FRUCOM proposes to prioritize vaccination for the cashew industry

FRUCOM - an organization representing about 250 European companies importing processed foods, requested Vietnam to prioritize vaccination for the cashew industry.

FRUCOM requested Vietnam to prioritize vaccination for workers in the cashew industry. Photo: Thanh Son.

In a letter addressed to Prime Minister Pham Minh Chinh on August 18th, Ms. Anna Boulova, Secretary General of FRUCOM, said that the organization represents about 250 European companies importing processed foods, including cashew.

According to Ms. Anna Boulova, members of FRUCOM have been working with different countries and origins, including Vietnam. Vietnam is an important partner to Europe and its countries (EU-27) are also Vietnam's third largest export market. From May 2020 to April 2021, EU-27 countries imported 36 billion euros worth of goods from Vietnam.

Cashews are a particularly important commodity for many FRUCOM members and Vietnam has become the leading exporter for this product. In 2020, nearly 700 million Euros worth of shelled cashew imports originated from Vietnam, accounting for about 75% of the total supply of cashew nuts in the EU and UK markets.

Currently, FRUCOM is facing a critical issue in Vietnam that could result in serious consequences for cashew supply over the next 6 to 12 months in the absence of appropriate support for the industry.

Specifically, Vietnam has issued a directive to quarantine the southern provinces and cities of the country, where the largest cashew production is available. Cashew factories had to maintain a small number of workers to produce under the "3 on-site" protocol or halt production entirely. Therefore, processing output in Vietnam is estimated to have decreased by 30-35%. Consequently, the cashew industry needs urgent support with vaccination to keep the supply chain operating, especially in the South.

At the end of the letter, Ms. Anna Boulova remarked, “This sector provides food for the people, generates income and taxes for the State, as well as maintains jobs related to processing and trade, and in our opinion, it should be considered a priority. We respectfully ask you to support and quickly get this very important supply chain functional again through targeted vaccination.”

Previously, on August 3rd, Bob Bauer, Chairman of the American Food Industry Association, also sent a letter addressed to Prime Minister Pham Minh Chinh, requesting Vietnam to prioritize Covid-19 vaccination for the work force in agricultural production and food processing in Vietnam, especially in the cashew industry.