DEEP PROCESSING ENHANCES VALUE FOR VIETNAM CASHEW

From 2006 to now, Vietnam has always been leading the world in cashew nut export. However, in the global cashew nut value chain, Vietnam cashew industry only occupies a disproportionate position due to mainly preliminary processed cashew kernel export. Therefore, VINACAS and other enterprises arepromotingdeepprocessingtoincreasethevalueofVietnamcashew.

Thanks to investment in deep processing, many member enterprises of VINACAS not only increase the value of cashew nut export but are also gradually penetrating, creating a strong foothold in the domestic market. These are the brands that are gradually gaining trust with domestic consumers such as Casna (Tanimex-LA),Lafooco,Hapro ...

According to the Vietnam Cashew Association (VINACAS), for a long time, Vietnam mainly has been exporting cashew kernels. Meanwhile, most of the raw cashew materials brought and processed at Vietnam cashew factories are imported raw cashew with great value. For example, in 2022, when the cashew industry achieved an export 3.08 turnover of USD billion, it had to spend 2.678 to USDbillion import raw cashew. Therefore, despite holding the position as the world's largest cashew kernel exporter continuously from 2006 to now, Vietnam cashew industry still occupies a disproportionate position intheglobalcashewnutvaluechain.

Not only that, many African countries inherently only specializinginexportingrawcashew, for the past years, stepped up investment in cashew kernel processing. Thus, in the coming time, Vietnam cashew industry will face increasing competition from African countries in the world cashew kernel market. Meanwhile, the import market is tending to raise more and more food safety standards for cashewkernels.

In response to these realities, for many years, VINACAS has had orientations to promote deep processing in the cashew industry in order to increase export turnover as well as improve the value of

Vietnam's cashew nuts. At the same time, deep processing will also help cashew enterprises to penetrate into retailsystemsinthedomesticmarket, with instant cashew nut products with good quality and taste convincing Vietnameseconsumers.

With that orientation, for the past years, many enterprises have boldly invested and purchased modern equipment and machinery to enhance deep processing. In addition to traditional products such as salted roasted cashew nut, roasted and salted cashew kernels with testa, many enterprises researched and producednewandcreativeprocessed products that convinced consumers in many markets such as honey cashew nut, spiced cashew nut, wasabi cashew nut, white sesame dried cashewnut...

One of the enterprises that soonwentintodeepprocessingisTan An Foods Processing Export Company Limited (Tanimex - LA). From 2012, Tanimex – LA invested in deep processing with the first product being salted fried cashew nut. After that, Tanimex - LA developed other products such as honey cashew nut, wasabi cashew nut, roasted and salted cashew kernels with testa, and dried cashew nut.

Long Son Group is promoting processing and exporting deeply processed cashew nuts, mainly salted roasted cashew nut, roasted and salted cashew kernels with testa, salted fried cashew nut. In addition, there are products such as sesame cashew, cheese cashew, garlic cashew and chili cashew... Although deeply processed cashew nuts still account for a relatively modest proportion of Long Son's cashew export, the company is still persistently following this way to gradually increase the proportion of deeply processed products in the exportstructure.

Another leading name in exporting cashew kernels is Hoang Son 1 Joint Stock Company. It also invested in deep processing from cashew nuts, with the main products being fresh wood-roasted cashew nut, roasted and salted cashew kernels with testa... For the past time, many shipments of deeply processed cashew nuts from Hoang Son 1 have been successfully expsorted to the EUthankstotheEVFTAAgreement.

As one of the first enterprises in Vietnam to participate in the export of cashew kernels, for recent years, Long An Food Processing Export Joint Stock Company (Lafooco) has strongly shifted to the production of valueadded products from cashew nuts. Currently, Lafooco has many deeply processed products such as roasted and salted cashew kernels, honey cashew nut, wasabi cashew nut, coconut milk cashew nut... Lafooco's processed cashew nuts are sold at many stores and supermarkets in China, Hong Kong, Canada, Japan, Europe… In addition to exporting through traditional channels, Lafooco has sold goods overseas via Amazon e-commerce channel and received positivefeedbackfromcustomers.

In addition to deeply processedcashewnutproducts,many enterprises have produced and marketed many processed products with cashew nut ingredient such as cashew candy of My Le Company, salt-roasted mixed nuts (cashew, almond, walnut and pistachio) and Lafooco's Daily nutritious nuts (Cashew nut, Almond, Hazelnut, Blueberry, Cranberry and Walnut), Mixed Nuts (Cashew nut, Pistachio, almond, dried grape and walnut) of LongSonGroup...

Tran Thanh