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  • Dong Nai: Covid-19 epidemic, cashew processing enterprises face difficulties 07/05/2021

    Jul 5th, 2021

    Products in Tien Phat Long Khanh are certified to meet food safety and hygiene conditions. The processing process fully complies with environmental protection documents. Every year, Tien Phat Long Khanh facility provides trading companies and distributors with an output of about 24 tons of products of all kinds. However, since the outbreak of the Covid-19 epidemic, the establishment's commercial activities have stalled. Mr. Phan Viet Tien, the owner of the facility, said the situation was especially difficult when the main consumption market in Ho Chi Minh City was narrowed. The unpredictable developments of the Covid-19 epidemic caused trading companies and distributors in Ho Chi Minh City not to receive goods. The production and business of the establishment was halted. Preliminarily, the establishment has more than 3 tons of spiced cashew and peanut products that cannot be sold due to the impact of the Covid-19 epidemic. In order to ensure the dual goals of both fighting the epidemic and developing the economy, the People's Committee of Long Khanh City has implemented many solutions to support farmers to consume agricultural products. Mr. Tien said, recently, the People's Committee of Long Khanh City has sent a written request to departments in the province to support the consumption of products produced by their establishments. Since 2 days, many individuals and organizations have called to order products. "The support of the government is very timely to support businesses to overcome this difficult period" - Mr. Tien shared. Cashew processing enterprises struggle to overcome difficulties In the mountainous district of Tan Phu, Ha Hung Phu One Member Limited Liability Company is a unit with many years of attachment to the cashew nut processing industry. The time of 2017-2018 was the period when this company developed the most. Mr. Cao Van Trieu - Director of Ha Hung Phu Company - said: At that time, the enterprise had up to 60 workers involved in production. Every year, the company exports about 10 tons of cashew kernels to other countries. Currently, on average, Ha Hung Phu Company produces about 3 tons of raw cashew nuts every day, creating jobs for nearly 30 local workers. The average salary of employees at the company is from 6-8 million VND/person/month. From 2020 to now, the Covid-19 epidemic appeared and broke out, causing the company to be severely affected. Mr. Trieu said that the epidemic caused the consumption of cashew nuts in the country and the world to decrease significantly. The company's orders decreased, the selling price also decreased significantly. Compared to the time before the epidemic, the current selling price of products decreased by 20-25%; processing output of the enterprise has decreased by 30%. "The Covid-19 epidemic is affecting the company's revenue and existence," said Mr. Trieu. In order to maintain operations and stabilize jobs for employees, a representative of Ha Hung Phu said that the unit is trying to overcome all difficulties and shrink production. The company only focuses on producing products with stable output and pays more attention to the domestic market. Another difficulty of enterprises is limited capital, so they only focus on producing from local raw materials. "Wherever the company buys cashew nuts, the production will go there and focus on domestic consumption, with new conditions to export abroad," said Mr. Trieu. Mr. Pham Van Tuan, owner of Tuan Sang Private Enterprise (Trang Bom District) also said that cashew exports have almost stopped since the Covid-19 epidemic spread. Many cashew nut processing enterprises are in moderation. Like Ha Hung Phu, Tuan Sang's biggest difficulty is capital. Therefore, the desire of these businesses is to access long-term preferential capital. Since then, investing in deep processing to contribute to improving product quality and added value. Mr. Tuan shared that when businesses stabilize production and business, they also contribute to creating jobs to increase incomes for local workers. According to Dong Nai Department of Agriculture and Rural Development, over the past time, due to the impact of the Covid-19 epidemic, both farmers and cashew processing establishments have faced many difficulties. However, cashew is still the leading agricultural product in terms of output and export value of the province when the processing industry develops. The project on Improving the competitiveness of agricultural products in Dong Nai province in the context of integration still identifies cashew as one of the key crops. Dong Nai currently has 50 facilities and hundreds of cashew processing households with a total design capacity of about 45,000 tons of raw materials/year. Oriented to 2030, Dong Nai will become one of the deep processing centers of cashew nuts in the country and the world. In addition to attracting leading enterprises to invest in deep processing, the province will also implement many breakthrough solutions for this crop such as: restructuring the cashew industry towards increasing productivity and quality; connect, search for markets, promote trade; promote processing to improve the value of cashew nuts.


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