Cashew industry strives to "get on the shelves of world supermarkets"

VCN - Although holding the number one position in the world in exporting cashew kernels for many years, the position of Vietnam's cashew industry in the world cashew value chain is very small because it mainly exports kernels with preliminary treatment.
Cashew exporting enterprises proposed to reduce procedures in  C/O issuance Cashew exporting enterprises proposed to reduce procedures in C/O issuance
International cashew nut conference underway in HCM City International cashew nut conference underway in HCM City
Cashew industry strives to take the initiative for world’s No. 1 position Cashew industry strives to take the initiative for world’s No. 1 position
Cashew industry strives to
Lafooco's deep-processed cashew nuts have reached supermarket shelves in many international markets. Photo: T.L

The pressure is growing

Looking back to 2022, while the export turnover of the cashew industry reached US $ 3.08 billion, the import turnover of raw cashews consumed US $ 2.678 billion.

This shows that Vietnam's cashew processing and exporting activities bring very low value. It is because of the main export of pre-processed cashews, Vietnam's cashew industry is always dependent on international traders and is not allowed to determine prices in the market.

For many years in a row, the Vietnamese cashew industry has suffered when it is forced to price in both the raw and kernel markets. Profits of enterprises are increasingly shrinking when the price of raw cashew is increasing and the price of kernel is continuously declining.

The pressure on the Vietnamese cashew industry has grown when many African countries, which only specialize in exporting raw cashews, are starting to invest in cashew kernel processing. For example, in Ivory Coast, which is the world's largest exporter of raw cashew nuts, Dr. Adama Coulibaly, General Director of the Ivory Coast Cotton and Cashew Council, said that in 2022, the country exported 36,807 tons of cashew kernels to many markets such as the US, EU, Australia.

Although this figure is very low compared to Vietnam's export volume of more than 500,000 tons of cashew kernels, it also shows that Ivory Coast is trying to reach a higher segment instead of just selling raw cashews. This leads to the risk that raw cashew suppliers of Vietnam's cashew industry will turn into competitors in the cashew kernel market in the near future.

Besides being under pressure from other countries' cashew kernels, Vietnam's cashew kernels are also under pressure from other nuts. Typically, almonds are currently in a state of oversupply, causing the price to drop sharply, even cheaper than cashews. Therefore, international roasters and retailers are prioritizing other nuts over cashews, and consumers also tend to choose cheaper nuts.

"Revolution" in processing

Facing increasing pressure, the Vietnam Cashew Association (VINACAS) is promoting a "Strategy to develop Vietnam's cashew industry in a new situation" to submit to the Government. In which, it proposes mechanisms and policies aimed at two goals: strongly developing deep processing, gaining a worthy position in the global cashew value chain and strongly developing the raw material area in the direction of quality and efficiency Mr. Pham Van Cong, the President of VINACAS said that, from a positive perspective, current challenges are an opportunity to help Vietnam's cashew industry gain more motivation, focus resources for the "powerful revolution" in technology and equipment, and meet the needs of deep transformation in cashew processing.

In fact, many enterprises have actively invested in modern machinery and equipment to enhance deep processing. As a result, in addition to traditional products such as salted roasted cashews, roasted salted cashews and salted roasted silk shells, many new products were born, which were positively received by the market such as honey cashews, spiced cashews, wasabi cashews, white sesame dried cashews, and cashew candy.

Typically, Tan An Agricultural Products Processing and Food Export Co., Ltd (Tanimex - LA) has invested in deep processing since 2012 with the first product being fried salted cashews. After that, Tanimex - LA developed other products such as honey cashews, wasabi cashews, salted roasted cashews, and dried cashews.

Similarly, Long Son Joint Stock Company is promoting processing and exporting deeply processed cashew nuts. Currently, Long Son has quite a lot of deep-processed cashew products, such as salt-roasted cashews, salt-roasted silk-shelled cashews, salted fried cashews, sesame cashews, cheese cashews, garlic and chili cashews.

Deep processing accounts for a relatively modest proportion of Long Son's cashew exports, but the company is persistently following this path to gradually increase the proportion of deeply processed products in the export structure. Many shipments of deep-processed cashew nuts of Hoang Son 1 Company have been successfully exported to the EU thanks to the EVFTA.

Another enterprise that has achieved a lot of success with deep-processed products is Long An Export Processing Joint Stock Company (Lafooco). Lafooco's processed cashew nuts have been on shelves at many supermarkets in China, Hong Kong, Canada, Japan, and Europe.

In addition to exporting through traditional channels, Lafooco has sold goods abroad via e-commerce channels and has received positive feedback from customers. In its development orientation, Lafooco said it will continue to research and develop a variety of instant products, snacks, and foods with cashew ingredients.

According to businesses, deep-processed cashew nuts have a higher value, through which businesses achieve better profit margins. In particular, deep-processed cashew nuts also open up opportunities for Vietnamese cashew businesses to export with their own brands, thereby enhancing the position of Vietnam's cashew industry in the international market.


By Nguyen Hien/Quynhlan

Related News

Changes in Canada

Changes in Canada's trade defense laws

VCN - Canada - a major trading partner of Vietnam - is making many changes in its trade defense investigation regulations, which has a significant impact on Vietnam's export activities.
Regulating goods across Huu Nghi International Border Gate during peak times

Regulating goods across Huu Nghi International Border Gate during peak times

VCN – In order to reduce the pressure on customs clearance of import and export goods for the international border gate pair during peak times, the management agency of Lang Son (Vietnam) has just discussed with the management authority of Pingxiang (China) to strengthen coordination in regulating the means of transporting goods of enterprises on both sides.

Latest News

EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

VCN - Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.

More News

Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Read More

Your care

Latest Most read
EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Changes in Canada

Changes in Canada's trade defense laws

VCN - According to the Vietnam Trade Office in Canada, as of September 2024, Canada has initiated nineteen trade defense investigations on Vietnamese export goods, including twelfth anti-dumping (AD) cases, five anti-subsidy cases and two defense cases.
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - At the regular Government meeting in September 2024, Minister of Industry and Trade Nguyen Hong Dien assessed: import and export continued to be a bright spot, recording a positive recovery compared to the same period last year.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Mobile Version