09:06 | 31/03/2016 Trade
(VEN) - Demand for cashew nuts has strongly increased since the beginning of the year, animating export markets. Cashew businesses are pushing forward with production in order to meet domestic and export demand.
Raw cashew prices have strongly increased since the beginning of the year
Increasing volume and value
According to the Ministry of Agriculture and Rural Development, cashew exports reached 24,000 tonnes valued at US$183 million in January, an increase of nine percent in volume and 15.6 percent in value compared to a year ago. The US, China and Netherlands remained Vietnam’s three largest cashew importers, while Germany, the UK and Thailand witnessed good growth.
Trans-Pacific Partnership (TPP) members accounted for more than 50 percent of the cashew sector’s total export value. Vietnam’s participation in the TPP will offer opportunities to promote the sector’s growth in the coming time. After import duties fall to zero percent, businesses will be able to more deeply enter markets.
Thanks to good growth of consumer markets, raw cashew prices have strongly increased since the beginning of the year. According to the Minh Tung Phat Co., Ltd., cashew prices stood at VND31,000-32,500 per kg, and hit a record VND38,000 per kg at some points.
According to the Ministry of Agriculture and Rural Development’s Department of Crop Production Deputy Director Nguyen Van Hoa, the cashew sector has seen clear advances in the last two years, especially in seed management, contributing to improving productivity and quality. The Ministry of Agriculture and Rural Development has strengthened cooperation with the Vietnam Cashew Association (Vinacas) to implement the project on replanting 45,000 ha and improving 15,000 ha of land under cultivation. The project has contributed to increasing productivity by 30-50 percent compared to previous periods.
Vinacas Chairman Nguyen Duc Thanh said that the association has financed around 300 cashew plantation performance models in order to drive towards cleaner production. The association has also promoted cooperation with the Ministry of Agriculture and Rural Development to examine hundreds of cashew processing plants for food safety and hygiene. In particular, the cleaner production program conducted by the association will contribute to improving quality and persifying added-value products.
Binh Phuoc Province Cashew Association Chairwoman Nguyen Thi Kim Nga said that the province currently has more than 200 cashew processing businesses and facilities. Although cashew prices imported from India and African countries are lower, domestic businesses are likely to use domestic nuts thanks to their good quality.
According to the Cashew Sector Development Plan until 2020 with a Vision to 2030, some 300,000 ha will be earmarked for cashew cultivation for output of around 400,000 tonnes with export turnover of US$2.5 billion by 2020.