HCM City (VNA) – Vietnam sustained itsposition as the world’s leading cashew processor and exporter in 2018, yet the country still suffered fromcertain losses, so the sector must strive to regain what it lost in 2018 andimprove its export value in 2019, according to insiders.

At a meeting held in Ho Chi Minh City on January11, Vice Chairman of the Vietnam Cashew Association (VINACAS) Nguyen Minh Hoasaid that retaining the world’s top position, the country processed 1.65million tonnes of raw cashews and exported 391,000 tonnes of cashew nuts worth3.52 billion USD in 2018.

Although the figures were impressive, processorssuffered from considerable losses when the export volume rose 7.8 percent butthe value fell 3 percent from 2017.

He said that even though VINACAS had warnedbusinesses right from the beginning of last year’s crop against purchasing rawcashew when prices were too high, many of them still bought in bulk for fear ofsupply shortage. As a result, when they finished processing, cashew nut pricesnosedived, leading to major economic losses.

Therefore, businesses should be more careful inchoosing suitable points of time and prices for material purchase this year,Hoa advised.

Director of the Long Son company Vu Thai Sonsaid that as the global cashew sector faced numerous difficulties in 2018, theinventory in many countries remains large. Additionally, the output in Africancountries is predicted to increase by some 10-15 percent. Therefore, the rawmaterial supply is very abundant in 2019.

Cashew nut prices are unlikely to rise sharply,he said, recommending companies not rush to buy in bulk at the beginning of thecrop’s cycle or enter contracts with delivery dates too far ahead to avoidprice-related risks.

VINACAS Chairman Pham Van Cong said aside fromlocal firms’ improper moves, last year’s cashew exports were also affected byglobal economic impact like the US-China trade war which caused a drop inconsumption demand in these two markets. The US, the EU, and China have alsobegun tightening quality and food safety standards.

He noted that to regain what was lost in 2018and recover the activities of cashew businesses, firms must keep a close watchon the global market, while VINACAS also needs to promote its members’intensive processing to raise products’ added value.

Cong also asked the Government and relevantministries and sectors to step up communications via diplomatic channels andtrade promotion to raise the standing of Vietnamese cashew products on theinternational market. –VNA