Lesson 2: "Hold the gold, don't let it drop"

As more and more brands and new standards are born, businesses follow the standards of different markets around the world, along with vague propaganda, making it difficult for Binh Phuoc cashew products with geographical indications (GIs) to find a firm foothold in the hearts of consumers and in the market, despite their superior value.

Not yet established

From the actual values that cashew trees bring to many fields for Binh Phuoc province, this tree has "entered" important economic development policies and strategies of authorities at all levels from central to local. Binh Phuoc has been planned by the Government and the Ministry of Agriculture and Rural Development as the main raw material area for the cashew industry with 200,000 hectares of cashews by 2020. Resolution No. 11-NQ/TU dated April 15, 2020 of the Provincial Party Committee on the development of the Binh Phuoc cashew industry in the period of 2020-2025, with a vision to 2030, identifies the goal of building and developing the Binh Phuoc cashew industry with a brand, reputation, and in-depth direction.

Cashew production and processing activities are carried out by companies in the province according to procedures, ensuring food hygiene and safety.

In fact, in recent years, the province's agricultural sector has shifted the structure of key crops in the province, including cashew. Up to now, the cashew area has been narrowed to only about 140,000 hectares. Along with that, the price of raw cashew materials is also low compared to other agricultural products. This has been a concern of cashew growers and the province in recent times.

A specialized cashew processing step at Vinahe Company Limited (Phuoc Long)

Although the geographical indication of Binh Phuoc cashew nuts is valuable domestically and internationally, the influence of cashew nuts with geographical indications is still weak. Compared with cashew nuts in the province in particular and in the country in general, but with the brand name of OCOP products, Binh Phuoc cashew nuts with geographical indications are not very impressive to consumers. Because, in fact, consumers do not fully understand the advantages of cashew nuts with geographical indications compared to other brands and trademarks. Ms. Tran Thi Huong in Quarter 1, Tien Thanh Ward, Dong Xoai City said: Cashew is one of the nuts that I put in my daily menu to take care of my health. Therefore, when choosing cashew products, I base on criteria such as the reliability of the manufacturing unit, the product's certified standards, which brand... However, I hardly know about Binh Phuoc cashew products with geographical indications, while OCOP products are heard and introduced more.

According to the assessment of business owners whose cashew products are granted a geographical indication, they do not deny the advantages of other branded products, but must admit that Binh Phuoc cashew products granted a geographical indication are of very good quality, with many plus points for consumers. To be granted a geographical indication, many strict standards must be met; after being granted a geographical indication, regular inspection and evaluation are required... if not properly implemented, the geographical indication will be revoked.

It can be seen that, although it was born earlier and has many advantages and outstanding values, in terms of market access and consumer access, Binh Phuoc cashew products with geographical indications are somewhat "weaker" than brands and labels that were born later in the country. To have a sustainable position in the hearts of consumers and in the market is a great concern for businesses, localities that are raw material growing areas granted geographical indications as well as the authorities that are managing the geographical indications of Binh Phuoc cashews.

The "knots"

In recent years, cashew growers have faced many risks. Ms. Nguyen Thi Trang, who used to be a household with a large cashew area in village 2, Long Ha commune, Phu Rieng district, said: “The complex and unpredictable climate change has caused more and more diseases to appear on cashew trees, seriously reducing productivity and quality of nuts. The cost of investment, care and production for cashew trees is increasingly high. Meanwhile, the price of raw cashews has remained low for many years. This has caused cashew growers to suffer losses. The economic value of cashew trees is less effective than other crops, so many people have switched crops. Up to now, my family has converted 7 hectares of cashew trees to rubber trees, now there is only about 1 hectare of cashew trees left.” In addition, urbanization and rural industrialization are also the reasons for the shrinking cashew area.

Experts from Futaba Sankyo Company (Japan) study the soil improvement process at the cashew garden of Hoa Phu Clean Agriculture Cooperative.

The planning and formation of cooperatives and large cashew growing areas are not many, and the production chain linking with processing enterprises has not been formed, making it difficult to control the origin and quality. As a result, most cashew production and trading enterprises in the province do not have or have difficulty finding raw material areas to supply Binh Phuoc cashews that fully meet the conditions of the geographical indication, but must purchase through traders. There are some cases of linking with cashew growing households, but it is still a formality. Enterprises that are granted the right to use geographical indications also lack production links with each other to create strengths for products bearing geographical indications in the market.

Mr. Vu Manh Tung, Director of Vang Cashew Nuts Company Limited (Phu Rieng District) said: My family has a large cashew growing area and is a member of Hoa Phu Clean Agriculture Cooperative in Tan Phu village, Bu Nho commune, Phu Rieng District. For many years, the company, as a member, has also cooperated with the cooperative to supply clean cashew materials to produce and process cashew products and has OCOP certification. In 2023, the company researched and prepared documents for the Geographical Indication of Binh Phuoc Cashew Nuts. However, after researching, although the product has many advantages in the Geographical Indication, in reality, the company's business needs are not necessary.

According to the actual survey of the reporter, the reason why many businesses are still hesitant to participate in the geographical indication of Binh Phuoc cashew nuts is because it does not bring immediate benefits and advantages in terms of price in the market. On the contrary, they have to face fierce competition from cashew products of the same type without geographical indication but with other brands. Even due to the loose management in naming products with "labels" showing the content as "Binh Phuoc Specialty", "Binh Phuoc Cashews" by some families and small traders freely named them to gain the trust of consumers... Because of these reasons, many businesses were initially enthusiastic about geographical indication but later lost interest.

The value of products with protected geographical indications of Binh Phuoc cashew nuts cannot be denied. However, few consumers and businesses understand correctly and fully the value of the geographical indications of Binh Phuoc cashew nuts. Therefore, although the geographical indications of Binh Phuoc cashew nuts have been granted since 2018, up to now, products with geographical indications of Binh Phuoc cashew nuts are still few and monotonous; the level of recognition of the value and brand of products with geographical indications of Binh Phuoc cashew nuts in the hearts of consumers and the market is not high. There is a folk saying "Hold the gold, don't let it fall", before the potential and strengths that the geographical indications of Binh Phuoc cashew nuts bring, it is necessary for competent authorities, functional sectors, cashew businesses and cashew growers to join hands to promote this advantage, do not let the geographical indications of Binh Phuoc cashew nuts be "forgotten" over time.

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