Nuts

Cashews: export target takes new hit

August 9, 2023 at 4:35 PM , Der AUDITOR
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HANOI. Vinacas, the Vietnam Cashew Associtaion, has called for a further reduction of the export target. Trouble is that the initial target of USD 3.8 billion is way out of reach.

Vinacas calls for reduction

While the initial export target was highly ambitions reality has now kicked in. Although the target has already been downgraded to USD 3.1 billion, Vinacas is now calling for USD 3.05 billion. Issue is that Vietnam only exported 279,000 mt of cashews worth USD 1.6 billion in January through to June 2023 and average export prices range 1.7% lower than last year at USD 5,717/mt. 

Like many other industries cashews are confronted with multiple problems ranging from geopolitical tensions over global inflation to less spending power in key markets. End consumers have reduced spending, especially since cashews are not a staple food. This has prompted many buyers to avoid longterm contracts and switch to spot buying. Although this allows for more flexibility in buying, consequence is that supplies spend more time in storage and traders are sounding the alarm bells over the impact on quality.

Another issue is that many producing countries in Africa are increasingly processing their own raw cashew nuts (RCN). This certainly generates more value in the countries of origin but also means that competition is turning fierce for Vietnam. Vinacas, however, confirms that processors here are well covered with RCN until the end of the year. 

Cashews, India

Type

USD/mt

LWP

6,435

SWP

5,770

W240

8,430

W320

7,780

W450

7,065

FOB India

 

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