Cashew sector moves back for stepping beyond

According to Ministry of Agriculture and Rural Development, by the end of 2018, export cashew estimates are to achieve 353 thousand tons, collecting revenue of US $3.52 billion, increasing by 1.9% on volume and increasing by 23.8% on value compared to the same period in 2016. Price of exported cashew in the first 11 months of 2017 also increased up by 22% over the same period last year, achieving by $US 9,926.3 per ton. 

Illustration image. Source: Internet

With these results, for the year 2017, Vietnam continued to keep its market share by over 50% of total export value of cashew worldwide (approximately US $5.5 billion). This is the 12th consecutive year that Vietnam held 1st rank in the world on processing and exporting cashew.

Right in the early November 2017, when releasing information about the export situation to the press, Vietnam Cashew Association (Vinacas) stated clearly that, in 2018, Vinacas would continue to accompany farmers and businesses, encourage green and clean production, support export to bring up the trade value of the industry to about US $3.5 - 3.7 billion.

However, at the beginning of January 2018, Vinacas has significantly changed the target of cashew export. Specifically, the output of processing and export has been reduced from 350 thousand tons of cashew in 2017 to 300 thousand tons in 2018. Correspondingly, the value of cashew exports decreased from $ 3.5 billion to $ 3 billion.

The main reason for the decision to downgrade the export target is because Vietnam has not been proactive in providing raw material sources. Meanwhile, the imported raw materials are too expensive and of poor quality. According to Vinacas, Vietnam will focus on "reducing the quantity to improve quality," promoting the processing and development of the domestic market.

In fact, over the past few years, for most of the main export agricultural products, as export momentum is increasing, there are many favorable conditions, so the export target set next year will be higher than the previous year. Even the growth numbers in exports are considered as an important measure of the development of the industry. In this context, the adjustment of the target of cashew industry this year is the opposite.

However, frankly speaking, the reasons given by the business sector are quite relevant when it comes to identifying the key weaknesses of the industry in order to make clear the direction. Reducing export turnover in this case is not weaker, but rather like "one step backward to three steps forward", a step that is prudent but sustainable in the future.