Exports decreased in both volume and value while raw material prices increased, unfavorable world market movements are causing the cashew industry to face many difficulties, and the whole year's exports are expected to be lower than 2021.
This is the content that the Vietnam Cashew Association (VINACAS) informed at the Conference on preliminary review of the cashew industry in the first 6 months of 2022 taking place on the afternoon of June 25 in Ho Chi Minh City. Ho Chi Minh.
VINACAS statistics show that in the first 5 months of 2022, the whole industry exported 206,112 tons of cashew nuts of all kinds, export turnover reached over 1.19 billion USD, down 7.81% in volume and 6.81 in quantity. value. The average export price was about 5,792 USD/ton, up 1.45% over the same period in 2021.
(The average export price of cashew is about 5,792 USD/ton, up 1.45% over the same period in 2021)
Regarding imports, in the first 5 months of 2022, cashew businesses imported about 968,000 tons of raw cashew nuts from abroad with a value of nearly $1.4 billion, down 35.24% in volume and 37.84% in value. price. However, if we consider the price of raw cashew imports from Africa from the beginning of the crop to now, it has increased by 15-20% over the same period.
Meanwhile, about the unfavorable cashew harvest in 2022 in Vietnam and India, this year's cashew crop in Vietnam came later due to the effects of climate change. pest sign.
Mr. Tran Van Hiep, Vice President of VINACAS analyzed, in the first half of 2022, the export volume of cashew kernels only decreased slightly (20,000 tons) but the amount of raw cashew imports decreased quite a lot (down 350,000 tons).
This shows that importers and processors are tending to be slow to buy raw materials due to many reasons, mainly due to the lack of correlation between the price of imported raw cashew nuts and the price of export kernels. The price of raw cashew nuts is at a very high level compared to the selling price, the export processing cost is high while the selling price is low. It is difficult for processing plants to break even, not to mention profits.
According to Mr. Tran Van Hiep, world developments such as the Russia-Ukraine conflict, global inflation are affecting the consumption and export of Vietnam's cashew nuts.
Specifically, in 2021, Russia is the 11th ranked market out of 104 export markets of Vietnamese cashew kernels with an export value of nearly 62 million USD. Since the Russia-Ukraine conflict occurred, Russia was excluded from the SWIFT payment system, the export of Vietnamese cashew nuts to Russia faced difficulties in payment, greatly affecting cashew kernel exports to this market.
Inflation in the US and Europe is spreading all over the world, with the prices of all items being as expensive as they are today, people have to spend more money on essential needs, which leads to unsuitable items. Essentials such as cashew nuts will be consumed slowly and cashew prices will be difficult to increase at this time.
Meanwhile, Vietnam's other major market, China, still maintains the Zero COVID policy, making the export of cashew kernels as well as other agricultural products continue to be at a disadvantage.
"The export situation in 2022 will continue to face difficulties because shipping rates are still anchored at a high level compared to before the COVID-19 epidemic. Meanwhile, the price of export kernels has not increased in sync with the increase of raw cashew nuts, factories cannot balance processing costs and export prices, so the number of cashew kernels for export is forecasted to decrease in the following months, which may last until the end of 2022.
According to the plan set out by the Ministry of Agriculture and Rural Development for the cashew industry, in 2022, the whole cashew industry aims to export $3.8 billion, an increase of $200 million compared to 2021. However, in the current context. , VINACAS has proposed to adjust the target of export sales for the whole year at a modest $ 3.2 billion, down $ 400 million compared to 2021.", Mr. Tran Van Hiep added.
Sharing the reality at businesses, Mr. Ta Quang Huyen, Director of Hoang Son 1 Joint Stock Company said: The situation of cashew exports in the first half of 2022 is very difficult due to slower purchasing power than in previous years. This comes from the fact that in 2021, many customers in large markets have increased their reserve purchases due to concerns about the COVID-19 epidemic, leading to inventories extending into this year. In addition, with the current inflation situation, consumers are forced to tighten spending on secondary products, so the consumption of cashew nuts decreases.
In terms of processing, businesses are having problems with the price of raw cashew nuts increasing by 15-20% compared to the previous year, plus fuel and transportation costs continuously increasing while the price of cashew kernels for export does not increase. , even decrease. In the cashew processing capital of Binh Phuoc, many small processing factories had to suspend production to "cut losses", large factories also reduced their capacity and processed in moderation because the more they processed, the more they lost.
"The price of raw cashew nuts is unlikely to decrease because the crop has been harvested, processing enterprises are only waiting for the signal that the export market may be more positive at the end of the third quarter and the fourth quarter of 2022. At that time, Cashew inventory in the markets has decreased, along with the time of year-end festive seasons can stimulate demand for cashew nuts, helping to raise the price of cashew kernels, ensuring profit margins for businesses. processing and exporting," said Mr. Ta Quang Huyen.
Focus on quality improvement
In addition to the issue of supply and demand and price, Mr. Tran Huu Hau, Deputy General Secretary of VINACAS also raised a number of issues related to quality assurance of the cashew industry. Recently, due to the impact of the COVID-19 epidemic and logistics congestion, the lack of empty containers on a large scale led to the delay in many batches of raw cashews imported from Africa to Vietnam, some had to be stored for a long time. For a long time, the quality will be reduced, not ensuring the quality of processing for export.
(Improving quality is a big issue that businesses need to pay close attention to)
Similarly, some batches of processed cashew nuts also had to be stored, used preservatives, and anti-termite until they were shipped out, they were found to have preservative residues, some shipments were returned or returned by partners. warning.
According to Mr. Tran Huu Hau, the problem of residues of preservatives or anti-insect agents is a big problem, businesses need to pay great attention and overcome because being detected residues, returning goods not only causes economic damage. economy, negatively affecting the image and reputation of exporting enterprises and the whole cashew industry in Vietnam.
Despite being the world's leading exporter of cashew kernels, Vietnam also has competitors that have begun to emerge, especially African countries when they have the advantage of local raw materials, transportation to major markets such as the US, EU faster, cheaper.
Therefore, Vietnamese businesses need to pay attention, ensure the best quality, delivery on schedule to keep the reputation and trust of customers; at the same time, focus on increasing the proportion of processed products to increase added value and brand name of Vietnam's cashew.
Pham Van Cong, President of VINACAS, said that in order to meet the standards of the export market, the association asked the authorities to support updating and guiding the implementation of new regulations on control. Food safety of foreign markets, especially China, EU, US markets...
For the Ministry of Agriculture and Rural Development, the association recommends continuing to support research and development of specialized technical standards and regulations for cashew nuts and by-products of cashew trees to have a basis for assessment. quality price. At the same time, the Agriculture sector needs to evaluate and plan for a stable and long-term cashew growing area.
In difficult conditions to increase the cashew area in the country, it is necessary to have a solution to cooperate in exploiting and developing cashew material areas in Cambodia and southern Laos to ensure the supply of raw materials for processing and export.
Regarding the market, Mr. Pham Van Cong also wanted the Ministry of Industry and Trade to support cashew businesses to participate in domestic and foreign trade promotion programs, enhance information about markets, customers, consumption trends, commercial risks as well as how to respond effectively.
For exporters, Mr. Pham Van Cong noted, in the context of world trade with many unpredictable fluctuations, there have been many cases of fraud and export disputes, typically the case of 100 export containers of cashew nuts. exports to Italy in early 2022.
Therefore, enterprises must pay attention to the detailed terms in the contract, the set of export documents, the form of payment, and consider whether the partner is reliable enough. Before signing an import-export contract, it is necessary to carefully study information about a reputable broker to avoid commercial disputes because many disputes last up to 3 years, causing financial losses to businesses. and time to pursue the case.
Source: Vietnam+/ TTXVN