Optimizing the international value chain of Fairtrade cashew nuts from Vietnam

Vietnam is the third biggest producer of cashew nuts and the number 1 exporter. The potential for developing the country’s Fairtrade cashew supply chain is huge, but there are many challenges too. The key research question in this project was 'How can Fairtrade cashew nuts from Vietnam ('Fairnamese cashew nuts') conquer a solid position in the world market'?

This project is funded by the Trade for Development Centre (TDC), a programme implemented by Enabel - the Belgian development agency, and conducted for the Fairtrade Network of Asia and Pacific Producers’ (NAPP). The TDC aims at economic and social empowerment of small producer organisations by enhancing their business knowledge and improving their access to markets. Cashew nuts from Vietnam are one of the products that receive the attention of TDC, and the results of the market study by Globally Cool are set to contribute to the development of a Fairtrade supply chain for cashew nuts from Vietnam. The research concluded that there are certainly chances to further develop the international trade of Fairtrade cashew nuts. And Vietnam can definitely play a role in bringing the global supply base of Fairtrade cashew nuts to a higher level. The report, which is the main deliverable of the project, offers a good starting point to make 'Fairnamese cashew nuts globally famous' a successful mission!

Activities

There are 2 geographic areas where activities took place. In the first place, a thorough scan of the Vietnamese cashew nuts supply was made through a team of local consultants. They spoke to 35 companies to collect first-hand ideas and insights. Secondly, Globally Cool gauged the interest and opportunities for Fairnamese cashew nuts by conducting interviews with more than 60 importers, distributors etc. from countries all over the world. Market covered were e.g. USA, Canada, Brazil, Australia, China, Europe, Middle East and North Africa. The results of the survey were shared through a presentation during a meeting of the Vietnamese Cashew Nuts Association (Vinacas) in Ho Chi Minh in December 2017.

Results

Our study has eight specific recommendations in order to help them reach their full potential. Along with answering the central question, Globally Cool has delivered the following output:

• One main report zooming in on the world market on one hand, and Vietnamese supply on the other hand.
• 8 hands-on tips on how Fairnamese cashew nuts can conquer the world market.
• Supporting material, such as this short video showing how fair global cashew nuts trade is,  and this simple video as an idea to promote fairtrade cashew nuts consumption