Nuts

Cashews: USA urges Vietnam to prioritise vaccination of industry

August 9, 2021 at 4:29 PM, Der AUDITOR
Play report as audio

HANOI/BEIJING. The Food Industry of America (FIA) has urged Vietnam to prioritise vaccinating workers in agricultural production and food processing, especially in the cashew industry, in a letter addressed to Prime Minister Pham Minh Chinh on 3 August. As local media report, the social distancing measures and restrictions in place to curb the fourth wave of the pandemic are expected to jeopardise production and transportation of cashew nuts in Vietnam. Ports in China are confronted with chaotic weather conditions.

Vietnam urged to retain leading position

The Vietnam Cashew Association (Vinacas) responded swiftly by forwarding the letter in an urgent dispatch to the prime minister. Issue is that cashews are highly important to Vietnam's economy. As Than Nien Newspaper, for instance, emphasises in accordance with Ministry of Industry and Trade data Vietnam exported 3240,00 mt of chashe kernels worth USD 1.97 billion between January and July 2021. This is 21.4% up in terms of volume and 14% up in terms of value on the same period in 2020. Demand in the US and EU is expected to further boost exports in the third quarter. This may, however, be jeopardised as Vietnam is forced to put restrictions in place to fight the fourth wave of the pandemic. The FIA goes a step further by highlighting that nonthing less than Vietnam's leading position is a stake in the letter, which is publicly available on the Vinacas website:

The U.S. market accounts for nearly one-third of the $3.5 billion value of annual Vietnamese cashew kernel exports and keeping a steady supply is key to encouraging continued growth. We urge you [the prime minister] to work with VINACAS, the Vietnamese cashew industry trade association, to implement vaccination and other Covid protocols to help Vietnam retain its leadership within the sector, a position that if lost, may never be regained.

No response to the letter has been issued so far. Cashew kernels from Vietnam are, meanwhile, trading firm in Europe. Prices for WW320 cashew kernels range at EUR 6.85/ kg FCA Spain.

Cashew kernels, Vietnam

Type

EUR/kg

Roasted and salted

6.95

White splits

5.05

Large white pieces

3.95

WW320

6.85

WW240

7.30

FCA Spain

Storms hit China

Logistics are also an issue. China is confronted with storms and typhoons. Yantian port was, for instance, temporarily unable to accept any container shipments and the situation is not better in many other ports. This is not exactly improving the situation for exporters, who have been confronted with a lack of containers and horrendous freight charges for months. Vinacas reckons that freight charges will continue to rise and that there will be further delivery delays. Prices are, meanwhile, firm in India.

Cashew nuts, India

Type

USD/mt

W240

9,993

W320

8,649

W450

7,842

LWP

6,767

SWP

5,422

FOB India

 

View more
price charts for edible nuts
price charts for dried fruit, oilseeds, spices and more

View related articles

Go to the News Overview
Nuts
Feb 2, 2023
ORDU. Suppliers in Turkey are utterly shocked and surprised by the TMO’s decision to sell hazelnuts. Initial assumption was that the state-run organisation would try to hold on to its stocks to prevent prices from tumbling before the general election in June.
Nuts
Feb 1, 2023
HANOI. Farmers presently have little incentive to harvest cashews in Vietnam. Many have, in fact, stopped harvesting as local media report. Trouble is that raw material prices are simply too low. There is no chance of improvement as prospects are bleak for exports.
Nuts
Jan 31, 2023
MANILA. As the experts of T.M. Duché report, prices for coconut oil were able to crack the USD 4,000/mt mark at the beginning of the year. How the situation develops further in the course of the year depends largely on the other edible oil markets.
Nuts
Jan 30, 2023
NEW DELHI. The shortage of sesame oil is making many buyers in India and overseas switch to peanut oil as a popular alternative. The higher demand is also causing prices to rise. There is good news regarding import duties.