263	-15.52
Pakistan	8600607	2895433	+197.04
Belgium	8462110	10,905,254	-22.40
Singapore	7425416	6781234	+9.50
Philippines	7174013	5470688	+31.14
Norway	6727242	5256127	+27.99
Greek	6451963	6303780	+2.35
Ukrainian	1887319	1048200	+80.05

Thuy Chung

Source: Vinanet