VietNamNet Bridge – Vietnam’s cashew industry has never before fallen in such a distress. The cashew growing area has decreased dramatically, enterprises lack capital to import raw materials, while foreign importers have turned their back to Vietnam’s products.

Vietnam’s cashew industry is experiencing a difficult period not because of the demand decrease in the world market, but because foreign importers have become disappointed about the quality of Vietnam’s cashew nuts.

John Waring, Chair of Waring Group, affirmed that being the biggest Australian cashew importer, Waring is also a big client of Vietnam. However, Waring recently has shifted to import cashew nuts from India instead of Vietnam.

Joseph Lang, Managing Director of Kenkko Company, said that previously the quality of Vietnam’s cashew nuts was very good. However, recently, some Vietnamese companies sold him the consignments of products with low quality which do not meet the food hygiene standards.

He has warned that this would seriously harm the Vietnam’s cashew industry, because foreign importers would give up the Vietnamese market.

“We really want to help develop the Vietnam’s cashew industry. However, the industry needs to renovate itself and increase the quality of products,” he said, adding that this should not be seen as a short term business, but a long term and stable industry.

Pani Rath, CEO of Raths & Cotrading Group from Australia, has also warned that Vietnam’s cashew industry would slide if Vietnamese companies do not change themselves.

However, the businessmen from Australia have affirmed that the demand for cashew nuts from Australia and the world is always very big, which means that Vietnam always has great potentials to boost cashew exports, if it can provide high quality products. Processing food from cashew nuts has been strongly supported by the Australian government.

Pino Calcagni, Deputy Chair of the International Nut and Dried Fruit Council INC said INC has been making every effort to propagate the benefits of cashew nuts in Australia, even though Australia is not the homeland of cashew tree.

In Australia, the Australian Nut Industry Council and the Australian Government also join forces to propagate the benefits of cashew nuts by sending messages about the nuts to all people and receiving replies from people. Therefore, cashew nuts have been used regularly by Australian people.

Pino Calcagni said he cannot understand why in Vietnam, the homeland of the cashew tree, the biggest cashew nut exporter in the world, people do not use cashew nuts. Only five percent of cashew nut output is consumed domestically, while 95 percent of the output is exported.

Vinacas: one rotten apple spoils the barrel

Chair of Vinacas (the Vietnam Cashew Association) Nguyen Thai Hoc has admitted that the foreign importers showed the truth of the Vietnam’s cashew industry.

Over the last five years, up to 290 Vietnamese companies have been exporting cashew nuts to the world. These include a lot of companies which do not care about prestige and quality, but just run after profit. The companies have made authentic companies get involved in the misfortune.

Hoc said Vinacas has proposed the government to set up standards for cashew nuts for export, which would allow to refuse problematic products and prevent the products from going to the world market.

Meanwhile, Hoc has also called on importers to do business with prestigious companies, especially the 250 member companies of Vinacas. The companies, unlike other companies, are put under the strict control of the association and dare not export low quality products.

He also said that if consulting with Vinacas before making decision, foreign importers would never have to buy low quality products.

Source: Lao dong