|
Cashew nut processors lack capital
Export cashew nut prices have reached their highest levels since the beginning of 2010, but Vietnamese firms do not have products to export because they lack capital to buy materials for processing.
Hoang Manh Binh, Director of Viet Son Company in Binh Phuoc province, the “metropolis” of cashew plants, has to receive people from cashew export companies every day, who come to look for cashew materials. “However, they cannot buy anything from us,” Binh admitted. “We have nothing more to sell. Our company must fulfill export contracts until March 2011, while materials in our stocks are just enough for the end of the year.”
Viet Son is luckier than many other companies. Earlier this crop, Viet Son arranged enough money to purchase cashew materials for processing at low prices. Meanwhile, other companies could not store materials because they did not have enough capital.
Le Bong, Director of Thien An Company in Bu Gia Map District, says that every year his factory processes 5000-6000 tons of cashews, but to date, he has purchased only some 2000 tons. “In order to maintain production and retain workers, we must import 3000 tons of materials this year,” Bong estimated.
As demand has risen, the raw material price has as well. Earlier this crop, raw materials were traded at 18,000-20,000 dong per kilo, then prices jumped to 24,000 dong per kilo in July and then to 30,500 in September. The price on imports from Africa and India has soared to 20,000 dong per kilo, or 5000 dong per kilo more than just two months ago.
In Huy Hoang Company, 30 workers have been laid off. Pham Thi Hoa, a senior executive of the company, observed that, in previous months, the company processed 5-6 tons of cashew per day. Now the figure has been cut in half.
More seriously, Tan Ngoc Company laid off 2/3 of 100 workers because of the lack of materials.
6800 billion dong needed
Nguyen Thai Hoc, Chair of the Vietnam Cashew Association (Vinacas), admitted that many small enterprises have fallen into big difficulties. “The situation will be even more severe in the fourth quarter of 2010 and early 2011,” he predicted.
According to Vinacas, with the current production capacity of factories, enterprises will still need 150,000 tons of raw materials more from now to the end of the year. If they cannot get enough materials, 200 processing workshops with 150,000 workers will sit idle.
Hoc complained that enterprises could not borrow money in foreign currencies to import raw materials. “Except the 20 biggest enterprises, other enterprises could not access bank loans to store materials,” he said.
The export price is now very high at $6600 per ton for W320 product, an increase of $500 per ton over the end of 2009. Vinacas said enterprises need some 6800 billion dong to collect cashew nuts from domestic sources and import materials for processing.
vietnamnet, TBKTSG
|
