Nuts

Cashews: massive slump in exports

April 23, 2020 11:52 AM, Der AUDITOR
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HANOI/ACCRA. Cashew nut exporting countries such as Vietnam, Ghana and India are facing major problems due to the Covid-19 pandemic. In Vietnam, the export value could fall by 25%.

Losses of up to USD 1 billion

According to Pham Van Cong, Chairman of the Vietnam Cashew Association (Vinacas), the Vietnamese cashew industry is facing considerable difficulties due to the corona pandemic. It is estimated that the value of exports could reach USD 3 billion in 2020, which is USD 1 billion less than the value declared before the pandemic broke out. The three most important importing countries for Vietnamese cashew kernels are the USA, the Netherlands and China, all of which are affected to a very high degree. African states, from which Vietnam obtains a large part of its RCN, have also significantly restricted and in some cases even stopped their exports. According to Van Cong, the final impact cannot yet be assessed. Many customers are calling off their contracts at an early stage out of concern that the transports may not be guaranteed in the coming months. In total, Vietnam exported 94,680 metric tonnes of cashews worth USD 666.9 million in Q1 of 2020. Sinking buying interest is causing prices to decline. Vietnamese cashews, WW320, are currently traded for 6.20 EUR/kg FCA Spain on the European spot market.

Ghana closes factories

In India there have been slight price increases in the past few days and market players expect prices to remain higher as there are not much quality goods available. Indian cashews, W320, are currently trading at 8,420 USD/mt FOB India.

Ghana, however, is facing similar problems as Vietnam, as important export markets, especially in Asia, are disappearing. Here, prices for RCN on the international markets have fallen to the current level of USD 950 per metric tonne, which represents a 63% drop in prices compared to January. Many producers have already had to close their plants as too few purchase requests have been received. Ghana is currently ranked 7th among the most important countries exporting cashew nuts to the EU, with Vietnam undisputedly in first place with over 100,000 metric tonnes per year.

Cashew imports* into the EU, in mt

Country

2018

2019

Diff.

Vietnam

91,183

105,908

16.1%

India

19,834

21,125

6.5%

Brazil

3,094

5,279

70.6%

Cote d'Ivoire

1,207

2,110

74.8%

Burkina Faso

998

1,729

73.2%

Mozambique

1,218

1,672

37.3%

Ghana

916

1,117

21.9%

Benin

275

926

236.7%

Others

2,537

2,820

11.2%

Total

121,262

142,686

17.7%

European Commission

*08013200 Fresh or dried cashew nuts, shelled

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