The cashew industry has lowered its export target for this year to US$3.05 billion, $50 million and $750 million below its own previous target. — VNA/VNS Photo

HCM CITY — With exports expected to remain mired in difficulties for the rest of the year, the cashew industry has lowered its export target for this year to US$3.05 billion, $50 million and $750 million below its own previous target and the Ministry of Agriculture and Rural Development’s.

Speaking at a conference held by the Vietnam Cashew Association (VINACAS) in HCM City to review the industry’s performance this year on Wednesday, Bạch Khánh Nhật, VINACAS’s deputy chairman, said cashew exports grew in the first half despite all the difficulties.

Over 279,000 tonnes were exported for US$1.6 billion, a year-on-year increase of 7.65 per cent, he said.

The average export price was down by 1.73 per cent to $5,717 per tonne.

Nhật said the industry has been experiencing difficulties posed by geopolitical crises, monetary tightening by central banks globally, inflation, lower demand in key markets, and consumers tightening their purse strings.

Buyers mainly placed spot contracts for small volumes in the first half, he said.

The positive factor is that cashew prices are competitive with those of other nuts, and globally retailers are carrying out promotions to stimulate demand, he said.

In the worst case, VINACAS assumes the global economy will continue to slow further, and cashew demand among end consumers will continue to decrease, and importers in many markets will not be in a hurry to buy cashew again until they see an increase in demand.

So its executive board has lowered the export target to $3.05 billion.

Phạm Văn Công, its chairman, said to boost exports to key markets including those that have free trade agreements with Việt Nam, it is important to strengthen promotions so that consumers know about Vietnamese cashew.

The association said the Ministry of Industry and Trade should help the industry promote its products at international fairs.

The association will organise a trade promotion programme in Japan at the end of this year, the International Cashew Conference in Quảng Bình in the first quarter next year and a trade promotion programme in China next year, and it wants the ministry’s support for them under a national promotion programme.

It also called for policies to help enterprises improve technologies and equipment, speed up digital transformation, invest in intensive processing, grow organic cashew, make cashew shell oil, and diversify exports.

Since Việt Nam still imports large volumes of raw cashew for processing, the association called for conducive mechanisms and policies, especially in terms of bank credit, tax and customs.

Nguyễn Minh Họa, the association’s deputy chairman, said processing firms should no longer stockpile raw cashew like before because availability is now abundant.

So they need to carefully study the market and make appropriate plans for imports, he added.