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Cashews: Disastrous crop in Vietnam

April 5, 2017 at 8:44 AM , Der AUDITOR
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HANOI. The experts all agree. The cashew market in Vietnam is facing great challenges this year. The reason for this are disappointing crop expectations. Some farmers are even reporting complete losses.

Massive crop losses

Bad weather, pest infestation and disease have taken a heavy toll on trees in the flowering period in several regions. Mainly the growing regions in Binh Thuân and Lâm Dông are affected. Many farmers are reporting complete failures and sometimes massive crop losses. In contrast, the main growing regions of Bình Phu’ó’g, Dông Nai and Bà Ria-Vung Tàu hardly suffered any losses. Officials estimate the losses at 50%. In contrast, traders are expecting losses of even 60-70%.

The USA and EU are driving up the prices

In any case, processors do not have enough raw goods, so that Vietnam will have to import up to 1.4 million mt from Africa this year. The raw goods are currently 30% more expensive than in the same period last year. This is mainly due to the current high demand from the USA and the EU. May deliveries from Vietnam are being offered for 4.60 USD/lb FOB. Moreover, the prices for raw goods from Africa are soaring.

Raw cashew nuts

Country

USD/mt

Ivory Coast

1,900

Nigeria

1,800

Benin

1,950

CFR, April deliveries

 

The world's biggest cashew producer

Vietnam is the world's biggest cashew producer. Last year, the country was responsible for about half the global cashew production with 1.5 million mt. Of this, 348,000 mt were exported, an increase of 5.6% compared to 2015. After coffee, cashews are the second most important export commodity from Vietnam. In the first two months of 2017, exports have dropped by 3.3% compared to 2016.

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