The Ministry of Agriculture and Rural Development has decided to keep the country’s cashew processing capacity unchanged at 715,000 tonnes per year, while allowing domestic enterprises to import 125,000 tonnes of raw cashews by 2010.
The ministry also increased the area of cashew nut cultivation to 450,000ha.
To meet the ministry’s annual production target of 500,000tonnes of raw cashews by 2010, yields would therefore need to reach 1.4-2 tonnes per hectare per year.
By importing raw cashews, the sector would be able to generate US$670 million in export turnover by 2010 and US$820 million by 2020.
Decision No 3912007/QD-BNN stated that the area of cashew cultivation needed to be enlarged -particularly in the Central Highlands and southern regions.
The ministry also called on provincial and city authorities to draw up their own strategies for boosting cashew production -such as investing in more modem processing facilities.
It also called on cashew processors to form into groups, which would be stronger financially, and allow them to improve brand name recognition and global market penetration.