Vietnamese cashew nuts face competitive pressure from Africa

Leading the world thanks to mastering technology
Since 2006, Vietnam's cashew industry has always ranked first in the world in exporting cashew kernels. According to the Vietnam Cashew Association (Vinacas), currently, Vietnam accounts for nearly 80% of the world's cashew kernel exports. With such a large proportion as above, according to Mr. Truong Sy Ba, Chairman of the Board of Directors of Tan Long Group Joint Stock Company, Vietnam is the largest raw cashew processing factory in the world, exporting to foreign countries. final consumer markets (USA, Europe, China, Asian niche markets). The amount of raw cashews processed by Vietnamese cashew factories accounts for 60% of global raw cashew output.

The main reason why Vietnam's cashew industry is the world leader in processing and exporting cashew kernels is its complete mastery of cashew processing technology. Mr. Pham Van Cong, Chairman of Vinacas, affirmed that the biggest advantage of Vietnam's cashew industry is the world's most advanced cashew processing technology produced by Vietnamese people.

To master cashew processing technology, Vietnam's cashew industry has spent decades of learning, exploring, researching, testing, manufacturing... with the great contributions of generations of engineers, machine manufacturing workers and cashew processing business owners.

In particular, from 2008 - 2010, Vinacas proposed and was assigned to implement the state-level science and technology program "Completing technology, design, and manufacturing of automatic cashew shelling machines and silk peeling machines." cashew kernels in the cashew export processing line". In 2011, this program was rated excellent by the State Science Council, opening up a period of brilliant development of the cashew processing industry.

Over the past 10 years, thanks to promoting the application of science and technology, mechanization and automation, Vietnam's cashew industry has solved a series of difficult problems. The birth of a series of machines and equipment such as cashew shelling machines, silk peeling machines, color sorting machines, and size sorting machines has helped the cashew industry reduce labor by 70 - 80%, thereby overcoming overcome the labor shortage situation.

Machines and equipment have helped factories improve processing productivity, reduce processing time, and help the cashew kernel production process from raw material warehousing to finished product packaging. 13 - 14 days reduced to 7 days. In particular, Vietnamese-made machinery and equipment have helped factories significantly reduce the breakage rate compared to manual production, with a much higher reduction than machinery and equipment of the same type. of foreign countries. That's why some companies from Italy, India, Brazil... had to buy machinery and cashew processing equipment from Vietnam to supplement the shortcomings in their technology.

Machinery and equipment produced in Vietnam have helped factories reduce environmental pollution. Promoting mechanization helps factories concentrate on processing, thereby better controlling quality and ensuring better food hygiene and safety. By-products such as cashew shells have also been used to produce cashew oil, creating high added value.

Contribute to promoting the African cashew processing industry
With the fact that Vietnam's cashew industry thanks to mastering technology, it has surpassed India to lead the world in exporting cashew kernels continuously since 2006 until now, for a long time, our country's cashew processing technology has attracted attention. interest from many countries. When focusing on developing domestic cashew processing to create jobs and add value to native cashew nuts, African countries have come to Vietnam to buy cashew processing equipment and technology.

In recent years, with the "support" of Vietnamese technology, African cashew kernels have appeared on the world market. Although output is not much, African cashew kernels are also creating certain competition in major markets. According to the US International Trade Commission, in the top 5 markets supplying cashew nuts to the US in 2023, there are 2 countries from Africa: Ivory Coast (ranked second after Vietnam) and Nigeria (ranked 4th). .

In particular, in the EU, the amount of cashew kernels imported from some African countries is increasing rapidly. Specifically, in the first 11 months of 2023, Ivory Coast cashew kernels imported into the EU reached 16.6 thousand tons, worth 98 million USD, an increase of 41% in volume and 25% in turnover compared to the same period in 2022. Also in the same period. This time, the amount of cashew nuts imported into the EU from another African country, Burkina Faso, reached 2,765 tons, worth 18.5 million USD, an increase of 16% in volume and 13% in turnover.

In the EU market, African cashew kernels have an advantage over Vietnamese cashew kernels thanks to more competitive prices due to support from the government in encouraging the development of processing industry, and available raw materials. raw cashew materials on site and shipping costs are much lower. On the other hand, African cashew kernels imported into the EU are also supported by policies of European countries to encourage the cashew processing industry to develop in Africa to create jobs and reduce hunger. poverty, thereby reducing the flow of illegal migrants into Europe.

The purchase of Vietnamese cashew processing technology by African countries to develop the domestic cashew processing industry is having adverse impacts on Vietnam's cashew industry. First of all, many African countries have issued floor prices for raw cashew exports to limit raw cashew exports and encourage cashew kernel processing. This makes even though global raw cashew output is abundant, the price of raw cashew nuts is often unreasonable compared to the price of cashew kernels. Therefore, although export volume increases in 2023, the vast majority of Vietnamese cashew factories are unprofitable, even at a loss, and are at risk of mass closure.

More and more African cashew kernels are participating in the world market, which is also putting certain competitive pressure on Vietnamese cashew kernels. As in the EU market, while the amount of cashew nuts imported from African countries such as Ivory Coast and Burkina Faso increased very strongly, imports from Vietnam (the largest source of supply in many years) increased only modestly. The cost is 3% in the first 11 months of 2023. This increase is less than half the overall growth in cashew imports into the EU of 7.2%.

Facing the development of the African cashew processing industry, with technology mainly coming from Vietnam, in recent years, the cashew industry has had quite fierce debates surrounding whether to request the state to ban exports. Whether or not to export technology, machinery, and cashew processing equipment to Africa.

To date, this debate has subsided because cashew processing technology is not on the list of goods banned from export. Companies specializing in the production and supply of cashew processing machinery and equipment also need to diversify markets and customers to expand scale and increase profits, especially when the cashew processing industry is developing. in Africa - the world's largest raw cashew producing region. Exporting cashew processing machinery and equipment is also bringing more foreign currency to the country and contributing to overall export growth. There are even companies whose main market is Africa, not Vietnam.

Mr. Dang Van Tuyen, Director of Mekong Technology Investment and Development Co., Ltd., shared that since 2010, the company has exported cashew processing machinery and equipment to many African countries such as the Coast. Ivory, Nigeria, Tanzania... The cashew industry in these countries all highly appreciate cashew processing machinery and equipment made in Vietnam.

According to Vietnam Agriculture Newspaper!