New processing technologies – a 'lever' for the cashew industry

In today's fiercely competitive market, it is more critical than ever to "refresh" by adopting the accomplishments of the 4.0 technological revolution.

Science and technology, particularly in the "sensitive" commodities market, such as cashew nuts, are not only a technological answer but also a lever for growth. As a result, science and technology have been applied to cashew cultivation and processing for a lengthy period of time.

Ms. Nguyen Thi Huong's Hoang Long cashew processing factory in Bu Dop (Binh Phuoc) consists of three active manufacturing facilities with a combined monthly capacity of 1,500 tons of cashew material. The facility used to employ a huge number of manforce to operate in a conventional way.

Ms. Huong, on the other hand, increased her investment in innovative equipment systems with the assistance of state capital. Each step of the production line, from raw materials transportation through storage, autoclaving, separating, humidifying, sorting, and packaging final goods, requires just a few personnel to maintain, ensuring that products are manufactured in a synchronized way and acquire customer confidence.

"In the past, when manufacturing was done manually, production was very low; extracting one ton of raw materials took a few days, not including additional processes. As a result, the family has spent roughly tens of billion dong in recent years to automate the processing process in all three plants. We are now more proactive in our output, the quality of our products has increased, and our manufacturing expenses have fallen. This is where the majority of the profit is made," Ms. Huong stated.

Similarly, recognizing the value of investing in science and technology for processing, Bao Ngan Import-Export Trading Service Co., Ltd (Bao Ngan Company) in Bu Dop district aggressively improved production lines and procedures.

Mr. Nguyen Van Thang, Director of Bao Ngan Company, shared that in order to meet the market's increasingly stringent requirements, the company has signed volume agreements with partners. In addition to the automated production line, the company has invested more than VND 2 billion in additional color grading machines for cashew nuts. While it is costly, it produces rapid benefits.

"The firm utilizes the most advanced color shooting equipment available today. The company's machines are categorised into four categories based on their installation schedule. Our current capacity is around 10-15 tons/day. Previously, when things were done manually, it took 70-80 employees to attain this amount. The use of deep technology in processing enables the firm to be proactive in terms of capacity and production, allowing it to negotiate supply contracts with partners without having to worry about output loss as before," Thang said.

Ms. Dao Thi Lanh, Chairwoman of the Binh Phuoc Cashew Association, explained that in addition to processing cashew kernels for export, several firms in Binh Phuoc have lately shifted their focus to deep processing in order to broaden their product offerings and serve a broader spectrum of customers. Numerous cashew goods from Binh Phuoc have established a market presence, including salted roasted cashews, cashew cheese, cashew nut cakes, and cashew milk.

Despite the challenges caused by the Covid-19 epidemic, cashew nut exports increased significantly in volume and value during the first nine months of 2021.

According to the General Department of Customs, Vietnam exported 427.3 thousand tons of cashews worth USD 2.66 billion in the first nine months of 2021, an increase of 17.2 percent in volume and 15.1 percent in value over the same period in 2020.

The United States is the primary market for Vietnamese cashew nuts. Cashew nut shipments to the United States surpassed 133 thousand tons, valued at USD 777 million, in only nine months. China is next (60 thousand tons and USD 444 million), followed by the Netherlands (53 thousand tons and USD 291 million)...

Vietnam's cashew exports are expected to expand in the near future, according to the International Trade Department (Ministry of Industry and Trade). The fourth quarter is often the peak season for cashew nut consumption, with imports increasing in regions such as the United States, Europe, and China. Domestically, social distancing is steadily easing, making manufacturing and transportation more accessible.