Nuts

Cashews: concern about crop quality

March 30, 2022 12:42 PM, Der AUDITOR
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REUS/HANOI. The INC expects a higher production volume for the 2021/22 season than last year, but is also concerned about the quality of the goods. Improper storage and adverse weather conditions could have a negative impact.

Production increase in Cambodia

The current production estimates of the International Nut and Dried Fruit Council (INC) look quite positive for this season. They amount to 4.11 million mt of raw cashew nuts, which is an increase of 5.8% compared to last year. The two most important producing countries, Côte d'Ivoire and India, can increase their crops by 11.1% and 6.8% respectively, while Vietnam is expected to record a decline of 11.1%. According to INC data, Cambodia could achieve a production increase of 57.9%.

Cashew production (RCN), in mt

Country

2020/21

2021/22

Diff.

Côte d'Ivoire

900,000

1,000,000

11.1%

India

691,000

738,000

6.8%

Vietnam

450,000

400,000

-11.1%

Cambodia

190,000

300,000

57.9%

Nigeria

260,000

240,000

-7.7%

Benin

220,000

240,000

9.1%

Tanzania

220,000

220,000

0.0%

Guinea-Bissau

180,000

180,000

0.0%

Ghana

170,000

180,000

5.9%

Brazil

135,000

135,000

0.0%

Indonesia

115,000

115,000

0.0%

Burkina Faso

100,000

100,000

0.0%

Mozambique

55,000

65,000

18.2%

Guinea Conakry

60,000

60,000

0.0%

Senegal

35,000

35,000

0.0%

Togo

20,000

20,000

0.0%

Gambia

15,000

15,000

0.0%

Mali

7,000

7,000

0.0%

Kenya

6,000

6,000

0.0%

Others

54,000

54,000

0.0%

Total

3,883,000

4,110,000

5.8%

INC, March 2022

Quality could become an obstacle

One problem could be the quality of the crops this season. According to the INC, there were harvest delays in Tanzania, and the inadequate and sometimes improper storage conditions could mean that the goods might fail to convince buyers. Meanwhile, the cultivation areas in Southeast Asia had to struggle with heavy rainfall, which also left its mark on the cashew plantations. In contrast, things are currently looking better in West Africa and India.

The demand for cashews in 2021 has increased compared to the previous year in both the USA and the EU. The INC interprets this as a clear indicator that new consumers are accepting cashews as a healthy food and are increasingly consuming them. In China, too, buying interest has increased, which was particularly evident around the Chinese New Year. One problem that both African and Asian exporters continue to face is the ongoing logistical hurdles. Covid-related congestion at ports, container shortages and high freight prices are causing delays and dissatisfaction among buyers. Prices on the European spot market are unchanged from last week at EUR 6.70/kg FCA Spain for cashew kernels, WW320, origin Vietnam.

Cashew kernels, Vietnam

Type

EUR/kg

USD/kg

WW320

6.70

7.45

WW240

7.30

8.12

WW210

8.40

9.34

WW180

8.95

9.96

FCA Spain

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