Nuts

Cashews: blow to exports

November 29, 2022 at 10:27 AM, Der AUDITOR
Play report as audio

HANOI. Rising demand for healthy snacks may be driving the popularity of cashew nuts in Europe and prompted a steady rise in imports in 2017-2021, but the situation has changed this year as inflation is up and supply chains are disrupted. Exports from Vietnam have certainly taken a hit this year.

Spending shifts in Europe

The Centre for the Promotion of Imports from developing countries (CBI) not only states that the European cashew market will continue to grow by 3-5% per year in the next five years, but also highlights that imports very much depend on supply and prices. This renders the market particularly vulnerable to the multiple crises witnessed this year. Not only has the war in Ukraine disrupted supply chains but annual inflation also reached 10.6% in October according to Eurostat, which is up on the 9.9% recorded in September 2022. Energy has the highest rate of 41.5% (40.7% in September), followed by food, alcohol and tobacco with 13.1% (11.8% in September). Consumers are consequently tightening their belts and businesses are considering their purchases very carefully, which has an impact on Vietnam as Europe's leading supplier for cashew nuts.

Exports dip

Europe is, however, not the only worry for Vietnam’s cashew suppliers. Fact is that that the country’s exports have declined sharply to most leading destinations. At 44,310 mt worth USD 265.67 million October exports ranged 16.5% lower in terms of volume and 24.3% lower in terms of value than in October 2021. Total exports have also declined by 11.7% in volume and by 15.5% in value between January and October as compared with the same period last year, despite average export prices ranging 4.4% lower at USD 5,911/mt as the Vietnam Cashew Association (VINACAS) reports.

Exports have taken double digit dips to Vietnam’s top markets. Shipments to the United States have notably declined by 20.4%. Although Vinacas highlights that total US cashew imports declined by nearly 15% in terms of volume and value between January and September to show that Vietnam is actually performing quite well here, it should be noted that Ivory Coast is gaining market shares in the US. China also reduced imports from Vietnam by 29.1%. Shipments to the Netherlands and Germany, the two most important export destinations within the EU, have also declined sharply, which clearly reflects the current economic situation. Shipments to the United Arab Emirates, Israel and Saudi Arabia have, by contrast, risen sharply.

Cashew nut exports, Vietnam, 2022

Destination

mt

USD

Diff. mt

Diff. USD

USA

119,391

700,289

-19.8%

-20.4%

China

59,871

356,180

-12.3%

-29.1%

Netherlands

45,228

246,212

-22.4

-22.9%

Germany

14,813

91,269

-14.2%

-16.2%

Australia

13,461

80,303

-0.6%

-4.0%

UK

13,097

74,040

-3.1%

-5.6%

Canada

10,630

64,959

-22.7%

-29.3%

UAE

7,817

47,911

27.9%

24.5%

Israel

7,256

52,742

19.7%

17.1%

Saudi Arabia

6,930

44,372

54.2%

46.8%

Others

126,335

786,749

-3.3%

-5.7%

Total

424,829

2,545,025

-11.7%

-15.5%

General Department of Customs, Vietnam, Jan-Oct 2022

Prices shape demand

Although cashews have gained popularity throughout Europe in recent years, several dynamics are at play. CBI not only highlights that European cashew nut imports rose by 6.7% every year in terms of volume between 2017 and 2021 but also that they declined by 3.4% in terms of value. Demand is not only driven by consumers changing their habits but also by prices and other economic factors. Many companies have also started investing in production sites in West Africa to reduce their dependency on Vietnam and India and to instal more sustainable supply routes. The prices for cashews kernels form India and Vietnam have declined a bit in recent weeks.

Cashew kernels

Type

USD/mt

EUR/mt

LWP, FOB India

6,830

6,583

SWP, FOB India

6,165

5,942

W320, FOB India

8,175

7,880

W450, FOB India

7,460

7,190

WW240, Vietnam, FCA Spain

6,460

6,300

Trade sources

 

View more
price charts for edible nuts
price charts for dried fruit, oilseeds, spices and more

View related articles

Go to the News Overview
Nuts
Jan 25, 2023
MADRID/SACRAMENTO. Although Spain’s almond exports received a boost in November, the dent in exports is still much higher than in California. Competition between Spain and California remains fierce with speculations on water supplies and exchange rates having top priority at present.
Nuts
Jan 23, 2023
NEW DELHI. Farmers are in full control of India’s peanut market. Not only do they still hold more than 35% of all stocks but they also know how to play to their advantage. Artificial intelligence may also prove an asset in limiting aflatoxin contamination.
Nuts
Jan 19, 2023
ORDU. Things have taken such a bizarre turn in Turkey that buyers have switched to other hazelnut producing countries such as Georgia, Azerbaijan or Italy. Drought will, in fact, have a lasting impact on production in Italy.
Nuts
Jan 18, 2023
TEHRAN. Frustration and anger are growing with Iran’s government. Suppliers are now actively blaming the government for losing market shares for pistachios. Exports have, in fact, slumped by 75%.