2020 is a memorable and dramatic year with many difficulties for the cashew industry in Vietnam as well as in the world.
ABOUT RAW CASHEW NUT:
By the end of 2019, a large group of Vietnam made a strong resonance to the cashew industry worldwide when, for the first time in history, signed the purchase of all 178,000 tons of Tanzania's 2018 raw cashew nuts and continued to participate. A large amount of raw cashew nuts are auctioned and purchased strongly in 2019. This amount is quickly transported continuously to India and Vietnam, creating a huge supply for both leading processing countries in the world. such as relieving the temporary thirst for raw materials of the processing factories at that time.
Around the same time, around October 2019, a strange disease (later named Covid19) appeared in Wuhan and quickly spread across China, leading to a series of nationwide blockades. in addition to closing the borders and airports of most Asian countries. This blockade caused the import of cashew nuts from Vietnam to decline significantly in January and February 2020 with a decrease equivalent to about 70% compared to the same period in 2019 (Usually this is the time of import. strength of the Chinese market to provide for Chinese New Year)
The disease continues to spread across countries around the world, including Vietnam in the early months of 2020. The quantity of raw cashew nut products from Tanzania after docking in Vietnam and India could not be sold well in India and even Vietnam. According to the writer's personal opinion, the reason is as follows:
In India, the Government issued strict blockade measures, factories closed completely and people were forced to stay indoors leading to zero demand for raw cashew. The output of about 700,000 tons is not harvested in time due to the blockade, which leads to a large surplus of raw cashew supply to the market.
In Vietnam, on the one side, due to the fear of blockade as well as the factory shutdown due to epidemic diseases, most of the manufacturing factories are very cautious in purchasing raw materials. On the other side, because the factories predict the source of raw materials will be in surplus because the quantity of Tanza18 and Tanza19 that have also arrived at the port coincides with the huge harvest season of Vietnam and Cambodia due to good weather and seasons, thus causing cashew prices. crude continuously plunges.
At the same time in African countries, the Ivory Coast government announced the purchase of 200,000 tons of raw cashew nuts through the Ivory Coast Exporters Coalition (GIE_GEPPA) to support farmers and sell to Vietnam. Male. This is also the first time in history that GIE has successfully opened a new path for Côte d'Ivoire in supplying raw materials to Vietnamese factories through a system of bonded warehouses in Vietnam. This can be considered a miracle in the history of the Ivory Coast cashew industry.
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