Announcing: Walsh, John and Nittana Southiseng, “Prospects and Problems of Developing a Cashew Nut Export Industry for Lao PDR,” paper presented at the 7th International Conference on Lao Studies (online) (Deakin University, 15th-18th, November, 2022).
Abstract:
One important means of developing the Lao economy is by creating export sectors in which local producers can hope for comparative advantage for geographic and climatic reasons. One possible such sector is cashew nuts (Anacardium occidentale), which are nutritious and in increasing demand for incorporation into a wide range of snack foods. Snack foods have historically been the preserve of developed countries but, as urban middle classes emerge across Asia, including Southeast Asia, more markets are opening to which Lao producers might think of aiming their goods. Although the shelling and processing stages are complex and time-consuming, there are prospects for using different parts of the plant and the cashew apple for additional revenue streams. However, there is the problem that mainland Southeast Asia’s cashew nut processing and exporting are dominated by Vietnam, which is one of the world’s leading producers of shelled nuts. Since Vietnam’s processing capacity greatly exceeds its growing capacity, its firms import large numbers of nuts from a range of overseas countries. This includes Cambodia, which exports nearly all of its increasingly large crop of nuts to Vietnam and, since Vietnam has not yet developed popular and established brands which might provide premium levels of pricing, its exporters buy nuts on a low-cost commodity basis. Since cashew growing as an export industry is still in its infancy in Lao PDR, it is worth considering what would need to be done to prevent growers simply acting as a source of cheap inputs for Vietnamese buyers and what support the government might provide to enable local growers to add value to their production and, thereby, maximise the benefit of production.
If anyone is interested in the presentation, then please let me know. I also chaired a session on Lao history and another on art and culture in the country, both of which were very interesting. If you have chance to take a look at any of the recorded sessions or the various exhibitions, then I would recommend that you do so.