Nuts

Cashews: exports increase significantly

September 1, 2021 11:39 AM, Der AUDITOR
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HANOI. Both Vietnam's imports and exports have increased significantly compared to last year. Nevertheless, the cashew industry continues to face various problems.

Imports from Cambodia remain questionable

Vietnamese exporters can be more than satisfied with July exports. A total of 59,061 mt were shipped overseas, as the experts at cornhouse.nl report; this is almost 42% more than in July 2020. Between January and July 2021, Vietnam thus exported a total of 345,145 mt of cashews, almost 26% more than in the corresponding period last year.

In line with the high demand and good exports, Vietnam has also significantly increased its RCN imports. In July, imports amounted to 348,723 mt, total amount of January-July 2021 to 2,152,356 mt , a whopping 153% year-on-year increase. What remains doubtful is the amount of RCN imported from Cambodia, which is said to be over 1 million mt, accounting for more than half of Vietnam's imports. According to cornhouse.nl, this would make Cambodia the largest cashew producer in the world. However, in the global production estimates of the International Nut and Dried Fruit Council (INC) for the 2021/22 season, Cambodia ranks only third after India and Vietnam, as in previous seasons.

Quality declines

Prices on the European spot market remain stable with a slight upward trend, depending on the variety. This is not due to the available quantity - which can easily meet demand - but primarily to the logistical hurdles. Exporters still have difficulties in getting containers and places on the freighters to ship their goods. In addition, there are said to be problems with the quality of the cashew kernels, so that more and more roasters are refusing deliveries.

Cashew kernels, Vietnam

Type

EUR/kg

White Splits

5.00

Large white pieces

4.30

WW320

6.90

WW240

7.50

FCA Spain

Lockdown in Vietnam extended

Business is currently good for Vietnamese producers and numerous orders have already been received for 2022. However, the pandemic-related restrictions are a continuing problem. For the time being, the Vietnamese government has extended the lockdown until 15 September, but market players are advised to monitor the situation closely. If there are further extensions or even tightening of the measures, this could have a significant impact on cashew production.

Congestion at the ports

In addition, the Vietnam Cashew Association (Vinacas) once again clearly points out that much depends on the development of the logistical problems. The situation at the ports seems to be developing negatively rather than easing. On 28 August, for example, 44 container ships had to anchor outside the port of Los Angeles/Long Beach, which is considered the largest trade link between the USA and Asia, because they could not enter the port for the time being. This is the largest number of waiting ships in this port since the beginning of the pandemic. The reason given by Vinacas experts, who refer to Bloomberg, is a lack of manpower.

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