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Vietnam to import 870,000 tons of cashew nuts in 2016 as domestic supply falls short

By Bui Hong Nhung   May 25, 2016 | 04:37 pm GMT+7
Vietnam to import 870,000 tons of cashew nuts in 2016 as domestic supply falls short

The world’s largest cashew exporter plans to imports 870,000 tons of cashew worth $1.1 million to provide materials for its processing industry.

Nguyen Duc Thanh, chairman of the Vietnam Cashew Association, said at a meeting on May 23: “Vietnam is the leading cashew exporter as well as importer in the world. However, our cashew industry is not strong.”

The chairman added that domestic cashew suppliers are only able to provide 50 percent of the raw materials processing factories need while the rest has to be supplemented with imported nuts from Cambodia and African countries.

This year, the price of cashew imports from Africa has gone up by 16 percent against last year. One trader said that some Vietnamese enterprises have offered higher prices to buy up more material, causing price hikes in the African market.

In addition, cut-throat competition from enterprises in China, India and the Ivory Coast has made it difficult for Vietnamese firms to buy cashew from Africa.

Vu Thai Son, chairman of Long Son Joint Stock Company, Vietnam’s largest cashew processor, said: “Countries that export cashew have offered a minimum selling price, so Vietnam, the largest importer in the world, should discuss and offer maximum purchasing prices. Only when our enterprises unite will Vietnam’ cashew industry achieve sustainable development.”

Since 2015, the import price of raw cashew has surged from $100 to $150 per ton, causing many Vietnamese traders who had previously fixed prices in their export contracts to suffer losses.