INC to support Vietnam's cashew firms to expand cooperation

The International Nut & Dried Fruit Council (INC) will continue to enhance international cooperation between the Vietnam Cashew Association (Vinacas) and the global cashew businesses.

INC Chairman Michael Waring gave his expectation at the opening ceremony of the 12th VINACAS Golden Cashew Rendezvous 2023. The event is held within the framework of the Vietnam national program on trade promotion, running until February 28 in Ho Chi Minh City.

INC Chairman Michael Waring speaks at the event. Photos: haiquanonline.com.vn

Expanding international cooperation is one of the objectives set by the Vietnam Cashew Association (Vinacas) and the Ministry of Industry and Trade in a context where the production and supply chain of the cashew industry globally and in Vietnam continue to face numerous challenges.

The association's Chairman, Pham Van Cong, expected the cooperation would gather market trends, proposals, and initiatives of the community of exporters, traders, roasters, and packers.

He hoped such an event would help Vietnam's cashew industry overcome challenges, promote import and export, and foster long-term and sustainable relationships between cashew enterprises in Vietnam and globally.

The association leader said Vietnam's cashew nut export is set to earn revenues of US$3.1 billion, US$30 million higher than the 2022 results, focusing on increasing quality and reducing quantity.

The growth of Vietnam's cashew industry has been significantly affected by the continued decline in global demand for cashew nuts, meanwhile, the global cashew raw material market has faced many challenges, he said. In 2022, Vietnam's cashew export turnover reached US$3.07 billion, a decrease of almost US$600 million compared to the set target of $3.8 billion.

Vinacas signed a memorandum of understanding with the Cashew Nut Association of Cambodia on the supply of raw materials.

Regarding the consumption trend, Michael Waring said that, with more than 2.4 billion people, generation Z is the key consumer group of the nut & dry fruit market and plays a vital role in making purchase decisions.

In China alone, Generation Z represents around 16.5% of the population. Therefore, the cashew nut industry must increase access to this consumer group. INC is currently approaching this group in the Chinese market, he said.

Regarding consumption for the US market, Bob Bauer, President of the Association of Food Industries (AFI), a buyer of Vietnam, said that food safety and traceability are always a top concern of US consumers.

The association is responsible for updating Vietnamese enterprises in the sector on the requirements of the export market, thus helping Vietnamese cashew nuts go further, he added.

Vu Ba Phu, Director of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, stated that the cashew nut sector, a major agricultural export, is a priority of the national trade promotion program.

Phu added: "Through the program, local companies would have the opportunity to capture market requirements, improve the quality of their products and promote their brands internationally. Many companies have developed a global reach for their brands in the cashew industry.

He said that Vietnam's cashew industry needs a systematic strategy to maximize the value of the national brand.

On the same day, Vinacas signed a memorandum of agreement with the Cambodian Cashew Nut Association on purchasing raw cashew nuts to ensure supply for domestic production, processing, and export.