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VN looks to boost cashew exports
Viet Nam hopes to reduce the area under cashew but increase exports of cashew products by 2020, a conference held in southern Binh Phuoc Province on Sunday heard.
The Deputy Head of the Ministry of Agriculture and Rural Development's Cultivation Department, Nguyen Van Hoa, said the area would be reduced from 450,000 ha now to 357,000ha while exports would rise from US$850 million to $1.4-1.5 billion.
To achieve this, the industry would focus on developing new seed varieties, he told the conference that was attended by more than 400 domestic and foreign delegates to discuss measures to increase productivity and bolster the competitiveness of Vietnamese cashew products in the global market.
Cashew is mostly grown in the south-eastern, Central Highlands, and south-central coastal regions.
Delegates suggested several measures to achieve the goal.
They said modern farming and processing methods should be introduced.
By 2015, industry and trade departments in provinces and cities, in collaboration with planning and investment and agriculture departments, should review and revamp the network of processing plants.
They would need to stop the setting up of small processing plants with poor equipment.
The Cultivation Department called for creating mechanisms and drafting policies that help cashew growers, processors, and exporters.
For instance, it said, land policies should enable small farmers to increase yield and create exclusive, high-yielding cashew cultivation areas.
Generous credit policies were required to help cashew businesses invest in technologies and production, it said, adding the Government should give tax breaks to the domestic market for cashew products.
There was also need for financial support for training human resources, providing incentives to farmers, and innovating and manufacturing modern machinery to improve productivity, quality and international competitiveness, it said.
The department unveiled plans to set up a research and technology transfer centre in Binh Phuoc Province to train human resources for the cacao and cashew industries.
Hoa said the processing industry was considering growing cashew on 100,000ha in Cambodia, Laos, and some African countries to secure supply of raw materials which are now mostly imported.
Processors should also pay attention to diversifying their products, making, for instance, alcoholic and other beverages from cashew for both domestic consumption and export.
"By 2020 the industry is likely to have the capacity to process 10,000 tonnes a year to meet the increasing export demand," he said.
Le Xuan, Head of the Agro-Forestry-Fisheries Processing Department, charted out the development path the cashew industry should take.
All cashew processors should scrupulously follow the Ministry of Agriculture and Rural Development's circular No.75 on foodstuff hygiene and safety standards.
Close links should be established within the industry to increase its competitiveness and raise the global profile of Viet Nam's cashew products, he explained.
It is imperative to establish cashew farmers associations in major growing areas like Binh Phuoc, Dong Nai, Dak Nong, Gia Lai, and Binh Thuan provinces to manage quality and safeguard the prestige and trademark of cashew products.
John Waring, chairman of Australia-based trading company Waring Group, said the Vietnamese cashew industry should popularise its products abroad and needs to be more transparent in their dealings to create trust among customers.
Deputy Minister of Agriculture and Rural Development Bui Ba Bong said: "The industry has not developed strongly because rubber and manioc prices have increased, luring away farmers."
With the area under cashew fluctuating, causing erratic supply of raw materials for processors, he said: "Stabilising farming area, adoption of intensive farming to increase yield and quality, and establishing close links between producers, processors, and traders are essential."
Quynh Hoa
vietnamnews
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