Cashew sector aims to earn $1.4 bln in exports

The cashew industry has set itself an export target of over US$1.4 billion this year, 32% up from 2010, according to the Vietnam Cashew Association (Vinacas).

Vinacas chairman Nguyen Thai Hoc, speaking at a recent conference in HCM City, said it was an ambitious target but achievable with sufficient support and clear policies, especially in the banking sector.

“The target is included in a cashew industry development strategy … whose main objectives are sustainable development and maintaining the world’s number one cashew exporter status and high competitiveness. The draft will soon be submitted to the Government for approval,” he said.

The strategy calls for keeping the area under cashew at 350,000 ha in 2011-15, with average productivity of one tonne per ha, and at 330,000ha by 2020 with productivity averaging around 1.4 tonnes.

“To improve the productivity and quality of processed cashew, the industry plans to increase mechanisation in processing to 70% in 2015 and 90% in 2020,” Hoc said.

Training was another important objective of the industry which wanted to ensure between 1.5 million and 2 million workers receive professional training, he said.

To realise the targets, he said, the industry would have to take several measures, including maintaining the three main cashew growing areas – the south-eastern region which has 200,000ha under the crop, and the Central Highlands and the south-central coast which together have 150,000ha.

Based on the Government’s cashew industry plans, provincial agriculture departments would be entrusted with restructuring cashew-growing areas with high-quality trees, he said.

He urged cashew processing firms to take concrete steps to procure raw materials.

For the domestic market, he said, processors needed to buy around 358,000 tonnes of cashew from domestic sources at reasonable prices to ensure they would have sufficient supplies while farmers would not suffer losses.

They would also have to increase cashew imports to an estimated 450,000 tonnes, 70% of it from West Africa, 10% from East Africa, 5% from Indonesia, and rest from other countries, Hoc said.

He stressed the need for processors to continue modernising technologies and equipment to expand processing capacity, improve quality, diversify products, ensure hygiene and food safety, and protect the environment.

The US, the EU, China and Australia would remain the main export markets while trade promotions would be launched in the Middle East, Eastern Europe, Northeast Asia, and ASEAN member countries.

Vinacas’ deputy chairman Nguyen Duc Thanh warned that the cashew industry would face many difficulties this year, including labour and raw material shortages, increasing costs, and power shortages.

To cope with them, cashew firms should co-operate closely, especially for purchasing raw cashew to ensure the whole industry would benefit.

Last year Vietnam exported 198,000 tonnes of cashew for more than $1.13 billion, a year-on-year increase of 11.8% in volume and 34% in value.

Tags: Vietnam Cashew sector