Reduce the target of cashew nut export in 2020 to 3.2 billion USD

According to the Ministry of Agriculture and Rural Development, in the first months of the year, although the cashew nut export increased sharply in volume, the export turnover decreased. Statistics show that, from the beginning of the year up to now, cashew nut export volume reached 265,000 tons with a value of 1.72 billion USD, increase 10.4% in volume but decrease 4% in value over the same period of the year.

The cause of the phenomenon mentioned above, exporters said that customers pay much attention to quality and traceability of goods. While, at some time, for the same item, the domestic cashew kernel price is 15 to 20% higher than the export price. In addition, due to the influence of the Covid-19 translation, a number of customers request support and discounts. Also because of those difficulties, the Vietnam Cashew Association has recently decided to lower the cashew nut export target in 2020 to $ 3.2 billion instead of the $ 4 billion set at the end of 2019.

According to forecasts, Vietnam’s cashew exports in the third quarter of 2020 will decrease deeply. It is expected that until the fourth quarter, it is likely to flourish again as countries such as the US, India, EU and China will increase imports to serve consumer demand during the holidays and Tet holidays. Therefore, the cashew industry should have immediate specific solutions, appropriate to the situation. Regarding exports, domestic cashew processing enterprises need to comply with the recommendations of the authorities, ensure quality and stable delivery for partners, contributing to protecting the brand, increasing export value; transparency from production, processing, storage to product quality announcement, meeting the stringent requirements of difficult markets. At the same time, businesses and localities accompany people to build cashew production areas with good productivity, good quality, and traceability in order to ensure safe and stable raw material areas for export; focus on renovating processing technology to improve quality and diversify products.

On the other hand, the current translation of Covid-19 is complicated, will continue to affect cashew exports, so businesses need to convert direct trade promotion to online advertising and connection to maintain and develop the market, ensure the recovery of export activities after the epidemic has been controlled. Besides, in addition to looking for export directions, it is also necessary to aim at domestic consumption. Because at present, the enterprises mainly serve for export, the domestic market has not been given adequate attention. Promoting domestic consumption through the chain link will create a stable market, from which cashew growers can sell their products and reduce the pressure when exporting is in trouble. But to achieve that goal, the state management agencies need to have solutions to support businesses to stimulate domestic consumption and expand the distribution network.