Vietnamese Cashew Nuts Crack the World Market

Vietnamese Cashew Nuts Crack the World Market

The development and export of Vietnamese cashew nuts have been promoted resulting in stable growth and improved quality.

Expanding cultivation

To increase the supply to the processing industry, in 2004, Vietnam has planted an additional 50,000 hectares of cashew nut trees. In Dak Lak, 10,000 more hectares have been planted increasing the total area to 20,000 hectares to rank second among Vietnamese provinces in terms of output, area and the export of cashew nuts by 2020. In Gia Lai province, cashew nuts are also considered a spearhead of the economy with income of some VND10 million a year for each household.

The cashew nut output in 2004 increased 35 per cent over 2003 with an average of 1,100kg a hectare. Good results were attained in Binh Phuoc (150,000 tonnes), Dong Nai (80,000 tonnes), Binh Duong (20,000 tonnes), Ba Ria - Vung Tau (10,000 tonnes), Tay Ninh (10,000 tonnes), South Central Vietnam (50,000 tonnes) and the Highlands (20,000 tonnes).

Besides increasing plantations, Vietnamese enterprises have also increased their purchases to ensure a stable supply to the processing industry. 350,000 tonnes of cashew nuts were purchased in the local market (35 per cent more than in 2003) and 15,000 tonnes were imported for small-scale processing (US$10,000 from Cambodia and US$5,000 from Africa).

Progress in processing and export

Since the second quarter of 2004, the cashew processing firms have increased in number, including 10 newly built factories. In the first half of 2004, 42,000 tonnes of products were processed from 176,000 tonnes of raw cashew nut.  According to the evaluation of visiting experts in May 2004, the products are of high quality, in precise categories and meet food safety standards.

Vietnamese cashew nuts are gaining in the world market with their special quality and taste, meeting the demand of customers in many countries. As a result, Vietnam exported 42,000 tonnes of cashew nuts in the first half of 2004, 49.5 per cent of the year’s plan and 40 per cent more than the same period last year. The export value was US$155 million, 51.6 per cent of the plan and 55 per cent more than the same period last year.

In addition to exports to major markets, such as the US and China, many new contracts have been signed to export the product to potential markets in Eastern Europe (Russia and Ukraine). Accompanying President Tran Duc Luong during his visit to Europe, Mr. Ho Ngoc Cam, President of the Vietnam Cashew Association (Vinacas) and Director of Binh Thuan Import-Export Company, signed a successful contract with a big Russian company to export Vietnamese cashew nut. Other enterprises have also exported roasted, salted and candied cashew nuts to China, the Netherlands and Canada. Major importers include the US (40 per cent), China (22.8 per cent), Australia (10 per cent), the Netherlands (10.2 per cent), the UK (4.3 per cent) and Canada (4.2 per cent). Domestic consumption of cashew nuts has also increased.

Optimistic forecast

After various market surveys and research, Vinacas predicts higher prices of exported cashew nuts this year and in the coming years. While the crops failed in some countries, the demand increased in India, the US, China and Russia. Taking advantages of this opportunity, Vietnamese enterprises will process 224,000 tonnes of cashew nuts, 50,000 more than the first half of 2004 and export 48,000 tonnes, 5,000 more tonnes, in the second half of the year. The export value will be US$205 million, an increase of US$60 million.

Mr. Cam said that as the world market is increasingly concerned about quality control and the meeting of the HACCP criteria, Vinacas encourages Vietnamese enterprises to apply the HACCP system so as to have at least 10 enterprises attaining ISO9001:2000 and HACCP certificates.

• Song Phuong