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May 20th - May 26th, 2012

CashewInfo.com
Volume 13 Issue 21

Special Coverage Dynamics of Cashew and Almond Consumption in India

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From the Cashew Info Desk

Dear Patrons of Cashewinfo.com We thank you all for supporting us in our endeavor of providing the most pertinent information and analysis on cashew and other premium nuts on this platform. In our effort to take this weekly newsletter to new heights and to provide easy readability, we have attempted to realign the content starting with this week along with significant value addition to the content. We hope that the new orientation would be appreciated by our readers. The cashew market across the world is experiencing a unique situation as we can infer from the cashew reports of the last few weeks. The year 2011-12 had seen the prices of cashew reaching historic highs which has raised the expectations of the stakeholders in the chains and the volatility that we are witnessing currently in the cashew kernel prices is a result of nut trying to find its correct price amidst the complex factors on both demand and supply side. The volatility in the cashew prices, its causes and effect were major themes of discussion at the INC, Singapore amidst the lower output in India and Vietnam. On the demand side, there is lack of clarity due to the problems in the European markets, which is making the buyers to delay their buying in a bid to downsize their risk. The current prices of RCN are becoming deterrent for the processors to tackle the slowdown in prices on the kernel front. While a few analysts point that a temporary downside in prices cannot be ruled out in the current kernel prices, others are pointing towards levels below which prices of kernels cannot sustain in near future. In this week we have seen prices of both RCN and kernels easing a bit. We express our gratitude towards the experts who are associating with us with the rich coverage, which is bound to enlighten the cashew community. We request our readers to give their valuable feedback and opinion about cashewinfo.com on our mail id bc@commodityindia.com and mktg@fbspl.com Happy reading

Table of Content
Indian Cashew Markets
Price Movement Indian Market Commentaries Domestic prices of nuts

International Cashew Markets

International Price Highlights International cashew market commentaries

Currency Movements
Forex Rates

Out look for Rs VND and BRL

Comparative Movement of Currencies in cashew processing regions

Special Coverage
Dynamics of Cashew and Almond Consumption in India

News Highlights
News Highlight from India International news highlights

Upcoming Trade Events

Indian Events International Events

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CASHEW WEEK

Indian Cashew Market

Average FOB prices (USD/lb) of W-320 grade Kernel

This week, FOB price for W320 grade kernel were reported at a range 3.60 to 3.75 USD per lb FOB as against USD 3.65 to 3.85 per lb FOB in the last week.

Raw Cashew Nut Price Trend-India (Rs.80/kg)

This week, RCN prices decreased to Rs 6800-7200 per 80 kg bag from last weeks level of Rs 7200-7500 per 80 kg bag.

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Commentaries by Experts
Mr Pankaj N. Sampat, Samsons Trading Company FOB prices USD per lbs Grades W240 W320 W450 SW320 SW360 SSW WS WB LP Prices for 05/19/2012 4.10 to 4.20 3.65 to 3.85 3.50 to 3.60 3.55 to 3.65 3.40 to 3.50 3.20 to 3.30 2.65 to 2.75 2.70 to 2.80 2.30 to 2.40 Prices for 05/26/2012 4.00 to 4.15 3.60 to 3.75 3.45 to 3.55 3.50 to 3.60 3.35 to 3.45 3.10 to 3.25 2.60 to 2.70 2.60 to 2.70 2.30 to 2.40 expected to start in couple of weeks. Some shipments have been made to Brazil from Ghana & Ivory Coast. Recurring theme of the discussions in Singapore and Nha Trang conferences was that high volatility is not helping anyone. Stakeholders are reluctant to take forward positions and the market has become illiquid. Any small change on supply or demand side is resulting in large price swings, adding to the volatility. Added to that, we have the uncertainty of supply & demand trends and disruptions and wastages on the supply side. For instance, the delays in the West Africa crops followed by logistic problems and limited purchases by Vietnam means that processing in India and Vietnam in May, June, July will be lower normal and could lead to temporary squeeze in kernel supplies in the importing countries in Jun-Aug/Sep. Reducing wastages and inefficiencies in the producing areas will mean some increase (and more importantly, much required stability) in kernel supplies throughout the year and reduce volatility. To give an idea of volatility in the cashew market, let us look at the price movement from beginning of 2010: 1. From Jan to Jul 2010, W320 were around 3.00 except for a brief period in Feb/Mar when prices moved down to 2.70 2. From Jul to Oct 2010, W320 moved up slowly from 3.00 to 3.40 3. During Nov 2010, W320 moved up sharply from 3.40 to 3.80 and remained in 3.70 to 4.00 range till May 2011 4. During Jun/Jul 2011, W320 moved up suddenly from 4.00 to 4.70, drifted down to 4.50 during Aug/ mid Sep 2011 and declined sharply to 3.90 by Nov

After 2-3 weeks of quietness, cashews were traded few cents lower in week 21 by some processors for limited quantities for prompt June shipments. There was not much change in prices from most processors for shipment June onwards. As a result, price range widened a few cents again. Offered or traded levels were W240 from 4.00 to 4.15, W320 from 3.60 to 3.75, W450 from 3.45 to 3.55, SW320 from 3.50 to 3.60, Splits and Butts from 2.60 to 2.75, Pieces from 2.30 to 2.40 per lb FOB. Indian domestic market was quietened after two weeks of good activity. RCN market continued to be quiet prices eased a bit due to lack of buying interest from processors who are waiting for shipments of earlier purchases PLUS some activity in the kernel market. Lower yields should also lead to some softening of RCN prices. Shipments from IVC are picking up a bit. Shipments from Benin continue to be slow. Shipments from Guinea Bissau are

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5.

6.

2011 and 3.75 by Dec 2011. This year, W320 moved from 3.60 in Jan 2012 down to 3.20 in Mar 2012 and up to 3.80 in Apr 2012 and eased a bit too current 3.60 to 3.80 ranges during May 2012. Will it settle in this range for next few months or will we see some wide swings again? An interesting feature to be noted is that differential between W320 and Splits which was 50-60 cents widened to 1.00 in Dec 2011 and has been around the 1.00 level for the last six months. We feel that this is mainly due to lower consumption in India because of the high prices of mid 2011 when major portion of buying for 2011 peak season was done. As current prices for brokens before the peak 2012 season are about 35% lower than last year, we expect that consumption will be better than 2011 and differentials should narrow.

range for the next few months with the faint possibility of crossing the recent highs IF there is strong demand in the next 4-6 weeks. Mr Giridhar Prabhu, Achal Cashews Private Limited, Mangalore International markets in kernels seem to be going on wait and see mode when origins begin to offer at lower prices than earlier week. Naturally this creates hesitancy in buyers: is it a trend or value? In the short term prices are influenced by three inputs: Raw cashew arrivals into processing from West Africa; reasonable value in hand; and increase in production in ensuing 6 weeks at all production centres. Raw cashew prices quoted currently for lower outturn is a frightening prospect for processors in the backdrop of the current decline. As consumption demand will pick up from mid July onwards till first week October the supply demand mismatch in kernels will arise due to decline in Brazil inventory, the forecast for Indian and Chinese demand for October to January as well as inventory levels in Europe USA and other prime destinations. It would be one continuous spot market with sporadic string sales with reliable partners on both sides. Currency can play a major role with Euro at 1.26 and the Indian rupee at 55 to the Dollar. Cashews whether raw or kernels are not cheap any more. In India, Orissa units surprised buyers with a Rs 30 per kg reduction. The heat wave in Northern India is turning off buyers. This has in turn reduced the buying interest in Mangalore thus taming the sellers. Availability is getting easier over next two weeks with increased production.

After a 25% movement in prices down 10% and up 15% - from Jan 2012, W320 price has now settled in the range of the last quarter 2011. The current range is near the average paid for 2011 deliveries and less than the average paid for second half 2011 deliveries. If the price stays around the current range, we expect reasonable revival in consumption in the second half of the year. If the price runs away like mid 2011, we would not be surprised if demand remains weak. Overall, we do not expect any big increase in prices concerns about impact of too high prices on the demand will put a cap on the price increase. At the same time, the downside is limited due to possibilities of reduced kernel availability for next 2-3 months. Prices can decline only if RCN prices come down significantly or if the demand does not pick up at all in the next 3-4 months. There is not much chance of both. So, we continue to feel that prices will settle in the current

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Overall we could see a stagnant and sideways market but inventories of kernels may get cleared as previous commitments will keep moving. Cashew shell prices are steady at higher levels with CNSL at 34 levels in Mangalore. Mr Rajendra Sabat, Sabat Associate (Cashew Expert/ Consultant), Odisha. In the last week, the cashew market position has gone down drastically. The kernel sale in Northern India was badly affected due to heat wave all over Northern Hemisphere and secondly there are no marriage functions and other festivals till middle June. Hence due to high prices, heat waves the cashew consumption is badly affected.

The main mandi prices from Delhi witnessed no sale at all; hence the cashew market has gone down by around Rs 30 per kg. Accordingly the RCN market was also badly affected, the local RCN market gone down from Rs 90 plus to Rs 84 to 85 levels per Kg. The current kernel prices in Rs/kg Grades Jeypore Coastal Orissa / Palasa W240 520-525 475-480 W320 485-490 440-445 W450 465-470 405-410 JH 450-455 405-410 K 410-415 375-380 Packing : 1x50 Lbs Flexi Pouch, Shipment : Prompt

Indian CNSL Market Commentaries

Sri Venkatesh, Kanco Southwest Enterprises, Mangalore The price of CNSL in this week is Rs 33.50 per kg at Ex-Mangalore. The price of Cardanol in this week is Rs 64.00 per kg at Ex-Mangalore. Sri. Omprakash N. Phadnis, M/S. N.S. PHADNIS, Panruti, Tamil Nadu The dollar rate factor is proving crucial for cashew industry. Exporters who had committed earlier are having heavy downfall. At the same time, importers who have contracted at certain rates are finding it difficult to survive. The raw nuts prices which escalated three weeks back are coming down and expected to lower further. In Panruti belt, I discover that even though only ten percent trees remained, the yield is going to be good for the trees. The shelling of nuts is good and the raw shell prices have come down to Rs. 7.25 per kilo. Cake is steady around Rs. 3.40 per kilo. CNSL is quoted around Rs. 30.00 per kilo and no major buyer is interested at this moment. Prices are tending southwards.

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Domestic Prices of Nuts

Price Highlights for the week There was a less movement in kernel prices in various cashew markets. Prices of W180, W210, S210, W240, W320, SSW and K decreased compared to last week. SWP price moved up where as, prices of other grades remained same W240, W320, W450, SW 240 prices increased as against last week and SS price moved down. In Kollam crop arrival has improved and there was less export demand The prices of kernels remained stable except prices of W210 and W180 grades, were increased from last week All kernel prices moved up except 2 and 4 pieces There was a decrease in prices of RCN, W210 and W400. W240, W320, S240, S, K LWP, SWP and JH prices moved up from last week prices. Prices of kernels moved down as against last week prices W450 and SWP prices gained, W240, W320 and JH prices remained unchanged where as, Raw nuts, JK and LWP prices moved down compared to last week prices There were no movement in prices.

Mangalore market

Kollam market

Delhi market Sangrur market Jeypore market

Vetapalem market

Panruti market

Tuticorin

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Cashew Grades Mangalore (Rs/ kg) W180 S180 W210 S210 W240 S240 W320 W1 SW SSW JH S LWP SWP K JB Kollam (Rs/kg) W180 W210 W240 W320 W450 SW240 SW210 S (Splits) SS Butts SB (Scorched Butts) SP LWP WSP

05/19/2012 661 617 600 564 556 529 511 500 487 476 428 414 384 357 397 406 573 551 511 476 423 463 No stocks 397 344 353 309 309 353 309

05/26/2012 635 617 578 556 534 529 503 500 487 467 428 414 384 388 384 406 573 551 529 494 450 476 No stocks 397 331 353 317 309 353 309

% change in price over last week -3.93 0.00 -3.67 -1.42 -3.96 0.00 -1.57 0.00 0.00 -1.89 0.00 0.00 0.00 8.68 -3.27 0.00 0.00 0.00 3.52 3.78 6.38 2.81 0.00 -3.78 0.00 2.59 0.00 0.00 0.00

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Delhi (Rs/Kg) W320 No. W210 No. W240 No. W180 No. 2 pieces 4 pieces 8 pieces Sangrur (Rs/Kg) W320 W210 W240 W180 2 pieces 4 pieces 8 pieces Jeypore Orissa (Rs/Kg) Local Raw Nuts W210 W240 W320 W400 S240 S320 S K LWP SWP JH Vetapalem AP (Rs/Kg) W210 W240 W320 SW JH K/LWP W1

550 660 620 740 415 388 340 615 695 625 725 530 515 485 88 630 525 500 490 505 480 430 370 350 315 440 550 525 450-460 425-435 450 400 425-435

550 670 620 745 415 388 340 625 705 635 735 530 515 495 91 580 550 510 480 530 480 440 410 390 375 450 535-550 485-500 440-450 400-420 440-450 340-350 400-420

0.00 1.52 0.00 0.68 0.00 0.00 0.00 1.63 1.44 1.60 1.38 0.00 0.00 2.06 3.41 -7.94 4.76 2.00 -2.04 4.95 0.00 2.33 10.81 11.43 19.05 2.27 -1.36 -6.19 -2.20 -4.65 -1.11 -13.75 -4.65

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JB/Butts 420 W400 425-435 Panruti Wholesale Market Tamil Nadu (Rs/kg) Raw nut (Rs/80kg) 6400 W240 485 320 441 W450 428 JH 375 JK 353 LWP 340 SWP 290 Panruti Wholesale Market Tamil Nadu (Rs/kg)

360 400-420 6300 485 441 432 375 344 317 320

-14.29 -4.65 -1.56 0.00 0.00 0.93 0.00 -2.55 -6.76 10.34

W240 W320 W450 SW320 SW360 SSW FS FB LWP WB WS LP

3.80 3.40 3.18 3.23 3.00 2.85 2.30 2.35 2.08 2.35 2.30 2.08

3.80 3.40 3.18 3.23 3.00 2.85 2.30 2.35 2.08 2.35 2.30 2.08

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

*Mangalore Prices are for 11.34 Kg tin and exclusive of tax. Tax for inter-state sales- CST 3per cent, Tax for local sales 4per cent VATS Note: W= White Wholes, S= Splits, SW= Scorched Wholes, SSW= Scorched Wholes Seconds, DW= Dessert Wholes, LWP= Large White Pieces, SWP= Small White Pieces, BB= Baby Bits, SB= Scorched Butts, SS= Scorched Splits, SP= Scorched Pieces, I tin =11.34kg, 1kg = 2.24lb

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Cashew Raw Nuts prices Country Indian RCN (Rs per 80 kg bag) Ghana (USD per tonne) Benin (USD per tonne) 05/19/2012 7200-7500 1000-1075 05/26/2012 6800-7200 1100-1125 % change in price over last week -2.72 4.82 -4.12

1200-1225 1100-1125 Note: Landed cost Other Nuts prices at Delhi market

Grades (Rs/kg) Almond Girdhi New Almond Gurbandhi New Almond California Almond Kernel California Almond Kernel Gurbandi Pistachio Irani Pistachio Hairati Pistachio Peshawari Walnut New Walnut Kernel

05/19/2012 71 168 318 441 345 800 938 1188 175 450

05/26/2012 71 170 319 447 400 810 975 1213 175 450

% change in price over last week 0.00 1.19 0.31 1.36 15.94 1.25 3.94 2.10 0.00 0.00

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International Cashew Market

Price Highlights Country Gambia RCN Senegal RCN W240 Prices for 5/26/2012 1300-1325 USD/tonne 137-1400 USD/tonne 4.15 USD/lb FOB Market Gambia Senegal Vietnam Source Mr Amrith Kurien, Senegal Mr Amrith Kurien, Senegal Mr Kim,Vietnam

W320

3.65 to 3.70/lb FOB

Vietnam

Mr Kim,Vietnam

Commentaries by Experts
Mr Amrith Kurien, Senegal Rains seem just around the corner in the SEGABI region. Rains normally start from mid or end of July this time it seems it may just start in mid or end of June. The flow from Guinea Bissau into Senegal has started happening this last week. Local Prices remain Stable with all round buying happening. Indian interest has been very less Senegal has been offered between USD 1,300 to USD 1,325 and Gambia between USD 1,375 to USD 1,400 (All C&F) Shipments are much delayed and will happen every fortnightly. Outturns seem better than last year from Senegal. In Guinea Bissau Prices are in Town range, between 400 CFA per kg to 435 CFA per kg. Bank Are still not open to give out finance. Govt in Place but will take some time before They normalcy returns. Mr Kees Blokland, Global Trading and Agency BV, The Netherlands The market for cashew nut kernels is sliding down a bit due to no demand from buyers. Buyers are staying away as long as they can. During the increase 2nd half of April to 1st half of May, they covered their nearby positions but waiting for August onwards shipments for the moment. Due to lack of interest, kernel prices came down which is contra dictionary to the increasing demand for raw seeds in West Africa. As we are seeing an increasing demand on raw seeds in West Africa, we are concerned that soonest kernel buyers will enter the market again, prices will increase again. Prices paid for raw seeds are not allowing pro-

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cessors to offer discounted prices without taking a loss. This confirms that the prices below USD 3.25 per lbs are history in our opinion. A higher price for raw seeds, increasing processing and freight charges are requiring current price levels. At the VINACAS meeting the cashew nut market was compared with a rollercoaster. That is what it is at the moment. A switch in demand, release of crop information can bring price differences of 5-10% in a short time frame. In this volatile market it is hard to make a long term policy as requested by most of the big super market chains. Mr Pierre RICAU, Cte d'Ivoire "In Cte d'Ivoire, cashew trade is still slowed by Abidjan port congestion but the situation was better this week and several thousands of metrics tons have been exported during last days. Brazil begins to import RCN from Cte d'Ivoire. First exports through San Pedro port have been registered last days. Use of San Pedro port for cashew export will really improve cashew trade. In deed, in Abidjan port, RCN is considered by forwarders and shippers as an unprofitable product respect to other commodities and industrialized products, so it is always shipped in last. On the contrary, San Pedro port is focused on commodities export, and shipments will be faster. Farm gate prices are stable around 300 FCFA/kg (0.58 USD/kg). Deliveries in Abidjan are mostly around 350 FCFA/kg (0.68 USD/kg). Strengthening of US Dollar is giving more purchase power to exporters who are signing new contracts. During last months changed rate was 1 USD = 500 FCFA and since it is now 1 USD = 520

FCFA. But quality is becoming quite low with more and more regular rains. Farm gate KOR is now between 43 and 46 lb. We still expect a production around 350,000 MT of RCN, slightly lower than past years, and exports around 300,000 MT. Mr Kim, Khiem Nguyen Co., Vietnam With weak demand led the market to be continually quiet. Offering prices came down a bit but no business reportedly done. Limited sales done at USD 4.10 for W240, USD 3.65 for W320, USD 2.58 for WS per lb fob for prompt and or June shipments, sold by medium sellers. Selling pressure by medium sellers whom do not have big contracts on their books has also come out to the market. It was however contrary to the ones whom have contracts fully booked as they are not hurry to sell/offer in this downtrend period. Most of them are focusing on carrying out the contracts signed and waiting for the new surge of buying interests. Activities from top and reliable sellers were also quiet as they did not receive bids from buyers. Indicated prices were high compared to current market levels such as W240 at USD 4.20 to 4.25, W320 at USD 3.80 to 3.85 per lb fob for July- Sep but no business reportedly done. Sellers were not hurry to sell and only considered to be at the market if firm bids are there. RCN market was quiet due to the weak demand from kernels market. Prices of RCN were somehow reduced but it was hard to find out the buyers at current stage. China market was quiet after a period of buying some quantities. Small quantity sold to this market at reasonable price, W320 at USD 8.2 per kilo prompt shipment.

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Demand seems to be unknown till now as there is no certain information/figure about this. With the economic problems from EU has added some quietness to the market as roasters/manufacturers are not ready to book big quantity when they do not have sufficient information of consumption from the supermarkets so most of them would prefer to wait and study the market more details before biding big volume. There are still some spaces for buyers to book as business is not yet done for the tow last quarters of the year so buyers will have to be at the market to buy more but when and at what levels is the key thing for all concerned. Till now all information is not good for sharp downtrend of the prices as not ok crops + political violations from some parts of Africa. So most probably prices would come down

a little bit if market continues to be weak and then with good demands prices will cover as they were before. FOB prices of cashew grades that sold last week for May 2012 Grades W240 W320 W450 LBW320 WS WB DW LP Price USD per lbs (05/19/2012) 4.15 3.65 to 3.70 3.35 3.35 to 3.40 2.65 2.65 3.10 2.20 Price USD per lbs (05/26/2012) 4.15 3.65 to 3.70 3.30 3.30 2.60 to 2.65 2.60 to 2.65 2.95 2.05 to 2.10

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Currency Movements
Forex Rates (In USD) Currency Indian Rupee Euro Japanese Yen Brazilian Real Chinese Yuan Singapore Dollar Tanzanian Shilling Thai Baht Mozambique New Metical Vietnam Dong Indonesian Rupiah Benin CFA Franc BCEAO Ghanaian New Cedi 05/18/2012 54.86 0.786 80.030 1.998 6.322 1.266 1556.850 31.288 26.700 20750.100 9233.610 505.986 1.892 05/25/2012 56.38 0.796 79.470 2.032 6.328 1.276 1574.930

31.485 27.800 20709.900 9233.610 511.046 1.889

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Currency Outlook
USD vs. INR Movement Rupee clocked weakest level last week till record and is still staying above 54 against US dollar. RBI last week has cautioned exporters to maintain the minimum threshold level of convertible account so that pressure of rupee would have eased. Exporters are keeping dollar in hand in anticipation of more depreciation in future. Market experts are viewing this heavy depreciation on multiple grounds like heavy subsidy on oil, swelling current account deficits, lack of political decision towards economic reforms. They believe that if central government can stabilize these factors, investors will return to country. Meanwhile, Moodys said that rupee depreciation wont hurt countrys credit ratings as it comprises a very small part in countrys GDP. Technically USD/INR is in correction mode after slump to record level of Rs.56.38. The spiked weekly candle hints at recovery in rupee at least for the short term towards 54.30level. Overall for the week, rupee is likely to strengthen towards 54.30level. USD vs.BRL Movement Brazilian Real has been under pressure since March. The currency has been depreciating in line with other global currencies against US dollar. Ongoing slowdowns in Eurozone and subsequent pressure on emerging economies have created safe-haven US dollar demand. Some experts are saying that until Greece Presidential election takes place in June 17, real is unlikely to gain ground against US dollar. Meantime, Brazils central bank is trying hard to arrest the currency depreciation. The central bank has auctioned more than USD 4 billion swap contract since last week. USD vs.VND Movement If we see other currencies against US dollar, Vietnam Dong invariably has performed well. The currency is more or less around the same level this year. Meanwhile, consumer prices climbed 8.34% in May from a year earlier which made Prime Minister to tell the central bank to speed up the reduction of borrowing costs. Governor of State Bank of Vietnam already made a statement that in March that they would lower interest by 100 basis points in each of the second, third and fourth quarter.

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Technically, there is little to say as currency is in uncharted territory. This is weakest level of this year and it seems it will not strengthen shortly.

Comparative Movement of Currencies in 2012-13 vis--vis USD in cashew

(Note: Prices Indexed to the first week prices assumed to be 100)

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Special Coverage
Dynamics of Cashew and Almond Consumption in India Cashew and Almond are the most widely consumed nuts in India. With the changing demographics, lifestyle, increased awareness of health foods, rapid urbanization and other positive factors affecting the nuts consumption in India, we have seen a positive growth in the demand for both these nuts in the past few years. Cashews and Almonds are considered to be substitute products though we can easily see by the usage patterns that there are unique consumption situations in which they cannot be substitutes. For example, it is not possible to replace Kaju from the famous preparations such as Kajubarfi or Kaju Curry or replace Almonds from BadamkaHalwa or Roasted Almonds chocolates. However, when it comes to individual consumption for health purposes or gifting one can expect that the ratio of various nuts will be altered depending on the prevailing prices. Under these circumstances, almond and cashew can be considered only as partial substitutes and some studies have reported that a 20% difference between prices of cashew and almonds can alter their demand. (Report on long term trends in the international cashew market). Fig 1: Price spread between Cashew W 320 and Almond kernel California prices (Delhi) In the above figure we can see that the prices of cashew had remained lower than almond prices till 2008 and after July 2010, the trend has reversed and almond prices are consistently ruling below the cashew prices. Figure 2: Consumption of Cashew and Almond in India

Data source: USDA and CEPC

It is interesting to see that the cashew demand is consistently increasing over the years, while the increase in demand in Almond is fluctuating. The overall growth in consumption of cashew has been 11.2% (CAGR) in the last decade, while the same has been 8.4% in case of Almonds. However, in the recent years when the cashew prices have been relatively higher than almonds, the growth is moderate in case of cashew (6-8%) while it is significantly higher in case of almond (14-24%). However, this does not mean that the cashew prices have slowed down the consumption growth as one must consider that almond consumption is only 23% of the total cashews consumed. There is also a tendency for the consumers to try out more of new products, which influences the consumption of almonds.
Thus, while prices are an important consideration, one can expect a consistent growth in the consumption of cashews while almonds may see a more volatile growth pattern due to its smaller base. Moreover, cashews are natural to Indians and part and parcels of our cuisine and traditions, while almonds have not integrated with our daily consumption habits.

Note: Spread=Cashew prices-Almond prices

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News Highlights
News Highlights from India

A weak Rupee weighs on cashew imports Cashew exporters' hope of making huge export gains with the depreciation of the rupee has come unstuck. Exporters import raw nuts for processing this time of the year and a weak rupee has made imports expensive while the export market is yet to pick up momentum. Exporters who process the raw nuts are scrambling for more imports as the domestic production has fallen short of expectations. Of the nearly 0.14 million tonnes of raw nuts available for processing, over half the quantity is imported, mostly from African countries."The domestic production is expected to be down by 25-30% and imports could therefore go up to 0.75 to 0.8 million tonnes," said K Prakash Rao, managing partner of Kalbari Cashews. The rupee depreciation and increased demand have made raw nuts costlier. Import prices have moved up from USD 950 per tonne to USD 1,200 per tonne. The arrival of Brazil into the import market has made the matters worse. "Brazil has imported 25,000 ton from Tanzania to make up for a bad crop in the country," Rao said. In the export market, the slow recovery in the US and the turmoil in Europe have hit the demand. Unfazed by the slowdown in these markets, exporters are diversifying into newer territories. "Cashew nut prices crashed from a high of USD 4.00 a pound for the 320 grade variety to USD 3.30 a pound. Prices have moved up slightly to USD 3.80 with demand showing

some upward movement," said Anu S Pillai, partner of Anu Cashews. Exporters say production shortfall in several countries is driving up prices. "We have diversified into countries like Turkey and the Middle East bloc in a big way to overcome the losses in traditional markets," Anu S Pillai pointed out. In 2010-11, over 1.08 million ton worth around Rs 2,600 crore was exported. But exports in 2011-12 could be higher because of a better unit value but official figures are yet to come out. An increase in domestic consumption has provided relief to exporters frustrated by a sluggish overseas market. The local consumption is reported to be rising by 5% annually while a poor crop has pushed up prices. The average price of 320-grade nuts went down to Rs 380 per kg post-Diwali but has now improved to Rs 485 and is expected to cross Rs 500 soon. The share of exporters' sales in the domestic market has climbed up from 30% to 50% now. Cashew market sees subdued activity The cashew market saw very little business last week. Most processors were either not offering or were asking 10 -15 cents higher per pound. The range of offers widened for W240, from USD 4.10 to USD 4.20; W320,USD3.65 to USD3.85; W450, USD3.50 to USD3.65; SW320, USD3.55 to USD3.70; splits and butts, at around USD2.70; and pieces, at around USD2.40 per pound (fob).However, prices in the

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domestic market were steady at higher levels, with good buying interest especially for broken grades. RCN market The raw cashew nut (RCN) market was also quiet. With the kernel market remaining dull over the last two weeks and continuing logistic problems in Africa, shellers were not keen to make additional purchases. They prefer to wait until they get some of their earlier purchases and/or make some additional kernel sales, Mr Pankaj N. Sampat, a Mumbai-based dealer, told Business Line. Stray sales (mainly re-sales) of good quality parcels were being done, he said. Prices are more or less unchanged Benin, from USD 1,150 to USD 1,225 a tonne; Ivory Coast (IVC), USD 1,000 to USD 1,075; Senegal/Gambia/Bissau, at around USD1,500 a tonne. Shipments from Ghana, IVC and Benin so far have been lower than normal. Shipments from Guinea Bissau have not started yet. We continue to feel processing and kernel availability during May and June, maybe even July, will be lower than normal, he claimed. Talking to delegates at the International Nut Council (INC) Congress in Singapore over the last three days, we find there is tremendous uncertainty in the minds of people about all factors that can affect the market RCN supply delays, lower kernel yields, European economic situation, currency volatility, concern about demand trends in the last 2-3 quarters, inability to judge future trends, etc., Mr Pankaj said. All these are making things difficult for everyone sheller, kernel trader, kernel processor and packer, and retailer to take any significant position on the sell or buy side. But the downside will be limited because

of tighter kernel availability in May-July coupled with higher cost of RCN replacement. Even if RCN prices come down in the next few weeks, it may not have any major impact on kernel availability in May-July or on kernel prices, because part of the decline will be due to drop in quality and some portion of the decline could be reversed if kernel activity picks up in June-July. A significant decline in kernel prices is possible only if there is a combination of significantly lower RCN prices and a very slow kernel market in June-July, he predicted. Price trendThe trade does not expect any big increase in prices either. But we do expect that prices will settle in the current range for the next few months with the faint possibility of crossing the recent highs, if there is strong demand in the next 4-6 weeks. If there is a sudden and quick improvement in flow of RCN or a big decline in RCN prices, the range could move lower, but there seems to be little chance of that happening, he said.Reasonably stable prices for six months will probably bring back some confidence into the market, making long-term planning possible. In the long term, as discussed at the INC, increasing production and reducing the wastage and inefficiencies in the supply chain (caused mainly due to lack of adequate infrastructure in many of the producing countries) are two areas which need attention. This will provide the much needed consistency of supply, stability in prices and sustainability of growth in the cashew sector, he added. New Mangalore Port Expects More Mainline Ships Carrying Raw Cashew The New Mangalore Port Trust (NMPT) is hopeful of handling more mainline container vessels from cashewgrowing regions in Africa.

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Mr S. Gopalakrishna, Traffic Manager of NMPT, told Business Line that the first mainline vessel of the current fiscal will call at New Mangalore Port on May 17. The vessel m.v. Belgieen Express will bring around 450 containers of raw cashew from West Africa. He said the port is hopeful of attracting more mainline container vessels during the current financial year. Five mainline vessels During 2011-12, the total raw cashew handling at the port stood at 1.24 lakh tonnes from 6,534 TEUs (twenty-foot equivalent units) of containers. Five mainline vessels with raw cashew cargo called at NMPT during 201112. This was apart from raw cashew being imported through feeder vessels. The total raw cashew import was 1.04 lakh tonnes from 5,457 TEUs in 2010-11.

However, the port was able to attract eight mainline vessels with raw cashews from Africa during that year. Mr K. Prakash Rao, former President of Karnataka Cashew Manufacturers' Association, said the first mainline vessel of the current fiscal will bring raw cashew from Benin in West Africa. Transportation time The calling of mainline vessels at the port helps in bringing down the time of transportation of raw cashew from African countries to New Mangalore. Mr Gopalakrishna said that mainline vessels bring raw cashew cargo from West African countries within 21 days and from East African countries within eight to 10 days. If the cashew processing industries import it through Colombo, it will take more than 40-45 days for the cargo to reach Mangalore. The mainline vessels reduce that time, he added.

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International News Highlights

Africa
TANZANIA: TIB to finance cashew nut processing plant TANZANIA Investment Bank (TIB) has signed a Memorandum of Understanding (MOU) with the Tandahimba Newala Cooperative Union (TANECU), seeking to enhance processing of raw cashew nuts, adding value to the cash crop and creating wealth to farmers in Mtwara region. TIB Managing Director Peter Noni, speaking at the signing ceremony at the banks Head Office in Dar es Salaam, said the signed deal will enhance value addition through construction of a processing plant to be built in Mtwara. Mr Noni said the processing plant will have monthly processing capacity of between 30 and 40 tons. With the processing factory in place, cashew nut farmers will now fetch better prices offered by the readily available market. Many banks do not give loans to farmers because they do not have guarantee for a ready market. This can be reflected through the hard times cashew nut farmers have been going through in the past few months, said Mr Noni, assuring that the processed produce would even penetrate to the international markets. Cashew nut farming has recently been relying on exploitative middlemen, the situation that undermines the crops total production. Mr Noni said the bank will finance 80 per cent of the project, with TANECU catering for the remaining 20 per cent of the project scheduled to start in July after completion of a feasibility study and business plan. TANECU Chairperson Yusuf Nnamla described the agreement as a milestone in cashew nut production, saying this years cashew production has broken the countrys production record, with 157,000 tons from the historic record of 142,000 tons. Cashew nut farmers will now have a readily available market - farmers should brace themselves for better prices that will improve their living standards, he said. Mtwara Regional Commissioner Joseph Simbakalia said farmers will be in position to fetch better prices with emphasis on value addition, urging farmers to support the project. We appreciate T.I.B for having trust in our region - we will continue supporting the project at different levels to ensure that it meets expectations of stakeholders, he said. Cashew nut processing factory planned for Mtwara Tanzania Investment Bank (TIB) has signed a Memorandum of Understanding (MoU) with Tandahimba Newala Cooperative Union (Tanecu) for the construction of a cashew nut processing factory in Mtwara Region.TIB Managing Director Peter Noni told reporters in Dar es Salaam on Monday during the signing of the agreement that the modern factory would help add value to cashew nut production.As you all know, an unreliable market has been a major problem to most farmers in the country. Cashew nut growers sometimes fail to sell their produce because of this. We want to construct our own factory so that we can sell the cashew nuts without middlemen, Noni said.He explained that as a bank they realised that by having processing factories farmers would have reliable markets and crops would be sold at reasonable prices.We as TIB will collaborate with Tanecu to ensure we construct a

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factory, which will be free from external interference, he said. The director further said the cost of constructing the factory would be known after completion of a feasibility study. What we are doing now is that we use the technical assistance fund to carry out a feasibility study, which will start in June and there after other processes will follow, Noni said.He said the factory would have the capacity of processing 30,000 tons of cashew nuts per year and Tanecu will cover 20 per cent of the construction cost, while TIB will cover the remaining 80 per cent.For his part, Tanecu Chairman Yusuph Nannila said they expected to start the construction of a big warehouse in July in Tandahimba area at 1.4bn/-. He said the main objective of constructing a factory was to add value to cashew nut production. He said cashew nut growers lacked a reliable market since it was only India, which bought unprocessed cashew nuts from Tanzania.If we succeed in constructing the cashew nut processing factory we will have solved problems associated with the market. We want cashew nuts to lead in the country and this will also improve peoples incomes as well as Tanecus, he said. Tandahimba Member of Parliament Juma Njwayo said the main problem facing cashew nut growers was the market.Our cashew nuts have great value if processed in the country. Currently, a farmer sells a kilo of cashew nuts at less than 1,000/- but the same kilo of processed cashew nuts is sold at 10,000/-, he said.

attended the U.S., EU, China, Australia, the Middle East, Africa ... 60% of goods traded are Vietnam's Vice Chairman of edible seeds and dried fruit world (ANC), Mr. Pino Calcagni said that the human needs around the world about 500,000 tons / year; it becomes edible nuts that consumers in many countries, especially developing countries and emerging popularity second only to almonds and cashew demand for faster each year. Vietnam (VN) the world leader in export volume, No. 2 and No. 3 in the processing of output. About 60% of the people trading on the international market today are from VN. International customer sees it, the human VN especially that grown in Binh Phuoc province is the world's best quality. Number of customer transactions speaks to the attractiveness of the VN-processing industries. Deputy Minister of Industry and Trade Nguyen Thanh Bien said that despite global economic difficulties, the first 4 months of 2012, this industry exported more than 55,000 tonnes of cashew, reaching USD 380 million, up 29% in value, 37% of amount. Countries with increased imports by China (64%), Netherlands (50%), Russia (over 43%), Canada (25%). Consumers favored countries and tend to increase demand for cashew nuts have positive effects on health, reduce risk of colon cancer, good for your heart and nervous system, helps make strong bones against gallstones ... Demand nuts also tend to increase by more and more people eating meat from animals to use the nuts to reduce weight while maintaining nutritional value. Enhance value-added cashew nuts At the meeting, many foreign imports have become less happy to know that VN area decreased year by year due to farmers cutting down the tree planting rubber,

Vietnam
Vinacas: International Customer Conference Vietnam Cashew Association (Vinacas) recently held international customer conference that Vietnam branch in Ho Chi Minh 7th House page. More than 150 participants including clients, associations, relevant industry associations from various countries that

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coffee, cocoa or cassava for income it is low. According to Do Van Nam, Director of Commercial Processing of Agricultural Product Processing and Salt (MARD), 5 years, the area of the country dropped by over 77,300 ha, more than 10,600 tons of output reduction. Planting of 3100 ha in 2011, but this area was transferred to other plants close to more than 10,000 ha in Binh Phuoc province is known as the cashew capital. These yields have leveled off, only in recent years at around 1 t / ha, the price of raw cashew nuts is not stable, especially for this year, nearly 30,000 VND / kg on the previous even under 20,000 VND / kg. The price of their income just over 20 million VND / ha, this just over 10 million VND / ha is very low compared to coffee, rubber, pepper, tapioca. Cashew narrowed gradually forcing enterprises (companies) besides increasing imports of crude from Africa, has also actively cultivated or link investment in Cambodia, Laos to replace gradually the domestic materials. To overcome this situation, the study of new hybrid varieties produce higher yields, improve the added value of cashew nut is a matter set out Vinacas and enterprises. In the cashew value chain, the planting and processing is the lowest profit margins compared to deep processing and distribution. Currently, the rate of deep processing of new personnel account is for only 3%. According to Nguyen Thai Hoc, Chairman of Vinacas, some plants go into the deep processing of cashew nuts as Thao Nguyen, Nhat Huy, Donafoods ... especially Dan On Foods Company (Canada) Investment deep processing factory and supply issued directly to the water distribution system more like Canada, America, Thailand, China (including Hong Kong), Korea ... Or next Thao Nguyen Company cashew processing also in the research and cashew oil production and exports

to China are now free to import equipment to produce Gano with the price of oil higher. It can be said that VN industry is looking to raise the added value, increasing income for farmers. Balancing consumption, stable output Mr. Pino Calcagni said that VN is possible that national grain processing and export of world No. 1 even though the amount of raw materials imported from Africa account for more than 50% of the production process if you know to take advantage. But to maintain and create the position and prestige than on the growing international market, VN, especially Vinacas and businesses to further improve the quality and safety of human food. This is something that many businesses still do not have VN. Promoting the value of cashew nuts for domestic consumption should also note more to balance the consumption and output stability. The rate of domestic consumption of only about 5%, while 95% for export is the big difference compared to India (51%). The State should also create conditions for capital with reasonable interest rates for people engaged in agriculture, research to create high-yield varieties and growing links with the countries of Cambodia, Laos, forming the relatively stable materials as well as creating the value chain and ensure the interests of the stage from growers, scientists, traders and business Vietnam Farmers lose patience with cashews, switch to rubber A number of cashew plants in the southern province of Binh Phuoc have been chopped down en mass in a move to switch to rubber, as farmers are losing patience with the repeatedly slipping prices of cashew nuts. Not only the old trees are cut down now, felling cashew trees has become a trend that has spread through many localities

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in the province. Along the street connecting Dong Xoai Town to Phuoc Long District are piles of cashew logs that are more than 3m height. Chopped cashew plants can be spotted everywhere in the countrys largest cashew-growing area. Only by replacing the cashew with rubber trees can I hope to make ends meet, says Ma Van Quang of Dong Phu District, after felling a cashew tree with his electric saw. Farmers around here have all destroyed their cashew plants, he adds. Quang says he did try to patiently wait for cashew nut prices to rise, but the more I waited, the lower prices got.At a nearby plant, Tran Ngoc Tuan and his family have also been cutting down their cashew trees. Four out of six hectares of cashew have been felled, he says. Though I have been growing nothing but cashew over the last ten years, its time to stop as income from the tree is even lower than planting cassava, says Tuan.Nguyen Thi Quynh Giao, who runs a facility that buy cashew logs in Bu Gia Map District, says she has never witnessed the cutting of so many cashew trees.This area will soon have no cashew trees left, given the speed of destruction, she comments. No connection with processors Tran Ngoc Kinh, head of the provincial Plant Protection Agency, says farmers no longer want to grow cashews as cashew nut prices have halved against the same period last year. The average price last year was around VND37,000-40,000 a kg, and peaked at VND45,000 a kg.But this year prices are at only VND26,000 a kg, elaborates Kinh. One of the reasons for this is the lack of cooperation between businesses and farmers, he adds. No businesses in this area, the largest cashew-growing region nationwide, have ever established a connection with farmers to develop the raw material areas. Farmers work hard on their plants, but businesses only show up to at harvest time to buy the product. And yet some processors neglect domestic cashew nuts but turn to

buy from Africa instead, he explains. Vietnam sees high growth in cashew exports in first quarter Vietnam exported more than 55,000 tons of cashew nuts in the first quarter and generated USUSD380 million in revenue, up 29 per cent in value and 37 per cent in volume, heard at the 7th International Customer Conference organized by the Vietnam Cashew Association on May 22 in Nha Trang City. The International Customer Conference was attended by more than 150 participants from the US, EU countries, China, Australia, Middle East and Africa. Vietnam is leading in cashew nut exports in the world, is the second in cashew processing and the third in production. According to Nguyen Thanh Bien, deputy minister of Industry and Trade, more than 60 per cent of cashew nuts traded in the global market come from Vietnam. However, Vietnams cashew nut production is also facing many challenges. Earnings from cashew remain pretty low for farmers who are considering switching to other high-yield crops. As it is, cashew growing area has already reduced by 77,000 hectares over the last five consecutive years. At present, productivity remains at about 1 million tons per hectare. Processed cashew nuts only account for 3 per cent while domestic consumption is around 5 per cent. Vietnam Cashew processors import nuts Cashew processors have imported 80,000 tons of raw nuts mostly from ASEAN, Brazil and India since the beginning of this year, the Viet Nam Cashew Association (Vinacas) said. Earlier, Vinacas estimated that domestic firms needed to import 300,000 tons of raw cashew nuts to meet demand this year. Despite fluctuations in quality and price, local enterprises have been forced to import raw cashew nuts over the last few years due to insufficient domestic supply, said Nguyen Thai Hoc, chairman of Vinacas and general director of

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Donafoods Co.Hoc said his company needed to import 15,000-20,000 tons each year to meet demand. Tran Hoang Son, director of Gia Bao Cashew Joint Stock Co, said his company had 20 ha cashew orchards but that they could only meet 30 per cent the firm's demand. Son cited the example of southern Binh Phuoc Province, one of the biggest cashew nut cultivation areas in the country. He said the province was home to 230 cashew processors that required 600,000 tons of raw cashews each year. However, the province can only supply 200,000 tons. Meanwhile, Nguyen Duc Thanh, general director of Tan An Agriculture Import Export Co, said many cashew processors preferred to import raw nuts because they were generally cheaper than those grown in Viet Nam. African traders sell raw cashews for between USD 1,000-USD 1,100 a ton, while on the domestic market they cost USD 1,400-USD 1,500 a ton, Thanh said.However, Son said the cashews grown in Viet Nam, particularly Binh Phuoc Province, were considered the best in the world in terms of quality. Son added that importing lower-quality cashews for processing could detrimentally affect the image of Viet Nam's cashew nut industry abroad. To reduce dependence on imports, Vinacas has developed a 200,000 ha area for growing cashew nuts in Binh Phuoc Province, while new orchards are planned in Dong Nai, Tay Ninh, Ba Ria-Vung Tau and Long An provinces. The association has also provided Cambodian farmers with seedlings in an attempt to help Vietnamese processors have other sources of raw cashews. Meanwhile, Hoc suggested local processors pay more attention to technical innovation to produce bettervalue cashew products. Viet Nam is expected to export 175,000 tons of cashews this year, worth USD 1.5 billion, according to the Ministry of Agriculture and Rural Development. If the target is met, exports would this year increase by 25,000 tons in volume and USD 250 million in value against last year, enhancing

the country's position as the world's leading cashew exporter, the ministry said. During the first four months of this year, the country earned USD 369 million from shipping 53,000 tons of cashew nuts abroad, up 30 per cent in quantity and 26 per cent in quality against the same period last year. Vietnam firms to export USD 200 Million worth of cashews Vietnamese cashew firms signed more than USD 200 million worth of export contracts during an industry conference in Nha Trang on Wednesday, thesaigontimes. vn reported. The Tanimex Long An Company and the Dongnai Import Export Processing Agricultural Products and Food Company were among the firms which inked contracts at the international customs conference, held by the Vietnam Cashew Association (Vinacas), the news website said. The firms plan to deliver the nuts between the second and third quarters of 2012, it added. Vietnams cashew exports were quite quiet between last October and the first quarter of 2012, according to Vinacas. During the first four months of the year, cashew prices fell by five percent, as compared to the same period last year, it said. John Waring, President of the Australian Cashew Association, said that Vietnam hasn't paid enough attention to marketing and promoting the local cashew crop. Seeing as how Vietnam currently welcomes 3 million tourists and plans to double that figure annually, local firms should display high-quality cashews in places frequented by foreign tourists, the expert said at the twoday event. He also advised local producers to properly label their products, since Vietnamese cashews have an edge in international markets. Many countries, he said, are now falsely presenting

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their products as having originated in Vietnam. Vietnam advised to lessen reliance on cashew imports Experts deem it necessary for Vietnams cashew industry to reduce its dependence on imported materials for sustainable development, but this perspective looks unattainable as local farmers are turning their back on the crop. According to the Ministry of Agriculture and Rural Development, the countrys cashew export turnover surged from USD 650 million in 2007 to USD 900 million in 2010. In the meantime, the export volume of cashew nuts only rose by 20%, from 152,000 tons to 180,000 tons. In 2011, the cashew industry with the export turnover of USD 1.35 billion officially joined the list of the sectors that fetch more than USD 1 billion in export turnover each year. Despite such an impressive achievement, the local cashew industry has become more and more dependent on imported raw cashew. The import volume increased from 200,000 tons in 2007 to 430,000 tons in 2011, with no signs of a stop yet. While the cashew industry is aiming at the export turnover of USD 1.5 billion, local cashew growers are turning their back on the industry. Pham Van Tong, vice chairman of Binh Phuoc Province government, rang the bell of alarm over this situation at the Golden Cashew Rendezvous 2012 held by the Vietnam Cashew Association (Vinacas) in Nha Trang. Binh Phuoc is considered as the cashew capital of the country, with 150,000 hectares under cashew cultivation. However, some 30% of the total cultivation area is old cashew trees that have been harvested for over 30 years, Tong stressed. Cashew is under competition pressure from other crops with higher economic values like rubber and coffee. More than 2,400 hectares of cashew has been chopped down since the years beginning, said

the provincial vice chairman. Dong Nai, the province with the second largest cashew growing area, shares the same fate. Tran Van Vinh, vice chairman of Dong Nai, said the fact that cashew products of the province are well-received in traditional markets and have penetrated new markets does not help farmers stick to cashew cultivation. Apart from low purchasing prices, the tenuous linkage between relevant parties in the cashew value chain, especially the relationship between enterprises and farmers, is the main reason why cashew growers are turning their back on the cashew industry. Cashew processors pay attention to purchasing only and neglect investment in material zones, said Vinh. According to the agriculture ministry, Vietnam currently has to import some 50% of the raw cashew, mostly from West African and Southeast Asian countries. Speaking at the event, a cashew importer remarked that the processing capacity had exceeded material supply capacity. The fact that Vietnam is more and more dependent on imported cashew materials poses a great risk to the future of the industry. They cannot provide Vietnam with raw materials forever. At present, many African countries like Mozambique and Tanzania have intention to switch to deep processing to add value to exports. There is no reason for them to keep supplying materials for the third country to process and export to the consumption markets such as the U.S. and EU at high values, he said. Sharing this view, Joseph Lang, managing director of Kenkko, a large cashew importer and distributor in the European market, said the African Cashew Alliance expected to preliminarily process 35% of the raw cashew produced in these countries by 2020. Many corporations and companies in the world will pour their capital into the processing projects in Africa. It is to say these countries will no longer be suppliers of cheap cashew materials for Vietnam but strong competitors of the country, he said. Lang suggested

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Vietnam should promote mechanization and automation to reduce dependence on manpower and labor costs. On the other hand, enterprises need to study how to boost output, diversify supply sources and increase the value of cashew through value-added processing methods. The 150 Companies and International Associations To VN Signing Contracts Over $ 200 Million Dozens of contracts between businesses VN cashew exports and foreign enterprises worth over $ 200 million were signed at the meeting of international clients, took place yesterday 22/5 in VN. Many hot issues related to production, processing and supply of the hundreds of global enterprises, associations from the Americas, Europe, Asia, and Africa to discuss towards sustainable development for cashew ... VN PROVISION IN 50% OF GLOBAL export According to Nguyen Thai Hoc - President of the VN (Vinacas), entered the 2012 season, due to rising input costs, particularly interest rate on the type of "crisis" of the banking world, some companies weak governance, more importantly, quiet market due to economic downturn has made the world this difficult industry. Export market quiet since 10/2011 for the quarter to I/2012. 4 months of export prices decreased by 5% over the same period in 2011. However, he said that the difficulties Studies on the indicative time, the overall impact of the global economic downturn. In the trend of regional economic integration and the world, in 10 years this sector has growth and development is quite impressive. From 2006 to now always take the leading exports, has provided more than 50% of the exports of the world. 2010 the industry processing capacity of 1 million tons of raw materials and export 198 thousand tons of products; 2011 export turnover reached $ 1.5 billion. VN No. 3 world production of crude, 2nd in the world of processing and the world's No. 1 export. For years,

international customers appreciate the impressive growth of this sector VN. With the confidence of international customers, the VN industry will soon overcome the current difficulties Mr. John Waring - Chairman of the Australian Association, whose 24-year long collaboration with industry sales VN confirms that, with time of the XK on the Australian market to 90% from VN. This demonstrates that the products of VNs Australian consumers are particularly preferred and trust. But Mr. Pino Calcagni - Vice Chairman of the nuts & Dried Fruit International, said: "The world has 9 types of nuts with import and export value reached $ 21 billion globally, of which cashew nuts accounting for over $ 4 billion and VN is at the forefront. This remarkable figure confirms that VN is an important contribution to meeting the demand for grain is very nutritious food to consumers the world. " With the reputation and availability of VN large, bright yesterday 22/5, there were dozens of things has export contracts signed between enterprises VN as Donafood, Tanimex, Thao Nguyen, Hoang Son ... with foreign enterprises worth over $ 200 million. In addition, 150 companies and over 150 foreign companies have also met with VN, exchanges and original mind of much export-import collaboration in the future. POLICY NEEDED FOR THE TREES According to Nguyen Duc Thanh - Vice Chairman of Vinacas, this industry is facing two major challenges: Firstly, the material increasingly narrow, the lower yield, low-income farmers and uncertainties that lead to the competitiveness of cashew weak compared to many other crops. Implications cashew processing industry is increasingly more dependent on outside. Secondly, the situation is better when processing 80% of the processing operations are mechanized, labor

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productivity increases, some plants actively investing but generally deep processing export products mainly is the processing, value-added content is low, not diversity. Product quality and hygiene of the factory a few problems last time, to affect the credibility of this branch VN. So Vinacas proposal should have strategic planning and policy for regional development of national plant material and in association with local building program for new rural policies on capital support and lowinterest loans for farmers to maintain the stability and development of material areas of high productivity, quality and efficiency. As predicted by many experts, this year the world economy remains difficult. The above situation forced enterprises to restructure production, the capital relocation, human resources, and rather coarse growth in quality growth. To do so, according to Nguyen Duc Thanh, the Government and the ministries, central branches policies should be synchronized in order to stabilize the economy, reduced and exempted a number of charges and reducing the tax rate down to 1 exports of raw cashew nuts % (instead of 3% as at present). Especially the banking sector needs to rapidly reduce interest rates and debt restructuring for the export of agricultural products processing enterprises. At the same time, the Ministry of Agriculture and Rural Development in collaboration with the local further national breeding program to create new varieties of high productivity with the ability to fit climate change. State aid for the regional construction materials businesses in and outside the country. Support varieties

and planting techniques that transfer to the provinces of Laos and Cambodia. For businesses, investors should continue to focus towards production of modern technical regulation "of processing establishments FHS conditions" to meet the increasingly stringent demands of customers world. Do Van Nam - Department of Agricultural Product Processing and Salt: This sector should be directed to sustainable development goals by 2020 with an area of 350,000 ha remain, the yield of 2 tons / ha. To do this, MARD will be prioritize the allocation of policy research, and rapid transfer of new varieties, application of science and technology, plant protection, care, harvesting and processing mechanism for DN cashew development in Cambodia, Laos. However, these companies need to re-invest in developing the materials, the application of mechanization in manufacturing and processing to overcome the shortage of labor FHS, boost trade promotion, product promotion; visit in international exchanges, product diversification, creating added value for the VN branch. Mr. John Waring - Chairman of the Australian Association: "FROM 3 MILLION OPPORTUNITY INTERNATIONAL TOURISTS" VN cashew industry should have a strategy to promote products in the system of hotels and restaurants across the country to bring this person to the 3 million international visitors to VN every year. This not only helps boost domestic consumption, which in the long run will also help international consumers when they are likely to remember and buy products made in VN cashew nuts.

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News on Almond
Snacking Seminar Gathers Top Russian Manufacturers Almond Board of California has conducted its first educational seminar in Russia devoted solely to the snack sector, a key priority area for the industry. The purpose of the activity was to educate Russian snack-sector manufacturers on almond fundamentals, to inspire innovation, and to favor almonds as the nut of choice in the snack category. A post-event survey revealed that 67% of participants are going to increase volume of almond purchases in the next 12 months, and 52% will develop new product ranges with almonds.

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Upcoming Trade Events

Event Name Date Venue Organizer Event Description AgriTech India 2012 exhibition will be an eye opener to the growers and other stakeholders of every segment of Agriculture and allied activities who want to expand and diversify their activities. The focus is on South India and application of technology is all areas of agriculture and agribusiness. The concurrent events are DairyTech India 2012, GrainTech India 2012 and India Foodex 2012. The event brings together latest developments in agriculture and advanced agro-technologies, especially in the fields of irrigation, water management, arid zone agriculture, intensive greenhouse cultivation, development of new seed varieties, and organic and ecologicallyoriented agriculture.

Agri Tech India

25-27 Aug 2102

Palace Media Grounds, BanToday galore

Agritech Asia

4-6 Sept 2012

Mahatma Mandir, Gandhinagar, Gujarat

Kenes and Radeecal Communications

Food ingredients India

6-7 Sept 2012

Mumbai

Fi India is the event in 2012 that is expected to deliver key R&D, NPD, marketing and purUBM Live chasing professionals from the Indian food manufacturers. Focused on entire range of technology suppliers to the Food Processing and Packaging industry in India the event looks at processing and packaging, food ingredients, beverage technologies, cooling and refrigeration

International Food Tec India

11-13 Sept 2012

KoelnBombay Exhimesse YA bition Center, Tradefair NSE, Mumbai Pvt. Ltd.

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Event Name

Date

Venue

Organizer Event Description

International Conference and Exhibition 22-24 Nov on Food Processing 2012 and Technology

Hyderabad

OMICS Group

The event brings together a mix of large and medium food processing and technology industries, leading universities, food science related research institutions. The event focuses on maximum value creation, technology display, awareness creation and agro commerce. The event is expected to offer brilliant business opportunities to the technology holders over & above introduce practical learning to the technology users.

Agro Tech

1-4 Dec 2012

Parade Ground, Chan- CII digarh

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International Trade Events

Event Name Date Venue Organizer Event Description Conference will be a unique platform to do 7th African Cashew Alliance Annual 17-20 Sep Conference and the 2012 World Cashew Expo12 business, exchange best practices, and learn from experts from around the world. The World Cashew Expo12 will offer opportunities to meet with equipment, manufacturers and service providers. Access to finance will be one of the key topics developed during the event along with market and investment opportunities.

Cotonou, Benin

ACA

The good food and wine show

01-03 Jun 2012

Melbourne, Australia

Diversified Show celebrates Melbourne's love affair with Exhibitions good food, top wines, and tempting chocolates Australia and of course, delectable cheeses. The Japan Food Machinery Manufacturers' Association The event focuses on products, technologies, and services for food processing and related operations. The exhibitors represent every conceivable link in the value chain for foodrelated equipment.

FOOMA JAPAN International Food 05-08 Jun Machinery and 2012 Technology Exhibition

Tokyo, Japan

Daegu International 07-10 Jun Food Industry Exhi2012 bition

Exco, Korea

The event focuses on Equipment and Machinery for Food Service Kitchen utensils & Korea food equipment, Cookware, Food service equipindustry ment, Food storage equipment, Freezer, Redevelopfrigerator, Cooler, Food preparation equipment Water Purifier, Cleaning & Sanitary systems ment asand equipment, Disinfecting installation and sociation materials BOFAS bureau The event focuses on food fair, Sea food fair, Caf and Bakery fare, Food technology and machinery fair

14-17 Jun Busan International food expo 2012

Busan, South Korea

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Event Name

Date

Venue

Organizer

Event Description The event focuses on the major challenges faced by the global food industry. The event focuses on the major challenges faced by the global food industry. The exhibition focusing on newest and best products and services on offer and stay abreast of whats hot and happening in the food industries.

Sial (Salon International De 21-25 Oct Paris, L'alimentation) 2012 France 2012 Sial (Salon International De 21-25 Oct Paris, France L'alimentation) 2012 2012

SIAL

SIAL

DiversiMelbourne, fied ExFine Food Exhi- 10-13 Sep Australia hibitions bition, Australia 2012 Australia Pty Ltd

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