In 2022, the cashew processing and export industry ended 10 year of continuous export growth. It is forecast that in 2023, the cashew industry will continue to face many difficulties.
Currently, some localities of the province start to harvest cashew nuts. The price of cashew nuts at the beginning of the crop dropped sharply compared to the same period last year because the domestic consumption market and exports were slow. But this is still the main export sector of Vietnam. Many cashew processing and exporting enterprises are trying to create competitive advantages to overcome difficulties.
CONTINUE TO FACE DIFFICULTIES
Although the yield is not much at the beginning of the harvest season, the cashew price in the garden is much lower than in previous years. Mr. Nguyen Van Thu, a farmer in An Vien commune (Trang Bom district), worried that the price of cashew nuts sold in the garden was only from 25-28,000 VND/kg at the beginning of the crop, which is 10,000 VND/kg lower than the same period last year. In the past few years, cashew trees have shown low economic efficiency. The prices of fertilizers and pesticides have increased so farmers are no longer interested in investing. This has caused the productivity of cashew trees to decrease.
Mr. Vo Van Phi, Vice Chairman of the People’s Committee of Dong Nai province was visiting the OCOP product display in Bien Hoa.
The reason for the price drop of cashew nuts is the reduced demand of export and domestic markets. According to the report of the Department of Industry and Trade, in the first two months of 2023, the province’s cashew export turnover reached nearly 32.2 million USD, down more than 18% over the same period last year. According to some cashew processing enterprises in the province, in recent years, the cashew processing and exporting industry has faced many difficulties. In particular, in 2022, the export market faced difficulties and domestic consumption was very slow, causing many production enterprises to be cautious, even narrowing or stopping production. It is forecast that in 2023, the market has not shown any positive signs, even facing more difficulties than in 2022.
Mr. Tran Dinh Lai, Chairman of the People’s Committee of Xuan Hung Commune (Xuan Loc district), said: “After the Covid-19 pandemic, some enterprises and cashew processing establishments in the commune have reduced production or stopped operation. The reason is that this industry is not only difficult in terms of output but also unstable because the source of raw materials depends on imports. ”
In 2022, Vietnam’s cashew exports reached nearly 520,000 tons, down 10.3% in volume and more than 15% in value compared to 2021. However, with more than 3 billion USD in revenue, Vietnam’s cashew industry still holds the number one position in the world in terms of technology and cashew exports, accounting for about 80% of the global cashew trade. The main export markets of Vietnam are the US, Europe, and China.
According to Mr. Nguyen Duy Kien, Deputy Head of Northeast Asia and South Pacific Division, Department of Asia-Africa Market (Ministry of Industry and Trade), trade exchange between Vietnam and Asia-Africa market is relatively large. In particular, Vietnam’s cashew nut export is among the top in this market. Cashew exporting enterprises in particular and agricultural products in general must have a long-term strategy when approaching the above markets. Besides, they need to ensure the quality of all orders to boost exports to these potential markets./.