Cashew sector works to retain leading position in EU market
Local businesses have been advised to diversify their cashew products as part of efforts aimed at increasing exports to the EU and retaining its leading position in the demanding market moving forward, according to insiders.
At present, the dominant position of local cashew nuts in the bloc is being threatened due to a change in the supply chain, as well as the participation of a number of regional countries such as India and Cambodia, said Vu Anh Son, representative of the Vietnam Trade Office in France.
Most notably, the market share of Vietnamese cashew in France in the 2019 to 2020 period has shrunk from 61% to 46%.
Dang Hoang Giang, general secretary of the Vietnam Cashew Association (Vinacas), advised local firms to gain greater insights into customer tastes and other types of products sold at convenience stores in the EU to increase their market share.
Furthermore, Vietnamese enterprises have also been urged to stay updated on the latest changes in the standards of food safety and quality of imported products in the EU market, as well as strictly complying with regulations on the maximum allowed level of pesticide residue on imported goods, packaging, and labels.
Although Vietnamese cashew is the dominant nut in the bloc, they are only in a raw form with few processed products in line with the tastes of EU customers.
Experts have therefore recommended that Vietnamese exporters focus on niche markets of processed products, such as roasted and spicy products as a means of further penetrating the choosy market, noting that organic cashew products currently popular in the EU market are also seen as a potential niche market for Vietnamese businesses in the future.
