Domestic cashew processing plants, mainly small-scale ones in Long An and Binh Phuoc, are facing a shortage of raw cashew nuts for processing cashew nuts for export. Export and Import Department, Ministry of Industry and Trade said that most of the factories have sold all cashew kernels in the first 5 months, the amount of cashew nuts for export is not much.
Many cashew nut processing factories in Vietnam, mainly small-scale ones in Long An and Binh Phuoc, have been shut down due to the absence of raw cashew nuts for export processing.
Vietnam Cashew Association (Vinacas) information, in Long An has 12/33 cashew processing enterprises closed production. In Binh Phuoc, the number of cashew processing plants is down 70% -80%, some other local cashew processing factory in the same situation.
Apart from small-scale cashew processing plants which have to be closed down, some large enterprises are operating, but their capacity is not large because of the limited supply of cashew.
Facing with the above situation, Vietnam's export price of cashew kernel is likely to recover in the coming time, due to the demand at the end of the year and the supply is limited.
According to statistics of the General Department of Customs, from the beginning of the year to mid-June, cashew nut exports reached 159.3 thousand tons, worth $ 1.555 billion, up 20.1% in volume and 21.5% in value. worth over the same period in 2017.
The average export price of cashew nuts in the first half of 6/2018 reached $ 9,072 per ton, down 3.5% from the first half of May 2018 and down 11.5% over the same period in 2017.
At present, the export price of Vietnam's cashew is only $ 4.1 to $ 4.3 per pound, much lower than the peak of $ 5.1 to $ 5.3 per pound in 2017.
In 2017, the cashew nut industry spent $ 2.53 billion to import raw cashew nuts with a value of $ 2.53 billion, up 22.8% in volume and 52.8% in value compared to 2016.
Minister of Agriculture and Rural Development Nguyen Xuan Cuong said that in the past 30 years, the cashew industry has become a key industry in agricultural products with the total processing output in 2017 reached 353,000 tons, the export value reached 3.52 billion USD . However, Vietnam cashew industry is showing many weaknesses, inadequacies. Over the past 30 years, the only industrial crop has shrunk from 440,000 hectares in 2008 to just over 300,000 hectares.
The shrinkage of cashew planted area, coupled with prolonged dry weather, has directly affected supply. This problem, if not overcome in time, will continue to decline in the area of cashew growing, then Vietnam will have to rely completely on imported raw materials.