<p>HCMC – Despite crude cashew imports rising 81% in January-September, many processors in the industry in the southern province of Binh Phuoc, the country’s biggest cashew growing area, have put many of their workers on leave due to a cashew undersupply. A majority of small processing facilities in Binh Phuoc process products for bigger companies which have run out of stock, so they have no work to do at the moment, Dang Hoang Giang, general secretary of the Vietnam Cashew Association (Vinacas), said.</p> <p>Giang also attributed the situation to the fact that numerous cashew processors and exporters in the last two years have relied on cashew peel cutting machines to alleviate their dependence on workers and cut input costs. That’s why this year’s Vietnamese cashew export prices are lower than last year while local exporters have earned higher revenue and profit. Cashew nuts now sell for US$3.25-3.35 a pound (one pound is equivalent to 0.454 kilo). The country imported a total of 503,000 tons of cashew in the first nine months, and this volume was used up for production while imports for this month and next have yet to arrive, causing material shortages.</p> <p>Initial statistics by Vinacas indicate that there are around 1,000 operational cashew processors, with 40% of them large and the remainder small having less than ten workers each. Vinacas estimates this year’s crude cashew imports at some 600,000 tons, up 200,000 tons compared to the figure estimated early this year. But the association fears small cashew processors may continue to be out of work in the final months of the year.</p> <p>Multiple buyers from the EU, North America and Australia are seeking shipments to be delivered next month while other importers from these markets want to get local products within next year’s first quarter, Vinacas said. However, given the current low inventory at domestic enterprises and the risk of material import shortages, Vietnamese firms should take caution when signing export contracts, according to the association.</p> <p> </p>