Nuts

Cashews: tough competition for Indian exporters

January 19, 2022 12:45 PM, Der AUDITOR
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HANOI/NEW DELHI. Even though prices for Indian cashews are approaching a more attractive level again, suppliers there will have a hard time keeping up with the competition from Vietnam and African growing countries. Vietnam achieved a new export record in 2021.

Vietnamese exports break records

Even though Vietnamese cashew exporters faced many pandemic-related difficulties in 2021, such as supply chain disruptions or high transport costs, exports still reached new records, according to the Vietnam Cashew Association (Vinacas). According to the Vietnam Customs Office, the country exported a total of 580,000 mt, topping the previous record of 2020 by around 65,000 mt. An export value of USD 3.65 billion was achieved - also a new record. The USA remains the most important destination, with Vietnam shipping 176,000 mt of cashews worth USD 1.052 billion to the United States in 2021. Overall, Vietnamese cashews account for around 90% of US imports. The most popular are cashews of the W320 variety.

Prices on the European spot market have fallen nominally for Vietnamese goods compared to last week and are at EUR 6.38/kg FCA Spain for cashews, WW320.

Cashew kernels, Vietnam

Type

EUR/kg

USD/kg

WW320

6.38

7.24

Large White Pieces

4.38

4.96

Small Pieces

2.97

3.37

FCA Spain

Germany's cashew imports decline

Germany also obtains by far its largest share of cashew imports from Vietnam. In the period September-November 2021, the amount was 8,916 mt, which corresponds to a decline of almost 20% compared to the previous year. Imports from India have also fallen significantly by -41% and amount to 2,759 mt in the aforementioned period.

German cashew* imports, in mt

Country

2020/21

2021/22

Diff.

Vietnam

11,121

8,916

-19.8%

India

4,678

2,759

-41.0%

Netherlands

612

631

3.1%

Cote d'Ivoire

144

629

336.8%

Indonesia

206

541

162.6%

Burkina Faso

161

327

103.1%

Others

606

641

5.8%

Total

17,528

14,444

-17.6%

Federal Statistical Office of Germany / Sep-Nov

*08013200 Fresh or dried cashew nuts, shelled

Côte d'Ivoire comes up with massive increases in production

African producing countries account for almost 60% of the world's cashew production, with Côte d'Ivoire the undisputed leader with almost 25% of world production. The country managed to crack the one million mark this season, and experts at Commodafrica estimate the crop at 1.123 million mt. This is about 18% more than last year. Exports also increased strongly by an estimated 20%. Besides Côte d'Ivoire, other growing countries such as Ghana and Tanzania also have good chances of increasing their production.

Indian exports at record low

India, meanwhile, is facing other problems. As Samsons experts report, Indian exports are likely to be at a record low, mainly because the high prices are not competitive on the world market. However, they are now approaching more attractive levels again and have remained stable compared to last week. Nevertheless, it will remain difficult for Indian suppliers to compete against Vietnamese and African competitors in 2022. Indian RCN imports are stable and consumption has recovered from its 2020 low.

Cashew kernels, India

Type

USD/mt

W320

8,155

W450

7,490

Large White Pieces

6,830

FOB India

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