Cashew nut shell turn into cash
Oil production that Vietnam exported more than 600,000 tons per year, profits of not less than 2 million / ton
Shell that is what many people consider junk, but is becoming a new source of raw materials and could open up a market of hundreds of millions of dollars each year. Because, cashew nut shell oil is an important raw material for many industries. Typically, from 1 ton of dried cashew processing can be 250-300 kg and 700-750 kg person pods, which can produce around 154 kg of oil. Oil that has components used in the adhesive material of high quality, used as a binder to produce marine paint or laminated materials, heat-resistant, durable, chemical industry, industrial applications electrical and electronic …
Currently, Dong Nai proportion accounted for 60% of the oil production of the country’s cashew nut shell. Therefore, this is the local strength in oil production conditions. Sharing the values of the shell NCDT thing, Mr. Do Nguyen Kien, Director of Technology Development Co., FTE, noted that, although the shell that is a byproduct but it is the main source of income of the Company. Companies that big oil producers such as FTE, Cat Loi Hung Loc (Dong Nai) or Thao Nguyen (Vung Tau) … often buy things on storage casing and production gradually. Price casing that at the present time about 1,450 VND / kg.
Most companies will focus on oil production that, semi-finished products or higher is Cardanol oil essences. Although the product is considered of great value, but according to representatives of the company FTE, average profits for oil Carnadol not less than 2 million / ton, there is time to 4 million / ton.
Due to storage conditions and short investment Carnadol oil production systems large and higher risk, most businesses focus only thing oil production. “Most businesses offer limited due to insufficient supply orders for 100-200 tons. On the other hand, due to the cost of manufacturing Cardanol investment is quite high, at 2.5 billion with capacity of 50 tons / month, while the potential for even greater oil market conditions, we are not indifferent to Cardanol ” Mr Kien explained.Estimates, Vietnam exported more than 600,000 tons of oil per year thing. The month leading enterprises can export about 10,000 tons of oil. The average FTE own supply annually about 25,000 tonnes to the market, the maximum can reach 48,000 tons, mainly exported to the Chinese market, South Korea, Indonesia and Spain. Previously, China was the main market, but now South Korea is leading.
Mr. Pham said that Vietnam’s cashew oil eligible for export to the US. However, due to commitments with providers that oil production machines, most Vietnam enterprises are outsourcing or exporting crude oil to China. Later, the Chinese will now refined into other products with economic value much higher crude oil, including adhesive materials manufacturer of high quality, high-grade paints, insulation materials boards, electronic products, in the manufacture of pulp friction brake … However, according to Mr. Kien, in the coming period, the Agreement trans-Pacific Partnership (TPP), as imports of raw materials from Vietnam so that oil production costs in China certainly higher than the price in Vietnam.
“I think, completely Vietnam has many advantages to be able to become a center of oil production material things in the world. That oil will remain the main product potential for exploitation of this oil is still greater than Cardanol “representative FTE evaluation. That oil prices in the past month has more than 370 USD / tonne and this price, the revenue earned more than $ 7 million FTE per year, the rate of return was 20%.
According to Kien, Vietnam is a country occupied huge advantage to oil production which, by its own in ASEAN, if the product originated in Vietnam will be exported at the rate of 0%. Brazil is the country producing it but also emerging in the industry. Indian oil output despite much bigger thing than Vietnam but restrictions on shipping costs. Therefore, the competitive advantage of Vietnam’s cashew industry is very large.
Currently, Dong Nai, Binh Phuoc has many establishments, small businesses interested in investment cashew shell oil production because production line to produce 100% is domestic investment should not be too high. However, Mr Kien said that to participate in oil production that, a very important factor is the ability to “control” the market price and supply. “To be able to stand firm in this industry, there should be a close relationship with those small suppliers. For example, FTE also have links with the traders at the market “. Through this connection, small business enterprises and coordination of the sale and keep the market price does not break.
Source: Investment Bridge Magazine
