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  • Cashew sector is calm in the face of market volatility

    Jun 18th, 2018

    <p></p><p>From the beginning of 2018, the cashew industry has achieved remarkable growth over the plan. However, because of this growth, the price of raw cashews fluctuated sharply, affecting the processing and export of the cashew industry. &nbsp;Therefore, in order for the whole industry to take a firmer step in the face of fluctuations in raw materials and quality, the Vietnam Cashew Association has advised processing and exporting businesses to "calm" before the world's turmoil. </p> <p>By the end of May, the cashew nut industry had exported 141,000 tonnes of cashew nuts, earning US $ 1.4 billion, up 24% in volume and 25% in value. However, before the forecast of market demand increased only 3% -5%, but processing output increased by 25% created a "virtual fever" price of raw materials imported from Africa. </p><p>According to Ta Quang Huyen, Vice Chairman of the Vietnam Cashew Association, this causes businesses to lack of raw materials for processing in the last 6 months of 2018, so they have increased the purchasing price of raw materials at high prices in March and May. Last year. But in May 2018, the price of processed kernel fell into a downward fluctuation. </p><p>Fear of the price of cashew nuts is reduced, so many processing plants have increased their processing capacity and sold out, but unforeseen until the domestic raw material is no longer available, the importing countries will increase the price of cashew kernel Processing. If hasty will cause adverse effects on the cashew industry in 2018. </p><p>In addition, businesses exporting raw cashew from Africa will hit the psychology of raw materials for export processing in the last months of the year should continue to do the price , raising raw material prices instead of cooling, making small cashew processing enterprises in the country will suffer losses. Before these changes, many cashew processing factories agreed to stop processing to stabilize cashew prices. </p><p>According to statistics of the Vietnam Cashew Association, as of June 15, most processing plants are "war," the processing. Up to 70% -80% of enterprises in the whole country stopped operating. </p><p>The war is that the processing enterprises to stabilize production, avoid depending on the information to make the market of raw materials. &nbsp;In addition, as global supply is forecast to increase, Indian cashew suppliers will also fall into crisis and gradually abandon the "game" because they can not compete with the processing products of Vietnam. , no competition from imported materials from Africa, will help stabilize the price of raw materials in the coming time. &nbsp;In the first half of this year, the cashew industry imported 283,000 tonnes of raw material, lower than the same period last year. turn. </p><p>In case raw material price increases, the input material will not increase. &nbsp;Predictions of fluctuations in prices of imported raw materials and cashew industry Vietnam needs a large source of raw materials for processing will facilitate the suppliers to sell prices in the world market, Article Association Vietnam has changed its sector development strategy since early 2018. </p><p>Nguyen Duc Thanh, Chairman of the Vietnam Cashew Association, said the Ministry of Agriculture and Rural Development has agreed on a cashew area plan. 2020-2025 is 300,000 ha; Instead of paying attention to cashew nut exports, the cashew industry will increase its proportion of processed products by 30% instead of 10%. This is the solution that helps the industry increase the value instead of running the annual number as the last time.</p><p>When faced with the problem of price instability, the strategy of increasing the processed products is the best solution to develop the sustainable industry as scheduled in early 2018. In this regard, the cashew industry will not need large raw materials whose value will increase, leading to increased export turnover and non-dependence on raw materials suppliers in the African market. </p><p>Dang Hoang Giang, general secretary of the Vietnam Cashew Association, said that in parallel with the strategy of increasing the proportion of processed products, the reduction of sales volume and supply of cashew nut products to the world market. The lack of cashew products in the foreign consumers is one of the solutions to help cashew price increase again because the demand of cashewnut consumption of world consumers has not decreased. </p><p>This is a kind of nut with high nutritional value, so consumers will voluntarily seek and be willing to buy at high prices when the source of goods less, </p><p>the Vietnam Cashew Association forecast, in 2019 , the Vietnamese cashew industry will go through new stages of development, that is, to encourage both enterprises and farmers to produce and trade in the value chain. At the same time, quality enhancement and traceability from the farm to the table, strong development of the domestic market, bringing the turnover of the industry reached $ 4 billion.<br></p><p></p>


    Source: http://www.vinacas.com.vn/
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