This is a very optimistic signal to open a new revival cycle for the cashew industry, while strengthening the world's No. 1 export position of Vietnam cashew industry.
“Sunshine after the rain”?
Not only Vietnam, in 2018, the world cashew industry suffered a deep crisis, from African countries with an oversupply, the price fell to the level of farmers who did not want to harvest, to a series of boilers. India's bankruptcy and banks are also forced to restrict lending. Vietnam is also affected by the chain when constantly having to buy raw materials with high prices, low selling, constantly cutting losses so many businesses have to give up cashew industry …
The booming investment in the cashew industry in Vietnam for a long time has created an “investment bubble” due to overheating development, which led to the difficulty of Vietnam's cashew industry in 2018 when the price dropped more than 35%. compared to the peak. However, 2018 also witnessed a strong rise of the cashew industry in the context of a crisis, cashew export turnover reached 3.5 billion USD and recorded a remarkable achievement when compared with other aspects. Other agricultural products such as rice, coffee, vegetables and pepper …
In 2019, this is considered a pivotal year, assessing a new cycle for the cashew industry in Vietnam after a year of 2018, which has many strong fluctuations in prices as well as restoring order and restructuring for the cashew industry. We are at both supply and demand.
According to the Vietnam Cashew Association (Vinacas), in the first 8 months of 2019, Vietnam's cashew kernel export output has reached more than 250 thousand tons, which is the highest number, setting a record ever. Although, export turnover is still lower than the same period last year, but this figure shows that Vietnam's No. 1 export position of cashew kernel is increasingly consolidated, in the context of direct competitors. followed by India, which recorded a decline.
Regarding the raw cashew import market, Vietnam also recorded a new record, expected to reach about 1.4 million tons of raw cashew nuts in 2019, with an average import price of US $ 1,300 / ton (CNF Ho). Port). This is a new step when Vietnamese enterprises have directly and directly competed with foreign trade companies such as India, Singapore, and China to buy directly with suppliers in Africa and step by step. owning the market of raw material supply.
With the cashew nut export market, it is expected that the price of cashew nuts will continue to recover with optimistic signals in the coming time, especially from the fourth quarter of 2019, the price of cashew kernel ww320 may increase by 15-20% from 3.1 USD / lb to 3.5 – 3.6 USD / lb (pound). According to experts, the US-China trade war will also affect the cashew market in both positive and negative directions, but overall will not affect the selling price or the price recovery trend of the market. cashew.
Specifically, on the positive side, China raised the import tax on almonds from the US, which is expected to lead to an increase in demand for cashews in the Chinese market due to the better taste and lower prices at the bottom. In the opposite direction, China constantly devalues the renminbi to encourage export, intangible in general, pushing the import of cashew kernels (denominated in USD) to become more expensive. Analysis of the US market shows that the US-China trade war will have no significant influence or impact, because the US mainly imports cashews from Vietnam, India and Brazil.
Take advantage of opportunities to source materials from Africa
In 2019, Vietnam cashew industry has the presence of a new name, that is, Tan Long Group Joint Stock Company (Tan Long). Although newly involved in the field of trade and production of cashew nut export processing in the context of the cashew industry is in “period”, however, Tan Long Group has positioned itself in a sustainable direction. , highly competitive through the import of cashews …
As of August 2019, Tan Long has directly imported raw materials from many African countries such as Ivory Coast (20,000 tons), Guinea Bissau (24 thousand tons) and more than 100 thousand tons of Tanzania origin. Determining to take the quality of cashew nuts as a competitive weapon, right from the first months of operation, Tan Long has focused on investing in the construction of a modern cashew production and processing factory, achieving the national standard certification. ISO, HACCP and BRC with machinery and technology, high automation such as color separators, size sorting, weighing packers and automatic vacuum bags, especially the installation of fumigation systems using nitrogen gas nature…
At the beginning, when entering the export market, Tan Long focused on standard cashew products, namely cashew kernels ww240, ww320 and WS and LP broken cashews. In the third quarter of 2019, Tan Long signed a contract to sell to partners 60 containers with a total of more than 800 tons of kernel. Main consumption markets are the USA, Europe and the Middle East.
Mr. Tran Vu, Director of Cashew Processing Plant (belonging to Tan Long Group Joint Stock Company) said: In the current context, when demand for cashew kernel exports continuously breaks new records of output, Tan Long has pushed. strongly direct the organization of purchasing raw materials in Africa to take advantage of opportunities. With tireless efforts in Ivory Coast, Guinea Bissau and Tanzania markets, Tan Long has successfully purchased more than 220,000 thousand tons of raw materials, accounting for 15% of the total raw material demand of raw materials. Vietnam in 2019.
| In the last months of 2019, when the world cashew consumption market is forecast to grow strongly in demand, the supply is scarce. Prior to this prediction, Tan Long had reserved and reserved a significant amount to increase processing, increase the value of profits by quickly converting from cashew to cashew kernel based on a network of 30 facilities. Officials in the provinces of Binh Phuoc, Dong Nai and Phu Yen … |
According to Vietnam Agriculture
