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  • Big but not strong cashew

    May 24th, 2016

    <p></p><p>We are a giant in this sector but has no power to do so strong everyone. <br></p> <p>VN cashew sector leads the world in all three criteria is the number of exports, imports and production, has the capacity to dominate the market, but we are not dependent only output that even with both the letter material exporters in Africa pinched. <br></p> <p>Unpredictable in both the inputs and outputs should be exactly what the industry is only a "uncrowned king." However, at the conference "transfer his industry welcomed the new opportunities, said to clean it - think of VN" by VN Cashew Association (Vinacas) in collaboration with JSC Thanh Nien held yesterday to 23.5, more even now worried that the title could also lose in a not too distant future.</p> <p>No power giants <br></p> <p>According to Vinacas, currently has about 1,000 base VN cashew processing and export 371 units. Processing capacity of 1.2 million tons, accounting for about 40% of the processing capacity of the entire world. In the first 4 months of this year, exports increased by nearly 20% over the same period in 2015 and a turnover of over US $ 700 million; the average export price reached $ 7,541 / ton, up nearly 7% over the same period last year. <br></p> <p>But now we are only active in the production of raw materials 1/3, the rest is imported from Cambodia and the majority from Africa - particularly the Ivory Coast. In the first 4 months of this year nearly 207,000 tons VN entered, up nearly 5% over the same period; turnover of over 323 million, an increase of 22% over the same period last year. <br></p> <p>"Industry conditions VN large than the No. 2 industry that is India. We have absolute advantage. We are a giant in this sector but has no power to do so strong everyone. We scrambled to sell, scrambling to buy; Contract people put whatever kind of sign, "said Vu Thai Son, Director of Long Son, one of the leading enterprises VN and the world in this field burning. He paints a comment, the growth of the industry pretty well maintained over the last 5 years made many people think that "good eating", want to jump in, to create a movement of home, people who do. There are many business sectors of coffee, pepper, other manufacturing sectors both at home and abroad also want to jump into this sector. Once a playground with many people joining will create more competition. But the VN-style competition is healthy competition, not to the individual or collective stronger but makes it increasingly weakened. <br></p> <p>But Nguyen Duc Thanh, chairman of Vinacas, bitterly: "We're big but not strong because of the lack of solidarity. The "giants" but we are forced, to the export of raw materials also make it difficult for us. Why did they do so? Because of our business which "rebel" market ".</p><p>Should unite to create power <br></p> <p>Ms. Huong, a broker in the industry, said the current low inventory levels, production of raw materials for processing serve deficiency in both VN and India due to El Niño. While the consumption of cashew in the world is good and capabilities will remain in the near future. Agree with this statement, Mr Son said that in 2-3 years this sector will still maintain its VN advantage of domestic raw materials and from Cambodia. However, the competition is getting fiercer and may lose their ability to compete; especially from the 4th year onwards will face great difficulty. These risks can be anticipated such as: we are too dependent on imports of raw materials from Africa. At some point that they invest in processing, they will be taxed the export of raw cashew and we will not have to produce raw materials. This is the history of what has happened about 10 years ago. In this factor should be noted that China is engaging businesses VN investment in this field even in Africa. <br></p> <p>Vina Control Organization representative, specialized units perform quality testing of agricultural products for Vinacas, said the unfair competition of enterprises not only affect the quality of the purchase price of raw cashew imports growing reduced: high humidity, a strange smell, impurities much, sprout ... these phenomena previously little but recently increasingly popular and increasingly lower quality. This affects the quality of exports. The reason we do not have a precedent quality of delivery that do not usually negotiate discounts. "The safety standards of quality such as HACCP which VN, importers they are not considered important because of the fact it does not comply with quality standards at all. Recently, the US and European countries to strengthen food safety inspections for their cashews and cashew VN detected pesticide contamination, drugs kill cockroaches. Several months ago, the VN cashews were revoked in some places in America. This is a potentially dangerous thing VN sector and we have to tighten food safety regulations for cashew nuts, "Son said. <br></p> <p>According to Mr. Son, there is a huge unreasonable for the import of raw materials from African countries that have signed a contract of 4 months prior to harvest and deposits to 20%. While there is no provision binding them to perform the contract. "Industry conditions VN to survive and develop to unite to form the power and standing Vinacas unit is connected to the enterprise," Son calls. <br></p> <p>Agreeing with this view, Mr Thanh said: "There are thousands of things now so difficult to unite. Currently, in Long An we gather as a group purchase of raw materials from Africa with an estimated population of 100,000 tons / year. Only one or two now in talks only. The provinces, other areas should also study done to avoid competing with each other bad. " <br></p> <p>At the seminar, businesses and organizations also participated in drafting suggestions for basic standards for the application of the import of crude.</p><p>Chi's<br></p><p></p>


    Source: Thanh Nien News
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