Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - The VietnamCashew Association (Vinacas) has recommended cashew processing enterprisesremain calm and try not to sell off their products to avoid potential losses.
A representative of theassociation said: "There are more demands for the nuts, but exportersshould be careful in trading."
Vinacas thinks though thepandemic has been controlled in China, it was still not yet under control inmany countries and territories around the world, especially the US and Europe,which are traditional cashew export markets of Vietnam and where customers arerequesting early delivery due to fears global freight may be in trouble.
According to the association,in the United States and the EU, restricted travel has led to an increasingdemand for essential food reserves, including processed cashew nuts.Especially, in the EU, importers were looking to buy goods to store because ofthe concern that the COVID-19 pandemic in Africa will affect the supply of rawcashew nuts for Vietnam and India.
At the same time, India isstill greatly affected by the pandemic. According to the Indian Cashew IndustryFederation, about 15,000 tonnes of raw cashew nuts are in stock at processingplants across the country due to the blockade.
As a result, some customers nowrequire Vietnamese factories to deliver the nuts as quickly as possible due toconcerns that global cargo transportation may be in difficulty, raising freightrates.
However, Vinacas tells localprocessing plants to be careful in trading their products, suggesting theyimport raw nuts if there is a suitable price.
Vinacas added: “Cashewprocessing enterprises should not sign future contracts if they cannot buy rawcashew nuts at good prices, because when the pandemic is under control, theprices may increase again.”
The association also mentionsthe high risk of buying raw cashew nuts from Africa without having a contractfor their processed nuts or having a plan to resell the materials.
Instead, it advises plantsto purchase raw cashew nuts in the country in order to contribute to themaintenance and development of local raw material areas.
Local cashew processing plantsneed to closely monitor market developments and should also have a plan for2021, said the association.
Before the pandemic, theVietnamese cashew industry aimed to export 4 billion USD in 2020. As thepandemic hit the price of cashew nut exports, the industry adjusted its exportplan to 3 billion USD./.
A representative of theassociation said: "There are more demands for the nuts, but exportersshould be careful in trading."
Vinacas thinks though thepandemic has been controlled in China, it was still not yet under control inmany countries and territories around the world, especially the US and Europe,which are traditional cashew export markets of Vietnam and where customers arerequesting early delivery due to fears global freight may be in trouble.
According to the association,in the United States and the EU, restricted travel has led to an increasingdemand for essential food reserves, including processed cashew nuts.Especially, in the EU, importers were looking to buy goods to store because ofthe concern that the COVID-19 pandemic in Africa will affect the supply of rawcashew nuts for Vietnam and India.
At the same time, India isstill greatly affected by the pandemic. According to the Indian Cashew IndustryFederation, about 15,000 tonnes of raw cashew nuts are in stock at processingplants across the country due to the blockade.
As a result, some customers nowrequire Vietnamese factories to deliver the nuts as quickly as possible due toconcerns that global cargo transportation may be in difficulty, raising freightrates.
However, Vinacas tells localprocessing plants to be careful in trading their products, suggesting theyimport raw nuts if there is a suitable price.
Vinacas added: “Cashewprocessing enterprises should not sign future contracts if they cannot buy rawcashew nuts at good prices, because when the pandemic is under control, theprices may increase again.”
The association also mentionsthe high risk of buying raw cashew nuts from Africa without having a contractfor their processed nuts or having a plan to resell the materials.
Instead, it advises plantsto purchase raw cashew nuts in the country in order to contribute to themaintenance and development of local raw material areas.
Local cashew processing plantsneed to closely monitor market developments and should also have a plan for2021, said the association.
Before the pandemic, theVietnamese cashew industry aimed to export 4 billion USD in 2020. As thepandemic hit the price of cashew nut exports, the industry adjusted its exportplan to 3 billion USD./.
VNA
